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Performance of Industrial Enterprises Better in First Quarter 2011

RAMALLAH, April 28, 2011 (WAFA) - According to 15.6% of the owners/ managers of the industrial enterprises, the overall performance of their enterprises during the first quarter 2011 has improved from what it was during the fourth quarter 2010 (15.4% for the West Bank and 16.5% for Gaza Strip), said the Palestinian Central Bureau of Statistics (PCBS).

 

On the other hand, the results showed that 11.8% of the owners/ managers of industrial enterprises believe that the financial situation improved during the first quarter 2011 compared with fourth quarter 2010, (11.3% in the West Bank and 13.4% in Gaza Strip).

 

Survey results show weak borrowing by the active industrial enterprises from operating banks in the Palestinian Territory during the First quarter 2011; 92.1% of the owners of industrial enterprises stated that they refrained from borrowing from the operating banks, while 3.6% of them did apply for bank loans only one time. While the percentage of enterprises that borrowed more than twice was 4.3%.

 

The expectations of 34.0% of the owners/ managers of the active industrial enterprises in the Palestinian Territory revealed that the main reason for the decline in sales level is due to the decrease in the purchasing power of the consumers in the first quarter 2011; (32.7% in the West Bank, 38.6% in Gaza Strip).

 

The owners of the active industrial enterprises during the first quarter 2011 indicated a number of difficulties that hinder exports. About 52.7% of the owners of the exporting enterprises in the West Bank indicated that lack of customer’s payment guarantee is considered to have largest negative impact  on export activities, while 39.1% believed that irregularity in the delivery of exports; is additional obstacle.

 

In the Palestinian Territory, 90.5% of the owners of the active industrial enterprises indicated that the main product of their enterprises faced local or foreign competition, (88.1% for the West Bank and 99.0% for Gaza Strip).

 

According to 56.4% of the owners of the active industrial enterprises in the Palestinian Territory, the main product faced local competition. On the other hand, 13.3% of the owners of the industrial enterprises indicated that their main product faced foreign competition.

 

However, results varied by geographic area since 54.1% of the owners of the active industrial enterprises in the West Bank pointed out the presence of local competition and 14.5% indicated presence of foreign competition. Alternatively, opinions in Gaza Strip stated that 63.5% of the industrial enterprises in Gaza Strip faced local competition while 9.4% in Gaza strip faced foreign competition.

 

The expectations of the owners/ managers of the active industrial enterprises in the second quarter 2011 show that 57.7% expected improvement in their situation in general. The expectations in the Palestinian Territory concerning production situation indicate that 57.5% foresee increase during second quarter 2011 (61.2% in the West Bank and 44.3% in Gaza Strip). The results show that 58.4% of the owners/ managers of the industrial enterprises in the Palestinian Territory expected increase of sales in the second quarter (61.4% for the West Bank and 47.4% for Gaza Strip).

 

Regarding level of services provided by private and governmental enterprises during the first quarter of 2011, results indicate that there is variation in the level of satisfaction by the owners/ managers of industrial enterprises by type of service provided.

 

Regarding services under this category, about 39.0% of the owners/ managers of industrial enterprises in the Palestinian Territory were satisfied to some extent for services related to the supply of electricity (46.2% in the West Bank, 13.4% in the Gaza Strip); while 25.4% are largely not satisfied (10.2% in the West Bank, 79.4% Gaza Strip). Regarding water supply services, about 47.2 % of the owners and managers of industrial enterprises in the Palestinian Territory indicated satisfaction to some extent on the services provided (48.5% in the West Bank, 42.3% in Gaza Strip).

 

The results showed that 44.0% of the owners and managers of industrial enterprises in the Palestinian Territory are satisfied to some extent with the integrity of the police on to issues related to their enterprises; while 39.6% of owners/managers were satisfied to some extent on the effectiveness of the Palestinian courts (41.5% in the West Bank, 33.0% in the Gaza Strip).

 

Regarding facilities provided by government institutions to obtain the necessary permits and licenses, the results indicated that 44.0% of the owners/ managers of industrial enterprises in the Palestinian Territory were satisfied to some extent (48.5% in the West Bank, 27.8% in Gaza Strip).

 

M.A.

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