Overview
U.S. businesses should note the influence of a comparatively large, formerly U.S.-based Palestinian community, which has transferred American consumer preferences and buying habits to the West Bank. These cultural and consumption links are important factors in local Palestinian knowledge of American products. Although price is critical for successful sales in the West Bank and Gaza, local purchasers increasingly seek American quality, particularly for computers, electronic equipment, and consumer items.
Trade Promotion and Advertising
- U.S. products face stiff competition from European, Israeli, and locally-made goods; however, interest in American-made products has increased due to the high quality perceived by Palestinian consumers.
- Competitively-priced U.S. brand names are popular, particularly with well-to-do Palestinian consumers, and many American brands of processed food are imported from the United Arab Emirates.
- American imports into the West Bank and Gaza enter duty free. The Palestinian Authority (PA) does not have any restrictions on advertising except for tobacco products and alcohol. For labelling, all products coming into the West Bank and Gaza must have Arabic labels in addition to the original label. Placing Arabic-language sticker labels on original packaging is generally acceptable.
- Most advertising is done through local Arabic newspapers, although advertising through Palestinian radio and television stations is possible also. A few companies have begun billboard advertising, which should expand over the next few years. Advertising in the West Bank is comparatively cheap by world standards and prime-time Palestinian radio time costs about $35 per minute. Many companies are also available on social media and utilize it to advertise promotions and events.
- Major Arabic Daily Newspapers:
- Al Quds
- AL Ayyam
- Al Hayat Al Jadida
- Local Palestinian Television Stations:
- Palestinian Broadcasting Corporation PBC
- Visit the Commercial Service websites for trade promotion services: U.S. Commercial Service Trade Events
Pricing
Price is a major factor affecting purchasing decisions by Palestinian companies and consumers. U.S. companies may want to gain market share by introducing products into the Palestinian market at locally competitive prices. All business transactions in the West Bank and Gaza are subject to VAT at the current rate of 16%.
Most goods are sold in small family-owned retail outlets. Local consumers are price-conscious, although upper-middle class consumers prefer American brand names. Moreover, even with shipping costs, American-made consumer products are sometimes cheaper than relatively high-priced, comparable Israeli items currently being sold in Palestinian stores.
Sales Service/Customer Support
Both after-sales service and customer support are important in the West Bank and Gaza markets. They are strong selling points for U.S. goods, as well. However, competitive pricing will remain the key to building a customer base.
Local Professional Services
U.S. companies should also seek professional legal and/or accountancy advice whenever engaged in complicated contractual arrangements in the West Bank and Gaza. These activities include establishing an office, investing, or applying for IPR registration. Please contact Assad.Barsoum@trade.gov for more information. There are three international accounting firms operating in the West Bank and Gaza:
- Ernst & Young
- PriceWaterhouseCoopers
- Deloitte Touche
Principal Business Associations
The Palestinian-American Chamber of Commerce
Mr. Said Baransi, Chairman
Tel: +970-2-297-4417 Fax: +970-2-297-4092
Ramallah, West Bank
Email: Said.Baransi@amcham.ps
Federation of Palestinian Chambers of Commerce
Mr. Abdo Idrees, Chairman
Tel: +970-2-298-5556 Fax: +970-2-298-2757
Ramallah, West Bank
Email: info@pal-chambers.org
Palestinian Information Technology Association
Mr. Tamer Baransi, Chairman
Tel: +970-2-294-6600 Fax: +970-2-646-4167
Ramallah, West Bank
Email: tbaransi@groupbci.com
Palestinian Businessmen Association
Mr. Mohammad Al-Amour, Chairman
Tel: +970-2-297-4636 Fax: +970-2-297-4004
Ramallah, West Bank
Email: info@pba.ps
Palestine Trade Center (PalTrade)
Ms. Ruwa Jabr, CEO
Tel: +970-2-242-8383 Fax: +970-2-242-2519
Ramallah, West Bank
Email: ceo@paltrade.org
Palestinian Federation of Industries
Mr. Nassar Nassar, Chairman
Tel: +970-2-241-0505 Fax: +970-2-241-0504
Ramallah, West Bank
Email: info@pfi.ps
Business Women Forum
Ms. Jumana Salous, Acting Executive Director
Tel: +970-2-242-5612 Fax: +970-2-242-5614
Ramallah, West Bank
Email: jsalous@bwf.ps