Ramallah - Economy

Economy

Ramallah has been described as the seat of power of the Palestinian Authority and serves as the headquarters for most international NGOs and embassies. Hundreds of millions of dollars in aid flowing into the city have boosted Ramallah’s economy greatly since the end of the second Intifada.

In November 2009, Tony Blair told the New York Times that "there is more hope for Palestinians than many realize."

The Ramallah construction boom is one of the most obvious signs of West Bank economic growth estimated at an annual rate of 8 percent. This has been attributed to relative stability and Western donor support to the Palestinian Authority. Ramallah's buoyant economy continues to draw Palestinians from other West Bank towns where jobs are fewer. The built-up area has grown fivefold since 2002.

By 2010 Ramallah had become the leading center of economic and political activity in the territories under the control of the Palestinian Authority. A building boom in the early years of the 21st century saw apartment buildings and "five-star" hotels erected, particularly in the Al-Masyoun neighborhood. In 2010, "more than one hundred" Palestinian businesses were reported to have moved to Ramallah from East Jerusalem, because “Here they pay less taxes and have more customers." One local boasted to a journalist that “Ramallah is becoming the de facto capital of Palestine.” This boast was seconded by the New York Times which, in 2010, called Ramallah the "de facto capital of the West Bank. According to Sani Meo, the publisher of This Week in Palestine, "Capital or no capital, Ramallah has done well and Palestine is proud of its achievements.” Some Palestinians allege that Ramallah's prosperity is part of an Israeli "conspiracy" to make Ramallah the capital of a Palestinian state, instead of Jerusalem.

ASAL technologies, an information technology company in Ramallah, has 120 employees and is looking forward to "exponential growth."