The Palestinian Investment Promotion Agency PIPA. Building a Better Future ICT Sector
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1 The Palestinian Investment Promotion Agency PIPA Building a Better Future ICT Sector
2 Contents Characteristics of ICT sector Sectors of ICT ICT companies that received investment incentives from PIPA Investment incentives and criteria Targeted sectors and investment opportunities Success stories Palestine s commitment to investors Palestine competitiveness Role of the Palestinian Investment Promotion Agency PIPA
3 Characteristics of ICT sector Fastest growing sector in Palestine Existence of well educated and skilled labor Neighboring high-tech centers Almost 602 companies specialized in ICT in % Digital telecommunication infrastructure that is developed and operated by the private sector Million USD is the contribution of the ICT sector in the market in % GDP contribution in Company in this sector are registered as a member on the Palestinian Information Technology Association (PITA) as a strong and organized union 10 Palestinian universities offer undergraduate programs for computer science, engineering, communications, and information technology 2,500 Graduate annually in the ICT sector. 10 Consecutive years, successfully held Expotech exhibition in Palestine 25 Finance program provides support to investment projects 37 Million USD the value of exports of information and communication sector in 2014.
4 ICT Sectors Research and development centers Consulting and training Internet service providers Suppliers of ICT Software and solution development companies Outsourcing services Incubators and accelerators
5 ICT companies that received investment incentives from PIPA 23 ICT Projects received incentives 3,236 Direct jobs created 27.9 USD M projects gross investments 4 Investments are joint ventures, partners from (UAE, USA, Germany)
6 Investment incentives and criteria Law No. (1) for year 1998 and its amendments: Investment incentives 0% for agriculture cultivation and livestock 5% Income tax for a period of (5) years 10% Income tax for a period of (3) years Custom incentives on investment machinery Incentives contract package (sector, location, transfer of knowledge..) Criteria: (Industry, Tourism, Agriculture) 25 New jobs or added 40% Produce exported 70% Local content (materials and machinery) Guarantees: No distinction between foreign or local investors, Investor can have a free ownership Investors may freely transfer all financial resources any time and with any currency accepted by the investor
7 Targeted sectors in Palestine Agriculture (Roses, Strawberry, Dates, Olive oil and its products, fishery), Fund and financial services (Insurance, Loan guarantee, funds), ICT (Incubators, Research and Development, Excellence centers, Call centers, Software development, games development) Infrastructure, Real Estate and construction, Industry (Stone and Marble, Food and Beverage, Pharmaceuticals and cosmetics, light industries), Energy (Renewable energy, Gas and Oil industries), Logistics and Transportation ( storing, packaging, shipping fright services) Health, Tourism (Pilgrims services, Tour operators, Hospitality)
8 Investment opportunities Mishwar: The project consists of two interrelated components, Mishwar Channel and the web material part of the website, which is already under development. Courts. Net: Jaffa. Net is seeking a strategic/financing partner that can help Jaffa. Net extend its market share and reach to become a worldwide offering Technology Educational Kits: Palestine ICT Incubator (PICTI) is seeking a financing partner to support the establishment of a company that aims to provide the following products and services: Technology Educational Kits. Security and Surveillance Systems: Palestine ICT Incubator (PICTI) is seeking a financing partner that can assist in the establishment of a company that will provide the following products and services: visual bell, security and surveillance systems, access systems and industrial machinery remote control systems.
9 Success stories
10 Palestine s commitment to investors Free investment in all sectors and any percentage Free money transfer, i.e. capital and revenue No confiscation, nationalization Equal treatment for investors
11 Palestine competitiveness Government commitment to have a truly enabling investment environment Language and literacy: multi language literacy; Literacy Rate % aged 15 and above is 95.3% Education: Students of Secondary Stage (enrollment Ratio): 64.0%; Community Colleges Graduates: 12,584 (2010/2011); Universities Graduates:201,389 (2010/2011) ; Graduates of High Education & Vocational Training among 15 yrs old and over (End 2005): 14.5% (End 2005)(skilled labor force) Strong private sector partners and business leaders Liberal laws and regulations that allow investors to easily get started and register the type of company that suits there business, this is mainly reflected in the company registration law Palestine has also supported the creation of a very organized and active financial systems that allows many banks to operate under PMA. And allow for the creation of effective capital market authority. Foreign trade, Palestine has signed various trade treaties with EU, EFTA, US, CANADA and many bilateral treaties with the Arab world
12 Role of the Palestinian Investment Promotion Agency PIPA PIPA cam from a law in Palestine and its primary function is to assist in the development of a healthy Palestinian investment climate Representation of the private sector on PIPA s BoD ensures that private sector considerations and the full support of partnership kept at the forefront Associated tasks include: Providing incentives and income tax exemptions to local and foreign investors Enhance investment environments Develop the Palestinian economy Public Private Partnership is fully supported by the BoD No discrimination between Local and Foreign investors Facilitate investment establishment in Palestine Provide the One-Stop-Shop services to investors After care services
13 For more Information on investing in Palestine please do not hesitate to contact us Palestinian Investment Promotion Agency PIPA P.O. Box 1984, Ramallah, Palestine Tel: /2 Fax: portal: ps
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