Translated by Sabrin Qadah 

Several scenarios have been put for the Palestinian economy for years to come, which is a recurring image of scenarios that restore themselves in light of a hazy reality. Under an occupation that smothers the Palestinian economy, is it possible to predict the form of this economy after more than 13 years?

Dr. Raja Khalidi, research coordinator at the MAS Institute, during a session about the development in 2030 Palestine conference, felt that the attempt to explore the future is impossible, saying “Ii is pointless to look with depth at the distant future as we need to look deeper at the current reality."

He pointed out that our main concern should be to diagnose the current challenges in the context of business environment.

Decline in investment

Economic indicators illustrate, as D. Khalidi explains, refer to falling investment in Palestine to the rock bottom for the past 15 years. The proportion of investment in GDP should exceed 35%, as is the case in the surrounding Arab countries, which operate according to this ratio, while in Palestine at the end of 1999 is the only year in which saw a growth in investment as the proportion reached to about 40% and 60% of the investment, which was directed to the real estate sector. Today's investment ratio IS less than 20%!

Khalidi said, "We are facing a major problem, and the opportunity is poised to enter the erosion stage of capital accumulated," calling for a serious thinking in trying to bring billions of dollars in Palestinian funds that are employed overseas to re-employ them in the local economy. He stressed that with the existence of this situation, no development goals will be achieved and it will continue to decline.