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									       Bethlehem, May 21-23 2008




     PROJECT
And Concept Profiles




             Partners For Change
         Bethlehem, May 21-23 2008




INVESTMENT OPPORTUNITIES
   Project And Concept Profiles


                 2008




      Partners For Change
Foreword & Acknowledgement
This collection of project and concept profiles has been prepared to
support the May 2008 Palestine Investment Conference. Its purpose is
to highlight the range of investment opportunities available in Palestine
and act as a starting point for discussions between the Palestinian
business community and interested investors. It is the first-stage in an
ongoing process to show the world that you can do business in Palestine
and that there is potential from a vibrant Palestinian private sector.
Submissions were invited from the Palestinian business community in the
West Bank, Gaza Strip and Jerusalem. A total of 165 submissions were
received ranging from developed investment opportunities from well-
established market leaders to young entrepreneurs with innovative and
imaginative ideas. All submissions were evaluated by the PIC-Palestine
Technical Unit and submitted to the program committee for approval
against an agreed set of criteria. In total 105 projects and concepts were
approved for a total value of about US$ 2 billion. These profiles have
been arranged in this book across 6 key sectors: agriculture; finance;
ICT; infrastructure, real estate and construction; manufacturing; and
tourism. The relevant contact details for each profile are also provided.
The final section has details of our partners’ and sponsors’ success
stories.
The PIC-Palestine Management team would like to say thank you to
all those companies and individuals who submitted their proposals and
helped to contribute to this effort. Special thanks are also awarded to
the range of different contributors who helped in soliciting, evaluating,
reviewing, editing and compiling this information.
For further information on investment in Palestine please contact
www.pipa.gov.ps
                                                 Contents
Agriculture                                                                                                               9
PROJECTS .................................................................................................................. 10
   1. Chicken Farm and Slaughterhouse                                                                                       10
   2. Turkey Breeding                                                                                                       12
   3. Grain Silos                                                                                                           14
   4. Greenhouse Plastic Sheets Factory                                                                                     16
   5. Production of Plants for Medical Purposes                                                                             18
   6. Salt Water Fish Farm                                                                                                  20
   7. Palm Farm for Dates Production                                                                                        22
   8. Agricultural Supplies’ Company                                                                                        24

CONCEPTS ................................................................................................................. 26
   9. Hydroponics’ Equipment                                                                                               27
   10. Warehouse for Agricultural Trade, Awareness and Networking (WATAN)                                                  27
   11. Almond Orchard, Jenin                                                                                               28
   12. Al Khozondar Fish Farm, Gaza                                                                                        28
   13. Multi-Pooled Fish Farm                                                                                              29
   14. Red Tilapia Fish Farm                                                                                               29



Financial Sector                                                                                                       31
PROJECTS .................................................................................................................. 32
   1. Jerusalem Investment Fund                                                                                             32

CONCEPTS ................................................................................................................. 34
   2. Islamic Bank – Mortgage Products                                                                                     35
   3. Agriculture Insurance Company                                                                                        35



ICT                                                                                                                    37
PROJECTS .................................................................................................................. 38
   1. WiMAX broadband telecommunications network for the West Bank                                                          38
   2. Palestine, One Hot Spot(Modified Wi-Fi Network for Palestine)                                                          40
   3. Palestine WiMax Communication System                                                                                  42
   4. Broadband telecommunications services network for Gaza
       (passive fibre optic network and broadband power line carrier technology)                                             44
       5.     Commercial ICT Incubator, Gaza                                                                              46
       6.     Courts.net - a comprehensive legal and court case information management system                             48
       7.     IT System for Enabling Health Advancement (SEHA)                                                            50

CONCEPTS ................................................................................................................. 52
   8. Internet Data Centre (IDC)                                                                                           53
   9. Al Najah Technology Park                                                                                             53
   10. Technology Entrepreneurship and Innovation Fund                                                                     54
   11. Software and ICT Service House                                                                                      54
   12. East Jerusalem Call Centre                                                                                          55
   13. Digital Printing House, Gaza                                                                                        55
   14. Video conferencing system for distance learning                                                                     56



Infrastructure, Real Estate And Construction 59
PROJECTS .................................................................................................................. 60
   1. Town of Rawabi                                                                                                        60
   2. Housing Project in Nablus                                                                                             62
   3. Al Najah Hospital                                                                                                     64
   4. Commercial Building in Jerusalem                                                                                      66
   5. Gaza International Hospital                                                                                           68
   6. Commercial Centre, Jerusalem                                                                                          70
   7. Residential Towers in Gaza                                                                                            72
   8. Ramallah Financial Quarter – Commercial Building in Ramallah                                                          74
   9. Gaza Desalination Plant                                                                                               76
   10. Sharafat Housing Project in Jerusalem                                                                                78
   11. Commercial building in Jerusalem                                                                                     80
   12. Sports Field Revitalization Project – Commercial Building                                                            82
   13. Central Parking for Public and Private Cars                                                                          84
   14. Gold and Silver Factory, Bethlehem                                                                                   86
   15. Multi-Purpose Hall – Al Hambra Palace, Jerusalem                                                                     88

CONCEPTS ................................................................................................................. 90
   16. Housing Project in South of Jerusalem                                                                               91
   17. Housing and Commercial Development, Khan Younis                                                                     91
   18. Shepherd’s Hospital, Bethlehem                                                                                      92
   19. Two Commercial Towers                                                                                               92
   20. Shopping Mall, Jerusalem                                                                                            93
   21. Commercial building, Ramallah                                                                                       93
   22. Industrial Buildings and Warehouses in Jerusalem                                                                    94
       23.    Residential building in Jerusalem                                                                          94
       24.    Technicians’ Training Centre, Gaza                                                                         95
       25.    Wedding Hall                                                                                               95
       26.    Daoud Hospital Complex                                                                                     96



MANUFACTURING                                                                                                         99
PROJECTS ................................................................................................................ 100
   1. Pharmaceutical Factory Expansion                                                                                    100
   2. Processing, storing, and selling vegetable oil                                                                      102
   3. Production of fluid injections and dialysis solutions                                                                104
   4. Development of Meat (Mortadella) Industry                                                                           106
   5. Production and development of security doors                                                                        108
   6. Stone and Marble Dry Sludge Treatment                                                                               110
   7. Ceiling and Wall Production and Development                                                                         112
   8. Solar Water Heating Factory                                                                                         114
   9. Vocational Training Centre, Bethlehem                                                                               116

CONCEPTS ................................................................................................................118
   10. Waste to Energy Power Plant                                                                                       119
   11. New Markets for Pharmaceutical Company, Beit Jala                                                                 119
   12. Galvanised Zink and Steel Poles Factory, Gaza                                                                     120
   13. Al Bandak Stone and Marble                                                                                        120
   14. Gold Chains Factory                                                                                               121
   15. Expansion of Gaza Juice Factory                                                                                   121
   16. Interlocking tile and kerbstone factory, Khan Younis                                                              122
   17. Steel Pipes and Bars Factory                                                                                      122
   18. Detergent Factory, Rafah                                                                                          123
   19. Al Arkan Quarry                                                                                                   123
   20. Concrete production                                                                                               124
   21. Dead Sea cosmetics                                                                                                124
   22. Marketing Company for Stone and Marble                                                                            125
   23. Paper Recycling Plant in Gaza                                                                                     125
   24. Plastic Recycling Factory, Gaza                                                                                   126



TOURISM                                                                                                            129
PROJECTS ................................................................................................................ 130
   1. Qruntol Center                                                                                                      130
   2. The Vineyard Court Hotel, Jerusalem                                                                                 132
       3.     Golden Gate Hotel, Jerusalem                                                                             134
       4.     The National Hotel, East Jerusalem                                                                       136
       5.     Movenpick Suite Apartments – Ramallah                                                                    138
       6.     Hotel in Beit Sahour                                                                                     140
       7.     Four Star Hotel in Bethlehem                                                                             141
       8.     Al Minttar Resort in Tulkarem                                                                            142

CONCEPTS ............................................................................................................... 144
   9. Tourism village, West Bank                                                                                         145
   10. Bethlehem Spa and Village                                                                                         145
   11. Star Hotel – Jerusalem                                                                                            146
   12. Beit Jala Handicrafts Centre and Hotel                                                                            146
   13. Tourist Resort in Gaza                                                                                            147
   14. Exclusive Recreational Club                                                                                       147
   15. Hotel Renovation Scheme in Jerusalem                                                                              148
   16. Old House Hotel Rooms - Jerusalem                                                                                 148
   17. Resort in Beit Jala                                                                                               149
   18. Commercial Centre, Beit Jala                                                                                      149
   19. Palestinian Academy for Tourism & Hospitality (PATH – Ramallah)                                                   150
   20. Hotel in Gaza                                                                                                     150
   21. Hotel in Bethlehem                                                                                                151
   22. Commercial centre for handicrafts and other goods, Beit Sahour                                                    151
   23. Grand Bazaar in the Old City of Jerusalem                                                                         152
   24. Bethlehem City Tour                                                                                               152
   25. Expansion of Sahara Hotel, Bethlehem                                                                              153
   26. Recreational village and spa, Nablus                                                                              153
   27. Tourism village and spa, West Bank                                                                                154
   28. Hotel Complex near Bethlehem                                                                                      154



Our Partners And Sponsors Success Stories                                                                         156
AGRICULTURE
       Sector


            9
1                Chicken Farm and Slaughterhouse
                                      PIC Code: RAM43
                             Sponsor Company: Palestine Poultry Company Ltd.
                                Contact Details: Abdel Hakeem Fuqaha
                                                 Tel: +970.9.268.3177
                                                 Fax: +970.9.268.3180, Mobile: +970.599.220700
                                                 Email: info@aziza-ppc.com
                                                 Email: gm@aziza-ppc.com
                                     Total Cost: US$ 12 million
                 Investments by Current Owners: US$ 3 million
                           Required Investment: US$ 9 million



Project Description:
The opportunity is to take an equity stake in a chicken farm and slaughterhouse by financing its
start-up. The project will include 14 broiler farms each consisting of three houses with a capacity
of 14,000 birds per cycle. The slaughterhouse will have a production capacity of 3,000 birds per
hour, expandable to 6,000 birds per hour. It will use the latest technologies and specifications. The
company already operates a chicken farm for egg production, an animal feed farm and a hatchery.
The main source of revenues will be from selling chicken meat in the West Bank. The project
will have the capacity to meet 20% to 25% of demand in the West Bank. The products will be
distributed by special refrigerated containers to wholesalers and shops. Their competitive advantage
is that they will be the only hi-tech slaughterhouse in the West Bank. The main competition comes
from other slaughter houses in Palestine and chicken producers in Israel.

Owners/Partners and per cent ownership:
 •   Palestine Poultry Company Ltd. (25%)
 •   Potential investor (75%)

Project Development Time Table:

 Farm
 Land development                              2008-2012
 Building and construction                     2009-2012
 Furniture and equipment purchase              2008-2012
 Operations starting date                      April 2009
 Slaughterhouse
 Land development                              June 2008
 Building and constructions                    June 2008 - Sep 2008
 Operations start date                         Feb 2009




10
SWOT analysis                                   Industry Highlights:
                                             Poultry provides a good source of nutrition
Strengths:                                   for Palestinians: many families, especially the
 • The slaughterhouse will produce a large   poor, depend on poultry as their main source
   volume of products that are not available of protein. Chicken consumption in Palestine
   from smaller producers.                   is approximately 35 – 40 million units per year.
 • It will use the latest technology.        Average annual chicken consumption per person
                                             in Palestine is 13 chickens and the average family
Weaknesses:                                  size is 7 members. Population growth rate in
 • There is a long lead time for the project Palestine is 3%. Today the market is served
   development.                              either by imported products from Israel or by
 • The slaughterhouse is new venture,        small-scale local poultry producers, who are
   presenting the management with potential discouraged to expand because of the strong
   difficulties in introducing innovation.    price competition from Israel. Poultry production
                                             is essential to the Palestinian economy because
Opportunities:                               it creates employment and reduces the trade
 • There are no large competitors in the     balance with the Israel.
   local market.
 • There is a growing demand in the local    Strategic Benefits to Palestine:
   market.                                     • The project will modernise the Palestinian
 • Prices for red meat products are on the         food processing industry.
   rise.                                       • It will create 40 new jobs.

Threats:
 •   Avian flu has spread in the recent years.
 •   There are regular fluctuations in poultry
     prices.
 •   There is strong competition from local
     and Israeli suppliers.




                                                                                            11
2                                                             Turkey Breeding
                                       PIC Code: RAM119
                              Sponsor Company: Sinokrot Global Group
                                 Contact Details: Mazen Sinokrot
                                                  Tel: +972.2.295.5701, Fax: +972.2.295.5702
                                                  Email: ceo@sinokrot.com
                                                  Website: www.sinokrot.com
                                      Total Cost: US$ 11.6 million
                 Contribution by Current Owners: US$ 3.5 million
                            Required Investment: US$ 8.1 million


Project Description:
This industrial agricultural project will be established in Jericho. The project aims at breeding/
slaughtering/distributing turkeys for human consumption and industrial use. At a later stage, the
project may offer slaughtering services to other companies, and technical consulting services to
farms. The local market currently acquires its turkey meat needs from Israel since there are no local
alternatives. The project will be established in three phases, the first being the hatching process,
then the breeding process, and finally the slaughtering process. Advanced machines and equipments
will be used to deliver the final product, after which the produce will be packaged and stored. The
project is likely to provide 75 managerial, technical and other job opportunities.

Project Development Time Table:
Infrastructure Development                     Completed
Building and Construction Start Date           Jan 2009
Building and Construction Completion Date      June 2009
Furniture and Equipment Purchase               May 2009
Operations Start Date                          June 2009



Investor’s Profile:
Sinokrot Global Group is a family owned group was established in 1982 based in Ramallah. The
Chairman of the company is Mr. Mazen Sinokrot who was previously appointed as the Minister of
National Economy until March 2006.




12
SWOT Analysis:                                     Industry Highlights:
                                                 Farming and processing of Turkey is a new
Strengths:                                       concept in the Palestinian market. It was first
 • New mover advantage.                          introduced in the Israeli market and transferred
 • Existing knowledge of the industry            through Palestinian workmen employed at the
   available through the current sponsors.       Israeli establishments. Total local consumption
 • Demand for turkey meat is accelerating as of turkey meat ranges between 15,000 tons and
   it is still considered a new product. This is 17,000 tons per annum. There are currently no
   in addition to the increasing consumption local alternatives for Israeli products. Turkey
   for industrial purposes (meat derivatives). meat has become a major component in the
                                                 Palestinian food industrial market. The food
                                                 industry comprises 20% of production in the
                                                 Palestinian industrial sector. On a different note,
Weaknesses:
                                                 the Palestinian family spends around 45% of its
 • New product; no prior experience in           income on food.
   managing and operating Turkey breeding
   and processing establishments.
                                                 Strategic Benefits to Palestine:
 • New line of business, no brand or name
                                                   • Local production versus importing from
   recognition in the local market.
                                                       Israel.
Opportunities:                                     • Contribution to the Industrial sector
 • Proximity to the Jordanian border,                  under the umbrella of the food industry,
   facilitating the exporting process.                 which is one of the industrial pillars.
 • Relatively lower price of Turkey meat,          • Redirection of labor force from the
   compared to other meats.                            Israeli market into local Palestinian
                                                       markets.
 • Increase in demand for cold cuts in their
   different kinds..                               • Providing flow of foreign currency into
                                                       the economy
Threats:
 •   Strong competition from the Israeli
     market; they know the product, and
     have an established name and brand
     recognition.
 •   Bird diseases.
 •   Local production in this industry is
     relatively unfocused, with manufacturers
     tending to produce homogeneous
     product lines.




                                                                                                 13
3                                                                          Grain Silos
                                       PIC Code: GAZA30
                              Sponsor Company: Ahmad Al Masri Co.
                                 Contact Details: Mr. Ahmad Joma’a Al Masri
                                                  Tel: +970.8.206.4985, Fax: +970.8.206.4985
                                                  Mobile: +970.599.401.043
                                      Total Cost: US$ 6 million
                 Contribution by Current Owners: US$ 1.5 million
                            Required Investment: US$ 4.5 million



Project Description:
The opportunity is to take an equity stake in the establishment of a grain storage solution comprising
6 silos to be located in the Southern Gaza Strip (Khan Yunis). The total capacity will be 5,000 tons
and the facility will be equipped with all necessary vertical and horizontal conveyors and handling
equipment. The target market is all grain mills in Gaza. Revenue will be generated by charging rental
fees for storage.

Project Development Time Table:
The project is expected to be completed in less than one year.

Investor’s Profile:
Established in 1996 as a construction contractor, one of the projects implemented by the company
was the building of wheat silos for Palestinian Flour Mills in southern Gaza. This gave the company
experience of building grain silos.




14
SWOT Analysis:                                    Industry Highlights:
                                                  The daily consumption of white wheat flour in
Strengths:                                        Gaza exceeds 400 tons. Bulk wheat produces
 •   There is high storage capacity.              less than 85% of its weight as wheat flour so
 •   The project will provide effective storage   daily consumption requires the processing of
     methods and storage maintenance.             around 500 tons of bulk wheat. Currently, Gaza
                                                  imports both bulk wheat and ready packed flour
Weaknesses:                                       mainly from Israel. Bulk wheat prices are lowest
 •   There is poor infrastructure in Gaza.        at harvest time and highest in winter.
 •   It is difficult to transport from/to the
     Grain Silos.                                 Strategic Benefits to Palestine:
                                                   •   The project will provide Gaza with main
Opportunities:                                         grains at all times of the year.
 •   This will better utilise the local wheat      •   It will increase the food security standards
     harvest.                                          in quality and price.
 •   There has been a hike in international        •   It will provide the community with
     wheat prices.                                     local strategic inventory and sustainable
 •   Local consumption of wheat and grain              supplies of grains and wheat.
     products is very high.                        •   It will reduce the losses from traditional
 •   There are 10 local wheat mills in Gaza.           storage methods.
 •   There is government support for strategic
     projects.

Threats:
 •   The local wheat harvest does not
     meet local demand and there is high
     dependence on imported bulk wheat or
     ready packed flour.
 •   The variability of weather conditions
     affects the grain crops.
 •   Food supply in Gaza is deteriorating.




                                                                                                15
4                  Greenhouse Plastic Sheets Factory
                                       PIC Code: RAM104
                              Sponsor Company: TALEM Associates, Ltd.
                                 Contact Details: Mr. Ameed Al-Masri
                                                  Tel: +970.2.297.7776, Fax: +970.2.297.3751
                                                  Mobile: +970.599.400028
                                                  Email: info@talem.ps
                                                  Website: www.talem.ps
                                      Total Cost: US$ 6 million
                 Contribution by Current Owners: US$ 1 million
                            Required Investment: US$ 5 million


Project Description:
The opportunity is to take an equity stake in a new company which will manufacture specialized
plastic sheets for agricultural greenhouses. The sheets will be high quality UV/IR (ultra violet/
infra red), providing the UV stabilization and IR filtration necessary to optimise plant growth and
crop quality. Plastic sheets also preserve an appropriate humidity level, light exposure and air in
flow in the greenhouse. The investment injection will be used to fund the cost of infrastructure
development and machinery purchase. The main source of revenue is from the sales of greenhouse
to farmers throughout the Palestinian Territory. The project’s competitive advantage is that it will
be the only Palestinian manufacturer. The type of high end technology that will be adopted in this
factory will allow for economies of scale; it will require only a small number of skilled workers to
achieve high volume production.

Project Development Time Table:
The project needs one year from the starting date. Importation of machinery will be arranged in
parallel with factory construction.

Investor’s Profile:
TALEM Associates is a private limited shareholding company specialising in agricultural production,
marketing, promotion and management. TALEM was established in 2005. A department of
TALEM specialises in greenhouse management. Its experience ranges from erecting greenhouses,
managing teams for building and installing the greenhouse skeletons, to planting the greenhouse
with a variety of cash crops. TALEM works in all the Palestinian governorates and is particularly
active in the Jordan Valley.




16
SWOT Analysis:                                     Industry Highlights:
                                                   Greenhouses are rapidly gaining momentum
Strengths:                                         in Palestine. Farmers are increasingly aware of
 •   The project is a pioneer in Palestinian       the benefits of planting under greenhouses.
     agribusiness.                                 Greenhouses yield more production per m² than
 •   The owners are very experienced in the        open farming. Currently there is no local provider
     agricultural sector.                          of suitable plastic sheets so they are imported
                                                   from Israel. With approximately 25,000 hectares
Weaknesses:                                        of agricultural land in Palestine, there is a large
 •   The current owners have limited financial      potential for this factory to satisfy the market.
     resources.
 •   There is competition from Israeli             Strategic Benefits to Palestine:
     products.                                       •   The project will strengthen the
                                                         agricultural sector in Palestine.
Opportunities:
                                                     •   It will generate 20 permanent jobs in
 •   Greenhouses represent a means of                    manufacturing.
     greatly improving agricultural production.

Threats:
 •   The possible deterioration in the political
     and security situation in the Palestinian
     territories.




                                                                                                   17
5                                           Production of Plants for
                                                 Medical Purposes
                                      PIC Code: RAM66
                             Sponsor Company: Al Awa’el Agricultural Investment Co.
                                Contact Details: Mr. Ismail Ideiq
                                                 Tel: +970.2.532.1773, Fax: +970.2.532.1773,
                                                 Mobile: +970.599.227700
                                                 Email: ismail@pal-arc.org
                                     Total Cost: US$ 5.3 million
                 Investments by Current Owners: US$ 1.6 million
                           Required Investment: US$ 3.7million


Project Description:
The opportunity is to take an equity stake in partnership with Al Awa’el Co. in a plant production
farm for medicines and cosmetics. The project will construct greenhouses over 1,000 hectares of
land in hot climate areas in the Palestinian Territory, such as Jericho. The main source of revenue
will be generated from sales of plants to international manufacturers of natural products in the
cosmetic and medicinal sectors. The project has some competition from small farms. Its competitive
advantage is the large scope of operation and the resulting economies of scale.

Owners/Partners:
 •   Al Awa’el for Agricultural Investment Co. 30% (the company specializes in agribusiness
     investments and activities).
 •   Potential Investor 70%

Project Development Time Table:
Up to one year from the starting date.




18
SWOT analysis                                     Strategic Benefits to Palestine:
                                                   •   The project will contribute to the
Strengths:                                             Palestinian GDP.
 •   The farm will be the first of its kind in      •   It will employ a large workforce (1,500
     the local market.                                 employees when finished).
 •   It will be environmentally friendly.          •   It will increase Palestinian exports.
 •   Its operations will be supervised by          •   It will boost the agricultural sector.
     specialists.

Weaknesses:
 •   Al Awa’el Co is new to the medical plant
     market.
 •   A marketing effort is needed to identify
     customers.

Opportunities:
 •   There is increasing demand for natural
     medical remedies.
 •   Labour is available.
 •   Unutilised lands are available.
 •   There are tax exemptions for agricultural
     projects.

Threats:
 •   There is competition from non-natural
     products.
 •   There is a lack of overall planning in the
     Palestinian agricultural sector.




                                                                                                 19
6                                                  Salt Water Fish Farm
                                       PIC Code: GAZA32
                              Sponsor Company: Abu Ziyada Co.
                                 Contact Details: Jehad Safi and Mohammed Abu Ziyada
                                                  Tel: +970.8.284.5408, Fax: +970.8.284.7797
                                                  Mobile: +970.599.254.790
                                                  Email:safijehad@yahoo.com
                                      Total Cost: US$ 3.55 million
                 Contribution by Current Owners: US$ 1.23 million
                            Required Investment: US$ 2.32 million


Project Description:
The opportunity is to take an equity stake in a new venture to establish a salt water fish-farm with
different kinds of fish. The farm will consist of 80 pools located directly on the beach to use sea
water. Land of 20,000m² with direct access to the sea has already been rented. The company are
in the process of acquiring the necessary license to start the farm. A million fish fingerlings will be
purchased and grown in the pools to a weight of 0.35 kilos, the commercially accepted size. The
target market is the local wholesalers in Gaza. The process takes from 8 to 14 months according
to the kind of fish. The company have contracted a highly experienced agricultural engineer to
supervise the fish farm. There is currently limited competition in the market from other fish farms.
This farm will have a competitive advantage due to the high volume of fish that can be produced.

Project Development Time Table:
Infrastructure Development                     Dec2008
Building and Construction Start Date           Jan 2009
Building and Construction Completion Date      June 2009
Furniture and Equipment Purchase               Oct 2009
Operations Start Date                          July 2010



Investor’s Profile:
Abu Ziada company was established in 1995 and works in a variety of industries.




20
SWOT Analysis:                                     Strategic Benefits to Palestine:
                                                    •   This is a new and innovative approach
Strengths:                                              for the fish industry and will lead to
 •   Farmed fish is a new venture in the                 significant technical development and
     Palestinian agriculture business.                  advances in the sector.
 •   There is immediate demand for higher           •   There will be knock on effect for society
     volumes of fish due to Israeli restrictions         due to lower prices.
     over the sea borders.
 •   Farming will allow for certain types of
     fish to be produced according to the
     market needs.

Weaknesses:
 •   The current owners have limited financial
     resources.
 •   There is a relatively long lead time, up to
     12 months, before the first batch of fish
     will be ready.

Opportunities:
 •   The increase in supply will allow for
     relatively low prices and target a new,
     lower income segment of society.
 •   The farm is well-positioned to export
     to neighbouring states when production
     allows.
 •   The fish industry is competitive and may
     benefit from future government support.

Threats:
 •   Movement restrictions may affect the
     ability to import fingerlings and other key
     materials.
 •   Fish are highly sensitive to the growing
     process and will be affected by any errors.




                                                                                                21
7                       Palm Farm for Dates Production
                                       PIC Code: RAM68
                              Sponsor Company: Al Awa’el for Agricultural Investment Co.
                                 Contact Details: Mr. Ismail Ideiq
                                                  Tel: +970.2.532.1773, Fax: +970.2.532.1773,
                                                  Mobile: +970.599.227700
                                                  Email: ismail@pal-arc.org
                                      Total Cost: US$ 2.5 million
                 Contribution by Current Owners: US$ 1.3 million
                            Required Investment: US$ 1.3 million



Project Description:
The opportunity is to take an equity stake by funding the establishment of a Palm Farm in the
Jericho area by partnering with Al Awa’el for Agricultural Investment Co. The proposed project is
to plant 50,000 palm trees (Majool type) with the purpose of producing dates using a 3,500,000m²
of vacant land. The main source of revenues for this project will come from selling the dates
in the Palestinian and international markets. The targeted customers are importers of dates in
the international markets and wholesalers in the Palestinian market. This project is expected to
capture some market share in the local and international market by using the best available packing
technologies and marketing and promotion techniques to reach the end consumer.

Project Development Time Table:

Infrastructure Development (Preparation)      2008-2011
Building and Construction Start Date          N/A
Building and Construction Completion Date     N/A
Furniture and Equipment Purchase              N/A
Operations Start Date (Production)            2011



Investor’s Profile:
Al Awa’el for Agricultural Investment Co. specializes in agribusiness investments and activities.




22
SWOT Analysis:                                    Industry Highlights:
                                                  Global production of dates increased from
Strengths:                                        1.8 million tons in 1970 to 5.4 million tons in
 •   The project is expected to be large scale.   2003. In 2007, the total area of land used for
 •   It will use the latest technologies in       date production in Palestine was 3,409,000 m².
     planting and packaging.                      Date production totalled 5,015 tons. 90% of
 •   It will produce high quality of dates        global consumption is in the form of fresh and
     according to international quality           dried fruits, 2.5% is used indirectly as part of the
     standards.                                   manufacturing of different edible products and
 •   It will be involved in the whole supply      7.5% is used in animal feed. The five largest dates
     chain from planting to selling in            importers are India, Pakistan, Malaysia, United
     international markets.                       Arab Emirates and the European Union.
 •   There are trained managers and
     technicians available for the project.       Strategic Benefits to Palestine:
                                                    •   The project will create more than 1,500
Weaknesses:                                             jobs for Palestinian living in Jericho
 •   PARC are inexperienced in the                      governorate.
     international markets.                         •   It will contribute to the general economic
 •   There is a long lead time before                   development.
     production begins.                             •   It will develop and increase the capacity
 •   There is strong competition from the               of the agricultural sector in Palestine.
     Israeli and local date industry.               •   It will use and preserve fallow lands.
                                                    •   It will provide reasonable priced sates to
Opportunities:
                                                        the local market.
 •   The Jericho area provides the ideal
                                                    •   It will increase Palestinian imports and
     environment for date production.
                                                        the flow of foreign currencies.
 •   There is increasing international demand
     for dates.
 •   There is high consumer potential in the
     Arab and Islamic markets.
 •   Agricultural Land in the Jericho area is
     relatively low cost.
 •   Jericho is best placed to reach the other
     Palestinian governorates and is next to
     the border with Jordan.

Threats:
 •   There may be natural catastrophes.
 •   There might be deterioration in political
     and economic situation.
 •   Israel controls export points.




                                                                                                   23
8                         Agricultural Supplies’ Company
                                       PIC Code: RAM69
                              Sponsor Company: Al Awa’el for Agricultural Investment Co.
                                 Contact Details: Mr. Ismail Ideiq
                                                  Tel: +970.2.532.1773, Fax: +970.2.532.1773
                                                  Mobile: +970.599.227700
                                                  Email: ismail@pal-arc.org
                                      Total Cost: US$ 1 million
                  Investments by Current Owners: US$ 0.5 million
                            Required Investment: US$ 0.5 million



Project Description:
The opportunity is to take an equity stake in a new company that will supply agricultural materials
and equipment to farmers across the Palestinian Territory. The company will have storage depots
across the West Bank and Gaza Strip and there will be a dedicated marketing team to generate
business directly from farmers, through retailers or through contacts with farmers’ organizations. The
products that will be available will include seeds, fertilizers, irrigation systems and other agricultural
tools and equipment. The main competition is the small stores which sell similar products. The
main competitive advantage is the large size of the operation - this will give the company greater
purchasing power and economies of scale and result in lower prices for farmers.

Owners/Partners:
  •   Al Awa’el Agricultural Investment Co. 50% (the company specializes in agribusiness
      investments and activities).
  •   Potential Investor 50%.

Project Development Time Table:
Up to six months from the starting date.




24
SWOT analysis                                        Strategic Benefits to Palestine:
                                                      •   The project will contribute to the
Strengths:                                                Palestinian GDP.
 •   The project is the first of its size in the       •   It will employ a peak workforce of 50.
     local market.
                                                      •   It will increase competitiveness in this
 •   It will offer competitive prices.                    sector.
Weaknesses:                                           •   It will boost the agricultural sector.
 •   There is a need for full feasibility study to
     determine market size, competitors and
     financial cycles.

Opportunities:
 •   There is strong demand for this product.
 •   There is potential growth in the sector.

Threats:
 •   The sector is competitive.
 •   There is a lack of real planning in the
     agricultural sector.




                                                                                                     25
     CONCEPTS




26
9                                             Hydroponics’ Equipment
                                      PIC Code: RAM52
                     Sponsor Company / Individual Mr. Amer Sultan
                                Contact Details: Mr. Amer Sultan
                                                  Tel: +970.2.290.2420,
                                                  Mobile: +970.599.605744
                                     Total Cost: US$ 1.5 million


 Description:
 There is an opportunity to take an 80% equity share in a new venture to produce hydroponics’
 equipment. Hydroponics is a method of growing plants using mineral nutrients instead of soil. It is a
 standard technique in the global agriculture business. It will be the first venture of its kind in Palestine.
 The target market will be the Palestinian agriculture sector, one of the main pillars of the economy. The
 competitive advantage of this technology is that it allows plants to grow in smaller spaces than traditional
 soil-cultivation. It is relatively easy to do. Agricultural projects also benefit from tax exemptions.




               Warehouse for Agricultural Trade,
10           Awareness and Networking (WATAN)
                                         PIC Code: RAM102
                                 Sponsor Company: TALEM Associates, Ltd.
                                   Contact Details: Mr. Ameed Al-Masri
                                                    Tel: +970.2.297.7776, Fax: +970.2.297.3751
                                                    Mobile: +970.599.400028
                                                    Email: info@talem.ps
                                                    Website: www.talem.ps
                                        Total Cost: US$ 13 million


 Description:
 There is an opportunity to take an equity share in a new venture to establish a warehouse near the bridge
 on the Palestinian/Jordanian border. WATAN will be situated on a plot of land 150-200,000 m² in size
 which can be rented or purchased. It will service the agricultural sector and provide comprehensive
 logistics solutions for the export of produce. WATAN aims to reduce interference from Israeli security
 procedures and enhance the export capabilities of local Palestinian producers. It will build on the goods
 and services provided by existing manufacturers of products and services to the sector. Services offered
 at WATAN will include dispatching yards, exposition halls, a business-to-business centre, customs unit,
 appropriate authorities’ offices, greenhouses for nurseries and seedlings, standards control unit and
 training centre specialising in import/export. Product quality will be preserved through refrigeration
 technologies, product handling and tagging and other facilities. Product sales will be generated through
 high-profile marketing and promotional campaigns. Good agricultural practices will be encouraged and
 certifications like GlobalCap, HACCP and ISO will be sought. Nurseries and the production of high-
 profit margin goods like sweet peppers, tomatoes and herbs give Palestinian products a competitive
 edge, particularly in the Gulf area. TALEM Associates is a conglomerate of highly specialized experts
 in agri-business, ranging from concept through implementation to consumer satisfaction.

                                                                                                          27
11                                           Almond Orchard, Jenin
                                      PIC Code: RAM70
                              Sponsor Company: Al Awa’el for Agricultural Investment Co.
                                Contact Details: Mr. Ismail Ideiq
                                                 Tel: +970.2.532.1773, Fax: +970.2.532.1773
                                                 Mobile: +970.599.227700
                                                 Email: ismail@pal-arc.org
                                     Total Cost: US$9.2 million



Description:
There is an opportunity to take a 50% equity stake in a new almond orchard in Jaba’a village in
Jenin governate. The orchard will cover 20,000 hectares of land. Trees will start producing green
almonds after four years of planting. These will transform to dry almonds when left on the tree
for a long enough period of time. The dried almonds will be processed and packaged for sale in
the local market and export to Israel, Arab and European countries. Al Awa’el for Agricultural
Investment is a recently established company that specialises in agri-business investments and
activities. This almond orchard will be the first of kind in the local market. There will be specialists
on site to continuously supervise the growing process. There is a large pool of agricultural workers
and the land for the project is readily available. Agricultural projects are tax exempt under current
regulations.




