Palestinian businesses have put over 100 projects on display at a first ever Palestine Investment Conference (PIC) in Bethlehem, hoping to raise nearly US$2 billion from the private sector.
Over one thousand investors, mostly Palestinians and other Arabs, have come to the West Bank town of Bethlehem for the three-day conference which started on 21 May, to see what Palestinians have to offer, and decide whether it is worth investing in the local economy - and if that investment would be akin to charity or lead to financial gain.
At least some deals were closed, businessmen said, mostly in the housing and construction sectors, seen as relatively safe; and plans for a new Palestinian city, the first to be planned and built in the West Bank since 1967, are likely to go ahead.
The conference focused on elite businesspeople, who say well-financed projects will bring jobs - desperately needed in the occupied Palestinian territory where unemployment is rampant - and lead to an overall healthier economy.
Investors will have to take into consideration the Israeli restrictions on movement, which still remain very tight in the territory and, according to the World Bank, inhibit the economy.
While Palestinian President Mahmoud Abbas tried to calm their concerns in his opening remarks, his control over the checkpoints is next to none, though Israel has recently opened up some important arteries in the territory as part of the ongoing negotiations being held with the Palestinian Authority.
One foreign businessman, who is already an investor in Palestine, said his agricultural projects faced some difficulties in getting produce from place to place, but part of his business plan included ways to work within the existing constraints.
A boost for stability?
Abbas also said a good conference would mean an influx of money which would help stabilise the region and contribute to the peace process, though he said the economy would need an end to the Israeli occupation to reach its full potential.
Palestinians, Israelis and foreign officials have said a vibrant Palestinian economy is needed to make peace work.
The PIC is a follow-up to the donors’ meeting in Paris late last year, where states and institutions pledged $7.7 billion dollars in aid for a three-year development plan, made possible after the renewal of the peace track at Annapolis in the USA.
The PIC has the support of senior Palestinian leaders, including Abbas and his acting Prime Minister Salam Fayyad, who is set to head a special session on "Revitalising Gaza", though they don't control the coastal strip since Hamas ousted the president's forces last June.
The Gaza Strip is still under a tight blockade, with Israel allowing in only basic commodities and banning all exports, while the Rafah crossing into Egypt is firmly closed.
With even cement for basic development work a struggle to import, the enclave might not seem to be the most attractive place for investors, though some projects - looking to a future without a blockade - were presented, as well as plans for development work and food related projects.
Other issues on the agenda are tourism, manufacturing and the potential of East Jerusalem, which Israel annexed and considers its own, though the Palestinians see it as their future capital.
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