The Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) have prepared for the first time, the press release for the International Investment Position (IIP) of the Palestinian territory in 2010.

The primary results of the IIP (external assets – foreign liabilities) for the Palestinian territory by the end of 2010 revealed that the net IIP had amounted to about US $2084 million , which means that the Palestinian economy of its various sectors had invested outside Palestinian territory by more than the investment amount in the Palestinian territory from abroad. The cash deposits of local banks in foreign banks and the foreign exchange in the Palestinian economy had contributed of major value in the external assets, which represented 58% of the total value of external assets.

The total stocks of External Assets for the Palestinian territory (Stocks of residents in the Palestinian territory invested abroad) had amounted to US $5424 million, The Foreign Direct Investment abroad had contributed to 4%, Portfolio Investments abroad reached 15%, while Other Foreign Investments abroad reached 64%, and Reserve Assets amounted to 17%. According to sectoral level, the external investments of banking sector had contributed a major value in the external assets, represented 71% of the total value of external assets.

The total stocks of Foreign Liabilities at the Palestinian territory (Stocks of non- residents invested in the Palestinian territory) had amounted to US $3340 million ,The Foreign Direct Investment in the Palestinian territory had contributed 41%, Portfolio Investments in the Palestinian territory reached 19%, and Other Investments in the Palestinian territory amounted 40%. According to sectoral level, the foreign investments in banking sector in the Palestinian territory had contributed a major value in the foreign liabilities, represented by 33% of the total value of external assets.

The International Investment Position (IIP) is defined as an accounting sheet records the investments stocks for the residents in the Palestinian territory (individuals, institutions and government) that is invested in the rest of the world (abroad) under the name of (assets), on the one hand, and the investments stocks owned by residents outside Palestinian territory (individuals, institutions and governments) that is invested in the Palestinian territory under the name of (liabilities) on the other hand.

The balance of payments Manual - fifth edition, issued by the International Fund in 1993, divides the assets and liabilities to direct investment (investment by 10% and more in the non-resident capital), and portfolio investment (investment less than 10% in the non-resident capital as well as investment in bonds), and other investments (which are divided into stocks of trade credit, loans, currency and deposits and any other assets or liabilities), in addition to the Reserve Assets, which is defined as Stocks held by the Monetary Authority to address the imbalances in the balance of payments, it is worth mentioning that the reserve assets are only included in the asset side.