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West Bank and Gaza Investment Climate Assessment: Fragmentation and Uncertainty

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STORY HIGHLIGHTS
  • Political instability, the result of the unresolved conflict and the restrictions on movement and access, remains the binding constraint in the Palestinian investment climate.
  • Private investment in the Palestinian territories remains far from sufficient to fuel adequate rates of economic growth.
  • Actions are needed by the Palestinian Authority, the Government of Israel, and international community to improve access to resources and markets.

The 2006 Investment Climate Assessment (ICA) found that shrinking market access and a lack of free movement of people and goods were the main constraints to growth for Palestinian enterprises. This ICA empirically confirms that while the positive factors identified in the 2006 investment climate assessment remain largely true today, political instability, the result of the unresolved conflict and the restrictions on movement and access to resources and markets, remains the key obstacle to economic growth. 

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