RAMALLAH, December 24, 2025 (WAFA) - The Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) announced the preliminary results of the International Investment Position (IIP), and External Debt statistics for Palestine as of end of the third quarter 2025.
The preliminary results of the IIP (external assets – foreign liabilities) for Palestine at the end of the third quarter of 2025 revealed that the net IIP amounted to $9,491million.
Currency and deposits accounted for 57% of the total external assets of the Palestinian economy at the end of the third quarter of 2025. This is mainly due to the absence of a Palestinian national currency, as well as a 28% increase in clearance revenues held by Israel compared with the previous quarter.
The total stocks of External Assets for Palestinian economy amounted to $15,803 million, the Foreign Direct Investment Abroad contributed to 2%, and Portfolio Investments abroad reached 14%, while Other Foreign Investments Abroad (mainly currency and deposits) reached 76% and Reserve Assets amounted to 8%.
A statement issued by PCBS and PMA said that 55% of the total foreign liabilities on the Palestinian economy at the end of the third quarter of 2025 are foreign direct investment
The total stocks of foreign liabilities in Palestine (non-resident investments in Palestine) amounted to $6,312 million. Of this, foreign direct investment in Palestine accounted for 55%, (mainly, banks, insurance and communication companies owned by non-residents, in addition to buildings owned by non-resident households, amounted to $3,489 million), portfolio investments reached 11%, and other investments (mainly loans and deposits from abroad) amounted to 34%.
The Government's External Debt stock stabilized at about 1.3 billion US dollars at the end of the third quarter of 2025
The gross external debt of the Palestinian economic sectors reached $2,170 million, reflecting an increase 2% compared with the previous quarter. Government sector debt represented 62% (this debt is to external Arab and international financial institutions, mainly Al-Aqsa Fund, Qatar National Bank, and the World Bank), while debt of the banking sector (deposits of non-residents in banks operating in Palestine) accounted for 35%. Debt of other sectors (including non-bank financial corporations, non-financial corporations, NGOs, and the household sector) amounted to 2%, while intercompany lending between affiliated enterprises accounted for less than 1%.
The International Investment Position (IIP) is an accounting statement that records the stock of investments by residents in Palestine (individuals, institutions, and the government) in the rest of the world (abroad), under the category of assets. It compares these with the stock of investments held by non-residents (individuals, institutions, and the government abroad) in Palestine, under the category of liabilities.
The Balance of Payments Manual – fifth edition, issued by the International Monetary Fund in 1993 – divides assets and liabilities into direct investment (investment of 10% or more in non-resident capital), portfolio investment (investment of less than 10% in non-resident capital, as well as investment in bonds), and other investments. These other investments include stocks of trade credit, loans, currency and deposits, and any other assets or liabilities. In addition, the Manual identifies reserve assets, i.e., stocks held by central banks or monetary authorities to address imbalances in the balance of payments. It is worth mentioning that reserve assets are recorded only on the asset side.
The External Debt is an accounting statement that records the debt stocks of Palestinian economic sectors owed to non-residents. These include loans from non-residents, deposits of non-residents held in banks operating in Palestine, Palestinian bonds purchased by non-residents, and debt transactions between non-resident enterprises and their fellow enterprises in Palestine. They also encompass any other liabilities of the Palestinian economy. The data on external debt are extracted from the liabilities side of the International Investment Position (IIP) matrix (debt items). The preparation, classification, and publication of these data are based on the External Debt Statistics Manual, issued by the IMF in 2003, which is harmonized with the fifth edition of the Balance of Payments Manual.
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