Palestine Records $2.348 Billion in Foreign Direct Investment by the End of 2024

SadaNews Economy - The Palestinian Central Bureau of Statistics and the Palestinian Monetary Authority issued preliminary results of the foreign investment survey for institutions based in Palestine as of the end of 2024, as part of the periodic publication of the foreign investment survey for institutions based in Palestine, which represents a continuation of the joint efforts made by the two institutions.

In this context, the total value of investments abroad for institutions based in Palestine (assets) was approximately $11.013 billion at the end of 2024, of which 68% is foreign cash in institutions based in Palestine, and the deposits of these institutions in foreign banks. Taking into account the Palestinian specificity, which is represented by the lack of a national currency for Palestine that is included under other investments on the asset side.

The total value of foreign investments in institutions based in Palestine (liabilities) was approximately $3.704 billion at the end of 2024, of which 63% is foreign direct investment. (See Table 1)

The distribution of foreign investments abroad for institutions based in Palestine (assets) at the end of 2024 included other investments (trade credits, loans, currency and deposits, and other assets) valued at $7.654 billion, which is 70%, portfolio investments valued at $1.774 billion, or 16%, and reserves held by the Palestinian Monetary Authority valued at $1.328 billion, or 12%, while foreign direct investment amounted to $257 million, or 2% of total asset holdings at the end of 2024.

Conversely, the distribution of foreign investments in institutions based in Palestine (liabilities) at the end of 2024 included foreign direct investment valued at $2.348 billion, or 64% of total liabilities, foreign portfolio investments valued at $608 million, or 16%, and other investments (trade credits, loans, currency and deposits, and other liabilities) valued at $748 million, accounting for 20% of total liabilities at the end of 2024.

The survey results indicated that 57% of foreign direct investments in institutions based in Palestine are concentrated in financial intermediation activities, while 81% of total foreign direct investments in these institutions are from Jordan.

Regarding foreign portfolio investments in institutions based in Palestine, the results showed that about 59% of these are focused on financial intermediation activities, with portfolio investments from Jordan contributing approximately 58% of the total foreign portfolio investments in institutions based in Palestine.

The foreign investment survey is the primary tool for gathering data on the international investment position concerning private economic activity, through the compilation of flows and balances of investments by institutions based in Palestine invested abroad and the balances and flows of foreign investments in institutions based in Palestine, clarifying the external financial assets and liabilities position of institutions based in Palestine, categorized by economic activity and country. Each of the assets and liabilities is also divided functionally, aligning perfectly with the core elements of the financial account in the balance of payments and international investment position, along with adjustments related to investment balances and other changes, except for those resulting from economic transactions, noting that it was based on the latest international recommendations while considering the special circumstances of the Palestinian situation.