The Palestinian textile and garment sector is considered an important economic sector in Palestine, with regard to employment, exports, production/output and investment. In addition, the textile and garment sector provides prospects for development and prosperity, should success factors be made available to it and opportunities seized. The strengths of the garment and textile sector are mainly demonstrated in the accumulative experience in producing for international brands, the high quality of local production and competitive prices. Strengths are also exemplified in the experience of local producers in subcontracting and supply chain management, and the availability of skilled labors.

The garment sector includes 41% of industrial workers in the Gaza strip and 20% of industrial workers in the West Bank. The total output of the garment and textile sector was estimated at US$80 million in the year 2006; however the output is changing based on the local market purchase power and the accessibility to export 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, mostly in the field of subcontracting.

There are an estimated 17,562 garment and textile workers, and 2,753 manufacturers in the West Bank and Gaza, mostly in garments, who contribute approximately 14% of Palestinian manufacturing output. The sector is made up primarily of small-medium companies with the flexibility and capacity to accommodate various order sizes according to customer specifications and needs. The sector also includes several larger firms with higher capacities and certifications to international quality.

 Source: The Palestinian Textile Industries Association, and The Sewing Factories Owners' Union, 2006