Agribusiness and Policy in the Middle East

Palestine is a geographic region and political entity in the Middle East, located between the Jordan River and the Mediterranean Sea. Throughout the early 20th century, this territory was first a part of the Ottoman Empire and later became a protectorate of the United Kingdom. In 1948, the territory was granted independence and officially partitioned between the Jewish State of Israel and the Palestinian Arab territories. Today, the Palestinian territories, governed by the Palestinian National Authority, are comprised of two main regions: the Gaza Strip and the West Bank. Located between Jerusalem and the border of the country of Jordan, the landlocked West Bank represents the bulk of what is currently known as Palestine. The West Bank has a total territory of 5.860 square kilometers, which is somewhat smaller than Delaware. A rugged landscape alongside the Jordan River valley and the Dead Sea dominate the West Bank territory. Currently, the West Bank has a total population of almost 3 million citizens. Meanwhile, the Gaza Strip has a total territory of 360 square kilometers, which is little over two times the size of Washington DC, and a total population of 1.8 million inhabitants. Likewise, the Gaza Strip has a 40-kilometer coastline onto the Mediterranean Sea. In both the West Bank and the Gaza Strip, approximately 76% of the population lives in an urban setting, in cities such as Gaza, Jerusalem, and Ramallah. The national annual gross domestic product (GDP) of both Palestinian territories is about US$20 billion (PPP) and they have experienced positive economic growth in recent years. The national economy is divided into 4% agriculture, 25% manufacturing, and 71% services. Similarly, it is estimated that the agricultural industry employs 12% of the national labor force, while manufacturing employs 34%, and services employ another 54%. Meanwhile, the agriculture industry utilizes 43% of the national territory, while another 2% is forested.

Agribusiness and Policy in the Middle East

In terms of natural resources, Palestine has arable land and natural gas. Within manufacturing, the national industry is focused on small-scale manufacturing, quarrying, textiles, food processing, furniture, soap, olivewood carvings, and mother-of-pearl souvenirs. Likewise, a significant portion of the West Bank economy is dependent upon tourism. Simultaneously, Palestine’s agricultural industry has as main products olives, fruits, citrus, vegetables, flowers, beef, and dairy products. During 2015, Palestine imported US$4.8 billion worth of goods and exported US$985 million, resulting in a trade deficit of US$3.8 billion. Furthermore, that same year, Palestine’s main export, representing almost 17% or US$165 million of the country’s total, were building stones. Similarly, the country’s main import, representing some 10% or US$480 million of all international purchases, was refined petroleum. In terms of trade, Palestine is very limited due to both legal logistics and infrastructure limitations. Today, Palestine’s main trade partners are Israel, Jordan, China, Turkey, and the United Arab Emirates, amongst others.

(Read more about Economics, Land Use and Agriculture in Israel)