September 8th, 2008 IDF Spokesperson's Office

Palestinian Economy in Judea and Samaria Strengthens in First Half of 2008

The Palestinian economy in Judea and Samaria has shown signs of
strengthening since the beginning of the year, according to a recent
analysis by the Civil Administration. The analysis was based on data
gathered by the Civil Administration as well as publicly available figures.
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There have been large increases in the passage of commercial goods as a
direct result of the increase in employment licenses and trade permits
issued to Palestinian merchants and business owners by the Civil
Administration since the beginning of 2008.

There has also been a significant rise in the number of Palestinians using
public transportation in the region, as well as a large expansion of the
tourism industries in central cities such as Bethlehem and Jericho. Fresh
agricultural crops exported to Israel have grown by 25% (despite significant
damage caused by the frost that hit the region during the last winter). The
"Al Kuds" Palestinian capital markets index has risen, as opposed to the
trend on global stock markets, and the successful Bethlehem Investor
Conference in May is predicted to lead to an increase in foreign investment.

All these indicators reflect on the significant improvement in the
Palestinian economy in Judea and Samaria in the first half of 2008.

The opening of several major crossing points for free passage to
Palestinians, over the past few months, as well as the removal of
approximately 100 IDF checkpoints from the region, is an important factor
contributing to the improvement in the regional economy. These actions were
part of the package of goodwill gestures authorized by the Minister of
Defense and the IDF Chief of General Staff.

Major crossings that were opened recently include: The "Ganot" crossing
(connecting Nablus to its northern villages), The Judea Junction crossing
(enabling free motor vehicle passage between Hebron and the Tarqumiya
crossing), the Bet-Ha'Arava crossing (connecting the Judea and Samaria
region with the Jordan valley) and the Sheep Junction crossing (connecting
Hebron to its southern villages). Additionally, two major roads were built
to improve the quality of life for Palestinians. These connect the
Palestinian villages surrounding Jerusalem with Ramallah, and were opened
with an investment of tens of millions of shekels from Israel's security
budget.

The use of biometric systems at various crossing points has been developed
and extended. More than 500,000 crossings using biometric systems were
recorded during the first six months of 2008. Additionally, the number of
Palestinians who benefit from VIP transit passes has grown to 1,500. This
figure includes senior figures in the Palestinian Authority and senior
businessman in Judea and Samaria.

In addition, another trend in the improving economy is the increased
involvement of international actors in local social and relief projects. The
involvement of foreign governments, amongst others, has brought an
investment of tens of millions of dollars to different projects in the
region