12                         Al Khozondar Fish Farm, Gaza
                                      PIC Code: GAZA15
                              Sponsor Company: Jarallah Al Khozondar Co.
                                Contact Details: Husam Aldeen Noa’man Al Khozondar and,
                                                 Salah Aldeen Jarallah Al Khozondar
                                                 Tel: +970.8.286.1444, Fax: +970.8.286.1444
                                                 Mobile: +970.599.408.248، +970.599.430.400
                                                 Email:hosamjnk@yahoo.com
                                                 salah_eldeen_56@yahoo.com
                                     Total Cost: US$ 4.2 million



Description:
There is an opportunity to take a 47.6% equity share in the development of a fish farm in Gaza.
The farm will be established on an area of 13,000m² and raise different types of fish using the
latest technology. There are currently no fish farms in Gaza and there is increased demand due to
restrictions on sea access. The fish will be sold in Gaza and the West Bank. It will operate a policy
of providing fish at fair prices. With time the farm would also seek to supply the export market.
Jarallah El-Khozondar and Sons was established in 1979 and has accumulated experience across the
agriculture sector. The land for the project has been acquired.
28
13                                            Multi-Pooled Fish Farm
                                       PIC Code: GAZA13
                               Sponsor Company: Mohammed Saad Abu Haseera Co.
                                 Contact Details: Mr. Mohammed Saad Abu Haseera
                                                  Tel: +970.8.283.5444, Fax:
                                                  +970.8.283.5444Mobile: +970.599. 401.819
                                      Total Cost: US$ 3 million



 Description:
 There is an opportunity to take a 33% equity share in the development of a fish farm in Gaza. With
 increasing restrictions on sea access the farm offers an alternative solution to the high demand for
 fish. This will be the first fish farm in Palestine and will use a multi-pooled process for raising the
 fish. To reach commercially acceptable standards total time is expected to be between 7-14 months,
 depending on fish type. The target market will be the local community as well as some exports to
 Israel. The owner has a competitive advantage with extensive experience in fishing and sea food
 and training in aquaculture techniques from Israel. There is likely to be competition from local and
 Israeli suppliers of fish to this venture.




14                                                Red Tilapia Fish Farm
                                                    GAZA14
                                                    Awni Kuhail and Sons Co.
                                                    Sohail Awni Ahmad Kuhail
                                                    Tel: +970.8.283.3329, Fax: +970.8.283.3329
                                                    Mobile: +970.599.429.826
                                                    Email: sohail-kehel@hotmail.com
                                                    US$ 1 million



 Description:
 This fish farm in Gaza will consist of 10 pools, in 4 different sizes which will provide for the fish
 at different stages in their lifecycle. Once the fish are of commercial size they will be sold in the
 local market. This farm will grow only one type of fish – the red tilapia, a common species that
 does well in controlled growing situations. The farm will use techniques that allow them to then
 cultivate their own fingerlings for future stocks. The target market is the local wholesalers. While
 local competition is currently weak this is not expected to stay the same. When conditions allow
 the fish market is highly competitive, this project will have a competitive advantage due to its early
 entry and the fact that it could be self sustainable.


                                                                                                   29
FINANCIAL
     Sector


          31
1                                   Jerusalem Investment Fund
                                       PIC Code: JER01
                   Sponsor Company/Individual: Padico Services
                                 Contact Details: Mr. Khalid Husseini
                                                  Tel: +970.2.627.3399, Fax: +970.2.627.3356
                                                  Mobile: +970.503.273399
                                                  Email: padicoservices@padico.com
                                      Total Cost: US$ 100 million
                 Contribution by Current Owners: US$ 25 million
                            Required Investment: US$ 75 million



Project Description:
The sponsor is launching a $100 million real estate investment fund for Jerusalem – the “Jerusalem
Fund”. The aim of the fund is to benefit the community and economy of East Jerusalem as well
as to realise above average returns on the investments. The fund will invest in some of the vital
and diversified projects in East Jerusalem including housing, commercial buildings, entertainment
centres, tourism and economic projects. The fund will be governed by an investment advisory
board that will be responsible for making investment decisions. Experienced local auditors and legal
and tax advisors will contribute to the fund’s success. The fund will have a lockup period of 5 or
10 years depending on the classification of the share of the project. The fund’s expected average
internal rate of return is above 15%.

Project Development Time Table:

Printing the prospectus                       June 2008
Distributing the prospectus                   June 2008
First date of subscription                    July 2008
Subscription period                           Oct 2008
Launching investments                         2009



Investor’s Profile:
PADICO has been the leading investment company in Palestine since 1994 and have led projects
including the Palestine Stock Exchange and PALTEL Group.




32
SWOT Analysis:                                      Industry Highlights:
                                                    The finance sector is considered one of the
Strengths:                                          important contributors to the Palestinian
 •   The fund will provide the vehicle to           economy. It encompasses commercial and
     diversify the investment portfolio in          Islamic banks, stock market and stock brokers
     different businesses and sectors.              and insurance companies. The sector experienced
 •   One of the partners (PADICO Co.) is a          significant development during the last decade,
     very experienced local and international       enhanced by the introduction of new services
     investor.                                      and the development of existing products and
                                                    entry of foreign and regional institutions. This
Weaknesses:                                         helped increase the competition, transparency
 •   If some investors do not pay their             and quality. The Palestinian Monetary Authority,
     financial commitments on time, the fund         Palestinian Capital Market Authority and the
     will be negatively affected.                   Palestinian Stock Exchange play a major role in
 •   If investments are not well diversified         monitoring the Industry. In Jerusalem no such
     (i.e. concentrated in one area such as         industry exists.
     mortgages and housing) the business may
     expose itself to unnecessary risk.             Strategic Benefits to Palestine:
                                                     •   The project will contribute to the
Opportunities:                                           Palestinian GDP.
 •   Political stability will enhance the tourism    •   It will strengthen and diversify the
     and mortgage sectors.                               financial sector.
 •   Many investors are willing to invest in         •   It will help reduce unemployment in East
     Jerusalem.                                          Jerusalem.
 •   There are many projects in East
     Jerusalem that needs immediate financing.

Threats:
 •   Possiblel deterioration in the Palestinian
     territory will empact the project.




                                                                                                 33
CONCEPTS
 2                 Islamic Bank – Mortgage Products
                                      PIC Code: RAM05
                              Sponsor Company: Construction & Investment Co.
                                Contact Details: Mr. Daoud Al-Zeer
                                                 Tel: +970.2.275.1566, Fax: +970.2.277.0461,
                                                 Mobile: +970.599.546161
                                                 Email: info@paluniv.com
                                     Total Cost: US$ 35 million



Project Description:
This is an opportunity to take a 71.4% equity share in a new Islamic Bank. The bank, proposed by
the Construction and Investment Co. Ltd., will provide mortgages and housing finance. The head
office will be based in Ramallah with branches throughout the West Bank and Gaza. Demand for
Islamic banking services is growing but there are currently only 3 registered Islamic banks within
a total of 22 banks that service the Palestinian economy. Access to mortgage finance is currently
limited. Demand for mortgage finance is projected to grow considerably as housing construction
increases. Revenues will be generated from fees and service charges, in accordance with Islamic
law.




 3                      Agriculture Insurance Company
                                     PIC Code: RAM65
                             Sponsor Company: Al Awa’el for Agricultural Investment Co.
                               Contact Details: Mr. Ismail Ideiq
                                                Tel: +970.2.532.1773, Fax: +970.2.532.1773,
                                                Mobile: +970.599.227700
                                                Email: ismail@pal-arc.org
                                    Total Cost: US$ 10 million



Description:
There is an opportunity to take a 70% equity share in the establishment of an agriculture insurance
company. The company will be set up by Al Awa’el, an established company that specialises in
agribusiness investments and activities. The company will target agricultural producers including
farmers and ranchers. The insurance will protect against the loss of crops from natural disaster
such as hail, drought and floods. The insurance is expected to enhance the Palestinian agriculture
sector, a fundamental pillar of the Palestinian economy.


                                                                                                35
ICT
Sector

     37
1 WiMAX broadband telecommunications
                                     network for the West Bank
                                       PIC Code: RAM78
                              Sponsor Company: BCI Communication & Advanced
                                                   Technologies
                                 Contact details: Mr Sa’eed Baransi
                                                   Tel: +970.2.298.1108, Fax: +970.2.296.4167
                                                   Email: sbaransi@bci.ps
                        Total Cost of the Project: US$ 65 million
                 Investments by Current Owners: US$16.2 million
                           Required Investment: US$ 48.7 million



Project Description:
The opportunity is to take an equity stake in financing the deployment and operation of a broadband
telecommunications network for the Palestinian Territory. With efficient use of wireless and packet
switching technologies, BCI’s network will provide seamless broadband services, toll quality voice
(VoIP), and advanced managed services. WiMAX – using the excellent system developed by Motorola
– will enable BCI to create an outstanding full service telecommunications services provider in
Palestine. The main source of revenues will be generated from subscription fees and income from
the proposed services. The target market is public, private and civil sectors. The products and
services will be distributed by sales points and through agencies. The main competition is local IT
and Telecommunication companies that might enter the market. BCI’s competitive advantage is
their early entry to market. Even with the prevailing economic conditions, the implementation of a
powerful, reliable and cost-effective broadband network is a “just-in-time” investment opportunity
for BCI and its potential partners.

Project Development Time Table:

Infrastructure Development                    Completed
Building and Construction Start Date          Completed
Building and Construction Completion Date     October 2008
Furniture and Equipment Purchase              October 2008
Operations Start Date                         October 2008


BCI received licenses for broadband services and VoIP from the Palestinian Ministry of
Communications and Information Technology on January 3, 2008. It has applied for radio frequency
spectrum. The company has completed its initial market research study and will undertake a
comprehensive business feasibility study in the summer of 2008 through a technical assistance
grant awarded by the U.S. Trade and Development Agency.




38
SWOT analysis                                   Industry highlights:
                                                Businesses, public institutions and private
Strengths:                                      users regard high speed Internet services as
 •   Appropriate licenses have been             an essential business service. Broadband has
     awarded by MoICT.                          become a given for delivering communications
 •   It has a highly reliable distributed       services in the Information Age. In last mile
     broadband network approach                 markets, where traditional cable or copper
 •   There is an existing partnership with      infrastructures are either saturated, outdated or
     Motorola.                                  simply out of reach, broadband wireless access
 •   Pilot testing has been carried out.        technology and specifically solutions based on
                                                the WiMAX standard fill the gap powerfully,
 •   Experts are available.
                                                and provide highly-efficient and cost-effective
 •   Latest generation broadband wireless       access services.
     access technology from Motorola is
     accessible.                                Palestinian businesses and households are
 •   There is a deep and established            demanding affordable high speed services as
     business history in wireless networking    the need for modern Internet connectivity only
     in Palestine.                              continues to soar. Currently there is limited
                                                cover and high costs associated with the existing
 •   There is an established customer base.
                                                broadband network.
Weaknesses:
 •   There are Israeli technology               Strategic Benefits to Palestine:
     importation issues.                         •   It will establish robust and high-
                                                     availability broadband services.
Opportunities:                                   •   It will provide a rapid boost to Internet
 •   There is immediate potential for                services for enterprises and households.
     broadband access and VoIP services          •   It will create a full service network in
 •   Future expansion into enterprise                addition to the incumbent services
     network services (managed security,             provider.
     VPN, shared storage, etc)                   •   The project will contribute to the
 •   There will be robust networking                 Palestinian GDP.
     capability for interactive and broadcast    •   It will employ workforce (500 employees
     video programming and services over             when finished).
     time                                        •   It will facilitate the communication
 •   Demand for affordable and high quality          process.
     broadband services is on the rise.          •   It will introduce new and useful
Threats:                                             technology to Palestine
 •   There will be competition from future
     licensed broadband services providers




                                                                                              39
2     Palestine, One Hot Spot(Modified Wi-Fi
                       Network for Palestine)
                                      PIC Code: RAM19
                             Sponsor Company: GlobalCom Trade & Marketing Co. Ltd.
                                Contact Details: Mr. Kamil Qattan
                                                 Tel: +970.2.297.5108, Fax: +970.2.297.5109
                                                 Mobile: +970.599.265211
                                                 Email: kamilqattan@gmail.com
                                     Total Cost: US$ 50 million
                 Investments by Current Owners: US$ 15 million
                           Required Investment: US$ 35 million


Project Description:
The opportunity is to take an equity stake in financing the deployment of a cutting edge ubiquitous
Modified Wi-Fi network in Palestine, offering high speed internet access, VOIP applications,
advanced video and data networking and a wide range of value added services throughout the
community. The main source of revenues will be generated from subscription fees and income from
the proposed services. The target market is the public, private and civil sectors. The products and
services will be distributed by sales points and agencies. GlobalCom prime competitive advantage is
early entry to the market to deploy a community wide wireless network which is viable technically,
and just as important, financially successful with an excellent return on investment.

Project Development Time Table:
 •   Pilot      Completion Date - September 2008.
 •   Phase 2    Completion Date – December 2008.
 •   Phase 3    Completion Date – March 2009.
 •   Phase 4    Completion Date – June 2009.




40
SWOT analysis                                    Industry highlights:
                                                 Palestine is considered a “virgin market” in
Strengths:                                       terms of “wired” and wireless internet services.
 •   GlobalCom is the first VoIP Company in       During the past years, the telecommunication
     Palestine.                                  industry has been monopolized by one
 •   It has the know how in the field of          Telecommunication Company; however, this
     wireless networking and VoIP.               monopoly has come to an end and the market
 •   GlobalCom has strategic agreements with     has been opened up to competition and growth.
     several international companies in the      Currently there are few Internet Service Providers
     field of VoIP, video and data networking.    in the market with a less than satisfactory quality
 •   It has a Substantial client base.           of service and a limited variety of services
                                                 coupled with unreasonable high prices. The
 •   It offers prime voice quality and very
                                                 existing infrastructure of “wired” internet
     competitive prices.
                                                 services in Palestine is insufficient, outdated and
 •   It offers a wide range of added value       does not meet the demand and expectations
     services.                                   of the businesses and residents of Palestine.
 •   It offers guaranteed high quality           Therefore, GlobalCom aims to be the pioneer
     hardware.                                   in providing the Palestinian community with a
                                                 cutting edge technological solution to best serve
Weaknesses:                                      their needs now and in the future.
 •   Rapidly changing technology which
     requires continuous technical awareness.    Strategic Benefits to Palestine:
Opportunities:                                     •   A key economic development driver for
                                                       Palestine.
 •   The technology is new to the local
     market.                                       •   The network will contribute substantially
                                                       to the Palestinian GDP.
 •   There is high consumer demand for high
     connection speed, better voice and video      •   It will employ a local workforce of over
     quality with lower prices.                        250 employees.
 •   The network can offer a broad range of        •   It will facilitate the communication
     applications and features.                        process.
 •   An excellent return on investment is          •   It will introduce new technologies to
     expected.                                         Palestine.

Threats:
 •   Possible competition from other service
     providers.
 •   The political and economical situation in
     the region affects the market.




                                                                                                 41
3         Palestine WiMax Communication Sys.
                                       PIC Code: RAM111
                   Sponsor Company/Individual: Jaffa.Net Computer Systems
                                 Contact Details: Dr Yahya Al Salqan
                                                  Tel: +970.2.2961060
                                                  Fax: +970.2.2966613
                                                  Mobile: +970 599.296106
                                                  Email: alsalqan@i-jaffa.com,
                                                  Website: www.i-jaffa.com
                                      Total Cost: US$ 17 million
                 Contribution by Current Owners: US$ 1 million
                            Required Investment: US$ 16 million



Project Description:
The opportunity is to take an equity stake in Jaffa.Net’s new venture to build an advanced; state-
of-the-art IP based telecommunication network and operation in Palestine with a regional and
international reach. This project will be established in Ramallah with the aim of providing a wide
range of services to end users, homes, educational sector, banking sector, governmental sector,
NGO’s and private businesses. Services provided will include: International Calls Termination,
VOIP Services, International Calling Cards, Voice Over Broadband, Wi-Max Services, Enterprise
Solutions, Triple Play Services, IP PBX services, Hot Spots, High Speed Internet Access, IP Centrex
Services, Broadband, VPN Services, Collaboration and Video Conferencing Services, and Satellite
Data Communication Services

Project Development Time Table:
Infrastructure Development                    VOIP Available, 2008
Building and Construction Start Date          2008
Building and Construction Completion Date     2009
Furniture and Equipment Purchase              N/A
Operations Start Date                         2009



Investor’s Profile:
Jaffa.Net Computer Systems is an established networking and total IT solution company. In the past
few months, Jaffa.Net has been operating a call termination system to Palestine with a very large
capacity in an untapped market. Moreover, Jaffa.Net maintains high standards and has established
agreements with international companies, thus positioning itself strategically in the market. In
addition, Jaffa.Net acquired license from the Ministry of Telecommunication and Information
Technology to provide the modern IP based telecommunication services.




42
SWOT Analysis:                                  Industry Highlights:
                                                Telecommunication and information technology
Strengths                                       are vital elements in the growth process of any
 •   Jaffa.Net is an established IT solutions   economy. The Palestinian telecommunication
     company with experience in network         sector faced many changes since Israel lost control
     management and information technology      over the sector. Palestine Telecommunications
     solutions.                                 Co. (PALTEL) had the exclusive license to
 •   Jaffa.Net has the advantage of being       provide landlines and mobile services however
     one of the first movers into the VOIP       the license expired last November. Significant
     Palestinian market.                        reforms and openness will improve the sector
 •   The sponsor company has acquired           through increased competition. The Palestinian
     a license to provide IP based telecom      telecom market needs improvement as it lacks
     services.                                  some communication services such as WiMax
 •   Jaffa.Net has already established          added services; this makes it an attractive target
     agreements with international companies    for investment as there are opportunities to
     that have the expertise in                 better the sector. The Palestinian telecom sector
                                                participated this year the introduction of 15
Weaknesses:                                     new licenses of which 4 are broadband licenses
 •   Rapidly changing technology requires       and the rest are Voice over Internet Protocol
     continuous investment and technical        Licenses.
     awareness.
                                                Strategic Benefits to Palestine:
Opportunities:                                    •   The additional services will enhance the
 •   The Palestinian Telecom market is                Palestinian Telecommunication sector
     undergoing significant reform and             •   The development of these services
     openness which will increase competition         will facilitate business communication
     and improve quality.                             and help attract foreign investments in
 •   Cooperate or merge with regional                 Palestine
     wireless companies.                          •   It will provide job opportunities in the
                                                      ICT sector
Threats:
                                                  •   There will be increased competition in
 •   Illegal Israeli competition                      the market, and thus improved quality of
 •   Israeli regulations currently restrict           products.
     importing of telecom equipment.              •   It will contribute to Palestinian GDP
                                                      economy
                                                  •   The Palestinian consumer will have
                                                      more options and control over their IT
                                                      services.




                                                                                                43
4                            Broadband Telecom. Services
                                      Network For Gaza
        (Passive Fibre Optic Network And Broadband Power Line Carrier Technology)

                                       PIC Code: GAZA17
                              Sponsor Company: Fusion Co.
                                 Contact Details: Mr. Rami Abdelfattah Meqdad
                                                  Tel: +970.8.288.0158, Fax: +970.8.288.0158
                                                  Email:info@fusion.ps
                                      Total Cost: US$ 5 million
                 Contribution by Current Owners: US$ 1 million
                            Required Investment: US$ 4 million


Project Description:
The opportunity is to take an equity stake by financing the establishment of a second fixed-line
network in Gaza using passive fibre technology, leveraging the existing physical infrastructure of
the Gaza Electricity Company. The project is to deploy a wireless broadband network using WiMax
technology to provide access to areas where a fibre optic network is not currently available. The
GEPON network will offer Voice, Video and Data services. The project will be implemented in
phases in order to test operational excellence and to minimize investment risk. The scope and range
of services will be expanded over time, with each successive phase. Fusion Co. is able to finance
the first phases of the project from internal funding. Fusion Co. has already carried out a successful
pilot to provide Broadband Power Line carrier (BPL) internet connection in a crowded area in Gaza
City. The main source of revenue will come from subscription and leasing fees. The target market
is the public, private and civil sectors. Future competition could come from local and international
new entrants but Fusion believes it has gained a strong competitive advantage by entering the
market early.
Project Development Time Table:
Infrastructure Development                     Expected 2009
Building and Construction Start Date           Expected 2009
Building and Construction Completion Date      Expected 2009
Furniture and Equipment Purchase               Expected 2009
Operations Start Date                          Expected 2009


Investor’s Profile:
Fusion was established in 2001 to provide Internet Services to Gazan businesses and households.
The company also provides pre-paid and automatic meter reading systems (AMR), Voice over
Internet (VOIP) services, Distance learning and video conferencing, TETRA Radio Networks,
Vehicle systems, and wireless networks. Fusion works with a variety of international companies
including Alvarion, Starcom, Gilatsatcom and Danemix. In addition, Fusion is the authorized
distributor of Mobilex in Palestine, Jordan, Egypt and South Africa.

44
SWOT Analysis:                                      Industry Highlights:
                                                    The IT sector plays a vital role in the
Strengths:                                          Palestinian economy. It is characterised by fast
 •   Fusion has solid experience in                 development and growth. The fixed and mobile
     telecommunication and internet services        telecommunications sector has developed strongly
 •   Existing licenses for VoIP and                 in the last decade, and subscription based and free
     Broadband have been acquired.                  internet and broadband services have proliferated.
 •   The core GE-PON network does not               The existing infrastructure of “wired” internet
     require frequency licencing from either        services in Palestine cannot meet current
     the Israeli or Palestinian authorities         demand. Moreover, both business and residential
 •   There is a cost advantage of using an          customers have a high technology orientation
     existing power network                         and eagerness to adopt new voice, data and video
                                                    networking technologies which increases demand
 •   Initial approvals have been obtained from
                                                    even further. These factors create an opportunity
     the Power utility authority for this project
                                                    for a cutting edge technological solution which
Weaknesses:                                         Fusion seeks to exploit.
 •   The financial resources needed to               Strategic Benefits to Palestine:
     complete all phases of the project are not       •   It will provide Gaza with cutting edge
     available                                            voice, data & video services such as VoIP,
 •   Building new internet infrastructure is              video on demand, broadband internet
     difficult due to the current situation in             connectivity and intranet services.
     Gaza                                             •   The presence of second operator in the
                                                          field of Data and Voice is encouraging
Opportunities:
                                                      •   The project will supply the market with
 •   A wide range of services (including
                                                          suitable services that do not interfere
     video) can be deployed using very high-
                                                          with the local community values
     speed technology
                                                      •   It will help advance the local community
 •   There are no apparent restrictions on
                                                          awareness of the content available
     importing the needed type of equipment
                                                      •   GE-PON/BPL technology is
Threats:                                                  environment friendly: no frequencies
 •   Power utility operations are unstable in             used: no high tension power and no
     the Gaza Strip.                                      noise.
 •   The current political environment in
     Gaza impacts on the project.




                                                                                                    45
5                   Commercial ICT Incubator, Gaza
                                       PIC Code: GAZA29
                              Sponsor Company: Al Tariq Systems and Projects Co
                                 Contact Details: Mr. Saleem Mohammed Abdullah Saleem
                                                  Tel: +970.8.284.7736, Fax: +970.8.284.7736,
                                                  Mobile: +970.599.529.295
                                                  Email: tarek@altariq.ps
                                      Total Cost: US$ 3.1 million
                 Contribution by Current Owners: US$ 0.6 million
                            Required Investment: US$ 2.4 million



Project Description:
The opportunity is to take an equity stake in a start-up ICT company in Palestine. The project will
provide mentoring, training, Internet connectivity, PCs and wireless networking, as well as advice
on business planning, marketing and financial planning. The main source of revenue is the monthly
subscription that will be charged to clients. The target markets are businesses with operations
and offices in the local market. This service will be offered at multiple locations using agents and
representatives. There is limited competition in this market. The competitive advantage for this
project is the substantial local experience of the partners.

Project Development Time Table:
Infrastructure Development                    Expected 2009
Building and Construction Start Date          Expected 2009
Building and Construction Completion Date     Expected 2009
Furniture and Equipment Purchase              Expected 2009
Operations Start Date                         Expected 2009



Investors Profiles:
ALTARIQ Systems & Projects, established in 2003, is a software development house providing
complex and complete Hi-Tech solutions, software development, outsourcing, factory automation
business and innovative IT consultancy services.
Palestine for Communication & Information Technologies (PCIT) provides state of the art and
high quality wireless communication services in Palestine. PCIT is investing in building a wireless
broadband network in Palestine using WiMAX technology. PCIT wireless network will provide
high quality broadband Internet, Voice over Internet Protocol, and video services to customers at
very competitive prices.
Islamic University of Gaza (IUG) business incubator, organized in 2006, provides support for
early stage companies. It offers a means for enhancing overall economic growth and development
in Gaza Strip, facilitates company restructuring, technology diffusion and commercialization, and
strives to create new employment opportunities. .

46
SWOT Analysis:                                      Industry Highlights:
                                                    The ICT sector plays a vital role in the Palestinian
Strengths:                                          economy. With the establishment of PICTI
 •   The newly established incubator at the         (Palestine ICT incubator) in 2004 it has become
     Islamic University of Gaza is a partner in     easier for ICT companies to establish contact
     this project and a starting point for the      with other ICT providers around the world.
     operation.
 •   There are skilled Palestinian ICT              Strategic Benefits to Palestine:
     graduates and personnel                          •    It will employ skilled ICT graduates.
 •   There is no other incubator in Gaza.             •    It will develop ICT human resources.
Weaknesses:                                           •    It will establish new and potentially
                                                           high-growth businesses.
 •   It will take time to familiarise people with
     the development project.                       As the ventures reach commercial production, it
                                                    will increase Palestinian exports.
Opportunities:
 •   The effects of siege and closures is an
     advantage for ICT related industries
 •   There is growing demand for ICT and
     diffusion among all other industries

Threats:
 •   The Gaza closure which will prevent
     importation of equipment.
 •   The electrical feed in Gaza is unreliable.




                                                                                                     47
6                                                                            Courts.Net
            A Comprehensive Legal And Court Case Information Management System

                                      PIC Code: RAM83
                             Sponsor Company: Jaffa.Net Computer Systems
                                Contact Details: Mr Yahya Salqan
                                                  Tel: +970.2.296.1060، Fax: +970.2.296.6613
                                                  Mobile: +970.599.296106
                                                  Email: alsalqan@i-jaffa.net
                           Total Cost of Project: $2.5 million
                 Investments by Current Owners: $0.5 million
                           Required Investment: $2 million


Project Description:
Jaffa.net seeks a strategic partner to provide finance and international marketing of Courts.net – a
system that has been developed by Jaffa.net to manage all aspects of legal case management workflow
operations in the public courts system. There is an opportunity is to take an equity stake in a vertical
legal information management system project that is configured as a portal-based e-justice system.
Jaffa.net would consider setting up Court.net as a separate company with the right partner. The main
source of revenue for the project will be licensing and implementation fees. The target market will
be international and regional governments. Jaffa.Net has acquired significant domain experience in
the past seven years by implementing Courts.Net in all the courts in Palestine and Jordan. They are
currently conducting a trial in Ethiopia. The main competitors to Jaffa.net are other potential software
companies who might enter the market. However their competitive advantage comes from the well
established experience from already implementing systems in Palestine and Jordan.
The system is comprised of the following modules:
  • Conciliation courts automation for civil cases;
  • Conciliation courts automation for criminal cases;
  • Conciliation courts automation for Judgment Implementation Department;
  • First Instance courts automation for civil cases;
  • First Instance courts automation for criminal cases;
  • First Instance courts automation for Judgment Implementation Department;
  • Court of Appeal automation for civil cases;
  • Courts of Appeal automation for criminal cases;
  • Court of felonies;
  • Courts of serious crimes;
  • Supreme Court;
  • Attorney General and Prosecution department; and
  • Notary Public system.
  • Project Development Time Table:
  • Courts.Net is an operational package – there is no development time required.




48
Project Development Time Table:

Infrastructure Development                       Already underway
Building and Construction Start Date             No Need
Building and Construction Completion Date        No Need
Furniture and Equipment Purchase                 Already underway
Operations Start Date                            June 2008



SWOT analysis                                        Industry highlights:
                                                     A wide range of Palestinian ICT companies
Strengths:                                           sell hardware products (direct agents or PC
 •   This is a unique software solution - the        assemblers), software development, enterprise
     first e-justice project to be implemented        consultancy, Internet services, and office
     in the world.                                   automation equipment. ICT is one of the fastest
 •   Jaffa.net has proven success through            growing sectors in Palestine with an innovative
     national deployments in Palestine, Jordan       software industry. Many professionally managed
     and potential expansion into Ethiopia.          companies are emerging as competitive players in
                                                     the regional market. The sector is well-organised
 •   Jaffa.net is a well established name.
                                                     by an active and forward-looking industry
 •   Court.net is a highly flexible system that       association and is committed to collaborate
     can be configured to local jurisdictions.        to promote developmental initiatives. There
 •   It is a portal-based e-Justice solution         is an immense opportunity for the Palestinian
     with an information and statistics sharing      ICT sector to develop and contribute to the
     portal.                                         development of the economy as whole.

Weaknesses:
                                                     Strategic Benefits to Palestine:
 •   It requires considerable governmental
                                                      •   Jaffa.net is already making a significant
     engagement and approvals to implement.
                                                          contribution to Palestine by automating
Opportunities:                                            the court case load system in the national
                                                          courts.
 •   It can be expanded to the MENA and
     South East Asia regions
 •   It can include specialised courts systems
     (e.g., Islamic Sharia courts)

Threats:
 •   The team cannot secure distribution.
 •   There is competition from other software
     companies.




                                                                                                   49
7                               IT System for Enabling Health
                                        Advancement (SEHA)
                                        PIC Code: RAM13
                               Sponsor Company: Dimensions Healthcare
                                  Contact Details: Dr. Omar Ghosheh
                                                   Tel: +970.2.242-2156, Fax: +970.2.242.2157,
                                                   Mobile: +970.599.533514
                                                   Email: healthcare@dimensions.ps
                                       Total Cost: US$ 2.0 million
                  Contribution by Current Owners: US$ 0.6 million
                             Required Investment: US$ 1.4 million



Project Description:
The opportunity is to take an equity stake in a new health care information system and service.
This business will provide reliable healthcare informatics solutions - one of the critical needs for
improving the healthcare system in Palestine. These solutions hardly exist in the Palestinian healthcare
facilities, and the healthcare information system used at the Palestinian Ministry of Health (MOH)
is neither comprehensive nor integrated, which poses a considerable risk to health.

The main categories of service provided by SEHA that will generate income are:
Healthcare Online Portals (HOP); Information and Call Centre (ICC); Healthcare Information
Complex (HIC); Healthcare Informatics Solutions (HIS); Specialised Informatics Solutions (SIS)

Project Development Time Table:
The proposed project is expected to be fully implemented within a three years period. Dimensions
Healthcare has started work on phase one of the project and expects to complete it in the next six
months. The second and third phases would each require a year to be completed.

Investor’s Profile:
Dimensions Healthcare is a healthcare informatics and consulting firm assisting private and public
sectors to establish high standard healthcare systems. Dimensions Healthcare will develop and
implement “Project SEHA (Systems for Enabling Healthcare Advancement)” which will be the first
informatics solutions developed for both the Palestinian Healthcare Authorities and the Palestinian
Healthcare Providers.

Industry Highlights:
The healthcare providers and authorities in Palestine lack a comprehensive healthcare information
system that enables them to better manage the overall healthcare system. There are no existing equivalent
systems in the Palestinian market. Currently, clinics and pharmacies use simple, non-integrated software
(usually Access or Excel) for point-of-sale application and for patient record keeping.

50
The potential market includes:                     • Private Sector Non-Healthcare Firms
 •   Pharmaceutical Firms (Manufacturers,          • Public Audience
     Importers and Drug Stores)                  Healthcare informatics is still underdeveloped in
 •   Healthcare Related Suppliers (Medical       most of the neighbouring developing countries,
     Equipment, Clinic & Pharmacy Supplies,      allowing for the sale of SEHA’s products in the
     Support Services)                           surrounding markets. The annual expenditure in
                                                 Palestine on health care is around $0.5 billion
 •   Healthcare Providers & Insurance Firms
                                                 while in Gulf Cooperation Council Countries is
 •   Nongovernmental Organizations (NGO)         estimated at $16.5 billion.
     and Donor Projects



SWOT Analysis:                                   Opportunities:
                                                  •   There is a real need for the project in the
Strengths:                                            healthcare market.
 •   The project is based on extensive studies    •   None of the pharmacies in Palestine
     of the current needs of the Palestinian          (with the exception of those in Jerusalem)
     healthcare market.                               are known to have up-to-date, integrated
 •   The proposed products would be                   healthcare software.
     developed to meet the specialised needs      •   None of the hospitals and clinics have up
     of the Palestinian market.                       to date, integrated healthcare software.
 •   There is support from the Ministry of        •   The relatively small number of healthcare
     Health and the Pharmacists and Medical           providers in the Palestinian Territory
     Associations for the project.                    allows for market containment.
 •   There is an increasing interest and          •   The product can be modified for use in
     awareness among healthcare providers of          other developing countries.
     the importance of Healthcare informatics
     solutions for themselves and for their      Threats:
     patients.                                    •   Some HCPs may be slow or reluctant to
 •   Dimensions Healthcare is backed with             adopt the system.
     a team rich with experts, many of            •   Some HCPs may need training to use the
     whom have experience in implementing             system.
     comparable systems in Canada and USA.
 •   The principal owner is an experienced       Strategic Benefits to Palestine:
     operator.                                    •   It will satisfy numerous shortcomings in
 •   There is an established database of more         the healthcare market.
     than five thousand local and imported         •   It will help efforts to reduce medical
     drugs available in the Palestinian market        mistakes and improve safety measures. It
     with valuable information on each drug.          will save lives (an estimated one thousand
                                                      people) and will alleviate suffering for
Weaknesses:                                           tens of thousands people every year).
 •   Financial resources are limited.             •   There are export opportunities in the region.
 •   Efforts to constantly update the             •   It will create 30 permanent jobs for
     informatics solutions are costly and             Palestinian professionals in healthcare and
     time-consuming.                                  information technology.

                                                                                                51
     CONCEPTS




52
                                      Internet Data Centre (IDC)
8                                     PIC Code: RAM105
                             Sponsor Company: Safad Group
                                 Contact Details Mr. Ibrahim Barham
                                                 Tel: +970.2.295.7229, Fax: +970.2.298.142
                                                 Email: ceo@safad.com
                                     Total Cost: US$ 15 million
                 Investments by Current Owners: US$ 5 million
                           Required Investment: US$ 10 million



Description:
This is an opportunity to take a 67% equity share in the development of a new shared computing
and applications management centre. The IDC will be established as a new company that will offer
a full set of integrated IT services to enterprises and residential users. It will enable businesses to
focus on their core activities and outsource their IT to specialists. Services offered by the IDC
include web hosting, software solutions, setting up of e-shops and other innovations. Safad has
experience in managed technology services and solutions and an established network of contacts
with key customers and international vendors. An initial market assessment study concludes that
there is strong demand for a shared IDC in Palestine. Currently no such centre exists. Construction
of the facility has already begun.




                                       Al Najah Technology Park
9
                                      PIC Code: RAM118
                              Sponsor Company: Al-Najah National University
                                 Contact Details Rami Hamdallah, Mobile:
                                                 +972.923.45113.9290
                                                 Email: pr@najah.edu
                                     Total Cost: US$ 8.5 million



Description:
The project’s objective is to provide a suitable environment for technology student, researchers
and companies. The park’s target market is engineering, software development, and electronic
assembly and manufacturing industries. The park will provide necessary IT infrastructure for the
different industries. In addition, the park offers employment opportunities for fresh graduates
and technicians. The project will be established in two phases. The first involves the building of
management headquarters, a training facility, and the technology incubator, while the second phase
involves the construction of the buildings for rental to interested technology companies.

