NationsData

Investing in Palestine in 2026

Middle East & North Africa

12

Score

High RiskNR

High Risk Investment Destination

Unstable conditions - speculative only, high potential loss

Why investors choose Palestine

Palestine earns an investment score of 12/100, placing it in the high risk category for global investors. Unstable conditions - speculative only, high potential loss. The country's standout dimensions are growth potential (18/100) and business climate (12/100), with overall GDP of $18.4B and per-capita output of $3,480. Growth is running at -5.5% with 0.5% of GDP arriving as foreign direct investment. Inflation is contained at 6.5%. The sovereign holds a NR credit rating, generally considered speculative-grade with elevated default risk. Investment opportunities cluster around Agriculture (sector score 15/100, currently declining), which represents 6% of GDP. Trade openness sits at 43% of GDP, a useful proxy for how integrated Palestine is with the global economy.

Quick facts about Palestine
Investment Score12/100
Risk LevelHigh Risk
Credit RatingNR
GDP$18.4B
GDP Growth-5.5%
GDP per Capita$3,480
Inflation6.5%
Population5.4M
FDI Inflows0.5% GDP
Trade Openness43%
Government Debt23% GDP
Current Account-15.5% GDP
Score breakdown
Economic Health (30%)10
Political Safety (25%)5
Business Climate (20%)12
Financial Strength (15%)12
Growth Potential (10%)18
Investment Profile
Sector Scores
Score History

How Palestine's investment score has evolved over time

2021: 10/100+2 pts since 20212025: 12/100
Top sectors for investment in Palestine

Agriculture

6% of GDP, declining

15

Construction

5% of GDP, declining

12

Services

8% of GDP, declining

10
Governance & rule of law in Palestine

World Bank Governance Indicators (-2.5 to +2.5, higher is better)

Political Stability-2.3
Rule of Law-0.7
Corruption Control-0.7
Regulatory Quality-0.6

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Frequently asked questions about investing in Palestine
Is Palestine a safe country to invest in?

Palestine carries a high risk risk rating with an overall investment score of 12/100. Unstable conditions - speculative only, high potential loss. Sub-scores: economic health 10/100, political stability 5/100, business climate 12/100, financial strength 12/100, growth potential 18/100.

What is Palestine's sovereign credit rating?

Palestine holds a credit rating of NR, reflecting its ability to meet sovereign debt obligations. Credit ratings are a key signal of macro-financial health and a prerequisite many institutional investors require before allocating capital.

What are the strongest sectors for investment in Palestine?

The top investment sectors in Palestine are Agriculture, Construction, Services. Agriculture leads with a sector score of 15/100 and represents 6% of GDP. Its current trend is declining.

What is Palestine's GDP growth rate?

Palestine's most recent GDP growth was -5.5%, with total GDP of $18.4B and GDP per capita of $3,480. Inflation is running at 6.5% and the current account balance is -15.5% of GDP.

How does Palestine score on governance and rule of law?

On the World Bank Governance Indicators (scale -2.5 to +2.5, higher is better), Palestine scores: political stability -2.3, rule of law -0.7, corruption control -0.7, and regulatory quality -0.6.

Can foreigners invest in Palestine?

Most industries in Palestine are open to foreign direct investment, though specific sectors may require a local partner, government approval, or special licensing. Consult a qualified local advisor for restrictions that apply to your sector.

What is foreign direct investment (FDI) like in Palestine?

Foreign Direct Investment in Palestine runs at 0.5% of GDP, while the trade openness ratio (exports + imports as a share of GDP) stands at 43%. These figures show how integrated Palestine is with the global economy and how welcoming it has been to international capital.

What is the public debt level in Palestine?

Palestine's government debt stands at 23% of GDP. This is a relatively conservative debt load, supporting fiscal flexibility.

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