The Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA)

The total foreign direct investment stock in resident enterprises in Palestine amounted to USD 1,671 million at the end of 2020

The Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) announced the preliminary results of the Foreign Investment Survey of Resident Enterprises in Palestine as of end of year 2020. This periodic survey constitutes the continuous efforts made by both of PCBS and PMA on a regular basis.

Results indicated that external investments by resident enterprises in Palestine were greater than investments by non-residents in resident enterprises in Palestine at the end of 2020, taking into consideration the specification of the Palestinian situation; that Palestine does not own a national currency, which is included in the other investments on the assets side.

In this regard, the total investment stock abroad of resident enterprises in Palestine (assets) is amounted to USD 8,088 million at the end of 2020, of which 67.5% is foreign exchange in these enterprises and their deposits in banks abroad.

In addition, the total foreign investment stock in resident enterprises in Palestine (liabilities) is amounted to USD 3,066 million at the end of 2020, of which 54.5% is foreign direct investment (FDI). (See table1).

The total investments stock abroad of resident enterprises in Palestine (assets) at the end of 2020 was distributed as: Other investments abroad amounted to USD 5,624 million with a percentage of 69.5% of total assets; portfolio investments abroad amounted to USD 1,463 million with a percentage of 18.1% of total assets; stock of reserve assets for the PMA amounted to USD 697 million with a percentage of 8.6% of total assets; and the foreign direct investments (FDI) abroad amounted to USD 304 million with a percentage of 3.8% of total assets at the end of 2020.

While the total foreign investment stock in resident enterprises in Palestine (liabilities) was distributed as: Foreign direct investments (FDI) amounted to USD 1,671 million with a percentage of 54.5% of total liabilities; portfolio investments were USD 668 million with a percentage of 21.8% of total liabilities; while other investments totaled USD 727 million with a percentage of 23.7% of total liabilities at the end of 2020.

Results showed that 64.3% of foreign direct investments (FDI) in resident enterprises in Palestine is concentrated in the financial intermediation activity. Whereas investments from Jordan contributed 80.8% of total stock of FDI in resident enterprises in Palestine.

Results also showed that 59.8% of total portfolio investments in resident enterprises in Palestine is concentrated in the financial intermediation activity. Whereas investments from Jordan contributed 46.4% of the total stock of Portfolio investments in resident enterprises in Palestine.

The Foreign Investment Survey is considered to be the primary tool for collecting data about the International Investment Position (IIP). It collects details on the flows and stocks of foreign investments, using special forms. The IIP is an account, which records the total balance of foreign financial assets and liabilities of the economy. Changes in IIP are categorized into two levels: The first level differentiates between assets and liabilities and the difference represents the net IIP; and the second level focuses on the division of assets and liabilities on a functional basis that is fully consistent with the basic elements of financial account in the balance of payments, in addition to changes between stocks at the beginning and at the end of the period. This may include changes in prices, currency exchange rates, or a quantitative change resulting from sudden profit or loss as a result of natural disasters or war. The Foreign Investment Survey was conducted in accordance with the recent international recommendations; taking into consideration the specification of the Palestinian situation.

Source: Palestine Monetary Authority