                                                                                                    53
10                   Technology Entrepreneurship and
                                     Innovation Fund
                                      PIC Code: RAM110
                              Sponsor Company: Palestine Information and Communications
                                                 Incubator (PICTI)
                                 Contact Details Laith I. Kassis
                                                 Tel: +970.2.240.9290, Fax: +970.2.240.9294
                                                 Email: laith.kassis@picti.ps,
                                                 Website: www.picti.ps
                                     Total Cost: US$ 7 million


Description:
PICTI is seeking to strategic partners to contribute to a fund to promote innovation and
entrepreneurship in Palestine. PICTI is developing a specialized financing window that is willing
to take a little more risk when it comes to financing new technology start-up businesses. The
mission of the Fund is to provide the necessary financial resources that will allow technology
entrepreneurs to build, nurture and grow start-up companies that have innovative and creative IT
focused business solutions that will have viable commercial potential in regional and international
markets and create linkage between these enterprises and the next stage of venture financing. The
Fund will help technology entrepreneurs to move their innovations to the marketplace. A good
prototype product, good management, market access are important elements, but an important
ingredient of commercial success is the financial ability for the firm to accomplish its goals.



11                      Software and ICT Service House
                                      PIF Code: RAM107
                              Sponsor Company: Asal Technologies
                                Contact Details: Mr. Murad Tahboub
                                                 Tel: +970.2.242.9101, Fax: +970.2.242.9103,
                                                 Mobile: +970.599.484065,
                                                 Website: www.asaltech.com
                                     Total Cost: Estimated at $4-5 million


Description:
There is an opportunity for an international partner to enter into a joint venture to establish a
Software and ICT Service House in Palestine. The software house will cater specifically to the needs
of international markets, especially those in the Middle East, US and Canada. It will provide services
in software development and outsourcing, testing, IT support, call centres and business process
outsourcing. International companies will benefit from the large pool of cost-effective, highly
trained and reliable Palestinian ICT professionals. The service centre will be set up with an initial
Palestinian workforce of 50-100 professionals which can be expanded as demand and experience
increase. ASAL Technologies is a leading Palestinian ICT company that provides software services
to a number of local and regional organisations.

54
12                                   East Jerusalem Call Centre
                                      PIC Code: JER20
                              Sponsor Company: Sinokrot Global Group
                                Contact Details: Mr. Mazen Sinokrot
                                                 Tel: +970.2.295.5701, Fax: +970.2.295.5702
                                                 Email:ceo@sinokrot.com
                                     Total Cost: US$3.2 million


Description:
 There is an opportunity to take a 70% equity share in the establishment of a call centre in East
Jerusalem. The call centre will offer bilingual Arabic-English services ranging from basic customer
service to advanced technical support. The target markets will be businesses in the Middle East and
North Africa, Europe and North America. Specific services offered will be back office functions,
responding to written correspondence from email and web enquiries and inbound telephone calls.
There is a large pool of skilled labour with the necessary language skills in Jerusalem. There is
increasing demand for Arabic-English outsourcing facilities and currently no similar facility has
been established in Palestine.



                                 Digital Printing House, Gaza
13                                    PIC Code: GAZA37
                              Sponsor Company: Al Shorouq Library
                                Contact Details: Mr. Adli Nazzal
                                                 Tel: +970.8.205.2454, Fax: +970.8.284.7003,
                                                 Mobile: +970.599.202.595
                                                 Email: adlinazzal@yahoo.com
                                     Total Cost: US$ 7 million


Description:
An equity stake of 70% is offered in this project to set up a digital printing house in Gaza. The
printing house will have seven colour printing machines along with all the necessary equipment to
facilitate the whole printing process. Paper, inks and supplies will be imported directly from regional
suppliers. A range of school textbooks, books, magazines, publications and marketing materials will
be printed using the latest digital equipment. There is large-scale demand for printed material in
Gaza from government ministries, UNRWA, schools, banks, telecommunications companies and
other private and public sector organisations. Competition will come from existing local printing
houses. The Digital Printing House will have a competitive advantage as the majority still use old
typesetting methods. Al Shorok Bookshop Company is the sole agent of Jordan based Dar Al-Shorok
Publications which was established in 1979. The owners have a range of experience in the sector
with expertise in marketing and publicity. Land covering 6,000 metres is available for the project.
                                                                                                    55
14      Video conferencing system for distance
                                      learning
                                      PIC Code: RAM27
                              Sponsor Company: TDM Systems
                                Contact Details: Mr. Mohammad Younes
                                                 Tel: +970.9.238.5539, Fax: +970.9.238.5539,
                                                 Mobile: +970.599.292929
                                                 Email: mohammad.younes@gmail.com
                                     Total Cost: To be advised (project plan is in
                                                 development)


Description:
TDM has developed two systems for video-conferencing and distance-learning via the internet. The
product development stage is complete. Operating capital is being sought to facilitate marketing
and sales. The video conferencing system allows customers to simultaneously link up nine parties
with one another and can maintain 99,999 meeting sessions at the same time without reducing
the quality of the service. The chief application for the system is to facilitate e-learning. Video,
voice, text and software applications can be shared interactively between trainers and trainees.
With restrictions on movement there is high demand for e-learning solutions and coverage of
broadband access is increasing in Palestine. The system will allow expansion of distance learning
opportunities in Palestine and between Palestine and the world. Other free portal-based video
conference services, like Google, will be the primary competitors if the service improves. TDM
Systems has 20 years experience in information systems and specialises in developing innovative
applications and services.




56
57
INFRASTRUCTURE
REAL ESTATE & CONSTRUCTION
                 Sector

                         59
1                                                                Town of Rawabi
                                       PIC Code: RAM101
                               Sponsor Company: Bayti Real Estate Investment Company
                                 Contact Details: Amir Dajani
                                                  Tel: +970.2.240.9104 Fax: +970.2.240. 9752
                                                  Mobile: +970.599.295 281
                                                  Email: adajani@bayti.ps
                                                  Website: www.bayti.ps
                                      Total Cost: > US $350 million


Project Description:
The town of Rawabi is designed to attract Palestinians seeking affordable housing in a well-zoned,
accessible environment, sheltered amid rolling hills with picturesque views. Rawabi will offer a
true quality-of-life option well within the financial reach of young Palestinian families as well as
Palestine’s rapidly growing class of single male and female working professionals.
Citizens of Rawabi will enjoy access to schools, health care, entertainment, and recreational facilities,
a hotel complex, a shopping mall, and financial and professional services as well as conveniently-
situated entertainment and outdoor recreation areas. The project will be constructed in phases over
a five-year period.
The site for the new community is approximately 9.5 km north of Ramallah, 3.5 km beyond Birzeit
University and 25 km from Nablus. The area is currently under the control of the Palestinian
Authority. When the town is fully built, it will feature more than 5,000 apartment and townhome
units housing up to 25,000 residents, in addition to the development of additional residential and
commercial areas developed adjacent to Rawabi to serve a population of more than 40,000 people.
Surrounded by seven villages within a one-kilometer radius, the town of Rawabi and its commercial
infrastructure will attract patrons from these villages and more in the surrounding environs.

Project Development Time Table:
Infrastructure Development and Improvement       Completed
Building and Construction Start Date             Late 2008
Building and Construction Completion Date        2013
Furniture and Equipment Purchase                 N/A
Operations Start Date                            2010


Investor’s Profile:
Bayti Real Estate Investment Company was established to address the urgent need for affordable
housing in Palestine. In the near term, Bayti plans to build the town of Rawabi – the first planned
community for Palestinians. Bayti also is planning to launch similar housing projects in the future.
Bayti investor, Qatari Diar and Massar International, combine local knowledge with international
real estate experience.


60
SWOT Analysis:                                   Industry Industry Highlights:
                                                 The construction sector is one of Palestine’s most
Strengths:                                       important industries although it is significantly
 •   The extensive experience of Bayti           affected by changes in the political environment.
     management and technical teams, as well     In 2002, the industry employed 10.9% of the
     as expertise of the two main investment     Palestinian labour force, down from 22.3% in
     partners, Qatari Diar and Massar            1999. With 556 contractors, 489 engineering
     International.                              firms, and 556 construction materials firms, the
 •   Proven success with real estate             Palestine construction industry has both breadth
     development projects throughout the         and depth. Besides private firms, three major
     region.                                     nongovernmental organizations play integral
 •   A long experience of local and              roles in the industry, namely the Palestinian
     international contractors providing         Contractor’s Union, the Syndicate of Engineers
     architectural, engineering, and design      and the Palestinian Construction Industries
     services.                                   Union. High population growth and a decline
 •   The infrastructure within and to the        in construction activity mean that there is an
     development is well planned.                increasing demand for additional affordable
                                                 housing. Due to the linkages with other parts of
Weaknesses:                                      the economy a vibrant housing sector has the
 •   The project implementation timetable is     potential to stimulate and revive the Palestinian
     tight.                                      economy.
 •   Opportunities:
 •   The rapidly growing class of young          Strategic Benefits to Palestine:
     Palestinian professionals.
                                                   •   Offering a new quality of life option well
 •   85% of potential buyers want to live              within the financial reach of the rapidly
     in planned community with modern                  growing class of young Palestinian
     services and facilities.                          professionals.
 •   High demand on houses in general in           •   Generating 8,000 to 10,000 new job
     West Bank.                                        opportunities.
Threats:                                           •   Contributing to the development and
 •   Instability in the political and economic         growth of a number of specialized
     situation.                                        services, including the associated
                                                       manufacturing industries.
 •   Fluctuations in the U.S. Dollar exchange
     rate.                                         •   Accommodating educational,
                                                       recreational, entertainment, and health
                                                       facilities.




                                                                                                61
2                                      Housing Project in Nablus
                                       PIC Code: RAM35
                              Sponsor Company: The Palestine Real Estate Investment Co.
                                 Contact Details: Mr. Nidal Abu Lawi
                                                  Tel: +970.2.298.6505, Fax: +970.2.298.6506
                                                  Mobile: +970.599.409741
                                                  Email: aqariarm@palnet.com
                                                  Website: www.aqaria.com
                                      Total Cost: US$ 27 million
                 Contribution by Current Owners: US$ 9.5 million
                            Required Investment: US$ 17.5 million


Project Description:
The opportunity is to take an equity stake in financing the construction of a residential building in
Anakora village (10 minutes from Nablus City). The project will comprise 482 apartments with a
total buildup area of 64,117 sq.m. on a land with a total land lot area of 53 dunoms. In addition, the
Company proposes constructing parking spaces, green areas, playing areas, and roads with a total
area of 14,000 sq.m.
The project consists of 52 buildings divided to 2 models as follow:
  • Model A, 33 buildings, 10 apartments per building, 122 sq.m./ apartment.
  • Model B, 19 buildings, 8 apartments per building, 150 sq.m. / apartment
The main source of revenues will be generated from apartment sales. The target market is middle
class Palestinian families. Competition will come from similar housing projects.
Project Development Time Table:
Infrastructure Development                     Late 2008
Building and Construction Start Date           Early 2009
Building and Construction Completion Date      Late 2011
Furniture and Equipment Purchase               N/A
Operations Start Date                          During construction late 2012


Investor’s Profile:
Palestine Real Estate Investment (PRICO) was established in 1994 as a public shareholding limited
liability company with a current capital of JD50 million. Its main objective includes:
 •    Revive the Palestinian economy through the construction, development and investment in
      the real estate industry.
  • Create work and job opportunities for the Palestinian labour force.
  • Upgrade the standard of construction in Palestine by introducing modern management
      building skills and techniques.
Since its establishment, PRICO has implanted several major projects with a value over USD120
million. Through such activities, the company generated new job opportunities, mitigated the shortage
in housing and real estate sectors and activated other economic sectors related to construction. The
number of the company’s permanent employees is over 500 by the end of 2007. Through its high

62
technical capabilities, experience and successful projects, PRICO has been qualified as class “A”
General Contractor (Buildings, Electro-Mechanical, and Infrastructure works). In 2007, PRICO
registered subsidiary companies in Jerusalem, (PRICO Jerusalem), and in Jordan (PRICO Jordan)
for new investments in real estate projects.

SWOT Analysis:                                      Industry Highlights:
                                                    The construction sector is one of Palestine’s
Strengths:                                          most important industries although it is
 •   The long experience and financial stability     significantly affected by changes in the political
     of the principal owner (PRICO).                environment. In 2002, the industry employed
 •   The project is located in a quiet area out     10.9% of the Palestinian labour force, down
     of the city.                                   from 22.3% in 1999. With 556 contractors,
 •   There area reasonable number of                489 engineering firms, and 556 construction
     apartments in each building.                   materials firms, Palestine industry has both
 •   The land already owned by principal            breadth and depth. Besides private firms,
     owner.                                         three major nongovernmental organizations
                                                    play integral roles in the industry, namely the
 •   Internal roads, parking spaces, green
                                                    Palestinian Contractor’s Union, the Syndicate
     areas, playing areas, and other services are
                                                    of Engineers and the Palestinian Construction
     in place.
                                                    Industries Union.
Weaknesses:
 •   The project implementation plan is tight.      Strategic Benefits to Palestine:
 •   Construction permits and approvals have         •   The project will preserve a significant
     not yet been obtained.                              piece of land in the north of the West
                                                         Bank.
Opportunities:                                       •   It will help efforts to provide appropriate
 •   There is high demand for houses but a               apartments to the Palestinians living in
     relatively low supply.                              the north of West Bank.
 •   The value of properties in Palestine            •   It will help revitalise the Nablus
     continues to rise.                                  Governorate economy.
 •   The economy stabilizes and there is a           •   It will create many long-term
     boost to the real estate sector.                    employment opportunities.

Threats:
 •   The political and economic situation is
     unstable.
 •   There is competition from similar
     projects




                                                                                                  63
3                                                           Al Najah Hospital
                                      PIC Code: RAM118
                              Sponsor Company: Al Najah University
                                 Contact Details: Mr. Rami Hamdallah
                                                  Tel: +972.9.234.5113
                                                  Email:pr@najah.edu.com,
                                                  Website: www.najah.edu
                                     Total Cost: US$21 million
         Contribution by Current Owners / Loans: To be advised
                           Required Investment: To be advised


Project Description:
Al Najah University are seeking strategic partners to take an equity share in a new venture. The project
aims to establish a new hospital on a 12,000 m2 plot of area within the Najah university campus.
The hospital will be integrated with the faculties of medicine and pharmacy that will start operating
this year. This hospital aims at being one of the leading medical service providers in the West Bank
as well as a teaching hospital. The project is comprised of two phases. The first phase relates to the
establishment of a 200-bed hospital, equipped with necessary staff, tools, and specialties to train
medical and healthcare students. Specialized medical departments will be established in the second
phase, offering exclusive medical services that are not available in neighbouring towns. The project
aims to conduct sophisticated medical programs to train doctors.

Project Development Time Table:
Infrastructure Development                       Completed
Building and Construction Start Date             As soon as financing is available
Building and Construction Completion Date        12- 18 Months from initial construction
Furniture and Equipment Purchase                 6 Months after construction
Operations Start Date                            24 Month from construction start date


Industry Highlights:
The instability of the political situation in Palestine has lead to the significance of its health sector.
The majority of the Palestinian population relies on medical services provided by public hospitals
that are run by the Palestinian Ministry of Health under a general health insurance program. Overall
spending in the health sector has increased dramatically in 2004, reaching US$ 140 million compared
to US$ 100 million in 2003. Sill, due to the political and social situation, the health sector is in dire
need of additional spending. According to latest statistics, there are 54 hospitals operating in West
Bank and 19 hospitals in Gaza. In total, the number of beds stands at around 5,138. Nablus, which
accounts for the third largest population in West Bank, has only four hospitals – mostly small ones.
Moreover, due to lack of expertise, the Palestinian National Authority spends millions every year
on referral bills to neighbouring countries.




64
SWOT Analysis:                                     Strategic Benefits to Palestine:
                                                    •   It will assist the PNA by treating some of
Strengths                                               its patients instead of referring them to
 •   The hospital will have a central location          neighbouring countries. The PNA spends
     in West Bank                                       around US$ 35 million per annum on
 •   The university will get support from the           treating patients outside Palestine.
     newly established medical faculty.             •   Reduced medical education costs for
 •   The hospital will provide the necessary            some students when compared to
     and specialized medical services                   education abroad.
     (Advanced optical operations, nervous          •   Improved level of local medical services
     system surgery, cancer)                        •   It opens the door to creativity and
                                                        development for Palestinian students.
Weaknesses:
 •   There is a lack of medical expertise in the
     West Bank and Gaza Strip
 •   The hospital will be heavily used for
     educational purposes which will increase
     costs.
 •   The project will be easily affected by
     negative fluctuations. The hospital might
     be bear extra financial burdens during
     closures.

Opportunities:
 •   The hospital hopes to capture a share of
     referral patients that the PNA sends to
     neighbouring countries.
 •   Encourage local experts and professionals
     to stay in Palestine.
 •   Improve the level of treatment in the
     West Bank.

Threats:
 •   Difficulty of travel between cities due to
     Israeli road blocks.
 •   Continuous funding requirement to
     keep up to date with technological
     developments.
 •   The separation of the West Bank and
     Gaza strip prevents the integration of the
     health services




                                                                                               65
4                  Commercial Building in Jerusalem
                                       PIC Code: JER14
                              Sponsor Company: First Trading Co.
                                 Contact Details: Mr. Elias Khouri
                                                  Tel: +972.2.628.3502, Fax: +972.2.561.7251,
                                                  Mobile: +972.505.334305
                                                  Email: khouri@netvision.net.il
                                      Total Cost: US$ 20 million
                 Contribution by Current Owners: US$ 5 million
                            Required Investment: US$ 15 million


Project Description:
The opportunity is to take an equity stake in the construction and operation of a commercial
and office building in Jerusalem with a total built up area of 3,726.6m² (main area) and a further
9,007.5m² service area . There will be:
 •    Six parking floors
 •    Three floors of commercial use with shops of various sizes.
 •    Five floors for offices use.
 •    The land is an “L” shaped plot situated on Nablus Road, at the corner of Condar Street
      in the Sheikh Jarrah neighborhood opposite the American Colony. The plot is vacant and
      convenient for construction. The area of the plot according to Town Plan 7112 is 2,397m².
      The plot is zoned for commercial and office use.
The main source of revenues will be derived from rent from shops and offices as well as parking
fees. The target market is local and international organisations, diplomatic missions and consulates,
lawyers, accountants, private firms, financial institutions and banks. The main competition is similar
construction projects. The primary competitive advantage is the lack of modern commercial
buildings in East Jerusalem.

Project Development Time Table:
Infrastructure Development                     June 2008
Building and Construction Start Date           January 2009
Building and Construction Completion Date      June 2010
Furniture and Equipment Purchase               N/A
Operations Start Date                          June 2010


Investor’s Profile:
First Trading Company was first registered in Jerusalem in 1999 and specialises in construction and
real estate.




66
SWOT Analysis:                                     Industry Highlights:
                                                   The value of Jerusalem real estate has
Strengths:                                         consistently increased. The Israeli separation
 •   The property is excellently located for       wall has resulted in migration from some areas
     commercial shops and offices.                  now outside into areas within the wall. This in
 •   The company has a long term lease on          turn has led to an additional increase in real
     the land.                                     estate values in excess of normal appreciation.
 •   The company has obtained preliminary          Moreover, East Jerusalem lacks the availability
     approvals and plans for the building.         of modern commercial buildings as the recent
 •   First Trading Company Ltd is                  focus for development has been on housing.
     experienced.
 •   All modern services will be available in      Strategic Benefits to Palestine:
     the building.                                  •   It will help the efforts to provide
                                                        appropriate commercial shops and offices
Weaknesses:                                             to Palestinian businesses operating in
 •   There is no construction permit yet.               Jerusalem.
 •   The tough political and economic               •   It will maintain the Arab identity of
     environment may affect the ability to              Jerusalem.
     attract tenants.                               •   It will help revitalise the Jerusalem
 •   The implementation of the project will             economy.
     take time.                                     •   It will create many long term employment
                                                        opportunities.
Opportunities:
 •   The number of businesses and
     organisations in Jerusalem is rising.
 •   There is a limited supply of appropriate
     offices and commercial retail sites in the
     area.

Threats:
 •   The possible deterioration in the political
     and security situation in the Palestinian
     Territory will impact the project.
 •   There are regulatory and security
     restrictions on businesses operating in
     East Jerusalem.
 •   Building permissions may be withdrawn.




                                                                                               67
5                                  Gaza International Hospital
                                       PIC Code: GAZA03
                              Sponsor Company: Consolidated Contractors Company
                                 Contact Details: Mr. Nafez Husseini
                                                  Tel: +30.210.6182.161, Fax: +30.210.6182.199
                                                  Email: Nafez@ccc.gr
                                      Total Cost: US$ 16 million
                 Contribution by Current Owners: US$ 13 million
                            Required Investment: US$ 3 million


Project Description:
The opportunity is to take an equity stake in the Gaza International Hospital. The hospital will
provide a wide range of medical specialties on an in-patient and out-patient basis. The target market
will be the general population of Gaza, as well as those registered with local and international
Health Insurance Companies. Revenues will be raised from hospital fees. The hospital will cover
specialties that are not covered locally and that are currently sent abroad for treatment such as
Cardiac Surgery, Neurosurgery, Vascular Surgery, Urology, Plastic Surgery, Thoracic Surgery
(Pulmonary), Orthopaedics, and Ophthalmology. Moreover, the hospital will have an initial capacity
of 100 beds, on a total surface area of 7,200m² and a total staff of 350 employees. The hospital
will be designed in compliance with international standards and will be equipped with state of the
art medical technology and a hospital information system. The main competitive advantage is that
these specialties are not available locally and patients are sent abroad for treatment.

Project Development Time Table:
Infrastructure Development                     2008
Building and Construction Start Date           2009
Building and Construction Completion Date      2011
Furniture and Equipment Purchase               2011
Operations Start Date                          2012


Investor’s Profile:
CCC’s origins go back to 1952 when three talented young entrepreneurs, the late Kamel Abdul-
Rahman, Hasib Sabbagh, and Said Khoury, joined forces to create one of the first Arab construction
companies. Two of the founding members are presently leading the Group - Hassib Sabbagh
(Chairman) and Said Khoury (President).
Today CCC continues in the same style of management. Mutual trust with clients and smooth
communication between locations and departments of the group enhance its regional and international
status. CCC has always been at the forefront of the adoption of new construction technology to
improve efficiency and provide rapid execution while ensuring high quality performance.
CCC carries out construction, engineering, procurement, development and investment activities
internationally with an emphasis on the Middle East region. CCC is committed to providing reliable,
amicable and professional service to its valuable clients. It is supportive to local businesses and
social activities, friendly to the environment and is proactive in the socio-economic environments.

68
SWOT Analysis:                                              Threats:
Strengths                                                     •   Possible deterioration in the political and security
                                                                  situation in the Palestinian Territory will impact
 •   The hospital will provide specialties that are not           on the project.
     covered locally and will provide services for those
     that are currently sent abroad for treatment.            •   Physicians recruited from abroad may not adapt
                                                                  to the local conditions.
 •   The hospital has support from the Ministry of
     Health.                                                  •   MOH may develop public hospitals with a
                                                                  comparable level of service.
 •   CCC is a well established enterprise and its senior
     management have vast experience in hospital              •   Possible expansion of the private funded health
     administration.                                              sector.
 •   A renowned list of shareholders and supporters           •    Possible devaluation of the shekel could lead to
     of the project will attract prominent physicians.            a loss in the financial viability of the project.
 •   Medical staff in the hospital will be trained in
     world class hospitals and facilities will include      Industry Highlights:
     state of the art medical technology.
                                                            The instability of the political situation creates
 •   There is a large plot of land for development
     available for construction and future expansion.
                                                            additional pressure on the health system in
                                                            Palestine. This is particularly evident in Gaza. The
 •   The hospital will attempt to reduce staff
     turnover by offering competitive wages.                public sector has been developing primary health
 •   The hospital will benefit from economies of scale       care but with the continued closure of roads and
     and be larger than any other competitor in Gaza.       difficulty in travel it is necessary to have many
                                                            more primary health care centres. The lack of
Weaknesses:                                                 specialisation in many of the existing hospitals
 •   A dependency on MOH may have negative                  means that many people are transferred abroad
     impact if the bond is severed.                         for treatment. Taking these factors into account
 •   The service of medical equipment may pose a            there is great scope for private sector investment
     problem if key parts are restricted entry.             in the health sector.
 •   The lack of a fully developed market and low
     income creates problems in targeting patient
     population.
                                                            Strategic Benefits to Palestine:
 •   The hospital will face limitations in some aspects       •   It will create 350 permanent employment
     due to a strict budget.                                      opportunities.
 •   There is a lack of expert health professionals           •   It will strengthen the health sector in
     among the local population.                                  Gaza.
 •   The hospital will not provide entire range of
                                                              •   It will enhance the level of service
     medical specialties.
                                                                  provided by Palestinian Hospitals in
Opportunities:                                                    Gaza.
 •   The project will benefit from the ‘first mover             •   It will contribute to Gaza economic
     advantage’ which will give it a strong competitive           development.
     advantage as the market develops.
 •   Gaza has the potential to attract the best available
     physicians in all specialties.
 •   A high quality of service will attract patients for
     other hospitals of the Group in the future.
 •   The hospital could become a centre of excellence
     and point of reference for specific medical
     specialties.



                                                                                                                   69
6                         Commercial Centre, Jerusalem
                                       PIC Code: RAM113
                              Sponsor Company: Salah Udeen Tower Co Ltd
                                 Contact Details: Issa Kurdeyeh
                                                  Tel: + 972.2.628.4922
                                      Total Cost: US$ 14.1 million + Land Value
                 Contribution by Current Owners: Land will be provided by owner
                            Required Investment: US$ 14.1 million


Project Description:
There is an opportunity take an equity stake in the development of a new commercial building.
The tower will be located in the heart of Jerusalem, in an area that is currently being transformed
into a commercial centre and is currently clustered with 6 hotels. The site of the proposed project
is to be constructed on a vacant land parcel strategically located at the border line between East
and West Jerusalem. The tower aims to address Jerusalem’s need for rental retail and office space,
targeting foreign delegation and local businesses. The tower will encompass five parking floors, two
commercial floors, three floor of office space and a roof. The total area of the building is around
17,300 square metres on a 2,414 square metre plot of land. Revenues will be generated from renting
the retail units and office space.

Project Development Time Table:
Infrastructure Development                    Completed
Building and Construction Start Date          As soon as financing is available
Building and Construction Completion Date     30 Months
Furniture and Equipment Purchase              6 Months
Operations Start Date                         1 Month



Investor’s Profile:
Mr. Issa Kurdieh and The Jerusalem Real Estate Investment Company are the main partners for
this project. Mr. Issa Kurdieh is a well known businessman that has been involved in the real estate
business for years.




70
SWOT Analysis:                                     Industry Highlights:
                                                   Palestine’s real estate market is booming and
Strengths                                          the number of building permits is increasing
 •   There are low labour costs for                in a bid to rejuvenate the area for residents
     construction in comparison to Israel.         and commercial enterprises. For commercial
 •   Population growth, especially the youth       buildings, issued building licenses have increased
     population, creates strong demand for         from 64 in 2003 to 364 licenses in 2006.
     commercial facilities.                        Entertainment, shopping centres and other
                                                   facilities are limited in East Jerusalem; most
Weaknesses:                                        interested citizens go to neighbouring cities
 •   Relatively high cost of construction          (West Jerusalem) for such purposes. The society
     material.                                     has a sizeable youth population who create
 •   There are limited designs and building        strong demand for goods and services.
     standards
                                                   Strategic Benefits to Palestine:
Opportunities:                                      •   The project will provide a flow of foreign
 •   Emergence of new markets at a regional             currency into the economy though
     level.                                             exporting to international markets.
 •   Increased interest in improving Palestine’s    •   Contribution to the service industry
     infrastructure.                                    which in turn will strengthen the
 •   Increasing demand for office space in               Palestinian economy.
     Jerusalem                                      •   Skills development for the Palestinian
 •   Continuous increase in the value of                labour force in the service sector to
     property in Jerusalem.                             enable competition with other regional
                                                        economies.
Threats:
 •   Fierce competition with international
     firms for large scale construction projects
 •   Political instability
 •   The regulatory and security limitations on
     businesses operating in East Jerusalem.




                                                                                                  71
7                                   Residential Towers in Gaza
                                       PIC Code: GAZ01
                              Sponsor Company: The Palestine Real Estate Investment Co.
                                                  (PRICO)
                                 Contact Details: Mr. Nidal Abu Lawi
                                                  Tel: +970.2.298.6505 Fax: +970.2.298.6506
                                                  Mobile: +970.599.409741
                                                  Email: aqariarm@palnet.com
                                                  Website: www.aqaria.com
                                      Total Cost: US$ 12.5 million
                 Contribution by Current Owners: US$ 3 million
                            Required Investment: US$ 9.5 million


Project Description:
The project proposes the construction and sale of five residential towers in Gaza near the
Mediterranean Sea front. The total built up area of the project is 36,000 sq.m. on 8,500 sq.m. of
land already owned by the principal owner. The residential towers are surrounded with green areas,
streets, and play areas with a total area of 5,241m². The project proposes two models of tower each
comprised of 11 floors:
 •   Model A, four towers with three bedroom apartments.
 •   Model B, one tower with two bedroom apartments.

Project Development Time Table:
Infrastructure Development                                 2008
Building and Construction Start Date                       Early 2009
Building and Construction Completion Date                  Early 2011
Furniture and Equipment Purchase                           N/A
Operations Start Date                                      During construction mid 2010


Investor’s Profile:
Palestine Real Estate Investment (PRICO) was established in 1994 as a public shareholding limited
liability company with a current capital of JD50 million.
Its main objective includes:
   • Revive the Palestinian economy through the construction, development and investment in
       the real estate industry.
   • Create work and job opportunities for the Palestinian labour force.
   • Upgrade the standard of construction in Palestine by introducing modern management
       building skills and techniques.
Since its establishment, PRICO has implanted several major projects with a value over USD120
million. Through such activities, the company generated new job opportunities, mitigated the shortage
in housing and real estate sectors and activated other economic sectors related to construction. The
number of the company’s permanent employees is over 500 by the end of 2007.

72
Through its high technical capabilities, experience and successful projects, PRICO has been qualified
as class “A” General Contractor (Buildings, Electro-Mechanical, and Infrastructure works).
In 2007, PRICO registered subsidiary companies in Jerusalem, (PRICO Jerusalem), and in Jordan
(PRICO Jordan) for new investments in real estate projects.

SWOT Analysis:                                     Industry Highlights:
                                                   The construction sector is one of Palestine’s
Strengths:                                         most important industries with 556 contractors.
 •   PRICO is an experienced player and is         In addition to the private sector, three major
     financially stable.                            nongovernmental organizations play an integral
 •   The land is already owned by the              role in the industry: the Palestinian Contractor’s
     principal owner.                              Union, the Syndicate of Engineers, and the
 •   The project is located near the               Palestinian Construction Industries Union.
     Mediterranean Sea front.
 •   Internal roads, parking spaces, green         Strategic Benefits to Palestine:
     areas and play areas exist.                     •   It will help efforts to provide residential
                                                         accommodation in Gaza.
Weaknesses:                                          •   It will help revitalise the Gaza economy.
 •   The implementation of the project is            •   It will create long term employment
     tight.                                              opportunities
 •   The implementation plan is in phases.

Opportunities:
 •   There is high demand and a low supply
     of houses.
 •   There is high property value appreciation
     in Palestine.

Threats:
 •   The political and economic situation is
     unstable.
 •   The U.S. Dollar exchange rate fluctuates.




                                                                                                   73
8                    Ramallah Financial Quarter –
                   Commercial Building in Ramallah
                                       PIC Code: RAM36
                              Sponsor Company: MABANI for Development & Construction
                                                  The Palestine Real Estate Investment Co.
                                                  (PRICO)
                                                  Palestine Securities Exchange (PSE)
                                 Contact Details: Mr. Nidal Abu Lawi
                                                  Tel: +970.2.298.6505، Fax: +970.2.298.6506
                                                  Mobile: +970.599.409741
                                                  Email: aqariarm@palnet.com
                                                  Website: www.aqaria.com
                                      Total Cost: US$ 11.1 million
                 Contribution by Current Owners: US$ 5.1 million
                            Required Investment: US$ 6 million


Project Description:
The opportunity is to take an equity stake in constructing a commercial building – Ramallah
Financial Quarter – in the Al Massyoun neighborhood in Ramallah next to the Grand Park Hotel.
Palestine Real Estate Investment Company (PRICO) proposes constructing the building according
to the highest architectural and technical standards with a total area of 21,000 sq.m. The project
will target local and foreign organisations, banks and NGOs who seek a convenient and prestigious
location. The main competitive advantages are the design, location and lack of similar towers in
Ramallah. The centre will have parking spaces in front as well as two parking spaces in the front
as well as three parking floors, in addition to multi-purpose halls. There will also be a roof – top
restaurant and coffee shop. The overall design of the centre will be modern and stylish.

Project Development Time Table:
Infrastructure Development                               Started – 2008
Building and Construction Start Date                     July 2008
Building and Construction Completion Date                September 2010
Furniture and Equipment Purchase                         N/A
Operations Start Date                                    October 2010


Investor’s Profile:
Mabani is a new company; it’s the outcome of PRICO and PSE partnership since the former
has long experience in reviving the Palestinian economy through construction, development and
investment in the real estate industry.




74
SWOT Analysis:                                    Industry Highlights:
                                                  The construction sector is one of Palestine’s most
Strengths:                                        important industries although it is significantly
 •   The long experience and financial stability   affected by changes in the political environment.
     of (PRICO & PSE).                            With 556 contractors, 489 engineering firms,
 •   The project is located in an exceptional     and 556 construction materials firms, Palestine
     area in Ramallah targeted by most leading    industry has both breadth and depth. Besides
     international and institutions.              private firms, three major nongovernmental
 •   The size of the building is distinguished    organizations play integral roles in the industry,
     compared with other projects in the area.    namely the Palestinian Contractor’s Union, the
 •   There will be two parking levels             Syndicate of Engineers and the Palestinian
     compared with very limited parking space     Construction Industries Union.
     offered by the other buildings.
 •   There will be a strong focus on security     Strategic Benefits to Palestine:
     arrangements and preparations.                 •   It will preserve a significant piece of land
 •   The project will use the latest technology         in a well-developed area (Al-Masyoun) in
     in constructing and managing the                   Ramallah.
     building.                                      •   It will provide financial institutions and
 •   Multi-purpose halls will be available.             leading organizations with appropriate
                                                        spaces to run their business.
Weaknesses:                                         •   It will help revitalise the Ramallah
 •   The project is slightly expensive                  economy.
     compared with other commercial centres         •   It will create many long-term
     and buildings.                                     employment opportunities.
 •   The final plan for the project is not yet
     available.
 •   The implementation plan is tight.

Opportunities:
 •   Office space is in demand.
 •   There are few modern and secured
     buildings.
 •   The number of financial institutions
     and leading organizations established in
     Ramallah has increased.
 •   High quality restaurants and coffee shops
     are limited.

