Foreign Private Investment in Palestine: An Analysis of the Law on the Encouragement of Investment in Palestine

This Article analyzes the Investment Law and its prospects for encouraging foreign businesses to invest in Gaza and the West Bank (collectively, "Palestinian Territories"). A brief analysis of the importance of foreign private investment to the peace process between Israel and the Palestinian Liberation Organization, and the progress made towards attracting such investment in Gaza and the West Bank since the September 1993 signing of the Declaration of Principles on Interim Self-Government Arrangements, serves as a prelude to a detailed examination of the text of the Investment Law. The author then compares the Investment Law to the latest international practices and principles on the treatment of foreign private investment. Finally, the author considers the likely impact of the Investment Law on foreign private investment in the Palestinian Territories and the peace process.