Compete Project Quarterly Report April 1, 2013 – June 30, 2013

Key achievements include increasing Palestinian exports through firm-level participation at international trade shows, attaining international product and service standards, and expanding job skills with groundbreaking educational programs. In the third quarter of the project, the USAID Compete team has observed positive patterns of response from beneficiaries, clustering around three critical themes: Encouraging Innovation and Growing Exports from the Palestinian Territories. The project has launched a feasibility study on the commercial opportunities of utilizing stone slurry/cake as the raw material for products ranging from building materials to cement to the pharmaceutical industry. Additionally, the project has engaged senior DAI staff to help develop a strategic investment and market development plan to support the nascent gaming industry. Contract farming, a venture first introduced by USAID Compete at the end of the 2012 harvest season, has expanded with exports to Jordanian processors, as well as possibilities for other new products/forward contracts to Russia and Jordan. This initiative combines security of supply to processors with contracted price predictability to producers, helping to manage risks throughout the supply/value chain. The project is also working with leading farmers and producers to leverage new food safety rules to attain Global Gap and ISO 22000 certification, increasing agricultural production and exports through better production and post-harvest practices. The project has also made significant progress in the Agribusiness sector, with leading Palestinian agribusiness firms joining together to investigate and invest in the establishment of dedicated warehousing and distribution services to grow sales in the lucrative Dubai and surrounding GCC markets. Furthermore, the project has engaged with the Palestinian IT Association (PITA) to reach out to the Palestinian-American community and later to the extensive business community in the GCC area, encouraging investment in innovative ICT initiatives. In the Tourism sector, the project has supported the development of a strategic investment and market development plan to support the nascent gaming industry. Additionally, the project has highlighted the latest evidence of regional/international investor interest to tap into the growing availability of young, tech-savvy Palestinian entrepreneurs who can make a competitive difference in the highly contested Arab IT market. The project's progress is reflected in the achievements of its beneficiaries, who have demonstrated a strong response to the project's initiatives. The project's focus on innovation, exports, and job skills has helped to drive growth and development in the Palestinian economy, with a particular emphasis on the Agribusiness, Tourism, ICT, and Stone & Marble sectors.