Data published by companies listed in the Palestine Exchange on the first nine months of 2015 reveal that the Services sector has incurred great amounts of losses. Eight of the sector’s companies have made losses, while only four companies have gained profits.

Asma Marzouq – Palestine Economy Portal

Translated by: Tamara Barakat

Date published on the performance of the Palestine Exchange companies during the first nine months of 2015 reveal that great losses have been made by the Services sector, despite of the great profits gained by the Palestinian Telecommunication Group – Paltel.  

As usual, Paltel has made the highest profits, gaining about 63,926,000 JD. It was the Exchange’s most profit-making company, and its profits form more than a quarter of the Exchange’s companies overall profits.

Its competitor in the telecommunication sector, the Wataniya Mobile, has made the greatest amount of losses, reaching $8,335,000.

As for the Palestine Electric Company, it was the second most profit-making company in the Services sector. Its profits exceeded $9,867,000.

When it comes to the losses, despite the fact that the five of the companies were able to reduce their losses, the overall losses of the Services sector were 7,500,000 JD ($10,500,000).

The Palestinian Company for Distribution and Logistics (Wassel) ranked the second highest in terms of loss in profits, following right behind the Wataniya Mobile. It losses exceeded over $533,000.

The Services sector has been suffering from regression for years due to the long-term losses of some of its companies, especially those working in construction, real estate, hotel, and telecommunication and internet services (except for Paltel), and the many problems faced by joint-stock companies working in transportation, retail, and medical services.

Mohammad Hijaz, the Manager of the Companies Department in the Palestine Exchange, believes that the situation is not as bad as it looks. There seems to be an improvement in most of the Sector’s companies. Three out of the four profit-making companies have witnessed a growth in their profits, while five out of the companies who have suffered from losses were able to reduce their losses in comparison to those of the same period in 2014.

Moreover, he explains that the eight services companies suffering from losses make up only 20% of the market value of the Services sector, and make up only 4% if we rule out the Wataniya Mobile, whose losses form 54% of the overall losses.

Additionally, the four profit-making telecommunication companies form over 44% of the overall profits of the companies, with Paltel possessing the lion’s share.