With a population of over 5 million people, the IT sector in Palestina* is characterized by rapid growth that focuses on Software Development, Outsourcing, and digital services. It has a great influence on the country’s economy and brings a 5-7%+ contribution to GDP. This sector comprises over 500 ICT companies, 13,500 employees, and more than 10,000 freelancers, according to the Palestinian Information Technology Association of Companies (PITA). Additionally, it has multiple fields like telecommunications, IT services, hardware retail, Software Development, and e-commerce.
The growing number of tech workers and players is influencing the tech sector in the Palestinian Territory, with about 150 Software companies and 100 outsourcing organisations. Additionally, the IT-enabling infrastructure is also a major factor for development. It has more than 1.65 million internet users, 98% of the population that owns a mobile phone, and over 51.7K of fibre optic internet users.
Palestinian ICT sector has its focus on price competitiveness and specialisation, transitioning to providing increasingly services and trend-driven solutions. Its future is promising with a dedicated workforce, investor interest, and a focus on innovation.
Why Should You Work With a Tech Firm from Palestine?
Working with tech companies from the Palestinian Territory can provide you with several perks, including:
- Cost-effective services: Palestinian tech firms offer not only affordable prices but also high-quality tech expertise that is lower than in Western Europe or North America. Additionally, it gives the possibility to access senior-level talent for a fraction of the cost. Collaborating with firms from this region can provide a high return on investment (ROI) due to the accessible prices and high performance.
- Robust educational system: Annually, there are about 2,500 IT graduates from institutions such as the Arab American University, An-Najah National University, and Birzeit University that play an important role in the tech talent flow. The benefits of this educational basis extend beyond the educational facilities. The technological landscape is supported by a robust ecosystem of startup incubators and R&D hubs designed to foster creative solutions. Universities facilitate students and recent graduates to participate in R&D projects and apply theoretical knowledge in practice.
- High-skilled talent: Due to the political instability in the country, many tech professionals relocated online. Organisations like Gaza Sky Geeks have offered professionals with technical training and support. They must provide high-quality services rather than low prices. Collaborations between Universities and research institutions also facilitate students and graduates to have internships and upgrade their skills. IT professionals from this region are strong in Python, Data Science, Web Development, AI, and UX Design.
What You Should Be Aware of When Working With Companies from Palestine?
Collaborating with a tech company from Palestine involves a set of benefits and some possible challenges influenced by the country's political situation. Among the risks are connectivity issues due to the damage the telecommunication infrastructure has faced, with many regions having access to only 3G, rarely 4G or 5G. There are regular power shortages that make the work operations harder. Financial and transactional risks are another potential issue, including payment delays, fiscal strain, and currency fluctuations.
Are IT Companies from Palestine Reliable?
The reliability of tech companies in Palestine is influenced by a mix of a highly qualified workforce with a robust education and the ongoing conflict in this region. Organizations that collaborate with companies from this country report a high return on investment because Palestinian developers are often trained by global accelerators, like Gaza Sky Geeks, that work with mentors from Google and Microsoft. Many professionals are working remotely or freelance, making it easier to collaborate and the employment process. If you are looking for high-quality IT services, Palestinian IT companies can offer reliable solutions for your projects.
How is Palestine’s IT industry Related to Neighboring Countries?
Due to the ongoing conflict with one of the neighboring countries, the tech talent from Palestine often relocates to the Gulf (UAE, Qatar, Saudi Arabia). Many local firms act as back-office Developers for companies in Dubai and Riyadh. In 2024, Palestinian startups had a growing presence at major events like the GITEX in Dubai, using these platforms to pitch to global venture capital. Jordan is an important logistical partner for the tech sector in Palestine, thanks to its proximity and shared language. Many payments and banking operations are made through Jordan. Programs like the Talent Acceleration Platform (TAP) connect graduates from Palestine with Jordanian hiring companies.
*Palestine refers to the Palestinian Territories (West Bank and Gaza Strip), in line with United Nations terminology and international statistical standards