Ramallah, June 15th 2020: The Palestinian council of ministers approved an incentive package to promote investment in the Jordan Valley area, as well as the so-called area C. The decision was endorsed by PIPA’s Board of Directors chaired by H.E Mr. Khalid Al-OSSAILY, Minister of National Economy, pursuant to the Palestinian government’s vision and commitment to enriching the investment climate, attracting FDI, and enhancing local investment opportunities. It is expected that 200 projects will be registered with the aforementioned package within three years period of time. This shall help in creating at least 1400 direct jobs.
Given the importance of targeted geographic locations the offered incentive packages includes extending incentives for registered projects, new projects, or projects that will re-locate to the targeted areas in what makes up 66% of income tax reduction for extra five years, and named incentives will be applicable for all projects since January 1st, 2020 as a response of COVID 19 pandemic. In other hand the mentioned incentives package will offer incentives for banking and financing institutions to support offering extra facilitation to targeted areas’ projects
Incentive packages are one of the regional competitive advantages of the Palestinian Encouragement of Investment Law. These packages provide a level of flexibility in issuing policies/laws that facilitate the work of a specific sector, a geographical area, or a strategic project. Thus, it encourages the targeted leads towards enhancing their performance, increasing productivity and exports, creating jobs, introducing advanced technologies, or applying international standards to protect the environment or produce alternative energy.