Threats:
 •   The political and economic situation is
     unstable.
 •   There is competition from other projects.




                                                                                                 75
9                                         Gaza Desalination Plant
                                       PIC Code: GAZA02
                              Sponsor Company: Consolidated Contractors Co.
                                 Contact Details: Mr. Nafez Husseini
                                                  Tel: +30.210.6182.161, Fax: +30.210.6182.199
                                                  Email: Nafez@ccc.gr
                                      Total Cost: US$ 10 million
                 Contribution by Current Owners: US$ 8 million
                            Required Investment: US$ 2 million


Project Description:
The opportunity is to take an equity stake in the establishment and operation of a reverse osmosis
water desalination plant in Gaza. The Project will provide Gaza residents with an alternative source
of clean water. The water will be sold to the Palestinian Water Authority (PWA) who supplies water
to the population. The project will have the capacity to process 2MCM per year of sea water and
will be located close to the existing Gaza Power Plant. The project will compete with the existing
supply of water. The main competitive advantage is the ability to provide clean water on demand,
independent of rainfall and without affecting groundwater stocks.

Project Development Time Table:

Infrastructure Development                    September 2008
Building and Construction Start Date          December 2008
Building and Construction Completion Date     May 2009
 Equipment Purchase                           December 2008
Operations Start Date                         June 2009



Investor’s Profile:
Palestine Electric Company Public Shareholding Company Limited “PEC was set up to develop,
own and operate the first electric power generation facility in Gaza through Gaza Power Generating
Private Limited Company (“GPGC”). PEC is a holding company, which owns more than 99.99%
of the outstanding shares of GPGC. In addition:
 •   PEC is the first Independent Power Project in Palestine, established in 1999.
 •   PEC is a publicly owned company represented by 33% government and 67% private
     shareholders.
 •   PEC is presently the only Palestinian supplier of power to Palestine Energy Authority
     (PEA).
 •   PEA purchases power from PEC through a Power Purchase Agreement (PPA).




76
SWOT Analysis:                                       Industry Highlights:
                                                     The primary source of water in Palestine is
Strengths                                            groundwater, extracted via wells or springs.
 •   Since the plant will be located on GPGC’s       The Mountain Aquifer system has an annual
     site, then the RO plant will benefit from        recharge of 679 million m³ (mcm) - 83% of
     GPGC’s economies of scale.                      which lies within the Palestinian Territory - while
 •   of the principal owner Gaza Power               the Gaza Coastal Aquifer has a much smaller
     Generating Company (GPGC) is well               annual recharge of about 55 mcm. However,
     established in the Palestinian market.          over-pumping of Gaza groundwater, at a rate
 •   Since the plant will be part of GPGC,           of 110 mcm, has resulted in the salination and
     expertise, systems and resources can be         deterioration of the aquifer’s water quality.
     shared.                                         Palestinians also rely heavily on rainfall, although
                                                     the amount of precipitation varies considerably,
Weaknesses:                                          year to year. Rainwater harvested in cisterns
 •   It will depend on one entity (PWA) for          supplies an estimated 6.6 mcm annually. The
     revenue                                         Palestinian use of water resources in the
 •   The team lacks experience in the water          Palestinian Territory is strictly controlled by
     industry.                                       the Israeli authorities, which divert up to 85%
                                                     of Palestinian groundwater resources for use
Opportunities:                                       in Israeli settlements and in Israel. The daily
 •   There is high demand for water.                 average per capita consumption is estimated at
                                                     65 litres for domestic use (compared to the 100
 •   There are no other similar projects.
                                                     litres/day/capita recommended by the WHO.
 •   It will contribute to the self-sufficiency of
     Palestine with regards to the utility sector.
                                                     Strategic Benefits to Palestine:
Threats:                                               •   The project will create five – ten
 •   The possible deterioration in the political           permanent employment opportunities.
     and security situation in the Palestinian         •   It will improve the quality and capacity of
     Territory will impact on the project.                 the Water System in Gaza.
 •   There are regulatory and security                 •   It will enhance the level of utility services
     restrictions on businesses in Gaza.                   provided in Gaza.
 •   The ability to obtain an optimum route /          •   It will contribute to the economic
     right of passage to connect to main grid              development in Gaza.
     is not guaranteed. .                              •   It will increase Palestinian utility sector
 •   Israeli permits to import needed                      independence.
     equipment are required.                           •   It will improve the basic living standards
 •   Water production through desalination                 for Gaza residents
     can be expensive




                                                                                                      77
10         Sharafat Housing Project in Jerusalem
                                       PIC Code: JER12
                              Sponsor Company: Trade and Investment Co. (TAICO)
                                                  Palestine Real Estate Investment Co. (PRICO)
                                 Contact Details: Mr.Nidal Abu Lawi
                                                  Tel: +970.2.297.3502 Fax: +970.2.298.6506
                                                  Mobile: +970.599.409741
                                                  Email: nidal@aqaria.com
                                      Total Cost: US$ 28.5 million
                 Contribution by Current Owners: US$ 9.5 million
                            Required Investment: US$ 17 million


 Project Description:
 The opportunity is to take an equity stake in the construction of a housing project in Sharafat,
 Jerusalem on a land with a total area of 27,000 sq.m. The total built up area of the project is
 21,000 sq.m with an additional 10,000 sq.m for general services and parking areas. The location
 of the project is next to the southern Beit Safafa neighbourhood, approximately five km from the
 walls of the Old City of Jerusalem. The main source of revenues will be the sale proceeds of 162
 apartments. The target market is middle class Palestinian Jerusalemites. The competitive advantage
 is the combination of the benefits of a planned community and the affordability of the apartments.
 There is no other housing project that offers this combination. The main competition is other
 future housing projects.
 The plan is to implement the project in phases. The total cost of the project is US$ 28.5 million.
 The figure of US$ 9.5 million is the estimated cost of the first phase of the project. The remaining
 construction costs will be financed from the revenues of the project.

 Project Development Time Table:
 Infrastructure Development                   Started 2008
 Building and Construction Start Date         September 2009
 Building and Construction Completion Date    December 2012
 Furniture and Equipment Purchase             N/A
 Operations Start Date                        During construction late 2011


 Investor’s Profile:
 Trade and Investment Company (TICO) were established in 1999 to invest in real estate and
 construction projects in Jerusalem. The Company is a wholly owned subsidiary of Jerusalem
 Construction and Investment Company (JEDECO). PRICO was established in 1994 with its main
 objective to revive the Palestinian economy through construction, development and investment in
 the real estate industry.




 78
SWOT Analysis:                                   Industry Highlights:
                                                 The construction sector is one of Palestine’s
Strengths:                                       most important industries with 556 contractors.
 •   The project is located in Jerusalem.        In addition to the private sector, three major
 •   The design provides for a modern,           nongovernmental organizations play an integral
     secured and ideal housing project.          role in the industry: the Palestinian Contractor’s
 •   Five – eight apartments only in each        Union, the Syndicate of Engineers, and the
     housing unit compared with a typical        Palestinian Construction Industries Union.
     local layout of 12 apartments per unit.     Despite political fluctuations and due to the
 •   General services are all available.         religious and political value of Jerusalem, the
                                                 value of Jerusalem real estate has historically
 •   Internal roads, parking spaces, green
                                                 increased over time.
     areas and play areas exist.
 •   The principal owner has experience in
                                                 Strategic Benefits to Palestine:
     Jerusalem housing projects.
                                                  •    It will preserve a significant piece of
Weaknesses:                                            land inside Jerusalem under Palestinian
 •   The implementation of the project will            ownership.
     take time.                                    •   It will provide housing to Palestinians
 •   The entire project is slightly costly.            living in Jerusalem.
                                                   •   It will maintain the Arab Palestinian
Opportunities:                                         identity of Jerusalem.
 •   There is high demand for housing in           •   It will help revitalise the Jerusalem
     Jerusalem accompanied with low supply,            economy.
     especially for Palestinians living in         •   It will create employment opportunities.
     Jerusalem.
 •   Jerusalem property values have risen
     consistently.

Threats:
 •   The decision process at the Jerusalem
     Municipality can be hard to predict.
 •   The project lacks the housing and
     construction licenses and approvals other
     than the preliminary approval.




                                                                                                79
11                Commercial building in Jerusalem
                                       PIC Code: JER04
                              Sponsor Company: Trade and Investment Co. (TAICO) Palestine
                                                  Real Estate Investment Co. (PRICO)
                                 Contact Details: Mr.Nidal Abu Lawi
                                                  Tel: +970.2.297.3502 Fax: +970.2.298.6506
                                                  Mobile: +970.599.409741
                                                  Email: nidal@aqaria.com
                                      Total Cost: US$ 8.6 million
                 Contribution by Current Owners: US$ 5.6 million
                            Required Investment: US$ 3 million


Project Description:
The opportunity is to take an equity stake in the construction of a commercial building – Sheikh
Jarrah Commercial Project. The principal investor in the project is Trade and Investment Company
(TICO). The building will have two floors of commercial stores, three floors of offices, and three
underground floors for parking. The total estimated built up area is around 11,083 sq.m. The land is
located in Jerusalem on the main Agron Road number (No. 1) next to the American Consulate, the
Y.M.C.A., and the new train station. The main source of revenues will come from rental payments.
The target market is local and international organisations, diplomatic missions and consulates,
lawyers, accountants, private firms, financial institutions and banks. Future competition may come
from other new construction projects; a main competitive advantage is the lack of commercial
buildings in this area of East Jerusalem.

Project Development Time Table:
 Infrastructure Development                   2008 – 2009
 Building and Construction Start Date         2010
 Building and Construction Completion Date    2012
 Operations Start Date                        2013


Investor’s Profile:
Trade and Investment Company (TICO) were established in 1999 to invest in real estate and
construction projects in Jerusalem. The Company is a wholly owned subsidiary of Jerusalem
Construction and Investment Company (JEDECO). PRICO was established in 1994 with its main
objective to revive the Palestinian economy through construction, development and investment in
the real estate industry.




80
SWOT Analysis:                                     Industry Highlights:
                                                   In May 2006, Jerusalem had a population of
Strengths:                                         724,000, and a population density of around
 •   The project is located in a prime area        5,750 inhabitants per km². Despite political
     between East and West Jerusalem.              fluctuations and due to the religious and political
 •   It offers a range of rental properties        value of Jerusalem, the value of Jerusalem real
     (commercial stores, office spaces, spaces      estate has historically increased over time. East
     for firms and financial institutions).          Jerusalem has a shortage of modern purpose-
 •   There is a relatively large parking space.    built commercial buildings. Demand for modern
 •   The design is modern.                         office buildings in Jerusalem is increasing.
 •   Cleaning, reception, security, and
     maintenance services will be available.       Strategic Benefits to Palestine:
 •   Trade and Investment Company (TICO)            •   It will preserve Palestinian land and
     is an experienced investor.                        properties in East Jerusalem.
                                                    •   It will provide businesses and
Weaknesses:                                             professionals in Jerusalem with
 •   It will take approx. five years to                  appropriate spaces to run their
     implement.                                         businesses.
 •   It is difficult to obtain construction          •   It will contribute to Jerusalem’s economic
     permits and approvals.                             development.
                                                    •   It will create job opportunities during the
Opportunities:                                          construction perio
 •   The Jerusalem population increases by
     around 3% p/a.
 •   Offices and commercial stores in
     Jerusalem are in demand.

Threats:
 •   The possible deterioration in the political
     and security situation in the Palestinian
     territory will impact the project.
 •   There are regulatory and security
     restrictions on businesses operating in
     East Jerusalem.
 •   The building permit might be withdrawn.




                                                                                                  81
12                 Sports Field Revitalization Project –
                                 Commercial Building
                                       PIC Code: RAM57
                              Sponsor Company: The Friends School
                                 Contact Details: Ms. Joyce Ajlouni
                                                  Tel: +97.2.295.2286, Fax: +970.2.295.2286
                                                  Email: joyceziad@comcast.com
                                      Total Cost: US$ 8.5 million
                 Contribution by Current Owners: US$ 2.5 million
                            Required Investment: US$ 6 million



Project Description:
The opportunity is to take an equity stake by funding the construction of a commercial building in
Al Bireh in partnership with the Friends School, one of the oldest and most reputable schools in
the Palestinian Territory. The commercial building will provide space for street side stores, offices,
underground and ground floor parking. The building is adjacent to a sports field. The project is
viewed as a single development unit. The main source of revenues will come rentals. The target
markets are businesses and retail shops that are looking for an upscale building in Al Bireh. The
main competitive advantage of this building is its location on the main street in Al Bireh leading
into Ramallah. The competition includes all upscale buildings in Al Bireh and Ramallah.

Project Development Time Table:
 Infrastructure Development                    October 2008
 Building and Construction Start Date          January 2009
 Building and Construction Completion Date     December 2010
 Furniture and Equipment Purchase              N/A
 Operations Start Date                         January 2011



Investor’s Profile:
The Friends School is known to be one of the oldest and most reputable private schools in Palestine.
The Friends Girls School in Ramallah was established in 1869 and Friends Boys School established
in 1901 in Al Bireh. The schools are owned by FUM “Friends United Meeting”. The Friends
Schools offer unique and high standards of education.




82
SWOT Analysis:                                     Industry Highlights:
                                                   The construction sector is one of Palestine’s
Strengths:                                         most important industries although it is
 •   The location of the building is in a very     significantly affected by changes in the political
     popular historical site, and is on the main   environment. In 2002, the industry employed
     street in Al Bireh.                           10.9% of the Palestinian labour force, down
 •   The building offers a high standard of        from 22.3% in 1999. With 556 contractors,
     services that are currently available in      489 engineering firms, and 556 construction
     only a few commercial buildings.              materials firms, Palestine industry has both
 •    The building has an attractive design,       breadth and depth. Besides private firms,
     with indoor and outdoor parking.              three major nongovernmental organizations
 •   The project owners plan to lease space        play integral roles in the industry, namely the
     only to long-term tenants, with a             Palestinian Contractor’s Union, the Syndicate
     minimum demise of half a floor, which          of Engineers and the Palestinian Construction
     will reduce commercial risks.                 Industries Union.
 •   The latest technology will be used in
     constructing and managing the building.       Strategic Benefits to Palestine:
 •   The plan and design for the building           •   It will establish a steady positive cash
     has been prepared by a well-known                  flow for the schools that will be invested
     local engineering and consulting firm,              in the development of their educational
     “Hani Hassan Architects & Consulting               capacity, ultimately improving the
     Engineers”.                                        educational quality in Palestine.
                                                    •   It will revive a well known site “Friends
Weaknesses:                                             Sports Field” in Al Bireh city.
 •   The implementation plan is tight.              •   It will contribute to Ramallah’s and Al
 •   There are fluctuations in the commercial            Bireh’s economic development
     property market.                               •   It will create job opportunities during and
                                                        after the construction period.
Opportunities:
 •   Office space is in demand.
 •   There are few modern and secured
     buildings.

Threats:
 •   The political and economic situation is
     unstable.




                                                                                                 83
13          Central Parking for Public and Private
                                             Cars
                                      PIC Code: RAM84
                             Sponsor Company: Hebron Municipality
                                Contact Details: Mr. Jawad Hirbawi
                                                 Tel: +970.2.222.8293, Fax: +970.2.222.8293,
                                                 Mobile: +970.598.909847
                                                 Email: jawadsayyed@yahoo.com
                                     Total Cost: US$ 5 million
                 Investments by Current Owners: US$ 2 million
                           Required Investment: US$ 3 million



Project Description:
The opportunity is to take an equity stake in a partnership with the Municipality of Hebron by
financing the construction of a car park with street front stores. This project will have three main
sources of revenue: rental payments for the street front stores; rental fees for the space that will
be used by the public transportation vehicles; and parking charges for temporary parking used by
private cars. There are three target markets for this project: business people who are looking for a
location in Hebron’s city centre; private vehicles looking for parking spots in the city centre; and
public transportation that the municipality will move into the lot. This is no comparable facility in
the city centre.

Owners/Partners and % ownership:
 •   Hebron Municipality (40%).
 •   Potential investor (60% - financing assets).

Project Development Time Table:
Hebron Municipality has purchased the land. The project design and plans have been completed by
Hebron Municipality and external consultants support. Foundation excavations have begun but the
construction work is stretching the investors’ resources.




84
SWOT analysis                                     Industry highlights:
                                                  This project will benefit the construction
Strengths:                                        and service sectors. In addition to its social
 •   There is a high number of private and        role in providing homes, public facilities and
     public vehicles available in the city and    infrastructure for economic enterprises, the
     districts.                                   construction and housing sector is a driving
 •   Hebron is a commercial hub.                  force in the Palestinian economy. The service
 •   Land is available.                           sector accounts for most of the economic
 •   Designs and plans are ready for              activity in Palestine. Historically, the sector has
     implementation.                              been comprised mostly of private businesses.
                                                  The major service segments are tourism,
 •   Hebron Municipality is a reliable partner.
                                                  transportation, financial intermediation, and
Weaknesses:                                       computer-related industries such as hardware,
                                                  software and network support.
 •   Investors were not partners in the design
     and planning process.
                                                  Strategic Benefits to Palestine:
Opportunities:                                      •   The project is in line with the Ministry
 •   There could be an active tourist sector in         of Transportation’ objectives to regulate
     Hebron in the future.                              the transportation sector and improve its
                                                        service delivery through public-private-
Threats:                                                partnership.
 •   There are movement restrictions around         •   It will generate jobs in a community that
     and in Hebron.                                     has an approximate unemployment rate
                                                        of 40%.
                                                    •   It will contribute positively to the
                                                        economic situation.




                                                                                                  85
14              Gold and Silver Factory, Bethlehem
                                       PIC Code: RAM87
                              Sponsor Company: Hagop Jewlery Factory
                                 Contact Details: Mr. Issa Rashmawi
                                                  Tel: +970.2.274.3374, Fax: +970.2.274.3374,
                                                  Mobile: +972.52.502.2250
                                                  Email: shohmelian@yahoo.com
                                      Total Cost: US$ 3.5 million
                 Contribution by Current Owners: US$ 1 million
                            Required Investment: US$ 2.5 million


Project Description:
The opportunity is to take a stake in financing the construction and operation of a factory for gold,
silver and diamond jewellery in Bethlehem as well as the operation of an exhibition hall, a tourist
shop and a restaurant. The target market is international tourists, local and international jewellery
retailers and local tourists. The factory will offer tours inside the factory to educate them on the
jewellery making process. The exhibition will offer a wide range of gold, silver and diamond jewellery
and the restaurant will offer local and international cuisine. The main source of revenue will come
from wholesale and retail sales of jewellery, income from the restaurant and sales of souvenirs.
Competition will come from major Israeli gold and diamond factories. The main competitive
advantage of this project is its low manufacturing costs in comparison to those in Israel.

Project Development Time Table:

 Infrastructure Development                    10 months
 Building and Construction Start Date          Oct.2008
 Building and Construction Completion Date     Jul.2009
 Furniture and Equipment Purchase              Jul.2009
 Operations Start Date                         Aug.2009

Investor’s Profile:
The Hagop Gold Factory group was established in 1973. Hagop Factory was the first gold and
diamond jewellery factory in the area, with a specialty in designing and manufacturing gold, silver
and diamond religious and historical jewellery. Currently Hagop factory employs 30 skilled workers
and has an experienced administrative staff. The factory is located within walking distance of
Rachel’s tomb in Bethlehem. Recently the factory underwent redesign and renovation.




86
SWOT Analysis:                                        Strategic Benefits to Palestine:
                                                       •   It will create 50 permanent jobs in the
Strengths:                                                 tourism sector
 •   The location of the factory in Bethlehem          •   It will contribute to Bethlehem’s
     attracts large numbers of visitors.                   economic development.
 •   The owners are experienced.                       •   It will strengthen the tourism sector in
 •   The employees are highly skilled.                     Bethlehem.
 •   There is a large market for religious
     jewellery in the Holy Land.
 •   It will be the first factory with a large
     showroom.
 •   The company has a well-established
     reputation.

Weaknesses:
 •   There will be competition from other
     local manufactures.
 •   The project construction design will incur   r
     relatively high costs not directly related to
     the generation of income.

Opportunities:
 •   The factory might be able to export
     religious jewellery items, with the
     competitive advantage of being made in
     Palestine.

Threats:
 •   The possible deterioration in the political
     and security situation in the Palestinian
     Territory will impact on the project.




                                                                                                      87
15      Multi-Purpose Hall – Al Hambra Palace,
                                    Jerusalem
                                        PIC Code: JER06
                    Sponsor Company/Individual: Jerusalem Investment & Tourism Co.
                                  Contact Details: Mr. Munir Kort
                                                   Tel: +972.2.626.4718, Fax: +972.2.626.4718,
                                                   Mobile: +972. 50.521.6810
                                                   Email: munirjkort@hotmail.com
                                       Total Cost: US$ 1.2 million
                  Contribution by Current Owners: US$ 0.6 million
                             Required Investment: US$ 0.6 million


Project Description:
The opportunity is to take an equity stake in the renovation of the Al Hambra building to establish a
multi purpose hall on Salah Edeen Street in East Jerusalem in partnership with Jerusalem Investment
& Tourism (JIT). The main source of revenues for this project will come from rental fees charged
for using the hall. The building will have multiple uses - cultural, educational, social, and tourism
events. This project will target all local associations and societies, local and international institutions,
organisers of exhibitions and fairs, tour operators and agents, and Palestinian families in Jerusalem.
The building will provide almost 1,000m² of space which can accommodate up to 600 people. This
project’s competitive advantage is its location and the historical status of the building. The biggest
competitor for this project is Al Watani National Hotel located nearby.

Project Development Time Table:
 Infrastructure Development                       February 2008
 Building and Construction Start Date             March 2008
 Building and Construction Completion Date        March 2009
 Furniture and Equipment Purchase                 June 2009
 Operations Start Date                            August 2009




88
SWOT Analysis:                                   Investor’s Profile:
                                                  •   Jerusalem Investment Tourism (JIT):
Strengths:                                            JIT was established to invest in tourism
 •   The hall is in a prime location.                 projects in Jerusalem. The Company’s
 •   It can be used throughout the year.              activities are designed to implement
 •   There is an experienced management               projects in Jerusalem with the purpose of
     team.                                            contributing to economic development.
 •   There is historic value to the building.     •   Mr. Muneer Kort: Mr. Kort has over
 •   The hall covers approx. 1,000m².                 7 years experience in designing and
                                                      managing projects in Jerusalem and the
Weaknesses:                                           United States of America.
 •   The financial resources of the current
                                                 Strategic Benefits to Palestine:
     owners are limited.
                                                  •   It will maintain one of the historical
 •   The team lack experience in managing
                                                      buildings in the heart of the city of
     some types of event.
                                                      Jerusalem.
Opportunities:                                    •   It will provide a range of services for the
 •   There are few similar halls in Jerusalem.        residents and institutions in Jerusalem.
 •   There is an increase in demand for
     wedding halls.
 •   Wedding parties are extremely important
     to Palestinian families.
 •   Jerusalem is an attractive location
     for religious, cultural, diplomatic and
     academic workshops and seminars.

Threats:
 •   The political and economic situation in
     Jerusalem is unstable.
 •   There is indirect competition in the
     market.




                                                                                               89
     CONCEPTS




90
16         Housing Project in South of Jerusalem
                                      PIC Code: JER08
                              Sponsor Company: Shahab Al Quds Housing Association
                                Contact Details: Padico Services/ Mr. Khalid Husseini
                                                 Tel: +972.2.627.3399 Fax: +972.2.627.3356,
                                                 Mobile: +972.50.327.3399
                                                 Email: padicoservices@padico.com
                                     Total Cost: US$ 328 million


 Description:
 There is opportunity to take a majority equity share in a new housing development in the south
 of Jerusalem. The Shahab Al Quds Housing Association has purchased 67,000m² of land and
 requires a total of 670,000 m² to develop a 3600 unit housing development. Investment is required
 in order to complete the purchase of the necessary land and construct the housing. The project is
 expected to be complete by 2015. The current political situation and competition for presence in
 Jerusalem has increased the demand and value of real estate in Jerusalem. This coupled with high
 population growth has caused a tremendous shortage of housing in Jerusalem. The project already
 has preliminary approval from the Jerusalem Municipality to use the land for a housing project.
 The Association also has a long history of managing housing projects in Jerusalem. Return on
 investment is estimated at over 40%, starting in 2016.




17 Housing and Commercial Development,
                          Khan Younis
                                      PIC Code: GAZA26
                              Sponsor Company: Jabal Al Zaytoon Co.
                                Contact Details: Mr. Omar Al Masri
                                                 Tel: +970.8.205.2454, Fax: +970.8.205.2454,
                                                 Mobile: +970.599.343.191
                                                 Email: m.drzaid@sidar-dz.com
                                     Total Cost: US$ 150 million


 Description:
 This is an opportunity to take a 73.3% equity share in a new housing and commercial development
 in the Khan Younis area of southern Gaza, close to the sea. The land for development covers
 over 147,000m². The development will include flats, luxury villas, commercial malls, a hotel,
 entertainment centres, school, restaurants and gardens. The target market will be middle to high
 income Palestinians. There is high demand for new housing in Gaza due to strong population
 growth. The owner of the land and the company has experience of housing development in other
 Arab countries.


                                                                                               91
18                       Shepherd’s Hospital, Bethlehem
                                      PIC Code: RAM93
                              Sponsor Company: Beit Sahour Cooperative Society for Health
                                                 Welfare
                                Contact Details: Mr. Salameh Mukarkar
                                                 Tel: +970.2.277.7788, Fax: +970.2.274.1862,
                                                 Mobile: +970.599.206540
                                                 Email: salameh@p-ol.com
                                     Total Cost: US$ 65 million


Description:
Investment is sought to enable the construction of a new tertiary health facility in Palestine.
Shepherd’s Hospital will have 220 beds and service the heavily populated Palestinian neighbourhoods
of the Bethlehem district and the West Bank. It will have 23 different departments and clinics and
be housed on 20,000m² of land that has been provided by the municipality. There is a high demand
for additional health facilities in Palestine with many patients currently being referred to hospitals
in Jordan, Egypt or Israel. The construction of the hospital is expected to take a total of 4 years
to complete but a first phase of partial construction could be completed within 18 months. The
required permits and building licenses have been applied for.




19                                       Two Commercial Towers
                                      PIC Code: RAM88
                              Sponsor Company: Abraj for Investment Co.
                                Contact Details: Mr. Talal Nasr Aldeen
                                                 Tel: +970.2.298.7572, Fax: +970.2.296.7205
                                                 Email: ceo@bpc.ps
                                     Total Cost: US$32.6 million


Description:
There is an opportunity to take an equity stake in the construction of two new commercial towers
near the city centre of Ramallah. Each tower will have 14 floors with two floors of parking, three
floors of shops and eight floors of office space. All the necessary services and technical facilities
will be available. Construction is timetabled for completion by the end of 2010.




92
20                                     Shopping Mall, Jerusalem
                                       PIC Code: JER05
                               Sponsor Company: Padico Services
                                 Contact Details: Mr. Khalid Husseini
                                                  Tel: +972.2.627.3399, Fax: +972.2.627.3356
                                                  Email: padicoservices@padico.com
                                      Total Cost: US$ 22 million


Description:
Investment is sought for a new shopping mall in Shu’fat Bei Hanina, Jerusalem. The land assigned
for the project covers a total of 16,800m ². It has been registered and approved for this purpose
by the relevant authorities. The mall will include five floors of commercial units with three floors
for services. Services offered will include parking, restaurants, a cinema, a post office, banks, a
supermarket and other family entertainment facilities. The target market for the project is the local
and international residents of East Jerusalem, where there is a young and growing population. The
mall will be in direct competition to existing malls in West Jerusalem and will be the first of its kind
in East Jerusalem.




21
                         Commercial building, Ramallah
                                       PIC Code: RAM89
                               Sponsor Company: Abraj for Investment Co.
                                 Contact Details: Mr. Talal Nasr Aldeen
                                                  Tel: +970.2.298.7572, Fax: +970.2.296.7205
                                                  Email: ceo@bpc.ps
                                      Total Cost: US$ 12 million


Description:
There is an opportunity to take an equity stake in the construction of a new commercial building
close to the new ministerial complex and cultural centre in Ramallah. The building will consist of
21 floors. There will be a five floor car park, a three floor shopping centre and eight floors of office
space. The total area of the building is 24,657m² and will have all the required services and technical
facilities. Construction is timetabled for completion by the end of 2010. All the necessary permits
and building licenses have been secured.



                                                                                                    93
22       Industrial Buildings and Warehouses in
                                     Jerusalem
                                      PIC Code: JER16
                              Sponsor Company: Sigma Arabesque
                                Contact Details: Mr. Hashim Abu Lafi
                                                 Tel: +970.2.585.9865, Fax: +970.2.585.9852,
                                                 Mobile: +972.57.760.0030
                                                 Email: arabesque@jrol.com
                                     Total Cost: US$6 million


 Description:
 There is an opportunity to take a 75% equity share in the development of industrial buildings
 and warehouses in the A’atarot Industrial Zone, Jerusalem. The buildings will cover a total area of
 6,500 m². Revenues will be raised by renting the buildings to Palestinian businesses interested in
 establishing a presence in Jerusalem. The target market will be owners of manufacturing and export
 businesses in Jerusalem and across the West Bank. The owners of the project have vast experience
 in this sector. The location of the industrial estate gives the project its competitive advantage.




23                      Residential building in Jerusalem
                                      PIC Code: JER03
                              Sponsor Company: Bina for Engineering
                                Contact Details: Mr. Mu’ez Nashashibi
                                                 Tel: +972.2.582.7536, Fax: +972.2.532.7754,
                                                 Mobile: +972.50.536.1175
                                                 Email: ahmad_nashashibi@hotmail.com
                                     Total Cost: US$ 5.5 million


 Description:
 The opportunity is to take an equity stake a new residential building to be constructed in the
 Sheikh Jarrah neighbourhood of Jerusalem. The main source of revenue is expected to be the
 rental payments from tenants. The target market for tenants is nearby consulates, diplomatic
 missions, international organizations and their employees. There are two types of competitor for
 this building: indirect competition from apartments elsewhere in Jerusalem and direct competition
 from apartments located in the same neighbourhood. The competitive advantages of this project
 are its good location, within the diplomatic area, and the size of the apartments which will be
 generally larger than normal in this neighbourhood.


 94
24              Technicians’ Training Centre, Gaza
                                      PIC Code: GAZA12
                              Sponsor Company: Osam Kuhail Co.
                                Contact Details: Mr. Osama Jabr Kuhail
                                                 Tel: +970.8.284.2035, Fax: +970.8.284.2025,
                                                 Mobile: +970.599.435.363
                                     Total Cost: US$1.5 million


Description:
 There is an opportunity to take an 80% equity stake in a new training facility in Gaza. The
Technicians’ Training Centre will offer training programmes and focus on developing the skills
required for technicians in the construction industry. The target market will be accomplished
secondary school leavers. Revenue will be raised through tuition fees. There is no competition
for the centre in Gaza as it will be the first specialised technicians’ training centre. The centre will
be run by experienced professionals. Osama Kuhail Company was established in 1994 and works
in the construction sector. It is classified as an A grade company, has an ISO 9002 certificate and
specialises in construction contracts and trading in construction materials. There is demand from
the industry for higher skilled technicians in Gaza.




25                                                                   Wedding Hall
                                      PIC Code: GAZA21
                              Sponsor Company: Abu Nidal Al Braim Co. for Trade and
                                                 Contracts/
                                Contact Details: Mr. Kamal Mohammed Al Braim
                                                 Tel: +970.8.208.2960, Fax: +970.8.208.2960,
                                                 Mobile: +970.599.417.602
                                     Total Cost: $0.9 million


Description:
There is an opportunity to take a 77% equity share in a new wedding hall. The wedding hall will
service the Khan Younis area of southern Gaza and will consist of two floors, each of 700m² as
well as a garden and a coffee shop. Currently no other wedding halls exist in this area. There is high
demand for a wedding hall with a large number of weddings each year. Revenues will be raised by
charging for use of the facilities. This is a seasonal business with the summer being the peak time
for weddings. The owner has over 20 years experience in construction. The project is estimated to
be profitable after the first year of operation.

                                                                                                    95
26                                      Daoud Hospital Complex
                                       PIC Code: RAM106
                               Sponsor Company: National Insurance Co.
                                 Contact Details: Mr. Samer Shihadeh
                                                  Tel: +970.2.298.3800, Fax: +970.2.240.7460
                                                  Email: nic@nic-pal.com
                                                  Website: www.nic-pal.com
                                      Total Cost: To be advised (project plan is under
                                                  development)


Description:
The Daoud Hospital centre is a three phase project that will see the eventual establishment of a
state of the art cardiology centre, a commercial centre and a hotel. The total area of the centre is
9,808 m²..The first phase of the project will be to build a hotel. This will initially cater for visitors
to the local area and later for the families of hospital patients. The second phase will be to build the
commercial centre with retail outlets, entertainment facilities and a supermarket. Phase three will
establish a technically advanced cardiology centre. There is strong demand for additional hospitals
within Palestine. Currently many Palestinians are forced to travel to Israel or Jordan for specialised
medical services.




96
97
MANUFACTURING
        industry




               99
1                  Pharmaceutical Factory Expansion
                                       PIC Code: RAM114
                   Sponsor Company/Individual: GAMA Pharmaceuticals
                                 Contact Details: Jamela Sayyid
                                                  Tel: +972.2.295.2481
                                                  Email: info@gamapharm.com
                                                  Website: www.gamapham.com
                                      Total Cost: US$ 18.4 Million
                 Contribution by Current Owners: US$ 5.5 Million
                            Required Investment: US$ 12.9 Million



Project Description:
GAMA Pharmaceuticals is a medium sized company engaged in the production of various
pharmaceutical and cosmetic products such as syrups & suspensions, creams & ointments, tablets
& capsules, dry suspensions and others. The Company is ISO 9001, ISO 14001 and GMP (Good
Manufacturing Practice) certified. GAMA intends to expand its operations through a two-stage
plan. The first stage involves the development of the current GAMA factory to become the first
factory in Palestine to produce infusions and dextrose. In addition, the company intends to expand
its production of effervescent tablets. The second stage of the project involves the establishment
of a factory in the city of Jerusalem to produce food supplements and vitamins. The construction
of the factory, including manufacturing halls, HVAC system, stores and laboratories was completed
in December 2007.

Project Development Time Table:
Infrastructure Development                                      Available in Ramallah, 8 months
                                                                for Jerusalem
Building and Construction Start Date                            Immediately
Building and Construction Completion Date                       One Year
Furniture and Equipment Purchase                                3 to 6 months
Operations Start Date                                           3 months after construction


Investor’s Profile:
GAMA Pharmaceuticals was established by mr. Ahmad Al-Sayyed, his wife Mrs. Jamilah Al-Sayyed,
and other investors with a total capital of US$ 705,000. In total, there are 50 shareholders. Members
of the board of directors own 60% of the total company shares.
In Palestine is US$ 65 million, of which US$ 40 million in sales is accounted for by Israeli and
foreign companies. Local manufacturers’ share of local consumption is 60% in terms of amount
and 45% in dollar value. Moreover, the Palestinian pharmaceutical Industry will soon be forced
to abide by the WTO/Trade Related Intellectual Property Rights. This is expected to bring about
major transformations in the operating environment.


