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Stocks of Resident Enterprises in Palestine (assets) invested abroad are about $5.15 billion

2013-11-21

The Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) conducted the Foreign Investment Survey (FIS) of resident enterprises in Palestine, 2012.The preliminary results of the FIS show that total external assets of resident enterprises in Palestine (stocks invested abroad) amounted to USD 5,155.0 million at the end of 2012, of which  reserve assets 12.9%, direct investment abroad contributed 2.6%, portfolio investments abroad contributed 19.9%, other investments contributed 64.6% (currency and deposits in banks abroad).The total foreign liabilities of resident enterprises in Palestine (stocks held by non-residents invested in resident enterprises in Palestine) amounted to USD 2,625.0 million at the end of 2012, Foreign Direct  Investment contributed 55.7%, Portfolio Investments reached 25.8%, and Other Investments amounted to 18.5%. The results show that more than half of foreign direct investment (FDI) in resident enterprises in Palestine is concentrated in Financial intermediation activity, while investment from Jordan contributed nearly 80.4% of total stock of FDI in resident enterprises in Palestine. The results also show that nearly 55.5% of total portfolio investments in resident enterprises in Palestine is concentrated in services and transport, storage, and communications activities, while investments from Jordan contributed nearly 45.4% of the total stock of portfolio investments. The Balance of Payments Manual - fifth edition, issued by the International Monetary Fund in 1993, defines the investment stocks of residents in the Palestine (individuals and enterprises) invested abroad as assets, and the investment stocks owned by residents outside Palestine (individuals and enterprises) invested in resident enterprises in Palestine as liabilities. The Manual also divides the assets and liabilities into direct investment (investment by 10% and more in non-resident capital); portfolio investment (investment below 10% in the non-resident capital as well as investment in bonds); and other investments (divided into stocks of trade credit, loans, currency and deposits, and any other assets or liabilities). The reserve assets are only included as part of assets.