State of Palestine

📊 Overview

State of Palestine stands as the world's #188 largest exporter and #164 largest importer, demonstrating emerging market dynamics.

The trade profile reveals a deficit of 1.78 billion, reflecting import dependencies for growth.

The country maintains active trading relationships with 20 major partners, creating a highly diversified trade network.

Monthly trade flows average $180.02M, generating continuous economic activity across logistics, finance, and trade services.

🚢 Export Markets

Export concentration shows Jordan as the dominant market at 51.2%. The top three markets control 70.5% of exports.

Regional patterns reveal globally balanced access. Secondary markets (USA, Germany, France) provide $21.75M in additional trade.

📦 Import Sources

State of Palestine relies heavily on Egypt for imports (25.2%),creating supply chain concentration risk.

Energy suppliers including United Arab Emirates (136.75M), Saudi Arabia (113.73M) collectively provide 250.48 million or 12.7% of imports, highlighting the economy's dependence on imported energy resources.

Manufacturing inputs come primarily from China, reflecting deep integration into Asian production networks. China's dominant position at 164.82 million encompasses electronics components, textiles, machinery parts, and consumer goods, creating both efficiency benefits and concentration risks.

The top 10 import sources account for 86.0% of total imports, with the remaining 14% distributed among 10 other suppliers.

Regional sourcing patterns reveal diversified global sourcing. European suppliers including Germany (142.62M), Italy (49.17M), Netherlands (44.25M) focus on luxury goods, machinery, and specialized chemicals.

Supply chain resilience strategies increasingly emphasize "China Plus One" approaches, with emerging as alternative manufacturing bases. The geographic proximity of major suppliers balances efficiency with risk diversification.

📦 Product Composition

🚀 Export Products

State of Palestine's export economy centers on diversified industrial production, with the leading export being n.e.c. in heading no. 7204at $68.60 million, accounting for 36.3% of total exports.

The automotive sector's dominance is evident in the export portfolio, with . This automotive specialization reflects decades of manufacturing excellence, continuous innovation in fuel efficiency and hybrid technology, and established global brand recognition.

The transition to electric and hybrid vehicles is captured in export data, with 0 categories specifically related to alternative propulsion systems, totaling $0.

Beyond automotive, State of Palestine maintains strong positions in specialized equipment,, and Ferrous waste and scrap, Fruit, edible, Vegetable oils.

The top 20 export products collectively account for 89.9% of total exports, revealing moderate concentration with room for further diversification.

🛒 Import Products

Import requirements center on portland, other than white, whether or not artificially coloured at 133.49 million (6.8%), indicating resource dependency.

Beyond energy, critical imports include portland, other than white, whether or n... (133.49M, 6.8%), sucrose, chemically pure, in solid form,... (132.88M, 6.7%), Perfumes and toilet waters (66.20M, 3.4%), Wheat or meslin flour (52.77M, 2.7%), containing tobacco (47.40M, 2.4%).Pharmaceutical products represent 38.96 million (2.0%), reflecting healthcare sector demands.

The import product mix reveals structural characteristics of State of Palestine's economy: food security dependencies, and sophisticated consumption patterns.

The ratio of raw materials to finished goods in imports (17 : 3among top 20 products) indicates significant value-addition activities domestically. Import substitution potential exists in agriculture and chemicals sectors through targeted industrial policies and investment.

Product diversification metrics reveal focused product specializationwith implications for economic resilience and growth potential. The technology ladder progression from 14 primary products to 0 high-tech goods indicates the economy's structural transformation and industrial upgrading trajectory.

Value addition opportunities exist in transitioning from raw material exports to processed goods, from components to finished products, and from standard to customized offerings. The product space connectivity, measuring relatedness between current exports and potential new products, suggests need for capability building to enter new product categories.

⚖️ Trade Balance Dynamics

Export-to-import ratio of 0.096 means exports cover 9.6% of import costs.

🔗 Key Relationships

The State of Palestine-Egypt relationship leads at 496.20 million in bilateral trade.View detailed analysis →

Additional major partnerships include China (164.82M total trade), Türkiye (154.51M total trade), United Arab Emirates (151.02M total trade). Regional integration through Asian supply chains facilitates technology transfer, market access, and production efficiency. The diversity of trading relationships—1.85B across top 10 partners—provides resilience against bilateral tensions and regional disruptions.

🏆 Competitive Position

Global rankings position State of Palestine as the #188 exporter worldwide,in the developing trader category. The country's share of global exports at approximately 0.002%offers opportunities for market share expansion.

Export sophistication, measured by the dominance of technology-intensive products, indicates advanced industrial capabilities. The revealed comparative advantage (RCA) index shows strongest competitiveness in sectors where State of Palestine's global market share exceeds its overall trade share by factors of 2 or more.

Competitive advantages emerge in sectors where export concentration exceeds import share, particularly inn.e.c. in heading no. 720, dates, fresh or dried, olive oil and its fractio. The revealed comparative advantage is strongest in product categories representing68.0% of exports. Market positioning against regional competitors shows niche specialization opportunities.

Trade complementarity with major partners suggests regional production network participation. The export quality ladder, comparing unit values to world averages, indicates competitive pricing strategies.

Competitive dynamics are shaped by factor endowments including cost advantages and resource availability, infrastructure quality, and business environment. The export survival rate, measuring the persistence of export relationships over time, suggests need for relationship strengthening.

Innovation capacity, reflected in the technology content of exports and R&D intensity, determines long-term competitiveness trajectories. The competitive threat from emerging exporters in similar product categories requires continuous upgrading and differentiation strategies to maintain market position. Regional integration through trade agreements provides preferential access to0 markets, creating competitive advantages over non-member competitors.

🎯 Strategic Outlook

The trade profile presents both opportunities and challenges for economic development strategy. Key strengths include strong import capacity enabling technology transfer and consumption growth,diversified market access reducing concentration risk, and competitive positions in high-value manufacturing.

Vulnerabilities include excessive reliance on single export markets. The intersection of these factors creates a complex strategic landscape requiring careful navigation to maximize opportunities while mitigating risks.

Strategic priorities should focus on export promotion and import substitution to enhance trade competitiveness. Opportunities exist in expanding trade with Italy, Indonesia, Malaysia, developing new product capabilities in adjacent product categories, and strengthening regional integration through new partnership frameworks.

The digital transformation of trade, including e-commerce, digital services, and blockchain-based trade finance, offers new avenues for market access and efficiency gains. Green trade opportunities in renewable energy, sustainable products, and carbon markets represent growing segments aligned with global sustainability goals.

The evolving global trade environment, characterized by technological disruption, geopolitical realignment, and sustainability imperatives, will fundamentally reshape State of Palestine's trade prospects. Success requires balanced policies addressing both improving export capacity while ensuring sustainable import financing.

Investment in infrastructure, education, and innovation ecosystems will determine the ability to climb value chains and capture larger shares of global value addition. The resilience agenda, emphasizing supply chain robustness, strategic autonomy in critical sectors, and economic security considerations, must be balanced with efficiency and openness principles.

As global trade patterns continue evolving, State of Palestine's position as the world's #188 exporter provides a platform for continued growth, requiring adaptive strategies, institutional strengthening, and sustained commitment to competitiveness enhancement in an increasingly complex and interconnected global economy.