100
SWOT Analysis:                                     Industry Highlights:
                                                   The pharmaceutical industry is a vital sector of
Strengths                                          the Palestinian economy. This is mainly due to
 •   The planned expansion will increase the       the sector’s provision of quality products that
     total market.                                 substitute Israeli and foreign goods. As a result
 •   GAMA has more than 30 years of                of a fiercely competitive local environment as
     experience in the pharmaceutical industry.    well as competition from Israeli manufacturers,
 •   Infusions which, to date, are not             the Palestinian pharmaceutical industry
     produced in Palestine, will be GAMA’s         experienced major developments. Smaller
     main product.                                 companies that were not able to adapt to changes
                                                   in the environment, merged with larger ones.
                                                   Currently, there are six major pharmaceutical
Weaknesses:                                        companies – predominantly located in the
 •   When compared to companies in                 Ramallah area – According to the Palestinian
     Israel, Palestinian pharmaceutical            Investment Promotion Agency, the annual value
     companies lack funding for research and       of annual pharmaceutical consumption
     development, which is a key factor for
     growth.                                       Strategic Benefits to Palestine:
 •   High transportation cost due to                •   Provision of higher quality products
     inadequate infrastructure.                         through modern production lines.
                                                    •   Competition will Improve quality
Opportunities:
                                                        and thus increase awareness and
 •   Large expenditure on medical and health            sophistication among Palestinian
     service as a result of occupation.                 consumers.
 •   Limited market size in Palestine forces        •   Provide job opportunities in various
     manufacturers to seek out export                   specialties.
     markets. This will require modernization
                                                    •   Infusion has very high demand in
     of facilities, equipment and procedures to
                                                        Palestine, most of which is imported
     comply with the “Good Manufacturing
                                                        from Israel. This increases supply risk
     Practices” (GMP).
                                                        especially during closures.
Threats:                                            •   Potential to penetrate the Israeli infusion
 •   Regional political instability puts GAMA           market.
     and its product at a general risk.
 •   Competition from new entrants to the
     market.
 •   More regulations imposed by the Ministry  y
     of Health in Palestine can lead to higher
     production cost.
 •   More regulations imposed by the WTO
     can lead to higher production cost.




                                                                                                101
2                                                Processing, storing,
                                            and selling vegetable oil

                                      PIC Code: RAM91
                             Sponsor Company: Near East Industries & Trade Ltd.
                                Contact Details: Mr. Ziad Anabtawi
                                                 Tel: +970.9.234.8035, Fax: +970.9.234.8436,
                                                 Mobile: +970.599.257901
                                                 Email: info@anabtawigroup.com
                                                 Website: www.anabtawigroup.com
                                     Total Cost: US$ 13 million
                Contribution by Current Owners: US$ 4 million
                           Required Investment: US$ 9 million


Project Description:
The opportunity is to take an equity stake by funding the establishment of a vegetable oil refining
plant. The company will import, process and package unrefined oil and supply it to West Bank
wholesalers and retailers. The main source of income is through the sales of cooking oil. The main
competitive advantage is the high volume of production and the accompanying cost benefits.

Project Development Time Table:

Infrastructure Development                   August 2008
Building and Construction Start Date         August 2008
Building and Construction Completion Date    March 2009
Furniture and Equipment Purchase             March 2009
Operations Start Date                        April 2009



Investor’s Profile:
Near East Industries & Trade Ltd. (NEIT) located in Nablus is the market leader in vegetable
oils. NEIT is the industrial arm of the well-established Anabtawi Group. NEIT uses pure raw
materials from worldwide sources in the production of high quality products. The company is a
fully integrated unit with a strong emphasis on Research and Development to ensure that products
meet the highest standards of quality. The entire process is automated and closely controlled to
ensure product consistency. The filtering and bottling processes use state-of-the-art computer-
controlled machinery to ensure, hygiene and accuracy in weights and volumes. The company has an
existing wide range of oils products.




102
SWOT Analysis:                                     Industry Highlights:
                                                   The industrial sector in Palestine is in transition.
Strengths:                                         Most industrial entities are privately owned
 •   The team is experienced and established       and employ fewer than 10 workers. The
     in the industry.                              sector as a whole remains small in relation
 •   It is the only project in the local market.   to aggregate economic activity. Despite this,
 •   The project has the necessary quality         many Palestinian manufacturing enterprises are
     certifications.                                actively engaged in the process of upgrading the
                                                   performance of their operations. Installation
Weaknesses:                                        of management information systems and the
 •   The team has no refinery experience.           achievement of ISO9000 certification increased
 •   High investment is needed for fixed costs.     by more than 200% between the years 1998 and
                                                   2000. Manufacturing of vegetable oil is highly
 •   It is difficult to export to neighbouring
                                                   competitive between the small number of well
     countries.
                                                   established producers.
Opportunities:
 •   There is growing demand for vegetable oil.    Strategic Benefits to Palestine:
 •   Labour is available.                            •   The project will contribute to the
                                                         Palestinian GDP.
 •   Trade agreements with some foreign
     countries exempt Palestinian origin             •   It will employ workforce (70 employees
     products from taxes.                                when finished).
                                                     •   It will increase Palestinian exports.
Threats:                                             •   It will reduce the dominance of foreign
 •   Movement restrictions impact on the                 competitors in the local market.
     project.
 •   There is tough foreign competition.




                                                                                                   103
3 Production of fluid injections and dialysis
                                                                                  solutions
                                       PIC Code: RAM115
                              Sponsor Company: Dana Veterinary Drugs Factory
                                 Contact Details: Omar Abdel-Rahim
                                                  Tel: +972.9.231.6211
                                                  Email:info@danavet.com
                                                  Website: www.danavet.com
                                      Total Cost: US$ 11 million
                 Contribution by Current Owners: US$ 1 million
                            Required Investment: US$ 10 million


Project Description:
The owner of this project is looking for a local investor to contribute up to 30% in the establishment
of a new modern automated production facility for infusion and dialysis solutions. The project,
which will be built on a 5,000 m2 piece of land, is expected to conform to FDA, CE, cGMP
regulations and standards. The facility’s annual capacity will be a maximum of 10 million units of
infusion and dialysis non-PVC (Polyvinylchloride) bags. These will be the two main product lines
offered at the initial operational phase. Such bags will be available in flexible and varying sizes. This
factory will aim for cost effective production practices, as well as environmentally friendly products.
Also, for future purposes, this facility will be capable of manufacturing other products, such as
antibiotics, cardiological solutions. Products will be sold locally and regionally in the Middle East
and African markets. The company signed an agreement with an international distributor, which
will commit to purchasing a minimum of 2 million infusion bags per year.

Project Development Time Table:
 Infrastructure Development                     Completed
 Building and Construction Start Date           As soon as Financing is available
 Building and Construction Completion Date      6 months from initial investment
 Furniture and Equipment Purchase               9 months from availability of financing
 Operations Start Date                          18months from availability of financing




104
SWOT Analysis:                                        Industry Highlights:
                                                      The Pharmaceutical Industry in Palestine
Strengths                                             is represented by the Union of Palestinian
 •   The use of Non-PVC based products                Pharmaceutical Manufacturers (UPPM), the
     have a longer shelf life, offer better           mother organization in which all current
     public health outcomes and have less             pharmaceutical companies are members.
     impact on the environment and the                Currently, there are 6 pharmaceutical companies
     environment.                                     operating in Palestine. According to recent
 •   The design and implementation of the             statistics, 50% or more of pharmaceuticals
     facility will be conducted by a foreign          consumed in Palestine are locally made. Local
     company (BioPharmax BV) who have the             production covers around 80% of the necessary
     necessary relevant experience.                   treatment medications. Global consumption of
 •                                                    infusion bags is growing at 7% per annum. It is
                                                      estimated that undeveloped countries consume
Weaknesses:                                           around 4 infusion units per person every year,
 •   PVC based products used by most                  four times the ratio for developed countries.
     competitors have a more cost effective           Palestine consumes around 6 million bags per
     structure.                                       year, which are totally imported. Hospitals
 •   Location needed for facility is tricky,          consume around 75% of supply while the
     it needs access to water, power and              remainder is goes to pharmacies and other
     electricity; elements that are rarely in         private institutions.
     abundance in Palestine.
                                                      Strategic Benefits to Palestine:
Opportunities:                                         •   Provide the industry with an
 •   Exploring other regional markets through              environmentally-friendly output,
     their international distributor.                      minimizing the possible dangers to nature
 •   With a lack of local competitors this                 and health.
     facility will be the leader in the Palestinian    •   Local production versus imports from
     market.                                               Israel and other countries.
 •   High growth in market demand.                     •   Creation of job opportunities and
                                                           potential for development and training of
Threats:                                                   the local labour force.
 •   Israeli control over Palestinian ports
     of entry could affect the ease of
     transportation and thus affect the ease of
     exporting such products to outer markets.
 •   Competitors could offer lower quality
     substitutes at lower prices.
 •   Israeli control of water sources could
     pose a problem.




                                                                                                 105
4                 Development of Meat (Mortadella)
                                          Industry
                                       PIC Code: RAM116
                              Sponsor Company: Salwa Food Company
                                 Contact Details: Mr. Taher Dwayat
                                                  Tel: +972.2.295.1569
                                                  Email:Salwa_food@yahoo.com
                                      Total Cost: US$ 6.2 million
                 Contribution by Current Owners: US$ 1.5 million
                            Required Investment: US$ 5.7 million


Project Description:
This project aims to produce, package and distribute all types of meat, especially different types of
Mortadella. Since canned Mortadella is imported, this project proposes investing in a canning and
distributing system in order to compete in prices with existing international companies. The factory
will be established in Ramallah on a 5,000 m² plot of land and will employ 98 employees. The
project’s total production capacity is estimated to reach 12.5 tons per day and will target European
markets as well as the regional market. The sponsor company is an established and renowned local
meat company. It has proven high standards and was awarded an ISO 22000 certificate. This gives
the giving the company a competitive edge and international credibility. Salwa products are already
exported to Jordan, UAE, Yemen, Egypt and Iraq.

Project Development Time Table:
Infrastructure Development                     June 2008
Building and Construction Start Date           Sept 2008
Building and Construction Completion Date      March 2010
Furniture and Equipment Purchase               May 2010
Operations Start Date                          June 2010



Investor’s Profile:
Mr. Taher Dwaiat is the General Manager of Salwa Company. He has 18 years of experience in
managing food companies such as Salwa and Al Rayan Yogurt Company. Other partners are Mr.
Nabil Olayan and Mr. Abdullah Abu Ghazaleh.




106
SWOT Analysis:                                        Industry Highlights:
                                                      Currently, there are around 15 Mortadella
Strengths                                             producing companies in the Palestinian meat
 •   Salwa Co. is an established food company         industry, the biggest three companies are Al
     that already has the know-how of                 Hayat, Al Islami TulKarim, and Salwa. Generally,
     producing and packaging Mortadella.              the food manufacturing industry contributes
 •   Salwa Co. has been awarded the ISO               vastly to the Palestinian economy with a total
     22000 certificate.                                output reaching US$380 million, 35% of the
 •   Salwa Co. has been given a permit to sell        total manufacturing industry output. One of
     its products in Israel.                          the important elements of food production is
 •   The company has strong future                    its contribution to the additional added value
     marketing and distribution plans.                to the industry which hovers at around 80%.
 •   Salwa Co. allocates 3 percent and 4              40% of Palestinian families’ income are spent
     percent of profits in research and                on food. Currently, 46% of fast food meals in
     development and quality control,                 Palestine consist of Mortadella. The industry’s
     respectively.                                    capacity for Mortadella production in Palestine
 •   10 percent of Salwa’s production goes to         is limited and relies on out-dated technology for
     exporting.                                       production. All the above indicates the need to
                                                      focus on the food industry to help it reach its
Weaknesses:                                           full potential.
 •   Compared to other existing companies.
     Salwa’s cost of production is relatively high.   Strategic Benefits to Palestine:
 •   Salwa co. needs to develop a clear long           •   Local production versus importing from
     term strategic business plan.                         abroad.
 •   The company’s sales are usually through           •   Providing flow of foreign currency
     agents as opposed to directly through                 into the economy though exporting to
     merchants.                                            international markets.
 •   Raw materials’ prices, especially meat has        •   Contribution to the food industry which
     been constantly rising.                               in turn will better the Industrial Sector
 •   Currently, there is a lack of training and            which is essential for the Palestinian
     development for their employees.                      economy.
Opportunities:                                         •   The skills and techniques of the
                                                           Palestinian labour force in this sector will
 •   The new processing plant will enable
                                                           be developed.
     Salwa to explore new markets to enter.
 •   Expanding their existing product line.
 •   The new product should help increase
     the company’s current market share.

Threats:
 •   There is strong competition in the meat
     industry from local and external markets
     including Israel.
 •   Through exporting, the company exposes
     itself to intense competitive markets,
     regionally and internationally.

                                                                                                   107
5     Production and development of security
                                      doors
                                      PIC Code: RAM10
                             Sponsor Company: Super Nimer Industrial and Investment Co.
                                Contact Details: Mr. Ahmad Nimer
                                                 Tel: +970.2.229.1219 OR 258.1024
                                                 Fax: +970.2.229.7198 OR 258.1024
                                                 Mobile: +970.599.202056
                                                 Email: info@super-nimer.com
                                     Total Cost: US$ 5 million
                 Investments by Current Owners: US$ 3 million
                           Required Investment: US$ 2 million


Project Description:
The opportunity is to take an equity stake by funding the expansion of an existing door manufacturer
in Hebron. The main source of revenue will come from selling security doors and metal boxes
in the Palestinian, Israeli, and Jordanian markets. The target market is engineers, contractors and
real estate entrepreneurs in the Palestinian Territory and Israel who are involved with residential
buildings, commercial centres, hospitals, schools and factories that need high quality and attractive
doors without sacrificing security or robustness. The main competing brand is Multi-Lock produced
in Israel. This project has the competitive advantages of a skilled and experienced workforce, and
of being the only Palestinian manufacturer.

Owners/Partners and % ownership:
 •    Super Nimer Industrial and Investment Co. 60%.
 •    Potential Investor 40%.

Project Development Time Table:

Infrastructure Development                     Oct 2008
Building and Construction Start Date           Oct 2008
Building and Construction Completion Date      Dec 2008
Furniture and Equipment Purchase               March 2009
Operations Start Date                          May 2009




108
SWOT analysis                                       Industry highlights:
                                                    Despite the movement restrictions and the
Strengths:                                          local economical regression in recent years,
 •   The team has experience and established        Palestinian products in general and metal
     relations in the industry.                     products in specific are already successfully
 •   It is the only local supplier in the market.   marketed in Jordan, Egypt and Greece. Today,
 •   It has obtained quality certifications such     most residential buildings, hospitals, factories
     as ISO 9001 and a Palestinian Quality          and commercial centres prefer to install security
     Certification.                                  doors because they are robust, safer and more
                                                    attractive than traditional metal or wood doors.
Weaknesses:                                         Most of the local demand for security doors is
 •   The production is relatively expensive         satisfied through Israeli products such as Multi
     compared to competitors.                       Lock. The market is steadily growing in the
 •   Existing production cannot meet local          Palestinian Territory and Israel. Super Nimer is
     demand.                                        the first local producer.

Opportunities:                                      Strategic Benefits to Palestine:
 •   There is growing demand for security            •   The project will contribute to the
     doors.                                              Palestinian GDP.
 •   Trade agreements with some foreign              •   It will employ a workforce of 250 at its
     countries exempt Palestinian origin                 peak.
     products from taxes.                            •   It will increase Palestinian exports.
Threats:                                             •   It will reduce the dominance of Israeli
                                                         competitors in the local market.
 •   There are movement restrictions which
     impact on the project.
 •   There is tough Israeli competition.
 •   Global metal prices fluctuate.




                                                                                                 109
6             Stone & Marble Dry Sludge Treatment
                                      PIC Code: RAM85
                             Sponsor Company: Hebron Municipality
                                Contact Details: Mr. Jawad Hirbawi
                                                 Tel: +970.2.222.8293, Fax: +970.2.222.8293,
                                                 Mobile: +970.598.909847
                                                 Email: jawadsayyed@yahoo.com
                                     Total Cost: US$ 4 million
                 Investments by Current Owners: US$ 1 million
                           Required Investment: US$ 3 million


Project Description:
The opportunity is to take a stake in financing a stone and marble sludge recycling and treatment
project. The working of stone and marble produces sludge of which 90% is water. The remaining
dry sludge is considered as a raw material for the proposed project which will process it to produce
calcium carbonate. This will be used in a variety of industries and applications dependent on particle
size, including cement, paint and pharmaceuticals. The main source of revenue will be generated
from sales of calcium carbonate. The target market is international, regional and local industries.
The main competition is alternative suppliers of calcium Carbonate. The Hebron Municipality is
proposing the project as a Public Private Partnership initiative.

Owners/Partners and % ownership:
  •   Hebron municipality (25%).
  •   Potential investor (75% financing assets).

Project Development Time Table:
The project is scheduled to be in operation in less than one year after the investment is secured. This
includes the official formulation of the Public Private Partnership, construction work, equipment
installation and trial periods. The land for the project is available under municipality ownership.

Infrastructure Development                      2008
Building and Construction Start Date            2008
Building and Construction Completion Date       2008
Furniture and Equipment Purchase                2009
Operations Start Date                           2009




110
SWOT analysis                                   Industry highlights:
                                                The Palestinian stone and marble industry has
Strengths:                                      helped build much of the country’s physical
 •   The raw material is a by-product of the    infrastructure. Palestine has a rich stock of good
     stone and marble manufacturing industry.   quality stone, both soft and hard limestone
 •   There is skilled labour available.         (marble). Palestinian stone is considered to be a
 •   There is market availability for the end   vital natural resource. Stone and marble products
     product.                                   are exported to regional and international
 •   There is a short implementation period     markets. Quarries are concentrated mainly in
                                                the northern and southern cities of the West
Weaknesses:                                     Bank, due to the availability of good quality
 •   The team has no previous experience        stone within these areas. The industry is highly
     in managing a sludge reclamation           competitive with many large and small producers
     project nor in the technical management    serving the market. Palestinian stone and marble
     of sludge treatment or raw material        products have the competitive edge of being
     marketing.                                 a high quality product available at reasonable
                                                prices and of Holy Land origin. This sector
Opportunities:                                  experienced significant growth in recent years
 •   Demand for marble and stone is             and this trend is expected to continue. There
     increasing.                                are no similar sludge treatment projects in the
                                                Palestinian Territory or Israel.
 •   There is a wide range of industrial
     applications for reclaimed products.
                                                Strategic Benefits to Palestine:
Threats:                                          •   The environmental impact of stone and
 •   Movement restrictions will impact on the         marble industry leftovers and by-products
     project.                                         is substantial. This project will completely
 •   Stone manufacturers are unaware of the           eliminate the impact of sludge on the
     environmental hazards.                           environment.
 •   Regional competition comes from Turkey       •   The project will serve as leverage for
     and Egypt                                        the waste water treatment project in
                                                      Hebron that was delayed due to the
                                                      environmental impact of pumping the
                                                      sludge into the sewer system.
                                                  •   This project will produce at least 35 jobs
                                                      in the area; current unemployment rate is
                                                      over 40%.




                                                                                              111
7                     Ceiling and Wall Production and
                                         Development
                                      PIC Code: RAM21
                             Sponsor Company: Locrete Industries Palestine
                                Contact Details: Mr. Abde El Mouti Al-Qutob
                                                 Tel:: +965.720.0994 OR 299.6292
                                                 Fax: +965.299.6304 OR 461.0086
                                                 Email: fahim.kassis@locrete.com OR
                                                 amqutob@gmail.com
                                                 Website: www.locreteindustries.com
                                     Total Cost: US$ 3.5 million
                  Investments by Current Owner: US$1.7 million
                          Required Investment: US$1.7 million


Project Description:
The opportunity is to take a 50% equity stake in the establishment of a company manufacturing
proprietary pre-cast and pre-stressed concrete elements. These are used for the construction of
structural slabs and load-bearing and non load-bearing walls. The target markets are construction
companies. The element design is proven in overseas markets, including Kuwait, Lebanon, South
Africa and the USA.

Project Development Time Table:

Infrastructure Development                     July 2008 – Oct 2008
Building and Construction Start Date           July 2008
Building and Construction Completion Date      Feb 2009
Furniture and Equipment Purchase               March 2009
Operations Start Date                          May 2009



Owners/Partners and % ownership:
 •    Locrete Industries Palestine Co. (50%)
 •    Potential Investor (50%)




112
SWOT analysis                                       Industry highlights:
                                                    The construction sector is one of Palestine’s key
Strengths:                                          sectors and a driving force of the Palestinian
 •   It is a patented product.                      economy. This is mainly due to its substantial
 •   These materials are relatively low             contribution to employment and its strong
     cost compared to traditional building          interaction with other economic sectors. These
     methods.                                       include manufacturing activities directly used in
 •   It has been a proven success in overseas       construction activity including the manufacturing
     markets, particularly the Gulf.                of non-metallic products, basic metals and metal
                                                    products.
Weaknesses:
                                                    Due to high land prices and the recent price rises
 •   This is a new concept for the local            of iron and concrete, there is an increasing need
     market.                                        for more efficient building methods and materials.
 •   Project owners and engineers may be            Locrete’s proven, innovative construction
     slow or reluctant to adapt.                    solution can benefit the civil construction market
                                                    and delivers a quality structure with record speed
Opportunities:                                      and ease of fabrication. A prime advantage of
 •   There is growing demand for                    Locrete is that it minimises the need for steel,
     construction materials.                        which has become significantly more expensive
 •   Prices for raw materials used in traditional   recently.
     building methods are on the rise.
                                                    In addition to material price reduction, the
Threats:                                            process involves unskilled labour. Locrete
 •   People are resistant to change.                elements usually offer significant reduction in
                                                    construction time. Locrete elements are versatile
 •   There is competition from traditional
                                                    and may be used, for example, in the construction
     building methods.
                                                    of homes, retaining walls, highway noise barriers
                                                    and fences, boundary walls, warehouse closures,
                                                    tunnelling sides, roofs and pavements.

                                                    Strategic Benefits to Palestine:
                                                      •   The project will contribute to the
                                                          Palestinian GDP.
                                                      •   It will reduce traditional construction
                                                          costs, resulting in a more efficient use of
                                                          money and resources.
                                                      •   It will introduce new construction
                                                          technology to Palestine




                                                                                                  113
8                               Solar Water Heating Factory
                                       PIC Code: RAM117
                   Sponsor Company/Individual: Mansour Industry Trade & Contracting Co.
                                 Contact Details: Mansour Mansour
                                                  Mobile: +972.9.979.7972
                                                  Email:mitco_9@yahoo.com
                                      Total Cost: US$ 2.2 million
                 Contribution by Current Owners: US$ 0.6 Million
                            Required Investment: US$ 1.6 Million


Project Description:
The opportunity is to take an equity stake in a new solar power venture, specifically water heating.
The project aims to produce around 15,000 solar water heater (SWH) units per year. In addition,
the factory will also produce components of heaters for local and international companies. The
factory will aid in the development of the existing SWH industry, as well as cooperating with other
producers in the same industry to gain competitive strength in the region. SWH is a basic system for
converting solar energy into thermal energy. SWH components include: collector, hot water storage
tanks and connecting conduits. Hot water is supplied through open circuit systems or closed circuit
systems.

Project Development Time Table:
Infrastructure Development                    Already established
Building and Construction Start Date          N/A
Building and Construction Completion Date     6 months from funding
Furniture and Equipment Purchase              6 months from funding
Operations Start Date                         9 months from construction



Investor’s Profile:
 •    The major shareholder will be Mansour Trading & Contracting Co.
 •    Looking for strategic investors.




114
SWOT Analysis:                                     Industry Highlights:
                                                   The use of solar water heaters is very common
Strengths:                                         in the region in general and in Palestine in
 •   Solar water heater systems are relatively     particular. The annual average solar radiation is
     low priced, simple and easy to                5.46 KWH/day, which encourages the use of
     manufacture.                                  solar water heaters, especially in Palestine due to
 •   Raw materials for the systems are widely      its economic feasibility and relatively low prices;
     available.                                    around 75% of households use SWH systems.
 •   Long durability of equipment and              There are 27 suppliers of solar water heaters
     machinery, up to 20 years.                    in Palestine. This industry is mostly based on
 •   Payback period for the product is usually     Israeli designs, and experiences gained at Israeli
     less than two years.                          factories, and many parts for the systems are
                                                   imported from the Israeli market; Whereas local
 •   The project provides an option for
                                                   factories have limited capabilities of producing
     Palestinian households to reduce their
                                                   high quality SWH systems.
     highly priced fuel consumption.

Weaknesses:                                        Strategic Benefits to Palestine:
 •   Very expensive equipment and machinery          •   The development of a local solar water
     to operate the system at the beginning.             heating factory will redirect profits of
 •   The volume of heated water produced is              Israeli companies into the local market.
     limited.                                        •   Provide job opportunities to the local
 •   Currently 75 percent of households have             labour force.
     solar heating systems and many might not        •   Eventual profit generation will benefit the
     be interested in updating their system.             local government
 •   As it is located on the roof, these systems     •   It will help develop and hone the skills of
     can be easily damaged.                              the local employees, preparing them for
                                                         other projects/jobs in the industry.
Opportunities:
 •   The project will explore an untapped
     market in Palestine.
 •   Solar water heaters systems are widely
     used in the local market; exposure to the
     product.
 •   Existing local workshops have very low
     production rates.
 •   Increasing prices of energy in Palestine.
 •   Growth in the housing sector.

Threats:
 •   Presence of competitors in the Israeli
     market.
 •   The changing, unstable, situation in
     Palestine; transportation and such could
     be jeopardized without pervious notice,
     thus affecting the plants operations.

                                                                                                  115
9       Vocational Training Centre, Bethlehem
                                       PIC Code: RAM18
                              Sponsor Company: IMI Equipment Co.
                                 Contact Details: Imad Al-Aref
                                                  Tel: +970.2.290.4922, Fax: +970.2.583.3598,
                                                  Mobile: +970.599.886633
                                                  Email: imad@imi-equipment.com
                                      Total Cost: US$ 1.5 million
                 Contribution by Current Owners: US$ 0.3 million
                            Required Investment: US$ 1.2 million


Project Description:
The opportunity is to take an equity stake by financing the creation of a Vocational Training Centre
in Bethlehem. The project will introduce the latest engineering technology training to Palestine and
will provide hands on experience to high school graduates and those from other vocational centres.
The objective of the project is to enrich the Palestinian and regional markets with professional
technicians and skilled workers specialised in heavy machinery. The project will complement local
universities and engineering programmes, and will be accredited from the Ministries of Education
and Transportation. The Centre’s training activities will be supervised by Master Craft Company
(MC) in the USA which will provide technical support, and the MC specific business knowledge
will be incorporated in the solution. Students of the Centre will have the possibility to be exposed
to intensive training in the United States and other areas in which Master Craft operates.
The main source of revenue will be generated from student tuition fees. The target market is local
Palestinian graduates. The main competition will be from existing vocational schools. The unique
competitive advantage is the affiliation with Master Craft Company.

Project Development Time Table:

Infrastructure Development                    December 2008
Building and Construction Start Date          January 2009
Building and Construction Completion Date     December 2009
Furniture and Equipment Purchase              December 2009
Operations Start Date                         January 2010



Investor’s Profile:
IMI for Trading Machinery and Heavy Tools was registered in February 2008 in Ramallah under
registration number 562472233. The Vocational Training Centre will be supervised by Master Craft
Company (MC), which is one of the top five manufacturers in the USA. The Company was started
in 1952 is currently present in three continents. MC lifts are used in over fifty industry segments.




116
SWOT Analysis:                                     Industry Highlights:
                                                   Vocational Education and Training (VET), also
Strengths:                                         called Career and Technical Education (CTE),
 •   It has the support of the American            prepares trainees for careers that are based
     Master Craft Industrial Equipment             in manual or practical activities, traditionally
     Corporation.                                  non-academic and related to a specific trade,
 •   The training is accredited from               occupation or vocation. It is sometimes referred
     the Ministries of Education and               to as technical education, as the learner directly
     Transportation.                               develops expertise in a particular group of
 •   The strong qualifications of IMI               techniques or technology. Currently there
     management.                                   are few well established vocational schools in
                                                   Palestine, such as UNRWA vocational schools,
Weaknesses:                                        where most of the current graduates work for
 •   High tuition fees.                            local manufactures and local small industrial
                                                   shops.
Opportunities:
 •   There is a shortage of professional skilled
                                               d   Strategic Benefits to Palestine:
     workers and technicians in Palestine and       •   The project will introduce the latest
     the region.                                        engineering technology training to
 •   Many engineers have no hands-on                    Palestine.
     experience.                                    •   It will provide hands on experience to
 •   There is an immediate demand for such              high school and other vocational centres’
     workers / technicians in the region.               graduates.
 •   There are few specialised training and         •   It will provide the Palestinian and regional
     vocational centres.                                markets with professional technicians
                                                        and skilled workers specialised in heavy
Threats:                                                machinery.
 •   The possible deterioration in the political    •   It will compliment local universities and
     and security situation in the Palestinian          programs in engineering programmes.
     territory will impact on the project.          •   It will create 20 permanent jobs.
 •   The mobility of trained students may be
     restricted.
                                      CONCEPTS




                                                                                                 117
CONCEPTS
10                               Waste to Energy Power Plant
                                       PIC Code: RAM40
                               Sponsor Company: Palestinian Energy & Environment Research
                                                  Centre
                                 Contact Details: Mr. Hussein Hamad
                                                  Tel: +970.2.298.9075, Fax: +970.2.295.7934
                                                  Email: perc@palnet.com
                                      Total Cost: $72.6 million


Project Description:
There is an opportunity to take a full, or part, equity share in the construction of a waste-to-energy
power plant. The plant will process municipal waste from the northern provinces of the West
Bank and convert it into electricity. The project will convert 189,000 tonnes of municipal waste
per year into 151.2GWh of electricity. The project will generate income from electricity sales and
waste disposal fees. The project has social benefits and can help address the problem of mounting
municipal waste in an economic and environmentally safe way. PEC is a national R&D institution
responsible for the implementation of renewable energies and energy efficiency in Palestine. The
building of this plant in Palestine would be a first in the region. It might be possible to replicate the
system in other countries if it proved a success.



                       New Markets for Pharmaceutical
11                                Company, Beit Jala
                                       PIC Code: RAM17
                               Sponsor Company: Beit Jala Pharmaceutical Co.
                                 Contact Details: Mr. Nidal Sukhtian
                                                  Tel: +970.2.274.2855, Fax: +970.2.274.1072
                                                  Email: gmanager@beitjalapharma.com
                                      Total Cost: US$ 15.5 million



Description:
The opportunity is to take an equity stake in Beit Jala Pharmaceutical Company (BJP) by financing
the process of obtaining a Good Manufacturing Practice (GMP) certificate compliant with the
U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMEA). The
financing will be used to procure consultancy services, instrumentation, and machinery needed to
become GMP compliant. Obtaining GMP certification will enable the company to export their
products to the U.S., Europe, and other overseas markets. The company anticipates an increase in
revenues resulting from accessing new international markets.

                                                                                                    119
12       Galvanised Zink & Steel Poles Factory,
                                         Gaza
                                      PIC Code: GAZA24
                              Sponsor Company: Electrical Industries Co.
                                Contact Details: Mr. Shaaban Faraj Al Sawada
                                                 Tel: +970.8.286.2105, Fax: +970.8.286.4194,
                                                 Mobile: +970.599.420801
                                                 Email: elecengi@palnet.com
                                     Total Cost: US$ 7 million


Description:
There is an opportunity to take a 77.1% equity share in the establishment of 2 factories in Gaza;
one for manufacturing steel poles and the other to conduct the galvanising process. The poles will
be used for lighting, electricity and other infrastructure. There are no other local manufacturers
of galvanised steel poles and a projected high demand from future infrastructure development.
European made galvanising machines will be used to ensure the galvanising process does not harm
the environment. A pilot phase is underway to test production. Locally produced poles will have a
competitive advantage over those imported as there will be reduced shipping costs and transport
time. The owner has existing business interests in wholesaling infrastructure equipment and electrical
supplies and has extensive experience in the production of non-galvanised steel poles. There is a
pool of skilled technical labour available.




13                              Al Bandak Stone and Marble
                                      PIC Code: RAM16
                              Sponsor Company: Al-Bandak Marble Co.
                                Contact Details: Mr. Issam Al-Bandak
                                                 Tel: +970.2.274.3067 OR 274.2806, Fax:
                                                 +970.2.276.6011
                                                 Email: issamalbandak@yahoo.com
                                     Total Cost: US$ 5 million


Description:
This is an opportunity to take an equity share in the rehabilitation of one of the oldest stone and
marble factories in Palestine. The Al Bandak Company is an established family trademark and has
been manufacturing stone and marble since 1967. The company expanded its production lines prior
to the Intifada, but full production capacity has yet to be reached. Additional investment finance
should enable operations to reach capacity and, through the purchase of new machinery, allow the
factory to produce stone and marble for export. Palestinian stone and marble has a competitive
advantage as it is high quality, available in a unique set of rich colours, reasonably priced and has
origins in the Holy Land.
120
14                                                  Gold Chains Factory
                                       PIC Code: GAZA10
                               Sponsor Company: Ghattas Hakoura and Sons Co.
                                 Contact Details: Ghattas Hakoura
                                                  Tel: +970.8.286.9843, Fax: +970.8.286.7616,
                                      Total Cost: US$ 4 million


Description:
There is an opportunity to join an existing Italian investor and take a 60% equity share in the
establishment of a gold and silver chain producing factory in Gaza. The Gold Chains Factory will
be the first of its kind as currently all chains are imported. The factory will reform gold and silver
alloy into chains for use in necklaces, pendants and other jewellery sets. It will provide wholesale
products to the Palestinian Territory and eventually will look to export to neighbouring countries.
Ghattas Hakoura & Sons Company is a well-known name in Gaza and has been involved in the
jewellery industry since 1960. Demand for gold chains is high in Gaza and there are a large number
of jewellery stores that sell chains.




