Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (168/2021) To all banks operating in Palestine Date: Monday, 06 September, 2021

Subject: National Definition and Classification of Economic Enterprises

In the Palestine Monetary Authority's commitment to ensuring banks develop policies and strategies aimed at empowering and developing various economic enterprises according to their national classification, we attach to you Cabinet Decision No. (18/115/CoM/1) for the year 2021 regarding the National Definition and Classification of Micro, Very Small, Small, Medium, and Large Economic Enterprises.

Accordingly, we request that you implement the contents of the aforementioned decision.

Financial Stability Group Palestine Monetary Authority

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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 www.pma.ps

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STATE OF PALESTINE Council of Ministers Cabinet Secretariat

29 June 2021 Reference (1634/2021/CoM)

His Excellency Mr. Khaled Silwi May God protect him Minister of National Economy

Subject: National Definition and Classification of Micro, Very Small, Small, Medium, and Large 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 28/06/2021 regarding the National Definition and Classification of Micro, Very Small, Small, Medium, and Large Economic Enterprises.

We kindly request taking the necessary measures to implement the decision. Please accept our highest respect and appreciation,

Dr. Mohammed Ghanem Secretary General of the Council of Ministers

Enclosure: The aforementioned decision. Copy: His Excellency the Prime Minister May God protect him

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State of Palestine Council of Ministers

Cabinet Decision No. (18/115/CoM/1) for the year 2021 National Definition and Classification of Micro, Very Small, Small, Medium, and Large Economic Enterprises

Based on the powers vested in us by law And upon the proposal 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; And the Companies Law No. (12) of 1964 and its amendments; And Cabinet Decision No. (13/105/01/CoM/S/F) for the year 2011; The Council of Ministers decided in its session held in Ramallah on (28/06/2021) as follows:

Article One Approval of the amendment to the National Definition and Classification of Micro, Very Small, Small, Medium, and Large Economic Enterprises.

Article Two Economic enterprises in Palestine are classified into five categories: (Micro, Very Small, Small, Medium, and Large), with size determined based on the criteria outlined in the following table:

Category	Number of Employees	Annual Sales
(Micro) Micro	(1-4)	Turnover must not exceed USD 100,000<br>provided that turnover does not exceed USD (100,000)
(Very Small) Very Small	(5-9)	Turnover must not exceed USD 200,000<br>provided that turnover does not exceed USD (200,000)
(Small) Small	(10-19)	Turnover must not exceed USD 500,000<br>provided that turnover does not exceed USD (500,000)
(Medium) Medium	(20-49)	Turnover must not exceed USD 2,000,000<br>provided that turnover does not exceed USD (2,000,000)
(Large) Large	(+50)	Turnover exceeds USD 2,000,000<br>More than USD(2,000,000)

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State of Palestine Council of Ministers

Article Three All relevant entities 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 All provisions conflicting with 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 28/06/2021.

Mohammed Shtayyeh Prime Minister