RAMALLAH, October 13, 2010 (WAFA)- The Palestinian Central Bureau of Statistics (PCBS) and Palestine Monetary Authority (PMA) revealed Wednesday that an increase in the stocks of foreign investments from abroad in Palestine from $1,343.8 million in 2008 to $1,586.1 million in 2009.

PCBS PMA conducted the first Foreign Investments Survey (FIS) in the Palestinian Territory during the period May and October of year 2009. The survey covered all private establishments operating in the Palestinian Territory which had foreign investments from abroad or had investments oversees during the year 2008 and 2009 except those non-financial establishments located in Gaza strip, this survey will be conducted annually.

The FIS is considered the best tool for collecting data about International Investment Position (IIP), with flows and stocks of foreign investments collected using special forms. The IIP is an account which records the total balance of foreign financial assets and liabilities of the economy. IIP and its changes are categorized in two levels; the first level differentiates between assets and liabilities, where the difference represents the net (IIP). The second level focuses on the division of assets and liabilities on functional basis; this method is fully consistent with the basic elements of the financial account in the balance of payments. This level also shows the changes between the stocks at the beginning and end of the period, including change of prices, currency exchange rate, the quantitative change resulting from sudden profit or loss as a result to natural disasters or wars. The FIS was conducted in accordance with the most recent international recommendations, while taking into consideration the uniqueness of the Palestinian situation.

Direct investor is defined as the owner who holds 10% or more of the ordinary shares in the company in which he/she invests; while portfolio investor owns less than 10% of the ordinary shares in the company in which he/she invests in addition to investments in bonds. Other investments include investment in currency and deposits, loans, trade credits, in addition to other assets and liabilities.

The results of the survey revealed that the total stocks of foreign investments in Palestine had reached $1,586.1 million by the end of 2009 and that marks an increase by 18% compared with the year 2008. This includes Foreign Direct Investment, Portfolio Investments, and Other Investments that include the stocks of Palestinian deposits abroad, trade credits and loans extended to non-residents. 

Stocks of Foreign Direct Investment in the Palestinian institutions had reached $1,157.4 million in 2009; an increase of 34.9% compared with the year 2008.

The results also indicated that the stocks of foreign portfolio investment (investment in less than 10% of equity share and investments in bonds) in the Palestinian institutions amounted to $338.2 million in 2009; an increase of 3.5% compared with the year 2008.

 The other foreign investments in the Palestinian institutions had reached $90.5 million marking a decrease of 43.1% compared with the year 2008. Other foreign investments include the stocks of deposits for non-resident that reached $73.8 million, with a decrease of 47.7% compared with the year 2008, in addition to debt and long term loans borrowed form non-resident which reached $16.7 million, with, an increase of 1.9% compared with the year 2008.

The results also showed that the total of the Palestinian investments abroad amounted to $5,278.3 million by the end of 2009, with a decrease of 0.7% compared with the year 2008. These investments include Palestinian direct investment overseas, Palestinian portfolio investments abroad, and other investments (deposits for Palestinian institutions abroad, the loans lent to non-residents, the prepayment to non-residents and trade credits, in addition to the Palestinian reserve assets). The results of the survey indicated that stock of foreign direct investments (FDI) abroad of the Palestinian institutions reached $457.6 million, an increase of 17.5% compared with the year 2008.

The stocks of portfolio investment abroad of Palestinian institutions amounted to $178.5 million, with a decrease of 19.4% compared with the year 2008. While the other investments abroad had reached $3,615.0 million, with a decrease of 2.9% compared with the year 2008.  The other investments abroad comprises stocks of Palestinian deposits abroad, ($2,908.3 million with a decrease of 12.4% compared with the year 2008) loans granted to non-residents ($147.9 million with an increase of 14.1% compared with the year 2008), prepayments to non-residents ($36.3 million with a decrease of 55.2% compared with the year 2008), in addition to the trade credits and others ($522.8 million with an increase of 137.3% compared with the year 2008).

The stocks of the Palestinian reserve assets related to PMA also reached $1,027.2 million with an increase of 4.8% compared with the year 2008.