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.

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Financial Advisory Group
Palestine Monetary Authority

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Attachment: Cabinet Decision No. (18/115) of 2021 regarding the National Definition and Classification of Economic Enterprises.

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www.pma.ps

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

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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.

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Dr. Lamjed Ghannam
Secretary General of the Council of Ministers

Attachment: The aforementioned decision.
Copy: The Prime Minister

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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

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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

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.

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Issued in Ramallah on 2021/06/28

Mohammed Shtayyeh
Dr. Prime Minister

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Official Stamp: State of Palestine - Council of Ministers Cabinet Secretariat