More than 98 percent of commercial entities in Palestine are not covered by existing corporate governance codes, which apply to companies listed on the Palestine Stock Exchange and commercial banks. Most of these are structured as family firms — whether in ownership or management — which creates special difficulties for corporate governance.
To address the thousands of family firms that form the heart and soul of the Palestinian private sector, CIPE partner the Palestine Governance Institute (PGI) recently published a Corporate Governance Manual for Family Firms (available in Arabic and English) with the Federation of Palestinian Chambers of Commerce, Industry and Agriculture.
This seminal publication — the first of its kind in Palestine — was informed by extensive consultations with local experts, family firms themselves, and other stakeholders including lawyers and academics.
PGI engaged in extensive outreach to the business community in developing these guidelines, including conducting a baseline assessment through interviews with over 100 owners and managers of family firms across the West Bank and Gaza.
At the beginning of the film Under the Same Sun, Nizar, a Palestinian businessman, looks at the smashed windshield on his car and reads a note that says, “We hope this makes things clear for you.” A newspaper has just exposed his business relations with an Israeli, and he faces public outrage over his perceived betrayal of the boycott of Israeli goods.
His brother tells him that you cannot trust Israelis—after all, his other brother was shot by an Israeli soldier during the first Intifada. His landlord cannot let him continue to lease office space for fear of vandalism. The news also causes familial rifts for Shaul, the Israeli businessman—his sister and brother-in-law who live in a West Bank settlement refuse to speak to him. His Israeli business partner will not work with Palestinians; he didn’t trust them even before “the incident” that killed his son.
The story is fictional. Search for Common Ground brought together Israeli and Palestinian directors, producers, and actors to create a mockumentary about an Israeli and a Palestinian who start a joint venture company to bring solar energy to Palestinian villages in the West Bank. Shaul is motivated by profit and sees Palestine as a viable market to enter. Nizar wants to help his community achieve energy independence, so it will no longer have to rely on purchasing Israeli generators.