Rebuilding the Palestinian economy is critical to our goal to establish an independent Palestinian state. This requires the lifting of the burden of restrictions and sanctions imposed by the occupation regime on the Palestinian economy. These include closures, military checkpoints, and other arbitrary measures which fragment the Palestinian territory and impede movement of people and goods; the Separation Wall which deprives our economy of essential resources, including land and water; complete isolation of the Gaza Strip; isolation of Jerusalem; continuing settlement activity; and the general suffocation of economic activity. Restrictions imposed by the occupation regime are the major obstacle stalling Palestinian national efforts to initiate an economic recovery that will lay the ground for sustainable economic and social development. In spite of domestically-supported and internationally-endorsed efforts made by successive Palestinian Governments to create an enabling investment environment and promote partnership with the private sector – the main driver of development in Palestine – such efforts have often been obstructed by Israeli restrictions. The 13th Government is committed to applying political pressure, backed by international support, to eliminate Israeli measures that are suffocating Palestinian economic recovery. To initiate a sustainable economic recovery and to rebuild the national economy as a pillar of a modern Palestinian state, the Government has defined policy priorities in the sector in seven domains. Creating an enabling investment environment: The Government will promote investment in Palestine through, inter alia, tax incentives to local and foreign investors. The Government will also develop the package of modern investment laws and regulations to promote investment and economic activity. Promoting the role of private sector in social and economic development: Private business is an integral part of Palestinian society. The Government will act to enhance the role of the private sector in national development. The Government will also support the development of Palestinian private sector institutions to increase their capacity to represent the interests of their members. Support Palestinian products and expertise: In all its procurement activities, the Government will give priority to Palestinian goods and services without prejudice to competition on grounds of cost and quality. Developing national resources: Palestine is abundant with human resources, but has limited natural resources. Therefore, the Government will focus on developing human capital through an education system that meets the needs of a labor market in a productive and globally-competitive national economy. On the other hand, the Government will develop techniques to conserve and manage our limited natural resources for the benefit of the Palestinian society and economy. Developing infrastructure: Insufficient and inadequate infrastructure is a major factor driving up the cost of production. The Government will develop national infrastructure, including industrial zones, electricity networks, roads, crossing points, and other critical infrastructure to reduce production costs and enable Palestinian products to be more competitive in the domestic, regional and international markets. Transmit knowledge and support Palestinian innovation: In light of the rapid pace of globalization, Palestinian businesses need international exposure to benefit from international expertise and promote Palestinian goods and services overseas. The Government will support international knowledge transfer and marketing activities in order to develop and enrich the national economy. In addition, the Government will encourage Palestinian innovation through promoting research and development.