The role of the banking sector in financing the real estate and contracting sector in the Palestinian territories

Abstract

Purpose

The study aims to identify the reality of the role of the banking sector in financing the Palestinian real estate and construction sector. The study demonstrated the importance of this issue by highlighting the role that Palestinian banks play in treating the problem of the increasing demand for housing because of the natural increase in population numbers and their various needs, and through knowledge of historical development for banks and the facilities they provided, especially to the real estate and construction sector.

Design/methodology/approach

This study carried out data from (2000–2019). The descriptive analytical method and regression method was used for analyzing the measurement model. Holt’s method was used to estimate the size of housing units needed in the Palestinian territories over the next seven years.

Findings

The study concluded that there is a need to build about (200,000) residential units in the next seven years, and the study recommended the necessity of increasing the pooled contribution of banks and directing part of it to the real estate and construction sector, amending legislative laws for the real estate market and construction, reducing taxes on building supplies and encouraging the private sector with stimulus policies or share.

Practical implications

The study provided results and data regarding the state of the housing sector and how its financed by Palestinian banks; it clarified the limitations and difficulties that face this sector and provides a clear path for what needs to be done to develop this sector and overcome its barriers.

Originality/value

This current study contributes to focusing on the reality of the banking sector and its role in financing the real estate and construction sector, in addition to the appropriate period of time for the study, which ranges between 2000 and 2019, which is a period sufficient to identify the reality of Palestinian real estate and construction and banks and the relationship between them.

The researcher believes that the study differed from its predecessors through an in-depth analysis of the existing relationship between cash assets and real assets, given that the priority of real assets over cash assets, as cash assets are considered as real over cash assets, but they do not constitute a substitute for them in economic development, the study contains a vision that recommends linking the activities of the banking sector with economic and social problems and the national issue, i.e. independence and self-determination.

Citation

Abuamsha, M.K. (2022), "The role of the banking sector in financing the real estate and contracting sector in the Palestinian territories", International Journal of Housing Markets and Analysis, Vol. 15 No. 2, pp. 357-374. https://doi.org/10.1108/IJHMA-11-2020-0135