15                     Expansion of Gaza Juice Factory
                                       PIC Code: GAZA34
                               Sponsor Company: Palestine for Food Industries
                                 Contact Details: Mr. Ayed Awni Abu Ramadan
                                                  Tel: +970.8.288.0440, Fax: +970.8.288.0442,
                                                  Mobile: +970.599.872624
                                                  Email: aaburamadan@ped.ps
                                      Total Cost: US$ 3.2 million


Description:
There is an opportunity to take a 70% equity stake in the expansion of the Gaza Juice Factory. The
company currently produces citrus concentrates, syrups, essential oils, aromas, marmalades and jams
as well as strawberry purees and syrups. The proposal is for a new processing line with additional
fruit extraction capabilities and a tetrapak filling line. GJF is currently the sole factory in Palestine
that has the necessary equipment for citrus extraction and juicing. Products are high quality, using
only fresh fruit, and the raw concentrated juice is exported to neighbouring states. With the new
technology GJF would be able to produce final products on site and benefit from higher value
added processes. The new project will initially have the capacity to supply 40% of the local market.
At full working capacity the factory will be able to meet 100% of local demand. The Palestine Food
Industries Company was established in 1994 to help Gaza citrus producers increase the shelf life of
their production. It is a private company owned by the Palestine Investment Fund.
                                                                                                    121
16         Interlocking tile and kerbstone factory,
                                      Khan Younis
                                       PIC Code: GAZA05
                               Sponsor Company: Khuza’a Co. for Trade and Contracts
                                 Contact Details: Mr. Adel Ahmad Qudaih
                                                  Tel: +970.8.206.5235, Fax: +970.8.206.5235,
                                                  Mobile: +970.599.550.530
                                      Total Cost: US$ 3 million


Description:
There is an opportunity to take an 80% equity share in a factory in Khan Younis in southern Gaza.
The factory will be on a 15,000m² plot and produce Interlock tiles, tiles for buildings and other
concrete construction related products. There is high demand for Interlock tiles in Gaza due to the
large volume of infrastructure construction projects underway. There is currently only one local
manufacturer of these products. The company is a leading construction contractor that currently
buys large quantities of concrete products for existing contracts. It has substantial experience in
construction and in the manufacturing of construction products. There is a pool of skilled technical
labour available. Due to restrictions on imports there is limited external competition.




17                                 Steel Pipes and Bars Factory
                                       PIC Code: GAZA33
                               Sponsor Company: Al Bayan for Trade and Contracts
                                 Contact Details: Mr. Ashour Ibraheem Al Samna
                                                  Tel: +970.8.280.1913, Fax: +970.8.284.2232,
                                                  Mobile: +970.599.601562
                                      Total Cost: US$3 million


Description:
This is an opportunity to take a 50% equity share in a manufacturer of steel pipes and bars. The
pipes will range in size from 16mm to 115mm diameter and 0.04mm to 4mm thick. The products
will be tailored for industrial, agricultural, home or infrastructure uses. The factory will be the first
of its kind in the Palestinian Territory. Currently over 6,000 tons are imported annually to meet
local needs. The company was established in 1994 and is a major importer of steel for industry
and construction. It currently produces rolled steel bars, galvanized steel sheets, steel beams and
concrete. They are keen to expand their product range given the expected increase in demand from
construction. There is a large pool of skilled labourers and engineers to work on the project.


122
18                                         Detergent Factory, Rafah
                                       PIC Code: GAZA28
                               Sponsor Company: Zeqar Co.
                                 Contact Details: Hammed Ibraheem Al Quedra; and
                                                  Ayed Ibraheem Al Braim
                                                  Tel:: +970.8.205.1502, Fax: +970.8.205.1502,
                                                  Mobile: +970.599.603.698
                                                  Email: zeqar05@yahoo.com
                                      Total Cost: US$ 2 million


Description:
There is an opportunity to take a 60% equity share in a detergent factory in the proposed Rafah
Industrial Zone, Gaza. The factory will produce multiple product lines including powder, soap and
liquid detergents. An expert chemical engineer is already place as technical director of the project.
Production will use the latest technology and look at ways to mitigate the environmental impact.
Demand for detergent is high with 6,500 tons bought in Palestine in 2007. Currently most local
producers of detergent are located in the West Bank and use less advanced production techniques
than those planned in this project. There will be competition from imported detergents which
currently are thought to have a 50% market share. Zeqar Company is a leading construction
company in Gaza, with over $17 million of projects.




19                                                              Al Arkan Quarry
                                       PIC Code: RAM04
                               Sponsor Company: Al Arkan Company
                                 Contact Details: Mr. Mohammed Al-Halayka
                                                  Tel: +970.2.256.2293, Fax: +970.2.256.2293,
                                                  Mobile: +970.599.204730
                                                  Email: malmashni1966@yahoo.com
                                      Total Cost: US$ 1.9 million


Description:
This is an opportunity to take a 62% equity share in The Al Arkan Company, a producer and
distributor of marble and building stone. The Al Arkan Quarry is based in Alshyoukha, Hebron.
The owners currently supply their product in large raw blocks and wish to expand their business by
adding a new product line – ready-to-use building stone and marble. Palestinian stone and marble
has a competitive advantage in its high quality, availability in a unique set of rich colours, reasonable
prices and origins in the Holy Land. There is strong global demand for Palestinian stone and
marble; the sector has seen steady growth in recent years.

                                                                                                     123
20                                                  Concrete production
                                       PIC Code: RAM71
                               Sponsor Company: Arab Concrete Products Co. Ltd.
                                 Contact Details: Mr. Azzam Al-Aloul
                                                  Tel:: +970.9.237.6093, Fax: +970.9.237.6093
                                                  Email: acpc_co@yahoo.com
                                      Total Cost: US$ 1.5 million


 Description:
 There is an opportunity for an investor to take an equity share in the rehabilitation of the oldest
 concrete producer in Palestine. The Arab Company for Concrete Products has been producing
 concrete since 1978. In 1998 the company established its own crusher to enable expansion.
 However the second Intifada reduced sales and production. New investment finance will enable the
 producer to increase its current production rate. Demand for locally produced materials is expected
 to increase with growth in the construction industry.




21                                                  Dead Sea cosmetics
                                      PIC Code: RAM22
                              Sponsor Company: Philadelphia Cosmetics
                                Contact Details: Mr. Mohammed Johar
                                                 Tel: +970.2.240.8337, Fax: +970.2.240.8337,
                                                 Mobile: +970.598.110195
                                                 Email: kjawhar2003@yahoo.com
                                     Total Cost: US$ 1.2 million


Description:
There is an opportunity to hold a 75% equity share in the expansion of the Philadelphia Cosmetics
Store product line. A new and exciting line of natural health products will be developed, formulated
from the rejuvenating minerals of the Dead Sea, combined with plant extracts and aromatic oils.
This will be the first Palestinian production of Dead Sea cosmetics. The target market will be local
customers. The Philadelphia Cosmetics Store is one of the local market leaders. Dead Sea products
have a competitive advantage given the mineral-rich salts and their apparent healing properties.
There is growing demand for natural products and currently few competitors in this field.




124
22 Marketing Company for Stone and Marble
                                          PIC Code: RAM34
                                  Sponsor Company: Ya’coub Sbaih
                                    Contact Details: Tel: +970.2.276.8474, Fax: +970.2.277.6820,
                                                     Mobile: +970.598.800801
                                                     Email: y_sbaih@yahoo.com
                                         Total Cost: US$ 1 million


 Description:
 There is an opportunity to take an equity share in the establishment of a stone and marble marketing
 company. The Palestinian stone and marble sector is highly competitive and has established a good
 reputation in regional and international markets. The global demand for stone and marble has increased
 dramatically in the past decade and is expected to expand further with the construction boom. The
 marketing company will play an intermediary role between the stone and marble companies, form
 strategic partnerships with foreign companies, compete in bidding for large construction projects and
 assist in the overall development of the products to meet international standards and quantities. The
 target will be international markets, particularly the Gulf area. The owner of this project has extensive
 experience in the stone and marble sector and over the past seven years has exported products to Spain,
 Italy, USA, UAE and China. Palestinian products have a competitive advantage from favourable trade
 agreements with many key markets.




23                               Paper Recycling Plant in Gaza
                                          PIC Code: GAZA07
                                  Sponsor Company: Shams Co.
                                    Contact Details: Mr. Rami Ibraheem Al Tartour
                                                     Tel: +970.8.281.0440, Fax: +970.8.281.0440,
                                                     Mobile: +970.599.760.469
                                                     Email:ramib14@hotmail.com
                                         Total Cost: US$ 0.5 million


 Description:
 There is an opportunity to take a 70% equity share in the establishment of a paper recycling plant in
 Gaza. This is the first plant of its kind in Palestine. Finance will be used to rent an appropriate facility in
 an existing industrial zone. Currently Gaza produces about 1,300 tons of garbage daily, more than 8% of
 which is paper products. Paper will be gathered from the waste collected and then processed into huge
 rolls of 3 types of paper products used in cartons, tissue and paper manufacture. The end products will
 be sold in competition with existing supplies of imported paper. A feasibility study has been undertaken
 that shows that the local price of recycled material will be much lower than imported paper. Local paper
 manufacturers have shown positive interest in the development of recycled paper products. Mr Rami
 Al Tartour has more than 8 years commercial experience in Gaza and has been working with a team of
 engineers and chemical specialists for a number of years to develop the processes.


                                                                                                          125
24                         Plastic Recycling Factory, Gaza
                                      PIC Code: GAZA27
                              Sponsor Company: Al Khodary Factory for Plastic
                                Contact Details: Mr. Riyad Yahya Al Khodari
                                                 Tel: +970.8.280.0711
                                                 Mobile: +970.599.705.797
                                     Total Cost: US$ 0.5 million


Description:
An equity share is available in a new plastic recycling plant in Gaza. The recycling plant will gather
plastic waste from existing municipal rubbish sites and old plastic materials from greenhouses. The
plastics will be sorted manually according to their classifications before being reduced to plastic
granules for re-use. Demand for plastic products is on the increase and there are a number of
plastic production factories in Gaza. There will be limited competition for this venture as it is the
first plastic recycling plant in Gaza. Local producers currently rely on imported raw materials and
high international prices give recycled products a competitive advantage. The recycling plant will
have a positive impact on the environment and enable the community to make use of their waste.
There are experienced technical specialists locally to help with the project. Al Khodary has more
than 25 years experience in the plastic industry and has a factory for producing different types of
plastic pipes for agricultural and electricity uses.




126
127
TOURISM
   industry


          129
1                                                                Qruntol Center
                                   Project Code: RAM11
                              Sponsor Company: Qruntol Tourism & Trade Co.
                                 Contact Details: Mr. Khaled Abdel Razeq
                                                  Tel: +970.2.232.2614, Fax: +970.2.232.2659,
                                                  Mobile: +972.54.2171967
                                                  Email: info@temptationcenter.com
                                      Total Cost: US$ 40 million
                 Contribution by Current Owners: US$ 20 million
                            Required Investment: US$ 20 million



Project Description:
The opportunity is to take an equity stake in a tourism centre in Jericho. The project is partially
built and already offers a range of services to tourists. The investment is needed to complete and
furnish the hotel, and to develop other facilities. The main source of revenue will come from the
restaurants, souvenir and gift shops, jewellery sales, natural cosmetics, and hotel occupancy. The
target market is local and international tourists. The competitive advantage is the strategic location
of the project in old Jericho. The project will cover a total of 7,000 m², of this 6,000 m² has already
been developed.

Project Development Time Table:
Infrastructure Development                      2008
Building and Construction Start Date            June 2008
Building and Construction Completion Date       December 2008
Furniture and Equipment Purchase                June 2009
Operations Start Date                           September 2009



Investor’s Profile:
The project belongs to the Qruntol Company (established in 1991) - a family business, owned
by Khaled and Maha Abdelrazeq. It operates in the tourist and commercial sectors mainly in the
Jericho area. Mr. Abdel Razeq manages the projects, building due to his extensive experience in the
tourism sector.




130
SWOT Analysis:                                     Strategic Benefits to Palestine:
                                                    •   The project will strengthen the tourism
Strengths:                                              sector in Jericho and will enhance the
 •   The centre is located in old Jericho near          level of services.
     historical sites.                              •   It will create 105 permanent jobs for the
 •   The project has already established a              Palestinians.
     market.                                        •   It will contribute to the economic
 •   The project is more than 50 percent                development of Jericho.
     completed.
 •   It offers a diverse range of services under
     one roof.
 •   It meets the need of different market
     niches.
 •   There are few hotels in Jericho and none
     are located in the historical areas.

Weaknesses:
 •   The current owners lack additional
     financial resources.
 •   There is a lack of experience in managing
     some aspects of the project.

Opportunities:
 •   There is a high potential for local
     tourism.
 •   The land owned by the company allows
     for future expansion.

Threats:
 •   The possible deterioration in the political
     and security situation in the Palestinian
     Territory.




                                                                                              131
2            The Vineyard Court Hotel, Jerusalem
                                    Project Code: JER09
                               Sponsor Company: Ritz Hotel Jerusalem
                                  Contact Details: Sami Abu Daya
                                                   Tel: +972.2.582.8706, Fax: +972.2.582.8202
                                                   Mobile: +972.50.524.8815
                                                   Email: sami@nettours.com
                                       Total Cost: US$ 28 million
                  Contribution by Current Owners: To be advised
                             Required Investment: To be advised


Project Description:
The opportunity is to take a stake in financing the construction and operation of a new hotel
in Jerusalem. The site of the hotel is in the heart of the sheikh-Jarah East Jerusalem area. It will
be built on the road leading from the Old City to Mount Sorpus and is surrounded by foreign
consulates and hotels. The site occupies 7,150 square metres of land. The project is a four-star hotel
with facilities and venues to serve conventions and various events. The Vineyard Court Hotel will
be comprised of 200 rooms, in addition to swimming pool, spa, and several restaurants. Hotels
rooms are planned to be constructed according to the standards of a four-star hotel. The target
market will be international tourists and some local tourism. Annual guests are estimated at around
146,000. The main competitors are local Jerusalem hotels who offer the same services. Their main
competitive advantage is the promotion of the hotel through the Net Tours tourism agency.

Project Development Time Table:
Infrastructure Development                     Completed
Building and Construction Start Date           Started (1996)
Building and Construction Completion Date      End of 2008
Furniture and Equipment Purchase               During 2008
Operations Start Date                          March 2009


Investor’s Profile:
The sponsor is Mr. Sami Abu Daya. Mr. Abu Daya is the main shareholder of Net Tours that operates
in Palestine, Jordan, Italy, Greece, and Spain. Mr. Abu Daya is also the owner of Ambassador and
Ritz hotels in East Jerusalem.




132
SWOT Analysis:                                     Industry Highlights:
                                                   Tourism is one of the main pillars of the
Strengths                                          Palestinian economy and should be supported
 •   Strong sector related experience of the       by the development of complementary facilities
     project sponsor.                              and good accommodation. Palestine’s tourist
 •   Ability to promote the hotel services         facilities were hurt during the 2000 Intifada.
     internationally through Net Tours.            Accordingly, heavy investments in this sector
 •   Jerusalem has global importance and           are needed to bring it back to life. The total
     many different attractions for tourists.      number of hotels in Jerusalem in 2006 was
 •   The hotel is surrounded by public             25 hotels with 1007 rooms and around 2,300
     facilities.                                   beds. The room occupancy rate was around
                                                   36% and the bed occupancy rate was around
Weaknesses:                                        27%. Jerusalem realized the highest occupancy
 •   Potential for high volume of labour           rates compared to other towns in Palestine.
     turnover.                                     This is due to Jerusalem’s religious significance
                                                   to different religious communities around the
 •   High depreciation costs.
                                                   world. However, due to political instability and
Opportunities:                                     Israeli restrictions, refurbishment and renovation
                                                   in East Jerusalem were stifled, and quality and
 •   Jerusalem is a growing market with a
                                                   service were compromised.
     significant percentage of guests and
     visitors planning to visit Palestine in the
     future.                                       Strategic Benefits to Palestine:
 •   Limited supply of quality hotels in East       •   The project will support the tourism
     Jerusalem.                                         sector and encourage other investors
                                                        to support an industry that is vital in
 •   Increase in sales from religious-related
                                                        attracting foreign currency.
     events.
                                                    •   Hotel industry helps in building a diverse
 •   Potential from cultural tourism
                                                        economy that is able to cope with
 •   Possibility for tying up with regional             changes in the current environment.
     hotels chain.
                                                    •   Tourism is a labour-intensive industry
Threats:                                                and creates many job opportunities,
                                                        especially for young people who are then
 •   Political instability and ongoing conflict
                                                        encouraged to stay in local communities.
     between Israel and Palestine regarding
     Jerusalem.                                     •   Provide more than 100 job opportunity.
                                                    •   Support Jerusalem’s plight against
                                                        occupation.




                                                                                                 133
3                          Golden Gate Hotel, Jerusalem
                                   Project Code: JER11
                              Sponsor Company: Golden Gate Company
                                 Contact Details: Mr. Ihab Khatib
                                                  Telephone: +970.2. 297.4971 Fax: +970.2.
                                                  297.4976 Mobile: +970. 544.661585
                                                  Email: Ikhatib@pif.ps
                                      Total Cost: US$ 26.4 million
                 Contribution by Current Owners: US$ 7.5 million
                            Required Investment: US$ 18.9 million


Project Description:
The opportunity is to take an equity stake in financing the establishment of a four star hotel in the
Sheikh Jarrah neighborhood in East Jerusalem. The project site sits on 3,170 m² with 266 rooms
on eight floors. Four of the floors are underground - one floor for ballrooms and three for car
parking and other hotel services. The hotel is within walking distance of the Old City. The main
source of revenue will come from hotel room occupancy, as well as income from other facilities.
The target market is local and international tourists, organisations, consulates and businesses. The
main competitors are other hotels in East Jerusalem and Israeli hotels in West Jerusalem. The main
competitive advantage of this project will be its ability to host large groups as it will have more
rooms than most nearby hotels.

Project Development Time Table:
Infrastructure Development                    Completed (2006)
Building and Construction Start Date          Started (2006)
Building and Construction Completion Date     2010
Furniture and Equipment Purchase              2010
Operations Start Date                         2010


Investor’s Profile:
The Palestine Investment Fund (PIF) is the sole owner of the property. PIF is an independent
Palestinian company, whose assets and capital belonging to the Palestinian people. PIF aims
to develop a sustainable, strong Palestinian national economy, through strategic investments in
association with the private sector, following professional and well studied visions based on the
values of transparency, accountability, and a commitment to the Palestinian people.




134
SWOT Analysis:                                    Industry Highlights:
                                                  There is a growing importance in the
Strengths                                         development of niche markets that cater to
 •   The hotel is in an excellent location.       travellers’’ specialised interests and activities,
 •   The construction process has started         as well as Palestinian educational holidays
     (first two floors have been built).            (edutainment) that include visits to historical
 •   All the necessary permits and licences       sites, museums, festivals, and heritage or culture-
     have been obtained.                          based attractions.
 •   The hotel is much larger than the other
     Arab Hotels in East Jerusalem ( the next     Strategic Benefits to Palestine:
     largest hotel has 197 rooms).
                                                  Strategic Benefits to Palestine:
 •   The PIF is well established in the
     Palestinian market.                            •   It will create 113 permanent employment
                                                        opportunities.
Weaknesses:                                         •   It will strengthen the tourism sector in
 •   The length of the implementation plan.             East Jerusalem.
                                                    •   It will improve the level of service
Opportunities:                                          provided by Palestinian hotels in
 •   There is a quick turnaround for the                Jerusalem.
     Jerusalem tourism industry.                    •   It will contribute to economic
 •   The location of all the Arab Hotels in             development in Jerusalem.
     East Jerusalem are within the vicinity of      •   It will preserve the Arab character in the
     the Holy Sites.                                    tourism sector.
 •   There is a need for larger capacity hotels
     in East Jerusalem.
 •   The hotel premises have historic and
     cultural values.

Threats:
 •   Political instability and ongoing conflict
     between Israel and Palestine regarding
     Jerusalem.




                                                                                                 135
4                 The National Hotel, East Jerusalem
                                         PIC Code: JER10
                                Sponsor Company: The National Hotel Palace Co Ltd.
                                   Contact Details: Mr. Osama Salah
                                                    Tel: +970.2. 628.4928، Fax: +970.2.627.3356
                                                    Mobile: +970.505.539831
                                                    Email: osamaalisalah@gmail.com
                                        Total Cost: US$ 23 million
                   Contribution by Current Owners: US$ 15 million
                              Required Investment: US$ 8 million


Project Description:
The opportunity is to take an equity stake in financing the completion of The National Hotel
building and facilities in East Jerusalem. The National Hotel is one of the oldest and most
established brands in East Jerusalem. It is located in a prime area of East Jerusalem and spans
6,500 m². The main source of revenue will come from the hotel occupancy and leasing / sales of
other facilities (restaurants, offices, etc). The hotel is targeted at international tourists; the facilities
are aimed at local and international organisations, companies and Jerusalemite families. The main
competition comes from other hotels within East and West Jerusalem. The competitive advantage
of The National Hotel is in its prime location, on the junction of two main East Jerusalem streets;
Salah Eddin and Az Zahra.

Project Development Time Table:
Infrastructure Development                        Completed
Building and Construction Start Date              Completed
Building and Construction Completion Date         October 2008
Furniture and Equipment Purchase                  October 2008
Operations Start Date                             October 2008


Investor’s Profile:
The Hotel is currently owned by Ali Salah and Sons Investment Group (100 percent ownership).




136
SWOT Analysis:                                    Industry Highlights:
                                                  There is a growing importance in the
Strengths:                                        development of niche markets that cater to
 •   The prime location is in Jerusalem.          travellers’’ specialised interests and activities,
 •   The hotel and grounds are spacious.          as well as Palestinian educational holidays
 •   It has diverse services on offer.            (edutainment) that include visits to historical
                                                  sites, museums, festivals, and heritage or
                                                  culture-based attractions. The Jerusalem tourism
Weaknesses:                                       industry depends on international tourists
 •   There is a lack of additional financial       arriving through both Israeli and Palestinian
     resources from the current owners.           agencies. However East Jerusalem hotels have
 •   There is a lack of experience and            a distinct character not shared by their Israeli
     managerial skills in running some lines of   competitors; the majority of hotels are family
     the business.                                - owned businesses and have a long tradition of
                                                  hospitality, a family atmosphere and excellent
                                                  service.
Opportunities:
 •   There is great potential for Jerusalem
     tourism.                                     Strategic Benefits to Palestine:
 •   The numbers of Arab tourists from Israel      •   The project will maintain one of the
     are on the rise.                                  most important Palestinian institutions in
 •   There is existing permission to build on          Jerusalem.
     an additional area of 10,067 m².              •   It will strengthen the tourism sector in
 •   Office buildings and office spaces are              East Jerusalem.
     scarce in East Jerusalem.                     •   It will improve the hotel services
 •   Good hotels, restaurants, and coffee              provided by Palestinian hotels in
     shops are limited in East Jerusalem.              Jerusalem.
 •   There has been a dramatic increase in the     •   It will create permanent jobs for
     real estate value in Jerusalem.                   Palestinian Jerusalem residents as well as
                                                       additional related jobs.
                                                   •   It will contribute to economic
Threats:                                               development in Jerusalem.
 •   Political instability and ongoing conflict
     between Israel and Palestine regarding
     Jerusalem.




                                                                                                137
5         Movenpick Suite Apartments-Ramallah
                                       PIC Code: RAM44
                              Sponsor Company: Arab Hotels Co.
                                 Contact Details: Ms. Najla’ Shahwan
                                                  Tel: +970.2.296.5240, Fax: +970.2.296.5242
                                                  Email: hotels@palnet.com
                                                  Website: www.ahc-pal.com
                                      Total Cost: US$ 7.3 million
                 Contribution by Current Owners: US$ 3.7 million
                            Required Investment: US$ 3.6 million


Project Description:
The opportunity is to take an equity stake in the construction of 87 hotel apartments located in
the prestigious Al Masyoun neighborhood of Ramallah, next to the Movenpick hotel. The main
source of revenue will be from rent. The project will target the employees of companies and
local and international organisations, and tourists seeking comfortable accommodation. The size
of the hotel apartments will range from 50 m² to 135m². The project’s competitive advantage is the
prime location – not only the proximity to embassies, ministries and prestigious offices, but also its
adjacency to the Movenpick Hotel in Ramallah giving suite residents access to the hotel’s services.

Project Development Time Table:
Infrastructure Development                     January 2009
Building and Construction Start Date           February 2009
Building and Construction Completion Date      June 2010
Furniture and Equipment Purchase               June 2010
Operations Start Date                          July 2010



Investor’s Profile:
AMARA ARCHITECTS is a consulting architectural firm in Ramallah. It partners with local and
international organisations and has a diverse range of joint ventures.




138
SWOT Analysis:                                      Strategic Benefits to Palestine:
                                                     •   The project will strengthen the tourism
Strengths:                                               sector in Ramallah.
 •   The location of the project.                    •   It will enhance of the level of service
 •   The ability to offer tenants access to the          provided by the tourism sector.
     services of the Movenpick hotel.                •   It will create 21 permanent jobs.
 •   The economic benefits of sharing the             •   It will contribute to economic
     costs of services with the hotel.                   development in Ramallah.
 •   The company has already filed for the
     necessary permits.

Weaknesses:
 •   Lack of additional financial resources
     with the current owners.
 •   The lead time before the operation starts
     generating income.

Opportunities:
 •   There is a lack of similar facilities in the
     targeted area.
 •   There is increased demand for hotel
     rooms, apartments, and suites in
     Ramallah.
 •   There is an opportunity to sell the
     apartments in the future and benefit from
     an expected price appreciation.

Threats:
 •   The possible deterioration in the political
     and security situation in the Palestinian
     Territory.
 •   There is competition from other
     apartment complexes in Ramallah.




                                                                                               139
6                                      PIC Code: RAM81
                                                      Hotel in Beit Sahour
                              Sponsor Company: Mr. Ziad Manoli
                                 Contact Details: Tel: +970.2.274.2904, Fax: +970.2.274.2904,
                                                   Mobile: +972.52.221.2929
                                                   Email: prima@p-ol.com
                                       Total Cost: US$ 7 million
                 Contribution by Current Owners: US$ 2 million
                            Required Investment: US$ 5 million
                              Project Description:


The opportunity is to take an equity stake in a new 200 roomed hotel with 200 rooms in Beit Sahour,
Bethlehem by funding the remaining construction costs. The building will have 10 floors and is
located near the historical site of Shepherds’ Field. The main sources of revenue will come from
hotel occupancy; rentals for retail sites and parking fees. The target market is international tourists.
The competitive advantage for this project is its location near the historic site of Shepherds’ Field.

Investor’s Profile:
The hotel is owned by Mr. Manoli, who currently owns and manages Manoli for Trading & Industrial
Co. - wholesalers of wood, carpentry accessories and machinery.


 SWOT Analysis:                                       Industry Highlights:
                                                      There is a growing importance in the
 Strengths:                                           development of niche markets that cater to
   •   The location of the hotel in Beit Sahour       travellers’’ specialised interests and activities,
       is near a world famous historical site.        as well as Palestinian educational holidays
   •   The owner has financial resources.              (edutainment) that include visits to historical
   •   The construction of the hotel has already      sites, museums, festivals, and heritage or culture-
       started.                                       based attractions. All hotels in Bethlehem are
                                                      currently booked until September 2008.
 Weaknesses:
   •   There is a lack of experience in hotel         Strategic Benefits to Palestine:
       management and tourism.                          •   The project will strengthen the tourism
                                                            sector in Palestine.
 Opportunities:
                                                        •   It will generate 20 permanent jobs in the
   •   There is great potential for the local and           tourism sector.
       international tourism industry.

 Threats:
   •   The possible deterioration in the political
       and security situation in the Palestinian
       Territory.
   •   The Bethlehem hotel industry is highly
       competitive.
140
7                                 Four Star Hotel in Bethlehem
                                       PIC Code: RAM86
                              Sponsor Company: Mr. Khalil Isaac
                                 Contact Details: Tel: +970.2.277.3505, Fax: +970.2.277.3505
                                                  Email: abeisaac@msn.com
                                      Total Cost: US$ 5.6 million
                  Investments by Current Owners: US$ 1.1 million
                            Required Investment: US$ 4.4 million



SWOT analysis                                         Project Description:
                                                      The opportunity is to take a stake in financing the
Strengths:                                            construction of a four star hotel in Bethlehem/
The hotel will be located in an area of outstanding   Shepherds’ Field. It also provides a number of
natural beauty near important religious sites.        additional guest services such as a restaurant,
                                                      swimming pool, conference services and meeting
  •   The owners are experienced in the local
                                                      rooms. The building consists of a parking floor
      market.
                                                      and three floors containing 120 rooms. The
Weaknesses:                                           main source of revenue will come from hotel
                                                      occupancy and banqueting / event sales. The
  •   The project is affected by movement
                                                      project will depend mainly on international
      restrictions.
                                                      and local tourists and businesses. The main
  •   It is sensitive to the political situation.     competitors are other Bethlehem hotels. The
  •   There is competition from other hotels          main competitive advantage of this project is
      with international brands.                      the size and beauty of the land on which the
  •   There is a low barrier for market entry.        hotel will stand.

Opportunities:
  •   Expected growth in the tourism sector.          Owners/Partners:
                                                       •   Mr. Khalil Ibrahim Issac (20%
Threats:                                                   ownership).
  •   Competition from other hotels in the             •   Potential Investors (80% ownership -
      governorate.                                         financial and/or management).
  •   Political turmoil impacts greatly on
      tourists.                                       Project Development Time Table:

Strategic Benefits to Palestine:                       Infrastructure Development                  2008
  •   The project will contribute to Palestinian      Building and Construction Start Date        2009
      GDP.                                            Building and Construction Completion Date   2010
                                                      Furniture and Equipment Purchase            2010
  •   It will increase employment.
                                                      Operations Start Date                       2010
  •   It will increase competitiveness in the
      hotel sector.



                                                                                                    141
8                               Al Minttar Resort in Tulkarem
                                       PIC Code: RAM15
                              Sponsor Company: Badran Investment Group
                                 Contact Details: Mr. Bassam Badran
                                                  Tel: +970.9.267.1402, Fax: +970.9.267.9675,
                                                  Mobile: +972.50.5299504
                                                  Email: badrangroup@yahoo.com
                                      Total Cost: US$ 3.5 million
                 Contribution by Current Owners: US$ 1.7 million
                            Required Investment: US$ 1.8 million


Project Description:
The opportunity is to take an equity stake in the project, by funding the completion of a resort in
the northern West Bank city of Tulkarem. The resort will have a Palestinian Themed Village with
old village style houses, traditional restaurants, a museum and farm animals. The main source of
revenues will be derived from entrance fees to the entertainment and educational facilities, and from
occupancy and sales from the restaurants and shops. The target market is divided into three groups:
local families; school field trips and business/NGO retreats; and international tourists interested in
Palestinian culture and heritage. The competitive advantage is in providing a recreational, educational
and cultural experience, unique in the West Bank. The property is located on top of a mountain
surrounded by magnificent landscapes.

Project Development Time Table:
Infrastructure Development                      Completed
Building and Construction                       70% completed
Building and Construction Completion Date       June 30 2009
Furniture and Equipment Purchase                June 30 2009
Operations Start Date                           January 1 2010




Investor’s Profile:
The project is owned by Hassan Badran, a partner in the Badran Investment Group. To date, Mr.
Badran has invested US$ 700,000 in the infrastructure development and building construction for
the project. Mr. Badran has an estimated US$ 1 million collection of Palestinian antiques for use in
the museum.




142
SWOT Analysis:                                     Industry Highlights:
                                                   From 1994 to 2000, optimism about the future
Strengths:                                         political situation prevailed in Palestine resulting
 •   The project offers a unique recreational,     in significant growth for the tourism industry. In
     educational, and cultural experience that     2000, an estimated 12,000 workers were employed
     cannot be found anywhere else in the          in the sector, with estimated receipts reaching
     West Bank.                                    US$ 226.3 million; following the outbreak of the
 •   The resort is built on a prime location -     Intifada, tourism dropped by over 90 percent in
     on top of a mountain away from the city.      2001 and 2002. More recently, the local tourism
 •   The northern climate allows the resort to     industry has expanded as Palestinians look for
     operate for a long season, from March to      local recreational alternatives, especially in the
     October                                       spring and summer. Families and groups are
 •   The project buildings are 70 percent          interested in educational holidays (edutainment)
     completed.                                    that include visits to historical sites, museums,
                                                   festivals, and heritage or culture-based attractions.
 •   It offers diverse entertainment,
                                                   This is a growing trend in the tourism sector.
     educational services and a museum.
 •   It serves different market segments,
                                                   Strategic Benefits to Palestine:
     schools, firms, locals and international
     visitors.                                       •   The project preserves Palestinian
                                                         heritage.
 •   The resort houses one of the few
     Palestinian museums.                            •   It strengthens the tourism sector by
                                                         offering a new style of resort.
Weaknesses:                                          •   It will create 100 permanent jobs for
 •   International tour groups have limited              Palestinians.
     access to Tulkarem.                             •   It will contribute to the economic
                                                         development in the northern West Bank.
Opportunities:
 •   The location allows for additional
     services in the future such as hunting and
     camping trips.
 •   There is great potential for the local
     tourism industry.

Threats:
 •   The possible deterioration in the political
     and security situation in the Palestinian
     Territory.




                                                                                                   143
CONCEPTS
9                                    Tourism village, West Bank
                                       PIC Code: RAM23
                               Sponsor Company: Samed for Development & Investment Co.
                                 Contact Details: Mr. Mohammed Abu Taha
                                                  Tel: +970.2.279.9087, Fax: +970.2.279.9087,
                                                  Mobile: +970.599.221722
                                                  Email: mohammed@abutaha.com
                                      Total Cost: US$ 30 million


 Description:
 There is an opportunity to hold more than a 90% equity share in the development of a tourism village
 and spa. The village will have a range of facilities including a spa, an outdoor stream, water games,
 a barbeque area, restaurants shops and chalets. The target markets for the village are international
 tourists and local visitors.




10                                   Bethlehem Spa and Village
                                       PIC Code: RAM09
                               Sponsor Company: Mr. Daoud Al-Zeer
                                 Contact Details: Tel: +970.2.275.1566, Fax: +970.2.277.0461,
                                                  Mobile: +970.599.546161
                                                  Email: info@paluniv.com
                                      Total Cost: US$ 25 million


 Description:
 There is an opportunity to take an equity share in a new tourist village and spa to be constructed
 in Bethlehem. The village, which will be set within a forest, will cover a total area of 200,000 m²;
 have access to a lake and a series of historical caves. The investment will allow the development of
 hotel buildings, restaurants and a health club. The target market will be both tourists and locals who
 enjoy swimming and exercising. The site has a competitive advantage in that it contains historical
 sites including the longest cave in the Palestinian Territory.




                                                                                                   145
11                                             Star Hotel – Jerusalem
                                       PIC Code: JER18
                               Sponsor Company: Mr. Maher Azmi Taha
                                 Contact Details: Tel: +970.2.628.3229, Fax: +970.2.628.3229,
                                                  Mobile: +970.505.296966
                                                  Email:maher_taha_@hotmail.com
                                      Total Cost: US $12 million


 Description:
 There is an opportunity to build a 5 star hotel in the Sheikh Jarrah neighbourhood of East
 Jerusalem. The land for development is next to the British Consulate and covers a total area of
 4500 m². The target market for the hotel will be local and international visitors to Jerusalem. The
 land has preliminary approval for development from the Jerusalem Municipality. Tourist numbers
 to Jerusalem are expected to increase over the coming years. The hotel’s competitive advantage is
 its prime location.




12        Beit Jala Handicrafts Centre and Hotel
                                       PIC Code: RAM50
                               Sponsor Company: Beit Jala Municipality
                                 Contact Details: Mr. Raji Zaidan
                                                  Tel: +970.2.274.2601, Fax: +970.2.274.4457
                                                  Email: info@beitjala-city.org
                                      Total Cost: US$ 10 million


 Description:
 There is an opportunity to take a 75% equity share in the development of a tourist centre that will
 include a hotel, handicraft workshops and shops, and underground parking. Tourists will be able to
 watch the artisans at work and learn about the traditions and production of Palestinian handicrafts.
 Beit Jala Municipality already owns a suitable plot of land covering 3,862 m² and have completed
 the design and plans for the project. Construction is expected to take about 2 years.




