The industrial sector is one the main pillars of the Palestinian economy. It massively contributes to the process of economical and social development in Palestine.

Even though this sector is facing multiple types of obstacles, it never ceased to grow, especially in the latest years. This growth resulted from the development of some sub-sectors and the formation of chain clusters; which was evident in the leather and shoes, as well as the textiles and clothing sectors. Thus, enriching the Palestinian exports in turn.  

Why the industrial sector?

• Number of institutions:

The industrial sector, preceded by the service sector, is the second highest sector in number of institutions; which forms up to 13.5% of the total number of institutions in Palestine.  With up to 18,059 institutions by the end of 2015, there has been a 5% growth in the number of institution in Palestine between 2014 and 2015. 

• Number of employees and technical efficiency:

In terms of number of employees, preceded by the foreign trade and services sectors, the industrial sector comes in third place with 22% of total employment numbers in Palestine. With a 5% percentage of growth between 2014 and 2015 and a number reaching up to 91 thousand Palestinian employees by the end of 2015, this sector has clearly helped in minimizing the unemployment gap in Palestine.  

• Exports capacity and competitiveness:

The industrial sector in Palestine is the leading sector in terms of exports capacity. In reference to the PBS’s report on exports in Palestine and by choosing the top 10 commodities that achieve the highest exports values in Palestine, the industrial sector massively dominated the top 7 commodities which are: stone, marble, plastic bags, cigarettes, shoes, sponge mattresses, and furniture.

With up to 958 million US dollars, the exports value for the aforementioned commodities formed 35% of the total commodities’ exports values in Palestine in 2015. 

Inspiring Business