At first glance—and maybe also at second and third—the Palestinian territories are an improbable place to invest your money. The Israeli occupation and the continuing strife between rival Palestinian factions mean the territories remain more violent and unstable than even the most hardened investors normally accept. …
And yet, it would be wrong to portray the men … who attended last week’s [Bethlehem conference] as delusional. For a start, they are dealing with a business community that may be small but that is also vibrant, smart, resilient—and hugely idealistic. Many Palestinian business leaders built their lives and fortunes abroad … [and] could leave Ramallah, Nablus and Jericho tomorrow for an easier life in the United States, Europe or the Gulf. That they do not is testament to their deep commitment and boundless optimism.
Moreover, as the recent performance of the Palestine Securities Exchange shows, it is possible to make money in the occupied territories. Since the start of the year, the index has soared by more than one-third—comfortably outperforming all other Arab markets. Ramallah is experiencing something of a building boom, and all over the West Bank businesses are taking advantage of the recent political stability … and capitalizing on an influx of donor money.
The fundamental question raised by last week’s investment conference is therefore which of the two economic realities will eventually come to dominate: the optimism of the 1,000 business leaders in Bethlehem, or the depression of the millions of Palestinians living in Gaza and the poverty black spots of the West Bank? The answer depends, as so much else in the Middle East, on politics. … [R]eal economic revival depends on a deal that will eventually ensure Palestinian statehood, political stability, legal certainty, freedom of movement and access to foreign markets. Without it, last week’s conference may prove to be nothing more than the enchanting veneer on top of an economy mired in ever-deepening gloom and depression. Access the full article>>
