Palestine Investment Conference 2010 Session Summary

*Speakers: - Chair: Mazen Sinokrot, Chairman and CEO, Sinkrot Global Group. - Mr. Ahmad Manna', Tax Director, PricewaterhouseCoopers, Jerusalem. - Mr. Mohammed Masrouji Chairman, Palestine Businessmen Association. - Mr. Zahi Khouri, Chairman of Jerusalem Tourism Investment. - Mr.Mamoun Abu-Shahla Businessman and Engineering Consultant. - Mr. Kamel Husseini. Founding and managing Partners. Ellam Tam.

*Summary:

- Mazen Sinokrot:

We all know about Jerusalem and its importance among all the and international capitals. It's known for its culture and civilization, it's know for where it's located, it's my pleasure to be here with you today, talking about Jerusalem in figures. Let me give you an idea about some of it's economic indicators.

In Jerusalem we had about 6600 economic facilities, 1400 people, 270 thousand Jerusalemites are living under closure, Jerusalem is isolated with more than 400 different military decisions since 1967 and still. It's been living. And it is exciting with its stubborn people and insisting families, struggling, living, and staying. There are 400 thousand who are Arab Palestinian in Jerusalem. This is about 10% of the Palestinian demographic concept.

It's a pleasure for me to express how happy I am with these interested people here, and happy with these experts, so we can have special partnerships with special innovative visions. We are here to support Jerusalem and the Jerusalemites with projects that will give quality economic profits and will bring a lot more than money.

- Ahmed Manna':

Before I answer the question, I just want to make clear that investing in Jerusalem is efficient. The current law is encouraging investments in Jerusalem, which lays in very important fields for the Jerusalemites, like opening new hotels, modern technological factories, establishing a new series of technological programs, so as to peruse the Palestinian existence in Jerusalem. We all know about the modern methods uses, so there has to be competition, even to attract our people there.

There are two paths for that. The first is support through grants, which is linked as well with reducing the tax rate. The second is without grants but includes tax exemption.

There's also a significant field which is the real estate market and housing investment. There are so many offers, like all free tax exemptions on profits if the owner decides to sell the building, or he pays a deducted tax on selling and gets a reduction on the profit taxes for leasing it. Some essential projects need to be applied in cooperation and support form the Ministry of Education. There could be a kind of participation in school expenses for families and insurance of the quality of service, which is entitled through the teachers degrees. That was for big investors.

For small and medium sized investors, there can be tax exemptions for someone who are willing to buy and lease flat and full exemption in the time of selling. But still there are conditions for these intensives.

- Mohammed Masrouji:

As we all know, Jerusalem is occupied and is considered to be part of Israel which leaves a lot of obstacles for investing. Besides that, more of it will be it’s kind of supporting and declaring that it's Israeli to be investing in it? If it's Palestinian then we're not supposed to leave it, we shouldn't be waiting for profits here then, we have to invest as a duty for the sake of our existence. And that's an additional incentive. Regarding the housing and real estate, Jerusalem needs more than forty thousand tourists in the next ten years, and that insures real and huge benefits.

Before 1967 there were about 2000 hotel rooms, and the number remains the same in East Jerusalem, while it grew from one thousand to tens of thousands in Western Jerusalem. We are not accepting the Occupation and it's procedures that freeze growth and eliminate it for the sake of delaying people with no job opportunities or any open doors for them. In the next ten years we will need about more than 150 schools. Who believes this? What will happen to the graduates in that time, that's how we're in need of modern, high standard attractive-schools that brings profits to this big city. Maybe investing here will be more consciously satisfying than any other thing, planning for a better future should start today and from here.

No one will invest in Palestine and in Jerusalem specifically if we as do not. I'm announcing today that we just lunched an investing company that was registered a week ago with 20 million dollar and that is expected to grow up to 100 million.

- Zahi Khouri:

I have to apologize for the past year that went with its own promises and nothing was done. We have to start actions now. Jerusalem is the dynamo of the Palestinian economy, and I wish that Jerusalem will be included in the Arabic and Palestinian strategies, a strategy for creating new jobs; Jerusalem doesn't take a lot to invest. Also branding is really important in promoting the real opportunities here. So many projects were done like rebuilding Al-Hamra Cinema, Saint George Hotel, Jerusalem Towers, the National Hotel, Legacy Hotel, Nseibeh Project, and others.

There's a counter market being implemented against Jerusalem. Unfortunately Jerusalem was delayed in our minds, because Jerusalem in the agreements is always delayed until afterwards. We have to look into what is the best in this city to invest in, and I'm sure you all know that we have one of the strongest points which is the Old City. It's about 900 donoms, one of the biggest commercial compounds, and unfortunately again, Israel is using it. It is copying the Old City’s Bazar format which is called MAMANILLAH that attracts a lot of tourists. As they are walking towards this Bazar they pass through the Old City and they are captivated. They have a passion for all of its details, we're lucky for having it, but obviously unlucky in terms of marketing.

Both sectors, the private and public, have come together for the mission of branding for tourism in Jerusalem. We have established ZIYARA for the sake of promoting our sights and tourism. The Ministry of Tourism has to play a more dynamic role in this, to participate in more international exhibitions, and support local tourism offices in different cities.

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