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FINANCIAL NEWS
Palestinian Jerusalem Stone plans to expand to UAE
18 Nov 2014
(MENAFN), Palestine’s Jerusalem Stone Group said that it is planning to expand its business by having talks to acquire a factory in Abu Dhabi, in a move which will bring the company closer to its largest single export market, as well as having plans to open an office in Dubai early next year, Gulf News reported.
The Palestinian company, which has annual revenues of USD4 million, said that it is planning to use the factory for storage and cladding, which will make it easier for it to compete with Oman, Turkey and China.
These plans come as a result of the companies in Palestine facing high costs as products need to be transported across the country and into neighboring Jordan to be exported, with costs increasing to reach USD2.700 thousands to export their products, which is a high cost for the companies, which export 95 percent of their production.
The high costs have also led the Palestinian stone and marble manufacturers to plan to diversify their revenue due to the increase in production costs under the Israeli occupation, which makes them less competitive compared with cheaper alternatives from other markets.
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