High competition, costs & Israeli practices threaten Palestine’s Stone Industry

PNN/ Bethlehem/

Head of the Union of Stone & Marble in Palestine, Samih Thawabteh, on Tuesday said that the stone industry, which is the most prominent industry in Palestine, is facing  a setback due to many factors, including high competition in the market, high costs of production, lack of investment, and Israeli occupation practices.

In an interview with PNN, Thawabteh said that the Union is attempting to develop the stone industry in Palestine, especially with the rise of competition with the Egyptian and Turkish stone industries and the relatively high prices of the local stone which is threatening the industry despite its excellent, long standing quality.

Thawabteh referred the high prices to the expensive costs of oil and power in comparison with the competing countries, adding that the union through the Prime Minister, Rami Hamdallah, has demanded the Energy Authority for tariffs that can reduce costs of production.

Thawabteh also tackled the lacked of investment promotion in Palestine, where an interim law was issued prohibiting the quarries from exemptions for investment promotion and customs programs, in addition to issues with the investors in acquiring a license, since they have to get an approval from the ministries of environment, agriculture and industry, making it a long and complicated process.

Regarding the practices of the Israeli occupation, Thawabteh stressed that the industry has been affected  since the occupation deprives Palestinians from one of the most important natural resources in Israeli controlled C areas, which includes 70% of the rocks that now cannot be used by Palestinians.

Palestinian investors in this sector constantly  apply for permits to the Israeli Occupation Authorities (IOA) to build factories or facilities in Area C, and are rejected, where 36 new license applications have been submitted and are still being investigated. In addition, investors face movement restrictions since IOA control all crossings.

Thawabteh concluded by saying that “despite the obstacles,  the industry, which ranked first in the Palestinian exports, remains the most influential in the Palestinian economy,” however, it should receive more attention as it is now threatened by international competitors.