Regulatory Alerts2022-01-01
Circular No. 81 of 2022 Regarding the Implementation of the National Definition and Classification of Economic Enterprises
The Palestine Monetary Authority, citing Cabinet Decision No. (18/115) of 2021, mandates all lending institutions operating in Palestine to accurately report total and part-time sales volumes and employee counts via credit registry screens when granting credit facilities. This directive enforces the national classification of economic enterprises into five tiers—micro, very small, small, medium, and large—based strictly on employee headcount and annual turnover thresholds ranging from USD 100,000 to over USD 2,000,000. The Ministry of National Economy is further tasked with coordinating financial and capital market authorities to develop supportive policies aligned with this standardized enterprise classification framework.
Palestine Monetary Authority
Circular No. (2022/81) To all lending institutions operating in Palestine
Date: Sunday, 03 April, 2022
Subject: Implementation of the National Definition and Classification of Economic Enterprises
In order to implement the definition and classification of economic enterprises in accordance with Cabinet Decision No. (18/115) of 2021 regarding the National Definition and Classification of Economic Enterprises, all lending institutions must commit to accurately declaring total and part-time sales volume and number of workers through the credit registry opening screens when declaring credit facilities granted to all economic enterprises.
Financial Advisory Group Palestine Monetary Authority
Attachment: Cabinet Decision No. (18/115) of 2021 regarding the National Definition and Classification of Economic Enterprises.
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251 Gaza - Palestine P.O. Box 4026 Fax: +970 8 2844487 | Tel: +970 8 2825713
STATE OF PALESTINE
Council of Ministers Cabinet Secretariat
Authorization (1634 / 2021/C.M.S) 29 June 2021
In the name of God Mohammed Khaled Al-Asily Minister of National Economy
Subject: National Definition and Classification of Micro, Small, Medium, and Large-Sized Economic Enterprises
The General Secretariat of the Council of Ministers extends its best regards and informs you of the Cabinet Decision issued during its weekly session No. (18/115) held on 2021/06/28 regarding the National Definition and Classification of Micro, Small, Medium, and Large-Sized Economic Enterprises.
We kindly request taking the necessary measures to implement the decision. Please accept our highest regards and appreciation.
Dr. Lamjed Ghannam Secretary General of the Council of Ministers
Attachment: The aforementioned decision. Copy: The Prime Minister
State of Palestine
Council of Ministers
Cabinet Decision No. (18/115) of 2021
National Definition and Classification of Micro, Small, Medium, and Large-Sized Economic Enterprises
Based on the powers legally delegated to us, the appointment of the Minister of National Economy, and in light of public interest requirements,
and after reviewing the amended Basic Law of 2003 and its amendments; the Companies Law No. (12) of 1964 and its amendments; and Cabinet Decision No. (13/105/01) of 2011,
the Council of Ministers decided in its session held in Ramallah on 2021/06/28 as follows:
Article One
Approves the amendment of the National Definition and Classification of Micro, Small, Medium, and Large-Sized Economic Enterprises.
Article Two
Economic enterprises in Palestine are classified into five categories: (Micro, Very Small, Small, Medium, Large) based on the criteria outlined in the following table:
| Category | Number of Employees | Annual Sales |
|---|---|---|
| (Micro) | (1-4) | Provided that turnover does not exceed USD 100,000 |
| (Very Small) | (5-9) | Provided that turnover does not exceed USD 200,000 |
| (Small) | (10-19) | Provided that turnover does not exceed USD 500,000 |
| (Medium) | (20-49) | Provided that turnover does not exceed USD 2,000,000 |
| (Large) | (+50) | Turnover exceeding USD 2,000,000 |
State of Palestine
Council of Ministers
Article Three
All relevant authorities shall provide the necessary facilitations to implement this classification.
Article Four
For the purpose of applying the definition to develop policies and strategies for empowering and developing economic enterprises according to the aforementioned classification, the Ministry of National Economy shall coordinate with the Ministry of Finance, the Palestine Monetary Authority, and the Capital Market Authority.
Article Five
Any provisions conflicting with the terms of this decision are hereby repealed.
Article Six
The competent authorities shall implement the provisions of this decision according to their respective jurisdictions, and it shall take effect from the date of its issuance.
Issued in Ramallah on 2021/06/28
Mohammed Shtayyeh Dr. Prime Minister
Official Stamp: State of Palestine - Council of Ministers Cabinet Secretariat