 146
13                                                Tourist Resort in Gaza
                                       PIC Code: GAZA25
                               Sponsor Company: Al Wadi Co.
                                 Contact Details: Mr. Sameh Shaaban Al Rayyes &
                                                  Ghazi Shaaban Al Rayyes
                                                  Fax: +970.8.281.2959 or +970.8.281.2959,
                                                  Mobile: +970.599.774318 or +970.599.863013
                                      Total Cost: US$ 9 million


 Description:
 There is an opportunity to take a 44% equity share in the development of a resort in central Gaza.
 The resort is 12 km from Gaza City, near the Gaza wadi and easily accessible by car or taxi. It covers
 a total area of 48,000m² and is designed for families on day trips. The resort includes a range of
 facilities including green areas, playgrounds, swimming pools, a small zoo, restaurants and cafes.
 The land has been purchased and construction began in 2006. Once construction materials are
 readily available again the project can recommence. It is currently expected to be complete in 2010.
 Gaza has great potential as a future tourist area with moderate weather, beaches and archaeological
 sites. Local families remain the target market until the tourism sector is developed. No other such
 facilities exist in Gaza and single ownership of such a large area of land is rare.




14                                   Exclusive Recreational Club
                                       PIC Code: RAM47
                               Sponsor Company: Al-Mashreq Trading Co.
                                 Contact Details: Mr. Khalil Kharraz
                                                  Tel: +970.2.295.7074, Fax: +970.2.295.3375,
                                                  Mobile: +970.599.673777
                                                  Email: almashreq@palnet.com
                                      Total Cost: US$ 9 million


 Description:
 There is an opportunity to take a 56% equity share in the development of a private members’
 recreational club. The club will cover an area of 70,000m². Membership to the club will be exclusive
 and will target local business leaders, high ranking officials and international expatriate residents of
 Jerusalem and Ramallah.




                                                                                                    147
15 Hotel Renovation Scheme in Jerusalem
                                       PIC Code: JER02
                               Sponsor Company: Jerusalem Investment & Tourism(JIT) & Daher
                                  Contact Details: Mr. Yousef Daher
                                                   Tel: +970.2.628.3140, Fax: +970.2.628.3118,
                                                   Mobile: +970.505.545179
                                                   Email: ydaher@palestinehotel.com
                                      Total Cost: US$ 9 million


 Description:
 This is an opportunity to take an 85% equity share in a new venture to rehabilitate small and medium
 hotels in the centre of East Jerusalem. Al Quds Hotel Group will negotiate and sign agreements
 with owners of small and medium size hotels (25-100 rooms) that are operating with low profit
 margins or below capacity. The hotels will be renovated and upgraded to deliver premium quality
 services. A standard marketing plan and management scheme will enhance competitiveness and
 quality and lead to increased profit margins. Tourism is predicted to increase over the coming years
 and hotels in Jerusalem have a competitive advantage over other Palestinian areas. There are a
 number of competitors in the market that drive the need to improve services and standards.




16           Old House Hotel Rooms - Jerusalem
                                       PIC Code: JER13
                               Sponsor Company: Jerusalem Investment & Tourism(JIT)
                                  Contact Details: Mr. Khalid Husseini
                                                   Tel: +970.2.627.3399, Fax: +970.2.627.3356,
                                                   Mobile: +970.503.273399
                                                   Email: padicoservices@padico.com
                                      Total Cost: US$ 9 million


 Description:
 There is an opportunity to take an equity stake in a new venture to convert traditional houses in
 the Old City of Jerusalem into hotel rooms. 8-12 houses inside the walls of the Old City will be
 rented or purchased and then renovated to offer 60 hotel rooms. The hotel rooms will have a
 competitive advantage due to the historical buildings and their location within the walls of the Old
 City. Jerusalem is a unique city and tourist numbers are expected to increase in the coming years.
 The target market for these hotel rooms will be the increasing number of Arab tourists visiting
 Jerusalem. There will be competition from other fully-serviced hotels within the Old City.




 148
17                                                         Resort in Beit Jala
                                      PIC Code: RAM12
                              Sponsor Company: Zeidan Co. for Trade and Tourism
                                Contact Details: Mr. Jamal Zeidan
                                                 Tel: +970.2.274.5582 or 274.0096
                                                 Fax: +970.2.275.3807
                                                 Mobile: +972.50.539.2191
                                                 Email: zeidan4140@hotmail.com
                                     Total Cost: US$ 6 million


Description:
This is an opportunity to take a 20% equity share in the Alzaitouneh resort village in Beit Jala. The
resort, which is in a prime location close to Bethlehem, offers hotel accommodation, swimming
pools, open spaces, coffee shops, wedding halls, a night club and health club. The project is 80%
complete and is expected to be fully functioning by January 2010. Additional investment is required
to finish the hotel. Tourist numbers are projected to increase over the coming years. The target
market will be tourists on specialised activity breaks and educational holidays.




18                            Commercial Centre, Beit Jala
                                      PIC Code: RAM49
                              Sponsor Company: Beit Jala Municipality
                                Contact Details: Mr. Raji Zaidan
                                                 Tel: +970.2.274.2601, Fax: +970.2.274.4457
                                                 Email: info@beitjala-city.org
                                     Total Cost: US$ 5 million


Description:
There is an opportunity to take a 60% equity share in the development of a commercial centre. The
centre will have seven floors with a bus and car park in the basement and shops and a café on the
ground floor and its mezzanine. The total area of the basement is 1930 m² and the ground floor
(including mezzanine) will cover a total of 1200 m². There will be 35 shop units of 30 m² in size.
All the preliminary designs and cost estimates have been completed. The project can commence as
soon as investment is secured. Construction is expected to be completed within 6 months.




                                                                                                 149
19                 Palestinian Academy for Tourism &
                        Hospitality (PATH – Ramallah)
                                       PIC Code: RAM45
                               Sponsor Company: Arab Hotels Co.
                                 Contact Details: Ms. Najla’ Shahwan
                                                  Tel: +970.2.296.5240, Fax: +970.2.296.5242
                                                  Email: hotels@palnet.com
                                                  Website: www.ahc-pal.com
                                      Total Cost: US$ 3.6 million


 Description:
 The opportunity is to take an equity stake in establishing a hotel and tourism management academy
 in the West Bank. The main source of revenues will come from tuition fees. The target market will
 be Palestinian students. The college will be sited in the centre of the West Bank, between Ramallah
 and Birzeit. The competitive advantage is its location and specialisation. The main competition
 comes from local universities offering hotel and tourism courses such as Bethlehem University.




20                                                                   Hotel in Gaza
                                       PIC Code: GAZA11
                               Sponsor Company: Basam Khadir Tarazi Co.
                                 Contact Details: Mr. Bassam Khader Tarazi
                                                  Tel: +970.8.286.5007
                                      Total Cost: US$ 3.5 million


 Description:
 There is an opportunity to take a 71.4% equity stake in the development of new hotel near the sea
 road in Gaza City. The hotel will be built in two phases: initially with 9 floors and extending to 16
 floors in the second phase. The target market will be visiting business people, politicians and the
 press. Facilities such as meeting rooms, video conferencing, computer centres, and internet access
 will be provided. The location is this hotel’s competitive advantage, being close to the sea but also
 to the central business areas. There is currently no other hotel operating in this area so competition
 is limited.




 150
21                                                      Hotel in Bethlehem
                                      PIC Code: RAM14
                              Sponsor Company: Orthodox Charitable Association
                                Contact Details: Mr. Fouad Al-Bandak
                                                 Tel: +970.2.274.2001, Fax: +970.2.277.6920
                                     Total Cost: US$ 3 million


Description:
This opportunity is for a 50% equity stake in a new hotel in Bethlehem. The hotel will have 5
floors, 50 double rooms, a parking lot and a hall. The owner of the hotel is the National Orthodox
Charitable Society (established 1919). They have considerable experience in the tourism sector and
own a number of other properties. Part of the profits from the hotel and its services will be used
to fund the work of the charitable society, which provides assistance to orphans, old people and
families. The target market for the hotel will be tourists, particularly religious pilgrims. There will
be competition from numerous other hotels of this size but the prime location gives this hotel a
competitive edge.




22      Commercial centre for handicrafts and
                    other goods, Beit Sahour
                                      PIC Code: RAM25
                              Sponsor Company: Mr. Anwar Anton Hilal
                                                 Tel: +970.2.277.2837, Fax: +970.2.277.4715,
                                                 Mobile: +970.599.233890
                                                 Email: hilal_eng@yahoo.com
                                     Total Cost: US$ 3 million


Description:
There is an opportunity to take an 83% equity stake in the construction and management of a
new commercial centre to be created in Beit Sahour, near Bethlehem. The centre will split into two
parts– a tourist area for handicrafts and an area with everyday products. The centre will also include
restaurants and other facilities. The centre is in one of the most important religious areas, which
attracts high volumes of tourists. It is also well situated to serve the local population.




                                                                                                   151
23                                                 Grand Bazaar in the
                                                  Old City of Jerusalem
                                       PIC Code: JER07
                               Sponsor Company: Grand Bazar Co. Ltd.
                                 Contact Details: Mr. Ihab Khatib
                                                  Tel:: +970.2. 297.4971, Fax: +970.2. 297.4976,
                                                  Mobile: +970. 544.661585
                                                  Email: Ikhatib@pif.ps
                                      Total Cost: US$ 1.8 million


 Description:
 There is an opportunity to take a 51.6% equity share in the development of the Grand Bazaar
 building in the heart of the Old City. The plan is to redevelop the building into a tourist centre. The
 engineering and design plans for the project have been prepared. It is located in the Christian Quarter
 but close to the borders of the Moslem and Jewish Quarters. It will therefore cater to tourists of all
 backgrounds. The building consists of a 524 m² cross-vaulted ground floor structure with a 750m²
 panoramic roof. The bazaar will offer a variety of different types of traditional food with cooking
 on show. There will also be accompanying cultural, music and ethnic shows. The bazaar will have a
 competitive advantage over other establishments – it is strategically located on the borders of the
 different areas of the Old City and is a historical site that has been operating as a market since 12th
 century. There are an increasing number of tourists visiting Jerusalem. IRR is expected at 24%.




24                                                    Bethlehem City Tour
                                       PIC Code: RAM79
                               Sponsor Company: Bethlehem City Tour
                                 Contact Details: Ms. Laila Asfoura
                                                  Tel:: +970.2.277.7997, Fax: +970.2.277.7996
                                                  Email: laila@lailatours.com
                                      Total Cost: US$1.5 million


 Description:
 This is an opportunity to take an equity share in the establishment of the Bethlehem City Tour. The
 project is proposed by Laila Tours and Travel and aims to give tourists a closer look at Bethlehem
 and its surroundings. Laila Tours and Travel hopes to operate private buses with onboard guides
 who will conduct tours of the most important historical and religious sites. The tour will include
 visits to handicraft factories, cultural and arts venues and will bring the visitors into contact with
 local residents. Tours will be offered in multiple languages. An online reservation and payment
 service will be available. The owners have considerable experience in tourism sector and believe
 they have a reputation for providing a client – focused service.

 152
25       Expansion of Sahara Hotel, Bethlehem
                                      PIC Code: RAM63
                              Sponsor Company: Sahara Hotel
                                Contact Details: Raji Odeh and Majed Banoura
                                                 Tel:: +970.2.277.2428 OR 277.2306
                                                 Fax: +970.2.277.4492
                                                 Mobile: +970.599.183971
                                                 Email: sahara.hotel@yahoo.com
                                     Total Cost: US$ 1.5 million


Description:
There is an opportunity to take a 70% equity share in the planned expansion of the Sahara Hotel in
Bethlehem. The hotel, which currently has 19 rooms, will be expanded by 4 floors and an additional
52 rooms. The initial stages of the project are already underway and the expansion is planned for
completion in October 2009. The new capacity of 71 rooms will allow the hotel to target and cater
for larger groups. The owners are very experienced in the tourism sector and also own a souvenir/
gift shop and a hand made embroidery shop. Although there is high competition in the tourism
sector in Bethlehem, the hotel has a well established reputation.




26           Recreational village and spa, Nablus
                                      PIC Code: RAM26
                              Sponsor Company: Mr. Farah Al Humoud
                                Contact Details: Tel: +970.9.257.8101, Fax: +970.9.257.8101,
                                                 Mobile: +970.599.436575
                                                 Email: farah-alhmoud-2006@yahoo.com
                                     Total Cost: US$ 1 million


Description:
The opportunity is to take an equity stake in this project by funding the establishment of a
comprehensive recreational village and spa in Nablus with a total area of 65,000 m². The village
will include a centre that houses a meeting hall, a wedding hall, shops, a supermarket, a restaurant,
an internet cafe, a fitness centre, a sauna, a sports hall and other facilities. Near the centre, there
will be an Olympic-sized swimming pool, an indoor women-only swimming pool; a kids’ swimming
pool and related attractions. The main sources of revenues are admission fees to enter the park and
the fees for using the event facilities. The target markets for this project are Palestinians and Arabs
from Israel. There is no direct competition for this project because it will be the first in the West
Bank to have all these facilities under one roof. Indirect competition will come from establishments
with individual facilities.


                                                                                                   153
27             Tourism village and spa, West Bank
                                      PIC Code: RAM108
                              Sponsor Company: Al-Jerashi Group
                                Contact Details: Mr. Khader Al-Jerashi
                                                 Tel: +970.2.274.4141, Fax: +970.2.274.1186
                                                 Email: jerashi@palnet.com
                                     Total Cost: To be advised (project plan is in preparation)


Description:
This comprehensive tourism village and spa will cover a total area of 350,000m². The village will
include hotels, shopping centres, restaurants and entertainment facilities. This unique project
will target both international tourists and local visitors from the three main religions who seek
a convenient base from which they can easily reach the holy places and other tourism sites in
Jerusalem and Bethlehem. Jarashi Group was established in 1986.
The company has US$ 10 million in capital and its current primary activities are in ready mixed
concrete production and property and construction investments.




28                       Hotel Complex near Bethlehem
                                      PIC Code: RAM109
                              Sponsor Company: Al-Jerashi Group
                                Contact Details: Mr. Khader Al-Jerashi
                                                 Tel: +970.2.274.4141, Fax: +970.2.274.1186
                                                 Email: jerashi@palnet.com
                                     Total Cost: To be advised (project plan is in preparation)


Description:
This concept is to establish hotels of different standards within an area of 45,000 m² located very
close to Bethlehem. It will include other facilities for tourists within the complex in a commercial
centre. In addition a hotel management college may be added in cooperation with specialised entities
in this field. It is expected that construction could be completed within 2 years. Jarashi Group was
established in 1986 and one of its primary activities is construction and property investments.




154
155
              OUR PARTNERS AND SPONSORS
Insert Partner and Sponsors pages in following order
 •   Al Aqsa Fund - 3 pages
 •   Bank of Palestine – 3 pages
 •   Booz Allen Hamilton – 3 pages
 •   CCC – 3 pages
 •   DFID – 1 page
 •   Paltel – 3 pages
 •   PIF – 3 pages
 •   USAID – 1 page
 •   Arab Bank – 1 page
 •   Arab Islamic Bank - 1 page
 •   Sky – 1 page




                 SUCCESS
                     Stories




                                                       157
158
PARTNERS




           159
         Islamic Dovelopment Bank (Idb)
                                                   trust funds. The Bank is authorized to accept
Establishment                                      deposits and to mobilize financial resources
The Islamic Development Bank is an                 through Shari’ah compatible modes. It is also
international financial institution established in  charged with the responsibility of assisting in the
pursuance of the Declaration of Intent issued      promotion of foreign trade especially in capital
by the Conference of Finance Ministers of          goods, among member countries; providing
Muslim Countries held in Jeddah in Dhul Q’adah     technical assistance to member countries;
1393H, corresponding to December 1973. The         and extending training facilities for personnel
Inaugural Meeting of the Board of Governors        engaged in development activities in Muslim
took place in Rajab 1395H, corresponding to        countries to conform to the Shari’ah.
July 1975, and the Bank was formally opened
on 15 Shawwal 1395H corresponding to 20 Establishment of Al-Aqsa Fund:
October 1975.
                                                   Al-Aqsa fund was launched at the Arab Summit
                                                   in Cairo in 2000. Its establishment constituted
Purpose
                                                   a prominent milestone and strategic step at a
The purpose of the Bank is to foster the crucial stage. It extended a vital artery to the
economic development and social progress of Palestinian people to guarantee their existence
member countries and Muslim communities and strengthen their steadfastness on their land.
individually as well as jointly in accordance with It was a clear reminder that the Palestinians had
the principles of Shari’ah i.e., Islamic Law.      the support from every Arab and Islamic country
                                                   who shared theirs pains and dreams in the hope
Functions                                          of liberation, growth, and prosperity.
The functions of the Bank are to participate       Great importance was attached to launch the
in equity capital and grant loans for productive   Fund. It was vital to secure the necessary
projects and enterprises besides providing         successful steps to produce immediate needs
financial assistance to member countries in other   related to relief aspects and continuous
forms for economic and social development. The     developmental requirements of approximately
Bank is also required to establish and operate     four million Palestinians.
special funds for specific purposes including a
fund for assistance to Muslim communities in       The experience of the last few years evidently
non-member countries, in addition to setting up    reveals that there is no other option but to
160
continue supporting financially, renewing its                worlds, as well as with all countries of the
resources and directing them in a sound manner              world.
that assures Palestinians and deepens their faith      The most prominent characteristics of the
that their affairs and concerns are still the centre   Al-Aqsa Fund are its sincere response to
of the attention of the Arab nation, and that          the real priorities, based on the following
their Arab brothers will not abandon them.             pillars:
During the previous Arab Summit (Khartoum,             1.   The provision of stability and
March 2006), the IDB invited all member states              steadfastness to all Palestinians through
at the Organization of the Islamic Conference               agricultural, housing, education and
(OIC) and the league of Arab States to join                 health projects, as well as the support to
the Al-Aqsa Fund and adopt its vision and of                the financial and institutional pillars that
the expansion of its mechanisms of financial                 ensure the continuity and contiguity of
support, under the umbrella of OIC and the                  Palestinian population centres.
League of Arab States, and in coordination with        2.   The enhancement of the Palestinian
the Palestinian National Authority (PNA) in                 productive and operational capacity,
order to identify successfully the urgent needs             by supporting the trade and industrial
to achieve development in Palestine.                        sectors and practically preparing for
                                                            the establishment of an independent
The objectives of the Al-Aqsa Fund:                         Palestinian state through the development
  •   Preserving the Arab-Islamic identity                  of its human resource and building
      of the city of Jerusalem, the continued               institutional capacity.
      presence of its population, as well as the       3.   The consolidation of the Palestinian
      preservation of Islamic and Christian                 people inside and around the Holy city
      civilization landmarks in it.                         of Jerusalem, and especially in areas that
  •   Enhancing the economic, social and                    are exposed to the risk of Judaization and
      institutional capacity of the Palestinian             the wiping out of Palestinian identity, in
      people.                                               the areas surrounding and adjacent to the
  •   Restoring and developing Palestinian                  Apartheid Wall.
      economic, social and cultural relations          4.   The response to urgent relief needs, as
      with brothers in the Arab and Islamic                 well as other urgent needs.

                                                                                                    161
 1.   The rehabilitation of the road, water,      Trade and Industry Sector: this sector is one
      sewage and electricity infrastructure, in   of the important sectors for the AlAqsa Fund,in
      addition to the rehabilitation of the healthPalestine, the total amount funded was $20, 24
      and the municipal sectors.                  Million to finance and implement dynamic trade
The total amount invested in the implementation and industrial projects.
of the aid and developmental projects is Agricultural Sector: The total amount funded
approximately $877, 17 million for total projects for this sector was $24, 53 Million, to implement
and programs. These projects cover all vital and develop agricultural projects in the West
economic sectors with emphasis on education, Bank and Gaza Strip, development in this sector
health, rehabilitation of the infrastructure, constitutes a source for revenue and income.
social programs, urgent requirements (relief
and emergencies), and creation of employment Other Funding Projects: The Aqsa Fund
opportunities.                                    dedicated $ 2, 73 Million to finance several
                                                  studies to understand the needs of the Palestinian
The main projects sponsored by the Islamic people and to comprehend what sectors need
Bank and Al-Aqsa Fund, in partnership with help the most.
the PNA and other donors; are:

Social Support: The Al-Aqsa Fund has funded
and supervised the execution of social projects,
which included the rehabilitation of houses, real
estate and other facilities that were destroyed by
the Israeli shelling the total amount funded was
about $24, 93 Million.

Education Sector: The Al-Aqsa Fund has given
special interest in funding this sector, the fund
has executed 5 projects worth of $ 72,05 Million
to develop the Palestinian Education Sector.

Health Sector: In coordination with the fund
partners, The Fund has helped in rehabilitating
the health sector and develop it to be able to
meet the requirements of the health sector, and
has dedicated the amount of $64, 86 Million.

Health Sector: The Fund supported the efforts
of rehabilitating this sector, and so dedicated
the amount of $64, 86 Million to support health
projects.

Infrastructure and Employment: One of
the Aqsa Fund’s main objectives is to create
employment opportunities to rebuild and
rehabilitate what was destroyed by the Israeli
occupation. The Fund has provided $187, 83
Million to develop various projects.



162
In 1988, Bank of Palestine PLC started issuing Bank of Palestine PLC was the first bank to use
Letters of Credit through Israeli banks.       SWIFT in the Palestinian Territories.

Our beginning was in the year 2000, when we were       In 2007, and for the fifth year running, we received
able to issue LC’s directly. In 2002, after building   the Quality Recognition Award from JP Morgan
a wide network of correspondents worldwide,            Chase Bank for error-free implementation of
we launched the International Trade Division at        SWIFT STP (Straight Through Processing)
General Management Head Offices in Gaza.
                                                       Smart Cards Come to Palestine.
Today, Bank of Palestine PLC, with its two Head
                                                A successful project is built on an idea or a past
Offices in Gaza and Ramallah, caters for all kinds
                                                experience that could be applied successfully
of foreign trade operations for all our branches in
                                                in the society. The idea of issuing international
Gaza and the West Bank, such as Letters of Credit,
                                                Smart Debit and Credit cards by both VISA and
Letters of Guarantee and Bills for Collection   Master Card is successfully applied in several
directly without third parties and by adhering to
                                                countries. As a result, Bank of Palestine decided
international standards in the IT department.   to apply this project in Palestine by bringing
                                                and supporting all needed resources through
Recently, BOP launched a new product: ‘ Deals
                                                utilizing various local, Arab and foreign models
Finance ‘ to help importers to finance their to implement this project.
transactions with competitive prices.
                                                This project is considered one of the most
BOP Swift System                                complicated projects BOP launched as it
                                                was implemented according to international
In 1993, Bank of Palestine began establishing
                                                standards of both VISA and Master Card to
correspondents banking relations worldwide in issue and accept smart cards. This project was
order to provide the best services for clients, implemented by six companies specialized in
enabling the increase of foreign transactions.  issuing and accepting smart cards.
This increase led us to search for a recognized The success of this project was represented
international mechanism to communicate with through receiving a Success Certificate by both
our correspondents.                                VISA and Master Card companies after passing
                                                   all tests for issuing and accepting smart cards.
The SWIFT system was introduced in 1994 for BoP is considered the first and the only place
all communications with other banks (money in Palestine to issue and accept smart cards.
transfer, Letters of Credit, Letters of Guarantee, BoP is also considered one of the first banks to
FX-Deals, Deposits etc.)                           implement this project in the Middle East.
                                                                                                      163
      complex issues
      Booz Allen provides strategic support for sustainable infrastructure.
      Working with the Ministry of Water and Electricity, Booz Allen helped
      develop a utility privatization strategy for Saudi Arabia’s national
      water sector. We analyzed the organization of the national ministry;
      assisted in the creation of a new private water utility, the National
      Water Company; and advised Saudi Arabia’s Saline Water Conservation
      Corporation, one of the largest seawater desalination utilities in the
      world, on a privatization plan.

      Booz Allen has also helped develop a strategic plan and organization
      structure for the water sector in Libya. As part of our support, we
      defined the supply-demand balance for the next 20 years and estimated
      infrastructure renewal requirements and costs. Our work considered both
      water and wastewater, including supply from Libya’s Great Man Made River,
      the world’s single longest large-diameter pipeline project. Booz Allen also
      developed a set of prioritized strategic objectives and associated plan for
      the next five years based on our findings and developed recommendations
      for the optimum organization structure.

      clear solutions
      Booz Allen has deep experience in tax reform. In 2005, Booz Allen
      was contracted by USAID to implement the Armenia Tax Improvement
      Program (ATIP). The overarching goal of the program is to achieve a
      sustainable increase in tax revenue as a percentage of GDP through more
      effective, equitable, and transparent tax administration. Our approach
      emphasized local ownership and capacity building to ensure that operational
      improvements will be sustainable.

      We conducted a detailed stakeholder analysis, including the first
      comprehensive and confidential survey of the State Tax Service (STS) staff,
      and interviews/focus groups with business and civic organizations. We
      then developed a strategic communications plan targeted at both potential
      allies and points of resistance both inside and outside of STS. We also
      performed a careful baseline analysis to understand current management
      practices and business processes in relation to international best practice.
      From this analysis, we developed jointly with the Armenia tax service
      a 5-year strategy with a detailed and prioritized work plan to guide this
      transformation effort. The results to date have been impressive.


164
In 2007 Armenia achieved a Tax/GDP ratio of 16.1%, a 1.7% increase
over 2006. Improvements in tax administration were directly responsible
for an increase in collection as a percent of GDP (from 8.6% to 9.5%).
Each dollar spent by USAID to support the ATIP project has so far
resulted in $38 in increased tax revenue.

clear solutions
Developing and transition nations are facing daunting challenges—from
modernizing governance and expanding global competitiveness to
improving infrastructure and achieving advances in living standards.

Doing this well requires keen strategic insight and deep technology
experience. It requires both a commitment to the greater good and the
courage to make tough choices.

Booz Allen Hamilton, a global strategy and technology consulting firm,
understands the mission and challenges of public service—and has
the capabilities and experience to help clients solve their most critical
problems.

Representative engagements in the region include working with
governments and stakeholders in countries such as Bahrain, Yemen, and
Egypt to expand and develop trade capacity. Specific programs range
from improving customs import processes and aligning trade statistics with
international standards for the Egyptian Ministry of Finance to assessing
sector benefits of a Free Trade Agreement with the United States for the
Government of Oman.
For more information about Booz Allen’s global trade and international cooperation
engagements contact:

Don Pressley
+1-703/377-1496
HYPERLINK “mailto:pressley_don@bah.com” pressley_don@bah.com

Mark Belcher
+1-703/917-2385
belcher_mark@bah.com




                                                                                     165
                    CCC Projects in Palestine
1. Sheikh Zayed Township – Gaza:                     CCC is putting tremendous efforts to improve
                                                     the Palestinian Tourism Sector, as it is developing
Value: US$ 55.3 Million                              the Solomon Pools Resorts in which CCC owns
Period: March 2002 – Sept. 2004                      81% of its shares. Solomon Pools Resorts, a
                                                     supplement to the Convention Palace, includes
Construction of 70 Buildings of 5 storey and         the renovation of Murad Citadel, building a
1 Building of 12 storey, a Mosque, 2 Shopping        museum, Craft Center and restaurants with a
Centre and 1 school with all associated              capacity for several hundreds people, as well
infrastructure. The total building area is 130,000   as renovating the existing three historic Roman
M2 with a total site area of 400,000 M2. The         Pools.
work includes Road works, Landscaping &
Sidewalks, External Utilities (Water, Sewage &
Drainage), External Electrical and Telephone
                                                   3. Tulkarem Water Supply & Sewage
Networks.                                          Project:
                                                   Value: US$ 4 Million
2. Convention Palace: (90%                         Period: 2007 –2008
complete):
                                                     Construction of new water lines and rehabilitation
Value: US$ 25 Million                                of the existing water network inside Tulkarem
Period: Sept. 1999 – Oct. 2008                       City. The scope includes installation of HDPE
                                                     pipes dia 50mm to 100mm of approx. 15,000
The Convention Palace is built as an initiative      LM and steel pipes dia 150mm to 300mm
from the Late President Yasser Arafat in 1999        of approx. 16,000 LM, in addition to related
to host the International Economic Summit            house connections, champers, valves and road
in Bethlehem in the year 2000, which is a joint      reinstatements.
investment between Consolidated Contractors
Company (CCC) and the Palestine Investment
Fund (PIF).
                                                4. Palestinian Technical Assistance
                                                     Program:
The Convention Palace consists of an Auditorium      Value: 10 Million
with a capacity of 1600 people, a Multi-purpose
                                                     Period: 1996 - 2000
Hall for 500 people, and two Seminar Rooms
with for 180 people each, which will provide multi   CCC launched a 5-year program, totally donated
services as hosting International Conferences,       by CCC for 10-million dollars to train Palestinian
Theatrical and ballet shows, Concerts, Movies        Contractors, Consultants and International
and Workshops.                                       Organizations in Construction Management
166
in an attempt to enhance the Management, 6. Bethlehem 2000 Project –
Administrative and Technical capabilities of Bethlehem:
those involve in the Construction Industry in
Palestine.                                    Value: US$ 50 Million
                                              Period: 1998 - 2000
5. Palestine Electric Company (PEC) /
                                                    The Project consists of rehabilitation of the
Gaza Power Generating Co.(GPGC):                    Cultural Heritage structures and Old cores of
CCC is the major shareholder of the 140 MEGA the towns within the Bethlehem District and
Watt. Plant.                                        rehabilitation and/or reconstruction of the
                                                    infrastructure and roads networks.
Palestine Electric Company (Public Shareholders
Company Limited) “PEC”, a corporation
organized under the laws of Palestine applicable
in Gaza, was formed to develop, own and
operate the first electric power generation facility
in Gaza through Gaza Power Generating Private
Limited Company “GPGC”

PEC is a holding company which owns more
than 99.99% of the outstanding shares of
GPGC.

67% of the shares of the company is owned
by prominent Palestinian and Arab operating
companies and institutional investors (PEC
PLC), and the public will own the remaining
33% of the shares of the company.

The estimated project value for GPGC is US$150
Million of which US$ 90 Million is in debt and
US$60 Million in equity.

The final credit agreement was finalized and
signed in November 2004 between PEC/GPGC
and Arab Bank.

                                                                                             167
           The Department for International
                Development (DFID)
The Department for International Development         •   £20m in financial assistance to the PA
(DFID) leads the UK Government’s fight against            through the World Bank Trust Fund
world poverty. DFID works directly in over 150       •   £18.45m through PEGASE and the TIM
countries worldwide, with a global budget of             to help pay salaries and support public
nearly £5.4 billion in 2007/2008.                        services
DFID works towards achieving the eight               •   £15.6m for UNRWA
‘Millennium Development Goals’ (MDGs).               •   £3m to pay PA debts to the private sector
These include:                                       •   £2m through ICRC for humanitarian
                                                         needs
 •     To halve the number of people living in
       extreme poverty and hunger                   •    £1m to support the development of the
                                                         civil police
   • To ensure that all children receive primary
       education                                    •    Advisory and negotiation support to the PA
   • To build a global partnership for those     In 2008, we are launching the Palestinian Facility
       working in development.                   for New Market Development (PFNMD). This
                                                 is a new $7.2 million facility funded jointly with
The Middle East remains a top priority for the
                                                 the World Bank over three years in support of
UK Government. DFID is helping to deliver
                                                 Palestinian businesses which want to expand
the MDGs and support efforts for sustainable
                                                 their markets or develop new products. The
peace and economic growth in the region. We are
                                                 PFNMD will reimburse Palestinian enterprises
working to strengthen Palestinian institutions,
                                                 up to US$50,000 for purchase of consultants,
to improve their effectiveness in meeting their
                                                 technical experts, market research, attending
commitments to the Palestinian people, and to
                                                 trade shows and other activities to help them
ensure humanitarian and development assistance
                                                 develop new markets or new products.
is delivered effectively.

