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Office of Quartet Representative Supports the Union of Stone & Marble

The Office of the Quartet Representative has an ongoing sectoral effort to assist the stone & marble industry on the West Bank as part of OQR’s broader agenda for both the private sector and Area C. The stone & marble industry is of paramount importance to the Palestinian economy - not only is stone a key natural resource of Palestine but the sector also sustains the largest manufacturing activity in Palestine, employing approximately 15,000-20,000 people.

As a focal point for our intervention, the OQR has been working closely with the Union of Stone & Marble (USM), which is the private sector trade organization, representing over three hundred companies. The OQR recently assisted the USM with a new strategic assessment, Stone & Marble in Palestine - Developing a Strategy for the Future, through which the USM has outlined the major challenges faced by the industry and identified practical ways to tackle them.

This new initiative was recently presented at a round-table meeting in Bethlehem for members of the international community, including participants from Agence Française de Développement (AFD), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Italian Cooperation, Japan International Cooperation Agency (JICA), IFC, UNIDO, USAID and the World Bank. There were also representatives from several consulates, the Palestine Polytechnic University, the Ministry of National Economy and the private sector.

The USM highlighted areas where there is potential for trade facilitation, technical assistance, business-to-business cooperation and development support to make a highly positive impact on the industry. These priorities include the need to address the environmental impact of quarrying, to build capacity at the USM, and to help companies invest in equipment, access international markets and develop stone reserves in “Area C”. On several of these fronts, the OQR is already active, working with other stakeholders to try to drive growth in the sector.

The OQR, for example, is engaging with many of the larger companies about the feasibility of them working together and forming an export consortium. The aim is to explore whether a consortium could be an effective way for exporters to consolidate their supply of stone and better project themselves in overseas markets by partnering with international distributors. The Italian Consulate has become a natural ally in this project given Italy’s leading reputation in the industry.

The OQR is also working with the U.S. SEMEP team to address issues relating to “Area C”, which comprises 60% of territory in the West Bank. The issuance of operating permits in Area C is administered by the Government of Israel and, to date, only a handful of quarry owners currently have permits. A reformed permitting system, which is transparent, streamlined and affordable, is urgently needed to avert a potential crisis in the next few years as the supply of raw materials in Areas A and B is further depleted.

These topics are discussed in greater detail in the USM’s report, Developing a Strategy for the Future, which is currently in a consultation phase and can be accessed here.