Results

Palestine Monetary Authority

11/16/2021 | Press release | Distributed by Public on 11/16/2021 01:57

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

/ Tuesday, November 16, 2021
/ Categories: PMA, Statistics

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

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

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

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

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

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

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

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

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

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

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

Table 1: Main Indicators of the Foreign Investment Survey of Resident Enterprises in Palestine (stocks) at end of 2020

Value in million USD

Indicator

Stock 2020

Percentage %

Total Assets*

8,088

100

Stocks of Foreign Direct Investment

304

3.8

Stocks of Portfolio Investments

1,463

18.1

of which: Equity securities

408

of which: Debt securities

1,055

Stocks of Other Investments:

5,624

69.5

of which: Trade credits

6

of which: Loans

155

of which: Currency and deposits

5,463

of which: Other Assets

0

Stocks of Reserves Assets

697

8.6

Total Liabilities**

3,066

100

Stocks of Foreign Direct Investment

1,671

54.5

Stocks of Portfolio Investments

668

21.8

of which: Equity securities

668

of which: Debt securities

0

Stocks of Other Investments:

727

23.7

of which: Trade credits

0

of which: Loans

43

of which: Currency and deposits

684

of which: Other Liabilities

0

*Assets are the investments abroad of Resident enterprises in Palestine

** Liabilities are the foreign investments in Resident enterprises in Palestine

Table 2: Percentage Distribution of Foreign Direct Investment (FDI) in Resident Enterprises in Palestine by Economic Activity at end of 2020

Economic Activity

Value (in Million USD)

Percentage %

Financial Intermediation

1,075

64.3

Services, Transport, Storage, communications & internal trade

501

30.0

Industry

58

3.5

Constructions

37

2.2

Total

1,671

100

Table 3: Percentage Distribution of Foreign Direct Investment (FDI) in Resident Enterprises in Palestine by Country at end of 2020

Country

Value (in Million USD)

Percentage %

Jordan

1,349

80.8

Qatar

149

8.9

Kingdom of Saudi Arabia

91

5.4

Egypt

49

2.9

Cyprus

22

1.3

United Arab Emirates

6

0.4

Other Countries

5

0.3

Total

1,671

100

Table 4: Percentage Distribution of Foreign Portfolio Investment in Resident Enterprises in Palestine by Economic Activity at end of 2020

Economic Activity

Value (in Million USD)

Percentage %

Financial Intermediation

399

59.8

Services, Transport, Storage, Communications & Internal Trade

227

33.9

Industry

33

5.0

Constructions

9

1.3

Total

668

100

Table 5: Percentage Distribution of Foreign Portfolio Investment in Resident Enterprises in Palestine by Country at end of 2020

Country

Value (in Million USD)

Percentage %

Jordan

310

46.4

Kingdom of Saudi Arabia

77

11.5

United Arab Emirates

60

9.0

Kuwait

54

8.1

United States of America

35

5.3

Qatar

26

3.8

Other countries

106

15.9

Total

668

100

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