Furniture sector is one of the oldest sectors in the region, and has flourished during the last few years to become one of the major promising Palestinian industrial sectors. Prior to the political crisis and economic recession beginning in 2000, the sector witnessed the establishment of many firms as a result of the growth of the Palestinian economy and the development of this industry to include new categories like interior design, hospitality and commercial furnishings. In addition, advancements took place in design and manufacturing. More than 67% of local manufacturers are specialized in home furniture production, 21% are specialized producing office furniture, and almost 12% producing construction related components.

The industry has developed significantly to include 1100 establishments that utilize high manufacturing techniques and employ more than 10,000 labors, the estimated annual sales of manufacturers is estimated at US$ 110 million; where around 50% of that is destined to Israel for sale in the Israeli market or export to other markets, It is also worth to note that the sector has recently faced a dramatic recession due to the closure of Gaza trade terminals, while there has been some temporary growth in the West Bank.

Strengths of the furniture sector are mainly typified in high carpentry workmanship skills, good factory conditions, fine quality of produced furniture and the newly emerged Palestinian original designs. Opportunities for furniture sector are foreseen in development of new original and ethic designs, accessing target market with appropriate marketing tactics, upgrading utilized technologies and techniques to further increase competitiveness of products.

Source: The Palestinian Wood Industries Union, 2006