Ramallah, 1 August,2017; The Palestinian council of ministers approved an Incentive package contract to encourage investment in the use of alternative and renewable energy technologies, which was endorsed by PIPAs’ Board of Directors pursuant to the provisions of the Palestinian Investment Encouragement Law No. (1) of year 1998 and its amendments, The approval of the incentive package contract is a clear interpretation of the Palestinian government vision and its plans and commitments toward maintaining a healthy investment environment to attract foreign, Diaspora and expatriate investments in accordance with PIPAs’ strategic framework, which integrate with the National Policy Agenda 17-22, Local development and Sustainable Development Goals.
Since the industrial and free zones are vital for economic development through improved production, exports and job creation, a number of field surveys have been implemented through After Care Program, to examine the main obstacles facing the expansion of existing investments or attracting new investments by proposing policies that respond to the needs of providing an appropriate and competitive investment climate. And here PIPA assure that the industrial and free zones become more ready and attractive location to receive international and local investments; and calls the investors from all over the world to enjoy the competitiveness of Palestine and available competitive incentives.In line with the planed goals of the incentives package contract it’s expected that more than 85 projects will benefit from the contract either new established projects or projects moves to the industrial zones, in addition its expected that more than 510 direct jobs will be created through an investment that reaches 5 USM$; the investments will generate a direct revenue to public treasury estimated to be around 750 US$ thousands in the form of value added tax and fees.
It is worth mentioning that incentives contract package includes the following:
- New projects in the industrial and free zones receives extra three years in addition to incentives granted by law.
- Current investments located outside the industrial and free zones and welling to move to the named zones are eligible to receive extension for three years on the same category of income tax once started operation in the industrial and free zone.
- Financing and loans programs targeting projects within industrial and free zones are treated in the same manner of SME’s income tax treatment as per the law.
- In other hand, the above mentioned incentives will be linked to the number of Jobs created and preserved during the incentives periods.
The Incentive Package Contracts are considered to be the most competitive instruments in the Law. These contracts provide flexibility to PIPA to issue facilities that serve a certain sector, geographic location or a strategic project for the purpose of stimulating investment and increase performance in order to create jobs through production growth, increase export and transfer of technologies.
It is worth mentioning that PIPAs’ BoD accredited as a representation of public and private sector given that the private sector is represented by 40%. The Council is chaired by HE Abeer Odeh, Minister of National Economy. And it is worth mentioning that PIPAs’ BoD in process of endorsing new Incentive Package contracts in response to Investment needs and strategic plans, to attract new foreign investments and this efforts supported by several available tools and programs whether from the public or private sector institutions or international institutions, and here we would like to extend our gratitude but not limited to DFID, EU, PMDP and USAID
The Palestinian Investment Promotion Agency (PIPA) is the practical expression of Palestine's vision and policy in encouraging the private sector and contributing to maintain and an appropriate investment environment, through providing local and foreign investors with services through the one stop shop and promoting the partnership and cooperation between the public and private sectors, and providing all needed information to assist investor to make the decision to invest and start businessman in Palestine, including the assistance in obtaining all the necessary licenses, and available investment opportunities and available sources of funding, and To maintain the relationship with investors through the After Care program under the guidance of PIPAs’ BoD chairperson H.E. Abeer Oudeh Minister of National Economy to achieve the goals of the Palestinian government headed by Prime Minister Dr. Rami Hamdallah , and the vision of H.E. Mr. President Mahmoud Abbas.