Palestinian Authority's Main Business Sectors

When Israel withdrew from the Gaza Strip in 2005, there grew many opportunities for rebuilding and business development. At the end of 2005, the European Union decided to offer 60 million euros to pay for the construction of infrastructure, which falls under the Palestinian Authority's control. Here are some Palestinian business sectors which have seen rapid growth in recent years.


The energy sector in Palestine has its origins with the PEA, getting its start in 1995. More than thirty percent of electricity is produced in the Palestinian Authority, compared to less than three percent before 1995. Despite the progress, the situation is by no means easy: Palestine still gets most of its power from Israel. Almost 13% of the Palestinian population is not on the grid, and the Ministry of Energy expects that power demand in the Gaza Strip and West Bank will quadruple in the next decade and a half.


The water sector has social, economic and political importance for Palestine, both at regional and local levels. Because of actions by the international community, the infrastructure needed to purify, treat and distribute water is improving, but there is still a great need. The Palestinian people want an independent water distribution network, where the Israelis have no input.

IT (Information Technology)

IT is the fastest growing sector of Palestinian business. Their very well educated work force and Palestine's closeness to Israeli tech centers are two reasons why the sector has seen rapid growth. Palestinian schools are cashing in on the global IT specialist shortage by emphasizing the appropriate classes.

Construction/Public Works

The development of the construction sector is a high priority for the Palestinian Authority, as its population is growing by 3.3% per year. The housing sector is flourishing, thanks to Palestinian Diaspora investors. The government is offering land to the public in order to encourage development. Gaza has one of the highest population densities in the world, and most of the Palestinian Authorities' people live in urban areas.

Textiles and Apparel

The clothing and textile sector is Palestine's second largest employer, and it is made up of hundreds of small businesses operating out of private residences. 70% of Palestinian companies are sole proprietorships, and the remainder are partnerships. Most textile factories are in Nablus; Gaza is also home to 760 factories.


With its historic backdrops, temperate climate and unique location, Palestine provides tourists with an excellent place to relax. There are coastal and mountain landscapes, and several health resorts in the Dead Sea area. Palestinian investors are ready to build a theme park, as soon as the political climate is more stable. Tourism contributes more to the nation's economy than either agriculture or industry.

More Information

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