At the donor pledging conference for the
                                               DFID Palestinian Programme
Occupied Palestinian Territories Paris last
                                                                North
December, the UK was one of the first to Middle East andLondon,Africa Department
                                               1 Palace Street,       SW1E 5HE
announce a substantial pledge and encouraged Tel: 020 7023 0860 Fax: 020 7023 0744
others to do the same. DFID has committed Email: dfid_jerusalem@dfid.gov.uk
£243 million ($500 million) over three years, DFID Jerusalem
                                                                   General
linked to political progress. DFID provided c/o British ConsulateStreet, Sheikh Jarrah
                                               4 Esa’af Nashashibi
£63.6 million ($125 million) in the last year, PO Box 19690, East Jerusalem 97200
including:                                     Tel: +972 253 284 60 Fax: +972 253 284 61


168
After the establishment of the Palestine               revenue from this sector accounted for 25% of
National Authority (PNA) subsequent to                 the GDP and employed more than 25% of the
the Oslo Accords, and through an initiative            working force. However, due to the Occupation
by distinguished Palestinian and other Arab            and increased production and distribution costs,
businessmen, Palestine Development and                 agriculture currently contributes only 5% to the
Investment, Ltd. (PADICO) was established              GDP, yet it has provided employment for 15%
as a foreign, limited, holding company, the            of the labor force for the past two years, and
purpose of which was to participate in                 was able to absorb up to 20% of the work force
building the Palestinian economy through the           during severe economic crisis in 2006.
implementation of development projects in the
following sectors: infrastructure, construction,       Palestine Poultry Co. (PPC), a public
real estate, communications, tourism, industry,        shareholding company, was established in 1997
and financial services. PADICO invests , through        with an authorized capital of 10 million JD.
its subsidiaries and affiliates, to implement this      PPC is a subsidiary of the Palestine Industrial
work. The company’s authorized capital is 300          Investment Co. (PIIC) which contributed
million shares, at a par value of 1 USD for each       84% of the capital. The company’s vision is
share, whereas its paid-in capital is 250 million      the integration of the chicken industry and
shares. PADICO has a wide base of shareholders         to provide food security through establishing
from Palestine and abroad, exceeding 12,000            national projects that provide the Palestinian
shareholders. The company is listed on the             market with high quality products using the latest
Palestine Stock Exchange (PSE). Its market value       technology available in the world. PPC provides
is 557.5 million USD as of December 31, 2007.          the local market with all its animal feed, pre-
PADICO established subsidiary companies to             hatched eggs, and chicks for broiler farms. PPC
implement developmental projects in Palestine.         currently has six poultry breeding farms, with a
It participated with local and foreign investors       working capacity of the farms is 200,000 hens
to undertake projects in various sectors. These        producing 20 million hatching eggs. This satisfies
investments resulted in a significant contribution      35% of the demand of the local market. The
to the Palestinian economy, and left PADICO’s          company’s hatchery has an absorption capacity
mark on various aspects of Palestinian society.        of 16 million eggs, and a production capacity
The total assets of PADICO Group’s subsidiaries        of 12 million chicks. PPC’s feed currently has a
and affiliates is approximately one billion USD.        production capacity of 12 tons per hour, and can
The estimated market value of the listed and           be expanded to 30 tons per hour. It has a large
unlisted companies is over two billion USD,            grain storage facility, with a production capacity
                                                       of 30,000 tons. In 2008, the company intends to
THE AGRICULTURAL SECTOR is                             establish a chicken slaughter house, including a
particularly important, symbolic of the                cold storage warehouse, with an initial capacity
Palestinians’ love for their homeland. Historically,   of 3,000 birds per hour, expandable to up to
the agricultural sector was a fundamental part         6,000 birds per hour. It also plans to establish a
of the Palestinian economy. At one time, the           rendering factory and broiler chicken farms, and
                                                                                                     169
to expand operations to include the southern or type of project, necessary financing must be
West Bank. The estimated cost of these projects secured to help ensure the success of any new
is 17 million USD.                                  investment. In turn, as the project is implemented,
                                                    these funds will be redistributed within the local
THE INDUSTRIAL SECTOR experienced economy. Since its establishment, PADICO
noticeable growth Since the establishment realized the need by the Palestinian economy
of the Palestine National Authority (PNA), for a security exchange to create a suitable
specifically, an increase in the number of factories investment environment to attract money and
as the Palestinian market became open to Arab savings, as well as outside investments. Palestine
and foreign markets, the improvement to the Securities Exchange Company (PSE) was
industrial infrastructure by enhancing industrial established by PADICO with the blessing of the
zones, and the passage of the Law on the Palestine National Authority (PNA). The PSE
Encouragement of Investment, which offered a continues to carry out its mission and fill its role
suitable legal environment and tax-exemptions as a leading financial institution and a pillar of
for investors.                                      the Palestinian national economy.
Palestine Plastics Industries Company                 The Palestine Securities Exchange (PSE), a
(PPIC), a public shareholding company, was            private shareholding company, was established
established in 1999, with an authorized capital       in 1995 with authorized capital of 10 million
of 3.5 million JD, increased over stages to a total   shares, par value 1 USD per share. PSE seeks to
of 7 million JD in 2007. The company has three        be a role model in the financial securities sector,
main production lines and in 2007, PPIC was           to attract investments, and to encourage the
successful in exporting its products to Jordan,       use modern technology. It is committed to its
Syria, and Egypt. It worked on improving              principles and to building constructive relations
its products and diversifying by expanding            with the Arab, regional, and international
its current product and buying new lines, and         markets. In 2007 PSE conducted First Annual
installed a new line for large diameter pipes.        Palestinian Capital Market Forum to study the
The company’s plan for 2008 is aimed towards          current realities and challenges of the financial
improving its products; increasing market share       sector, its horizon and what is required to
in the local market; maintaining and growing          develop it further, by evaluating the experience
its export market, and entering new markets           of the PSE over the past ten years. In December
for export; fully benefiting from its production       2007, the PSE hosted a reception honoring its
capacity; and introducing new production lines        pioneers, who not only helped establish the
to enhance the production process to fill market       PSE but have also helped enrich its path since it
needs.                                                began operations.
THE FINANCIAL SECTOR is considered The PSE published its first directory of
to be the main artery that provides vital support companies and listed three new companies in
to the other sectors. Regardless of the sector 2007, reaching 35 companies listed at the end

170
of the year. In addition, two broker companies      manage real estate in Jerusalem. In addition,
joined, now totaling nine. Trading volume was       JEDICO will build apartment units and
approx. 813 million USD for the year,. The          commercial compounds, through its investment
market value of the listed companies reached        arm TAICO. It is expected that the total cost of
2.47 billion USD, down 9.31% from 2006. In          this project, including the land, will be 29 million
2008, the PSE plans to establish a securities       dollars. TAICO will implement this project with
exchange media center and a training center to      PRICO.
increase e-market communication, as well as to
develop a database of contacts.                     THE TOURISM SECTOR has traditionally
                                                    been an important sector for Palestine, and a
THE REAL ESTATE AND CONSTRUC-                       source of income for many. Palestine has over
TION SECTOR is considered to be an                  1,600 historical and religious sites, and a moderate
important and vital sector. It has realized         climate, thus attracting millions of people from
tremendous growth which is expected to continue     all over the world. Political stability, however, is
in the coming years. The Palestinian population     crucial to the success of tourism in Palestine,
is a youthful population, with one of the highest   and the sector has suffered tremendous losses
rates of growth in the world, resulting in a need   over the past several years. This sector peaked
for large investments in the construction and       in 1994-2000, when Palestine witnessed a period
real estate sector to fill the growing demand for    of relative stability and security. Many local
housing.                                            and international investors contributed to the
                                                    rehabilitation of the tourism sector. In 2000,
Palestine Real Estate Investment Company            the political situation deteriorated, resulting in a
(PRICO), a public shareholding company, was         serious decline in tourists, pilgrims, and investors,
established in 1994 with an authorized capital of   devastating tourism in Palestine.
15 million JD, which was raised to 22.5 million
JD in 2005, and to 50 million JD in 2006. Since     Jerusalem Tourism Investment Company (JIT),
its establishment, the company has implemented      a private shareholding company, was established
several large projects, costing 120 million USD.    in 1994 with an authorized capital of 25 million
These projects created employment for thousands     USD, of which 1.4 million USD was paid-in.
of individuals and generated additional work        PADICO’s share constitutes 95.24%. JIT
opportunities for manufacturers in a variety of     encourages investment in Jerusalem to maintain a
construction-related industries, including iron,    Palestinian presence in Jerusalem and to counter
aluminum, carpentry, and tile.                      the continuous violations of the occupation,
                                                    such as intensive expansion of settlements.
In 2006, PADICO acquired the Jerusalem              To support this goal, the company studied a
Development and Investment Company                  number of investment opportunities, such as
(JEDICO) with an authorized capital of 36           Red Palace which it will begin implementing in
million USD, of which 29.4 million has been         2008. It consists of a multi-use hall, which can
paid. Its mission is to purchase, develop, and

                                                                                                    171
be used for meetings, weddings, and other special     investors to learn. It is an opportunity for those
occasions. It is located in the heart of Jerusalem,   who have the ability and the desire to benefit
and will provide a much-needed facility for           from PADICO’s experience and to build upon it
Jerusalemites. The company is considering             by offering a quality contribution, and for those
several additional projects, one of which is the      who are seeking to participate in the building of
Bazaar inside the Old City of Jerusalem, which        a Palestinian state, seeking to create new jobs
will be converted into tourist rest area, providing   and enhance technical and administrative skills,
food services and shopping in a very original,        while realizing an acceptable financial return on
yet traditional Palestinian manner. JIT is also       their investments.
considering additional projects to revitalize
hotels in Jerusalem.

Palestine Tourism Investment Company (PTIC),
a public shareholding company, was established
in 1997 with an authorized capital of 23.2 million
JD, seeking to create distinctive tourism projects
in Palestine and to revitalize the sector. PTIC
owns the Jacir Palace Inter Continental Hotel in
Bethlehem, which was the first tourism project
in the hotel industry in the country. It is also
the first 5-star hotel in Palestine, and consists
of 250 rooms and suites. It also has a number
of restaurants and additional facilities such as
meeting halls, health club, swimming pools, etc.
The establishment of this hotel cost $52 million,
mainly contributed by IFC and EIB in the form
of long-term loans. The political instability
since 2000 devastated the sector, however 2007
showed signs of hope.

PADICO is the leading development and
investment company in Palestine. Due to the
experience it has gained over the past decade.
PADICO has acquired a successful, unique
experience which has enabled it to adapt to the
difficult and exceptional conditions that Palestine
continues to witness. This makes it a model
to be followed for investing in Palestine, and
provides the opportunity for local and foreign




172
1. Palestine Graduate School of                  branching in Gaza when needed. The analysis
Business                                         showed that the school is financially viable. Its
                                                 establishment cost is estimated at 2.7 million
Demand for graduate business programs is high US$, and the internal rate of return is 9%.
and growing in the Palestinian Territory: it has
grown by 500% from 1995 to 2007, while the 2. Middle East Venture Capital Fund-
overall admission rate in the West Bank reached
                                                 MEVCF
around 30% However, a quick review of facts
showed that Palestinian graduate business The MEVCF is being raised to invest primarily
schools face many challenges, and opportunities. in export-oriented ICT companies in (or related
In parallel to that, the need for graduates of to) the Palestinian Territory (PT), and to a lesser
MBA programs offered at Western universities extent in Israel. Other investment opportunities
is growing on the labor market. A survey of elsewhere in the Middle East might be
leading Palestinian firms showed that 50% of considered. The Fund will be registered in the
them intend to hire MBA graduates, preferably Cayman Islands and has a target capitalization
graduates of foreign universities.               of 50 million US$.

Research shows that if given the opportunity,        The Fund believes that an opportunity exists to
Palestinian students would vastly prefer to obtain   make profitable investments in companies built
a Western graduate education. However, studying      around the substantial community of skilled
abroad is not attainable for everyone and many       ICT human pool present in the PT. This will be
prospective students face challenges such as         leveraged with adjacent and highly experienced
complicated visa procedures, financial constraints,   entrepreneurial and venture capital base in Israel
etc.                                                 as well as the expatriate Palestinian communities,
                                                     for the benefit of the Fund. Initially the Fund
The Paltel Group proposes to create the first         will invest in existing companies, and later in
Western standard graduate business school            start-ups. It will assist companies with business
in Palestine, offering degrees in Business           strategy, recruiting, introductions to corporate
Administration related fields. The school will be     partners, financings, etc.
affiliated with a leading Western university. The
primary targets of the School are to develop and     The Fund intends to build a portfolio of
deliver market responsive programs; enhance          approximately 12-15 companies in total. About
the quality of education by forging synergies        4 million US$ will be invested in each company,
and alliances with leading academic institutions.    and to a maximum of 15% of its capital in a
The proposed business school will be based in        single company. The Fund will seek partnerships
Ramallah in the West Bank with a possibility of      with other entities: public, quasi-governmental,

                                                                                                   173
and NGO support for the Fund will be explored university professors, which in some cases decide
given that it does not restrict its ability to operate to emigrate.
freely.
                                                       In an attempt to create a sustainable solution,
The Fund’s founders have a strong network of the concept of a Student Education Fund was
contacts in the US, Europe, and Arab Countries, conceived by the Paltel Group Foundation.
which includes numerous Israeli and Palestinian Efforts are being made to create a 30 million
expatriates, who will assist the Fund with due USD student loan scheme, which will operate
diligence, serve as managers or employees, as as a revolving Fund and is expected to benefit
Board Members or Advisors. The Fund will be 30 000 students a year. All resources allocated
overseen by a Board of Directors. The Fund has will enable students enrolled in higher education
already commenced the recruitment process of institutions to benefit from both long-term
a manager for its Ramallah office and initiated and short-term loans, which will cover tuition
talks with potential investors.                        fees and living expenses. Currently, the Paltel
                                                       Group Foundation is in direct contact with
3. Palestine Education Fund                            the International Finance Corporation and
                                                       other investors to discuss their involvement
The idea of the necessity of continuous education
                                                       in the Palestine Education Fund as well as to
is deeply engrained in the minds of Palestinians;
                                                       include their input in the Fund’s mechanism
it is perceived as a coping mechanism, a way
                                                       and concept. Lastly, the Fund was created on a
of defying social disintegration and economic
                                                       premise that loans shall be disbursed by a local
deprivation. Adult literacy rate today is 91
                                                       partner bank institution in order to contravene a
percent and more than 40 percent of youth
                                                       public perception of loans as grants.
between the ages of 18-24 are enrolled in higher
education institutions. However, the economic
and political conditions of the last few years 4. Scholarship Fund
have led to an increase in college drop-outs.
                                                       Notwithstanding significant achievements in
Students struggle to ensure university fees on a
                                                       terms of literacy and high student enrolment
constant basis, while their parents are unable to
                                                       rates in Palestine, the accessibility of education
obtain debt or find financing sources for tuition
                                                       does not necessarily translate into quality and
fees. Governmental loans in turn are very limited
                                                       relevance of education. Additionally, many
in number and eligibility. Additionally, although
                                                       outstanding students find it almost impossible
universities are running at a full capacity, keeping
                                                       to afford university fees. The higher education
qualified lecturers is becoming increasingly a
                                                       sector faces problems related to the relevance
problem. According to a study commissioned
                                                       of education and the demands of the labor
by the Paltel Group Foundation, around 75 %
                                                       market. The arts, humanities and education
of students can only pay around 30 % to 40 %
                                                       sectors are much more popular than the science
of tuition fees from their own resources. The
                                                       and technology (including medicine), law, social
financial crisis in higher education institutions
                                                       science and business streams.
contributes to low and irregular salaries of




174
The Paltel Group Foundation believes that           technical tools for people to become social
a systematic scheme of scholarships to              entrepreneurs and work towards sustainable
undergraduate and graduate students would           change. Current statistics reveal that 32.8% of
both give an opportunity for outstanding and        household families in Palestine own a computer
motivated youth to continue their studies and       at home, but also that 75% of families, which
improve the quality of research and teaching.       do not own a computer attribute the reason to
Therefore, the foundation proposes to create        their high price: they simply cannot afford to
a Scholarship Fund providing 150 bursaries on       buy one.
an annual basis to marginalized youth showing
great potential and wishing to enroll in programs   The availability of computers – including internet
relevant to the labor market. Scholarships will     connectivity and exposure to information and
be allocated in the fields of medicine, science      knowledge– are essential for prosperity and
and technology, business, law, and social           advancement in a globalized world. Recognizing
sciences in order to shift the current imbalance    the importance of digital literacy, the Paltel
in higher education.                                Group Foundation has established the “PC
                                                    Fund”, through which it provides credit, soft
By doing so, the foundation hopes not only to       loans and financial assistance to Palestinian
support motivated students, but also to prevent     families or households for the purchase of
a brain drain through creating opportunities        computer hardware and internet connectivity.
in Palestine. Finally, its aim is to strengthen     The PC Fund was created in 2006 as a private
the national economy by supporting students         non-profit Fund and a multilateral development
wishing to pursue their studies in areas relevant   finance initiative. Its goal is to attract 5 million
to the labor market                                 USD in order to make loans as accessible as
                                                    possible and thus contribute to creating a
5. PC Fund                                          knowledge-based society in Palestine. The seed
                                                    fund will be matched 4 times over by Al-Rafah
The closure of the West Bank and Gaza through
                                                    Bank, Paltel Group Foundation’s partner, which
physical barriers like the Separation Wall, and an
                                                    is taking the lead in the implementation of the
elaborated system of fences and checkpoints
                                                    project. Thus, the impact of the PC Fund has
has led to the complete fragmentation of the
                                                    the opportunity to be larger, while the potential
Palestinian geography and the isolation of
                                                    for change is even greater.
many villages from major urban centers. These
measures have had a disastrous impact on the For further information about the above-listed
Palestinian economy, trade, but also education, projects, please contact:
health accessibility, social networks and human
relations.                                         Dr. Abdul Malik Al-Jaber,
                                                    Vice Chairman and CEO of the Paltel Group
While ICT cannot provide solutions to political     abdulmalik.jaber@paltelgroup.ps

crises, it can help alleviate some of the aspects   Mr. Ghassan Anabtawi,
of hardship of life under occupation, by offering   Vice-President for Development Affairs
                                                    ghassan.anabtawi@paltelgroup.ps




                                                                                                   175
1. Loan Guarantee Program to                        for lending without a complicated and long
Support Small & Medium-Sized                        process.
Enterprises                                       • Support small and medium-sized institutions
                                                    in a manner that ensures their continuity and
During 2007, Palestine Investment Fund (PIF),       development as to become a pillar to the
in cooperation with Overseas Investment             Palestinian economy.
Company (OPIC) Organization & Aspen
Institute, launched the Loan Guarantee Program On the level of the banking sector,
for Small & Medium-Sized Enterprises, with a the Program aims to achieve the
total investment expected at 228 million dollars. following:
This Program will support and contribute to
                                                  • Encourage banks to play a strategic role in
developing small and medium-sized projects,
                                                    the process of economic development;
which constitute the greater majority of the
economic projects in Palestine, through • Encourage banks to pay serious attention to
providing them with financial facilities with        small and medium-sized institutions;
the aim of developing their work, and thus • Ensure the rapidity and efficiency of making
creating thousands of new job opportunities         loan decisions;
for Palestinians. The Program has been quite • Improve the lending level and optimum use
successful, as it witnesses growing development     of bank deposits;
in the volume of lending and number of • Encourage banks to adopt lending systems
beneficiaries.                                       that are less dependent on collateral
                                                    guarantees through focusing more on
Goals of the Program:                               project feasibilities and their investment
The general goal for launching the Loan Guarantee   returns.
Program is to motivate small and medium-sized
                                                  Facilities Offered:
institutions, and to incentive for the banking
sector to fund such oppertunities, thus aiming to • The volume of collateral guarantees being
enabling them to play a central role in uplifting   offered by companies will be US$160
and promoting the level of economic prosperity      million;
in Palestine.                                     • The value of loans that will be provided
                                                    within the Program will reach up to US$228
In particular, the Program aims to                  million;
achieve the following:                            • The facility period will be 10 years;
• Facilitate the process of providing small and • The volume of loan will range between
   medium-sized institutions with good credit       US$10,000 and US$500,000.
   ability and necessary funding to develop
   their work.
• Provide clear and organized foundations

176
2. Launching Al-Irsal Land Project                  Economic Feasibility and Social
in the Governorate of Al-Bireh &                    Dimension of the Project:
Ramallah                                           The implementation of the Project will
As part of PIF’s vision aiming at developing achieve a group of advantages, including:
new centers for Palestinian cities, PIF and its
                                                    1. Motivating the strategic investment in the
strategic partner, the Land Holding Company,
                                                         real-estate sector;
one of the most important reputable Arab
real-estate development companies, launched 2. Motivating and activating investment in
Al-Irsal Land Project in the governorate of              all complementary sectors of the real
Al-Bireh & Ramallah. The two parties have                estate sector;
signed a memorandum of understanding to 3. Creating a new commercial, social and
implement a huge real estate project, with a total       entertainment center in Ramallah &
investment of US$200 millions on a total area of         Al-Bireh;
50 dunums. During the current year, designs and 4. Revitalizing local economy in the area;
plans will be laid down for the facilities planned 5. Boosting national economy through
to be established. The two parties and their local       its contribution of creating new job
partners will implement the Project during the           opportunities;
coming four years, in a manner that contributes 6. Improving the quality of civilian daily life.
to creating thousands of new job opportunities
for Palestinians, and achieving a qualitative move 3. Al-Wataniya Palestine Mobile
in the economic activity in Ramallah & Al-Bireh, Telecommunications Company (WPT)
thus serving people across Palestine.
                                                   With the aim of achieving one of our goals
                                                   to attract foreign investments to Palestine,
The Company’s Development Project:
                                                   we worked during last year with our strategic
In agreement with the Land Holding Company, partner, Qatar Telecom (QTEL) Company,
a specialized company (Our Land Company) on establishing Al-Wataniya Palestine Mobile
responsible for developing Al-Irsal Land Project Telecommunications Company (WPT). The
will be established. The Company will prepare Company initiated preparations for launching
and implement the necessary designs and plans. its operations during the coming few months.
The Project will be implemented in phases during It will provide its services to hundreds of
this year and is expected to be completed during thousands of beneficiaries and will employ
a maximum period of four years, in cooperation hundreds of Palestinian laborers. It will provide
with local and international experts in the field mobile telecommunication high quality 3G
of contracting and engineering designs.            services, creating a qualitative move in the mobile
                                                   telecommunications sector in Palestine.




                                                                                                  177
Value of Investment:                                to establish new housing suburbs for limited
                                                    and middle-income people. More than 30,000
The total value of investment in this Project is    housing units including new housing subrubs, in
expected to exceed US$600 during the coming         cooperation with the private and public sectors,
years.                                              will be established during the coming five years
During the coming years, Al-Wataniya Palestine      in 7 – 10 strategically located within the natural
Mobile Telecommunications Company will              geographic expansion of the cities in the West
contribute to supporting Palestinian economy,       Bank and Gaza strip.
through creating more than 2,000 new job
opportunities directly or indirectly. The Company   Value of Investment:
will provide the Palestinian market with the      The total value of investment in this Project is
latest 3G telecommunications technology in the    expected to exceed one-billion-and-a-half US
world.                                            dollars, within an integral investment program
                                                  that includes the establishment of a company for
Partners:                                         developing the real estate and feasible lending.
Palestine Investment Fund (PIF) currently The total value of investment in this program
owns 43% of Al-Wataniya Palestine Mobile will exceed two billion US dollars.
Telecommunications Company’s shares, while
Al-Wataniya International Telecommunications Implementation of the Project:
Company owns 57% of the Company’s shares, PIF will start implementing the Project during
given that Qatar Telecom (QTEL) Company the current year through launching two to three
owns 51% of Al-Wataniya International projects as leading projects in different areas of
Telecommunications Company.                       the West Bank. PIF bought the land on which
                                                  the housing suburbs will be built and is in the
It should be noted that the percentage of PIF and process of laying down engineering designs
Al-Wataniya International Telecommunications for the project, including the structure of the
Company’s contribution in Al-Wataniya Palestine buildings planned to be established and the
Mobile Telecommunications Company will locations of the infrastructure.
change after offering 30% of the Company’s
shares for public subscription. PIF will own 30%
of the Company’s shares, while Al-Wataniya
                                                  5. Amal Company for Affordable
International Telecommunications Company Mortgages and Loans
will own 40% of the Company’s shares after the As part of the integral planning to enable limited
initial public offering.                          and middle-income people to own suitable
                                                  housing units, and in light of PIF’s assessment of
4. Affordable Housing Project for                 the civil needs, especially their need for liquidity
Limited & Middle-Income People                    and owning houses without the availability of
                                                  long-term real estate mortgage loans, PIF, in
PIF started designing an integral program
178
cooperation with local and international partners,   Authority (PNA), provided that the flow should
will establish ‘Amal Company’ for Affordable         not be subject to political considerations by the
Mortgage and Loans Company. The Company              Israeli side in any arrangements for selling the
will allow limited and middle-income people to       extracted gas. Additionally, PIF stressed the
borrow according to feasible conditions, with        importance of securing the influx of Palestinian
long-term repayment periods reaching up to 25        gas to Gaza Power Plant without any Israeli
years with competitive interest.                     interference and that the gas selling price is
                                                     fair and takes into account the fluctuation of
Value of Lending Package:                            international gas prices.
The value of Amal Company for affordable
mortgages and loans package will approximately
reach US$500 million at the first stage, from
which thousands of Palestinian families will
benefit.

PIF’s Partners:
PIF’s partners that fund the Company include:
OPEC, International Funding Company (IFC),
Bank of Palestine Ltd., and Palestine Institution
for Funding Real-Estate (PMHC).

6. Gaza Gas Project
Palestine Investment Fund (PIF) is one in
a group of partners that has been given the
privilege and exclusive right by the Palestinian
National Authority (PNA) to extract and
exploit gas discovered in the territorial water
of the Gaza Strip. The group includes British
Gas Company (BG), and the Consolidated
Contractors Company (CCC). Given the fact
that the discovered gas will be a strategic and
essential resource for the Palestinian economy, a
special attention was given to the gas extraction
project in order to ensure Palestinian rights.

In this regard, the Palestinian side emphasized
the importance of securing the unimpeded
flow of gas revenues to the Palestinian National
                                                                                                  179
            USAID West Bank/ Gaza
      Programs in Support of the Palestinians
ECONOMIC GROWTH                                   travel and transport conditions for thousands of
                                                  Palestinians using the road daily. USAID also
USAID promotes business and agricultural          launched the final stage of a large water project
development and increase of Palestinian           in Bani Naim, in the Hebron Governorate,
export through technical assistance and loan      where this approximately $40 million activity
programs. In 2007, USAID’s $12.1 million          will connect 600,000 people to regular water
Palestinian Enterprise Development project        services. USAID’s Emergency Jobs program
formed partnerships with Palestinian industries   will also build and renovate public schools.
to increase export, enable investment, offer
training, generate employment, and improve
                                                  HUMANITARIAN ASSISTANCE
quality standards. The project has assisted
close to 130 Palestinian firms to improve their    To respond to emergencies and reduce poverty,
management skills, standards, and productivity.   USAID is providing emergency food, health care,
Also, over 1,000 university graduates received    and access to safe water and sanitation. The U.S.
job training through USAID Apprenticeship         Government is also contributing to the World
Training program.      In 2007, over 11,000       Food Program (WFP), and the UN Relief and
Palestinian agribusinesses, farmers, olive        Works Agency’s West Bank and Gaza Emergency
growers and fishermen received assistance and      Appeal. Since May 2006, USAID has provided
training through the Palestinian Agribusiness     over $7.2 million worth of emergency medical
Partnership Activity (PAPA), which also created   assistance, such as pharmaceuticals and medical
employment opportunities for close to 1,400       supplies for dialysis units, essential medicines,
Palestinian farmers and agribusiness employees.   and electric generators, to approximately 60
                                                  Palestinian NGO clinics, 12 NGO hospitals, and
INFRASTRUCTURE                                    to Ministry of Health hospitals and facilities.
                                                  Since September 2006, the $35.3 million cash
After the U.S. Government re-established its      assistance to WFP in the West Bank and Gaza
relationship with the Palestinian Authority       has helped food insecure non-refugee Palestinian
in June 2007, USAID was able to respond           families meet basic nutritional requirements.
to Palestinian infrastructure needs. USAID        304,000 Palestinians receive monthly assistance
launched the construction of 2.3 kilometers of    through this program. USAID’s Emergency
Qalandia road, the main traffic artery between     Water and Sanitation program has provided over
Ramallah and Jerusalem. The road improved the




180
1.8 million Palestinians with better water and leaders from both parties with the leadership
sewage services in the West Bank and Gaza.         skills required to advance reconciliation and
                                                   coexistence. With its border improvement
INVESTING IN PEOPLE                                projects, USAID is helping to ease movement of
                                                   Palestinian people and goods, while improving
USAID is providing maternal and child health
                                                   Israel’s security. USAID is also assisting the
care, education, and access to safe water and
                                                   Palestinian Monetary Authority track financial
sanitation. Through its Mother and Child
                                                   transactions to prevent financial crimes and
Health Care Project, Hanan, USAID is working
                                                   money laundering.
to improve the health of 60% of Palestinian
women of reproductive age and children under
5. USAID’s recently launched Model Schools GOVERNING JUSTLY AND
program will create advanced curricula and DEMOCRATICALLY
teaching techniques in a number of private USAID’s goal is to protect and promote
schools, aiming to develop an educational model moderation and democratic actors. The West
that can later be replicated in other schools. An Bank and Gaza Mission is providing training
$8.8 million Palestinian Faculty Development for independent media and assistance to civil
Program aims to improve the quality of higher society organizations. In November 2007,
education in the West Bank and Gaza. As part through its Local Democracy Reform program,
of the program, 30 scholars started PhD studies it also equipped and renovated the Public Notary
at U.S. universities and 8 scholars were placed at Offices of Ramallah and Nablus, enabling them
U.S. universities to pursue short-term training. to serve the Palestinian public more effectively.
USAID also provided 80 master’s degree
scholarships to the Palestinians to study in the
United States.

PEACE AND SECURITY
In the fall of 2007, USAID awarded three grants
supporting peace and co-existence projects
between Palestinians and Israelis. One of the
grantees, Seeds of Peace, aims to empower young




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182
SPONSORS




           183
In its pursuit to expand its share of the banking      innovations, and designing superior banking
market to all areas and to profound banking            services for its customers whether in retail sector
awareness, and to be able to effectively as well       and personal services or the commercial sector
as efficiently provide its distinguished banking        in order to provide them with a variety of loans
services in one setting, where customers can           and facilities that meet their needs as well as a
receive all banking services, Arab Bank is             collection of various personal loans.
all about opening new branches in order to
cover the largest geographical area.. Recently,        Here is a brief on the most significant
the branches of the Bank have undergone a              banking products and services provided by
significant advancement in performance and              the Arab Bank:
achievement on a national scale consolidating            •   Retail services, represented in different
the leading role of the Bank among the largest               kinds of deposits and account openings
Arab banking network.                                        for customers abroad, in addition to
                                                             different kinds of loans, including
The Arab Bank plays a leading role in the banking
                                                             housing loans, car loans, personal loans,
sector operating in the Palestinian Territories in
                                                             and revolving overdraft.
terms of the volume of business and nature
of services it provides, as it comes in the first         •   Corporate services including different
place concerning size of revenues, facilities                kinds of deposits, credit facilities and
and investments, as well as the exclusivity of               commercial services such as documentary
some banking services, particularly advanced                 letters of credit, guarantees and insurance
electronic services.                                         policies.
                                                         •   Direct Banking services: In addition
The Arab Bank is the most widespread bank                    to the wide variety of its banking
in terms of number of ATMs geographically                    products and services, one of the most
spread in various areas, amounting to 62 ATMs                important competitive advantage and
in Palestine working 24 hours.                               characteristics of the Arab Bank is the
                                                             exclusive Direct Banking services that
Distinguished Banking Services                               provide convenience and safety including:
The Arab Bank has assumed responsibility of                  internet banking services (Arabi Online),
enhancing and updating the banking industry,                 SMS via mobile phone (your bank
carrying on the constant administrative and                  in your cell phone), 24 hours ATM
organizational updating in order to attain the finest         service, automated voice service (Hala
standards of banking performance according to                Arabi), and recently the Contact center
the state of the art technological and technical             services developed from (Hala Arabi
                                                             service) which is a fundamental center



184
      of communication with customers by                   Company for Administration and Construction of
      answering their inquiries and providing              Industrial Zones, National Company of Electricity,
      banking services to them, as well as direct          Palestine Electric Company, the Arab Bank for
      sales representatives who reinforces the             Investment, Palestine Company for Mortgage and
      role of the Bank in contacting customers             housing, Palestine Company for Tourism Investment,
                                                           Palestinian Telecommunications Company, Palestine
      wherever they are.
                                                           Company for Industrial Investment, Palestine
  •   Other services: In addition to credit                Company for Real-Estate Investment, Alarabi
      card services represented in Visa credit             Company for Investment as well as buying shares
      card, Internet shopping card and Visa                in the Arab Palestine Investment Bank and other
      Electron card, the Bank also provides                leading projects. The value of the Arab Bank shares
      drafts and universal services including              in these companies is estimated to be 98 million
      inward/outward drafts, purchase/sale of              Jordanian Dinars.
      foreign currencies, outward withdrawals,
                                                           The Arab Bank also contributed to supporting of
      purchase/collecting of withdrawals,
                                                           all groups of local society by particularly targeting
      Western Union and other services as                  the youth and being leaders of the future as part
      strong-room and bills payment services.              of the social responsibility. This responsibility was
                                                           embodied in the funding of several social activities
Support of Local Economy                                   of direct benefit, such as offering scholarships
The Arab Bank is one of the strongest cornerstones         and assistance to needy students in schools and
of local economy. It is characterized by the numerous      universities, providing care and support for health
products and services that are dedicated for the           centers and hospitals, as well as supporting sport,
best interest of its customers whether in the retail       cultural and artistic activities, both materially and
sector or the corporate sector. As for retail sector,      morally.
the Arab Bank is characterized by providing various
offers for individuals that meet their living needs
and requirements.

Corporate, the Bank has funded several investment
and development projects that contributed to the
prosperity of Palestinian Economy, and it played a
key role in enhancing the investment environment
in the Palestinian Territories, as it has been a pioneer
in investment since the onset of the Palestinian
National Authority. Moreover, the Bank contributed
to establishing various leading corporations through
purchasing of shares therein such as: Palestine




                                                                                                           185
      The reason of sponsoring the conference

      Sponsorship for such conference from the Arab
      Islamic bank was achieved within the national
      responsibility and specially with the hard
      circumstances that the Palestinian territories
      live, Where the bank plays an effective role in the
      development of society and the national economy
      through the improvement of the investment and
      economic opportunities to the less luck categories,
      And the increase of the operational chances in
      front of the categories capable of the production
      and the expansion of the investors base and also
      for the contribution to the creation of an economic
      development Specially that the Palestinian economy
      is not great but it is in the same time a promising,
      and this conference is considered the gate of the
      entrance to new investments.

      As a working enterprise in the private sector that is
      considered one of most important pillars and pillars
      of the Palestinian economy, and the main engine of
      the economic development considering its universe
      enjoys capabilities and high abilities, and a special
      great responsibility falls upon its shoulder under the
      current circumstances. As the ability of private sector
      of the standing under the current circumstances
      and the adaptation to it is calculated for it, and a
      trustworthy and a care make it of all.

      Private sector future includes the achievement of a
      free national economy capable of the competition
      despite all of the obstacles.



186
  Arab Palestinian Investment Company (APIC)
Arab Palestinian Investment Company (APIC)            Siniora Food Industries
industrial activities focus on manufacturing,
                                                      www.siniorafood.com
distribution and services. Our subsidiaries are
the vehicle to deliver and reach the Palestinian      Siniora Food Industries is a heritage brand
consumer with the best services and products;         established in 1920 and acquired by APIC in
with eight successful subsidiaries, we present        1996 to be the number one brand for meat
the following:                                        manufacturing in Jordan and Palestine, and with
                                                      a turnover of $19.5 Million in 2007.

Unipal General Trading Co.                            Siniora distributes its products to Jordan, GCC,
                                                      and Algeria with a vision to expand further
www.unipalgt.com                                      while emphasizing their core mission of offering
Unipal as a pioneer leader in modern retail           high quality product while complying with the
distribution; was established in 1994 and is          international hygiene, quality, and safety standards.
the leading Fast Moving Consumer Goods                Siniora achieved, recently, their forth international
distributor in Palestine, with a turnover of $110     certificate; Food Safety Management Systems
Million in 2007.                                      Standard ISO 22000, to be the first in Palestine
                                                      and the second world wide.
Unipal’s success is based on three pillars; loyalty
programs with retailers, well studied product         The Arab Palestinian Shopping
lunching campaigns touching people’s life and         Center Company- Plaza
creating a positive social shift, and a strong        The Arab Palestinian Shopping Centers Company
internal systems complying with the international     (APSC) is a Palestinian Shopping Center
standards and quality assurance certifications;        developer, operator, and retailer, established in
and thus setting Unipal as an efficient systemized     1999 with a starting capital of $7.4 thousand and
company that provides and distributes leading         was listed on the Palestine Securities Exchange
quality products and services that are demanded       (PSE) under the symbol “PLAZA”.
locally, which had previously been provided on        APSC provides today a new concept in the
a far less competitive basis in a manner far less     Palestinian Community of in door shopping and
sympathetic to the Palestinian consumer needs.        family entertaining services, which has not been
                                                      delivered previously in the Palestinian Market.
Unipal is a sole distributor for multinational        We provide shopping centers, supermarkets,
brands such as Philip Morris Tobacco, Procter and     and children’s indoor fun fairs, with a vision
Gamble (FMCG, Prestige Beaute), Kraft Jacobs          to be number one retailer chain with different
Suchard, Keebler among others, and has the            branches in each Palestinian city serving the
largest retail distribution network in Palestine.     Palestinian consumer.
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