PBBC ::. Palestine Britain Business

Following the success of the Palestine Investment Conference which took place in Bethlehem in May 2008, the UK Prime Minister Mr. Gordon Brown announced, during his visit to Palestine in July 2008, that a follow-up conference should be held in London before the end of 2008.

As a result, on December 15-16, 2008, the “London Business Forum on Trade & Investment with Palestine” took place in the Haberdasher’s Hall in the presence of high profile leaders.

At a brief press conference at 10 Downing Street before the Conference, UK Prime Minister Mr. Gordon Brown said, “A Two-State solution lies at the heart of our vision for peace. A democratic Palestine must exist peacefully next to a secure Israel. Establishing a viable Palestinian State with a stable economy and a flourishing private sector is a crucial part of this process and that is what today’s Business Forum that many people will speak at, is about. It will promote Palestinian economic development, it will demonstrate the resilience of the Palestinian private sector, it will show the considerable opportunities for partnerships with the United Kingdom.”

At the Conference, Prime Minister Gordon Brown’s message was clear: “Palestine is open for business”. He paid tribute to Prime Minister Fayyad, praising his reforms, which have improved law and order as well as the business environment in Palestine. He highlighted that there was considerable economic progress in 2008 and a substantial increase in foreign investment. He also referred to the restriction on movement and access in the West Bank and the severe humanitarian situation in Gaza. He advised that the British Government will provide over £240 million over three years to support the Palestinian economy.

Prime Minister Salam Fayyad informed the audience that the Palestinian stock market is doing well and that the economy is growing at a reasonable rate and could reach double figures in a post-conflict situation, provided that crossing points into Gaza are opened and other trade barriers with the West Bank are overcome. Public / private cooperation is proving successful and the private sector has responded well to the improved rule of law in the West Bank. He also highlighted some success stories and stated that there are plans for several projects and others are already underway.

Other internationally renowned speakers included Baroness Symons of Vernham Dean, Secretary of State for Business, Enterprise and Regulatory Reform Lord Mandelson, Vice Presdient Middle East, North Africa & Global Infrastructure, IFC Mr. Rashad Kaldany, PA Minister for National Economy Mr. Bassim Khoury and Quartet Representative Tony Blair who announced that this is a good time to invest in Palestine.

A delegation of 60 Palestinian business people from East Jerusalem, the West Bank and Gaza, as well as over 100 UK business representatives attended the event, which received substantial media coverage.

Following the opening plenary session, five panel sessions were held. The purpose of these sessions was to inform British companies about the investment opportunities available in Palestine, as well as presenting what Palestine has to offer. The main sectors represented were Financial Services, Tourism, Agri-business, Pharmaceutical, Infrastructure and Housing and Information & Communications Technology.

the official launch of the Palestine Britain Business Council and the signing of the Business Charter
the establishment of a US$ 50million Palestinian Enterprise Revitalisation Fund to support underperforming Palestinian businesses (approximately 5 to 10 businesses a year)
confirmation from the Fairtrade Foundation that olive oil produced in Palestine will carry the Fairtrade mark in the UK for the first time, in 2009
a franchise agreement with Days Inn to build a new hotel in Ramallah creating 300-350 jobs
a Women in Business Enterprise Development Programme which will encourage and support women in starting up and growing sustainable businesses

In the evening, all delegates attended a reception at the FCO Locarno Rooms. This was hosted by the Minister of State in charge of the Middle East at the time, Mr. Bill Rammell.

Roundtable meetings by sector were hosted on the second day of the Forum as well as one-to-one business discussions between UK and Palestinian business delegates. The sectors were represented at relevant venues: the meeting of the Financial sector delegates took place at the International Financial Services London (IFSL); Agricultural and other exporters visited the Arab British Chamber of Commerce; Tourism development and marketing was hosted at British Expertise; Intellect welcomed the ICT sector delegates at Yahoo offices; Infrastructure & Construction project opportunities were discussed at the Middle East Association and the delegates representing the Pharmaceutical sector visited The Association of the British Pharmaceutical Industry (ABPI) as well as King's College London.

At the financial services roundtable, the development of correspondent banking relationships between Palestinian and British banks were discussed, as well as capacity building and training. A training package, tailored to meet the Palestinian Financial Services Sector’s needs will be produced by the Securities and Investment Institute (SII), with the potential outcome of secondments into UK Banks.

The agriculture and exports roundtable focused on supplying Palestinian foodstuffs to the UK market. Marketing, production, delivery and competition were discussed as well as the creation of a food export hub "Moon Valley Enterprises Ltd" in the Jordan Valley focusing on education and training. It was agreed that representatives of some of the UK’s largest supermarket chains and their suppliers would visit Palestine during 2009.

Branding Palestine as a tourist destination using promotion campaigns and capacity building were discussed at the Tourism roundtable. A scoping mission took place during the first few days of October 2009.

‘To initiate the creation of a platform for future outsourcing opportunities between Palestine and UK’ was the main theme of the ICT roundtable and a commitment made by Google to send a team of experts to Palestine in early 2009 was honoured in March 2009. Ways to increase business and the establishment of academic partnerships were also discussed. Communication and promotional skills were highlighted as crucial to enhance and develop expertise in the sector. A Working Group will be formed to ensure that there is effective dialogue between the UK and Palestinian ICT sectors.

The possibility of a trade mission, arranged by the Middle East Association (MEA) focusing on projects, infrastructure, education and skills was discussed at the Infrastructure and Construction roundtable meeting. This was due to take place in late July, 2009, however the mission has been postponed. Opportunities for the participation of British businesses in the US$500 million new town of Rawabi project will be pursued and work placement exchange programmes will be created by the Royal Institute for British Architects. A number of one-to-one meetings also took place, identifying specific business opportunities.

What was apparent throughout the Conference and the Roundtable meetings was how much the Palestinian delegates appreciated the skills and knowledge of the British business people. Emphasis was placed on transferring this expertise and high level technology to upgrade the existing skills available in Palestine.

The London Business Forum on Trade & Investment with Palestine, organized by the Middle East Association (MEA) and the Palestinian Investment Promotion Agency (PIPA) on behalf of UK Trade & Investment and the Department for International Development (DFID), was jointly sponsored by the Palestine Britain Business Council (PBBC), Bank of Palestine, HSBC and The Portland Trust.