Beyond Aid: A Palestinian Private Sector Initiative for Investment, Growth and Employment The Portland Trust November 2013 42 Portland Place, London, W1B1NB P.O. Box Al Bireh 4102, Ramallah Al Masyoun Azrieli 3, 132 Menachem Begin Road, Tel Aviv 67023 Website: www.portlandtrust.org Email:
[email protected] The Portland Trust Beyond Aid: A Palestinian Private Sector Initiative for Investment, Growth and Employment The Challenge 23% unemployment in 2012 and 39% youth unemployment, the highest in the region 50% slowdown in GDP growth in 2012, following annual average growth of 8.2% between 2006 and 2011 1,000,000 new jobs needed to reduce unemployment to 10% by 2030 Addressing the Challenge 5 sectors prioritised as cornerstones of a private sector action plan: Agriculture, IT & Digital Entrepreneurship, Tourism, Construction, and Energy More than 50 projects identified across these five sectors as potential growth catalysts The Potential Impact Over $8 billion in GDP, more than 150,000 new direct jobs and around 220,000 indirect jobs can be created by 2030 through these projects The Portland Trust Beyond Aid: A Palestinian Private Sector Initiative for Investment, Growth and Employment Foreword from the Coordinating Committee The Palestinian economy faces a number of challenges. Restrictions resulting from the political situation continue to be the most significant impediment to economic growth. Uncertainty and lack of hope in progress, together with internal constraints, have also contributed to economic stagnation. Although it is true that the economy has grown between 2006 and 2011, this has been significantly driven by inflows of aid from the international donor community, and is therefore unsustainable in the long-term.