Circular No. 81/2022: Implementation of the National Definition and Classification of Economic Enterprises

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[Logo of the Palestine Monetary Authority]
Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (81/2022)
To all lending institutions operating in Palestine Date: Sunday, April 03, 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. (18/115/11/C.M./M.A.) of 2021 regarding the National Definition and Classification of Economic Enterprises, all lending institutions must correctly declare the total and part-time number of employees and sales volume through the credit registry opening screens when declaring credit facilities granted to all economic enterprises.

[Signature]
Financial Stability Group
Palestine Monetary Authority

Enclosed: Cabinet Decision No. (18/115/11/C.M./M.A.) of 2021 regarding the National Definition and Classification of Economic Enterprises.

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STATE OF PALESTINE
Council of Ministers
Cabinet Secretariat

Reference (A.A.M./2021/1634)
June 29, 2021

His Excellency Mr. Khaled Al-Assily, Minister of National Economy

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

Kindly take the necessary measures to implement the decision.
Yours sincerely,

Dr. Amjad Ghanem
General Secretary of the Council of Ministers
[Stamp: Prime Ministry - General Secretariat - State of Palestine]

Enclosed: The aforementioned decision.
Copy: His Excellency the Prime Minister

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STATE OF PALESTINE
Council of Ministers
Cabinet Decision No. (11/115/18/C.M./M.A.) of 2021 National Definition and Classification of Micro, Small, Medium, and Large Economic Enterprises

Based on the powers vested in us by law, 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; the Companies Law No. (12) of 1964 and its amendments; and Cabinet Decision No. (13/105/01/C.M./S.F.) of 2011; the Council of Ministers decided in its session held in Ramallah on June 28, 2021, as follows:

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

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

Classification	Number of Employees	Annual Turnover
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 exceeds USD 2,000,000

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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
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 June 28, 2021.

Mohammad Shtayyeh
Prime Minister
[Stamp: Prime Ministry - General Secretariat - State of Palestine]

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