Incentives Package for investments in Industrial Parks

Financial Support

The investors and the tenants in industrial parks will have an access to the below financial support schemes by various donors.

  • PRIDE Program (financial grand provision) for the JAIP Tenants: Up to 50% (Maximum US$500,000) of the equipment and building material cost can be supported by the grant. Overall budget of PRIDE is about US$4.6 million (from Japan & EU). link
  • French Grant: For investors in BIE to cover maximum 50% of French made equipment cost
  • PIEFZA is under discussion with donor communities to provide other financial services to be granted to the tenants in industrial parks for the further industrial development.

Tax Incentives

  • Businesses in industrial sectors can enjoy reduction of Corporate Income Tax for a certain duration of years (PIPA law amendment 2014: 8-1). Furthermore PIEFZA is under discussion with PIPA to grant further incentive (tax and customs) only to the tenants in the industrial parks under PIEFZA.
  • VAT (Value Added Tax) is exempted for any products to be exported by the Investor.

Stable and Sufficient Economic and Social Infrastructure & Utility Services

Industrial parks under PIEFZA will provide comprehensive package of infrastructure and utility services such as electricity, water, waste water treatment, solid waste collection system, telecommunication, internal and access road etc. Each industrial park has an administration building to support the tenants’ business activities such as a show room, conference or meeting rooms, a business center, banks etc. The sites are surrounded by the fences and security will be maintained.

Free Trade Agreement

PA benefits from free trade arrangements with the United States, Canada, EU and the European Free Trade Association (EFTA). A trade agreement signed with Russia grants a reciprocal most Favored Nation treatment for Russian products in the Palestinian market and vice versa. Both Egypt and Jordan have signed trade agreements stating bilateral duty-free status and reduced duties on certain products, while Saudi Arabia has granted some Palestinian products preferential treatment. The Interim Free Trade Agreement with Turkey grants duty- free treatment to industrial products. PA also concluded a free Trade agreement with Mercosur countries (Brazil, Argentina, Uruguay and Paraguay).