Chairman's Message

 It is with great pleasure that we present to you our 2014 report, allowing us to reflect together on our accomplishments over the last year despite the adverse conditions that we have experienced in Palestine.

Israel’s assault on Gaza, which continued for over 50 days, resulted in large-scale destruction with a massive toll upon human lives and the environment. PADICO HOLDING has a strong commitment to our collective national and moral obligation towards our community in Gaza. During the attack, PADICO HOLDING acted on its commitment to social responsibility by supporting relief campaigns launched by various organizations, conducting meetings to consolidate relief efforts and providing cash and in-kind donations. We see PADICO HOLDING as having an integral role in the process of reconstruction following the attack and are committed to making every effort to improve the situation of those in Gaza, in partnership with public and international entities.

The extensive destruction of infrastructure that resulted from Israel’s attack on Gaza slowed economic growth across Palestine. The projects and facilities of PADICO HOLDING and our subsidiary and affiliate in Gaza strip were also affected, weakening our financial performance during the fourth quarter. PADICO HOLDING took decisive action in the face of these challenges and through strategic vision and dynamic planning based on our deep understanding of the fragile investment sector in Palestine which is frequently impacted by Israel’s actions, we have made a strong recovery.

Political events throughout 2014 have negatively impacted the Palestinian economy. Despite the signing of a reconciliation accord and the formation of the Government of National Unity, the issue of the intra-Palestinian division is still prominent. What makes this division even more painful is that it has happening at a time when the Palestinian people are in dire need of cohesion and unity in order to face these difficult circumstances. Gaza Strip is still suffering from the aftermath of Israel’s attack which destroyed tens of thousands of houses and left hundreds of thousands of internally displaced people to face extremely cold winters without shelter. Reconstruction efforts have made little progress to date, leaving Gazans deprived of their most basic needs, including decent housing to safeguard their human dignity. Today, this is a national and moral responsibility that we all need to shoulder.

The most recent steps taken by the Palestinian government in our beloved Gaza have brought new hope to us that this initiative reflects movement in a positive direction. We hope that this will lead to the full implementation of the reconciliation agreement, resolving all pending issues and bringing the necessary pressure to bear that will end Israel’s unjust blockade of Gaza Strip.

PADICO HOLDING has turned its corporate responsibility into a sustainable and strategic approach to serve Palestinian society. To this end, we have supported various educational and developmental initiatives to combat unemployment and have initiated strategic partnerships with a variety of organizations.

During 2014, the Palestinian GDP fell 2.5% from 2013. This year begins with continued economic challenges as Israel continues to withhold tax revenues for the fourth month in a row. Israel’s withholding of taxes, now totaling around USD 180 million, has imposed tremendous financial pressure on the Palestinian government. A national plan is needed to address this crisis and force Israel to fulfill its obligations.

Despite these negative factors, PADICO HOLDING have continued to make strides with the investments, development plans and projects it has underway. These include Rabiyat Al Quds real estate project, Jericho Gate project, NAKHEEL Palestine and the establishment of Palestine Power Generation Company. These projects promise to bring substantial profits to the company. We continue to find inspiration from the vision of our Board of Directors and from the dedicated efforts of our CEO.

As PADICO HOLDING celebrates its twentieth anniversary, we consider what an honor it has been to have been able to contribute to the various economic sectors in Palestine. On this occasion, we renew our commitment to development and investment in Palestine, inspired by the rich legacy of vision and perseverance which our founders have given us. We continue to strive to realize their aspirations for an independent Palestinian state supported by a strong and viable economy of which PADICO HOLDING is an integral part.

In keeping with our holistic vision for the Palestinian economy we have worked to diversify our investments across all sectors. In so doing we have created an innovative model through which projects of a high quality are initiated. Our establishment of Palestine Exchange (PEX), for example, proved to be a breakthrough in investment as it was the first non-governmental stock exchange owned and run by the private sector. Today, Palestine Exchange holds a strong position among regional and international financial stock markets and entities.

PADICO HOLDING has also maintained diverse investment partnerships that have been strategic in generating revenue, such as Palestine Telecommunications Company, or “PALTEL Group”. Like many of our other affiliates, PALTEL was targeted by Israel during the attack on Gaza.

Today, PADICO HOLDING owns numerous investment vehicles which include large-scale companies and projects across most economic sectors. PADICO HOLDING owns 74.5% of the shares of Palestine Real Estate Investment Company (PRICO), our real estate investment vehicle. In the tourism sector, we own five-star hotels in Bethlehem, Gaza, Ramallah and Jerusalem. We have also made substantial progress towards completing Jericho Gate, amega tourism and entertainment project in the city of Jericho. During 2014 we also launched the Executive Club, which has attracted business people widely through the diverse economic, political, national and cultural activities it has organized or hosted.

In the industrial sector, PADICO HOLDING invests through Palestine Industrial Investment Company, which comprises numerous companies including Palestine Poultry Company and Palestine Plastic Industries Company. It has also invested in the Vegetable Oil Industries Company, the National Carton Industries Company, the Golden Wheat Mills Company and other projects.

In terms of the agricultural sector, PADICO HOLDING established NAKHEEL Palestine farm which has become one of the largest palm farms in Palestine, exporting Medjoul dates to various international markets.

Because of our strong desire to have a presence in Jerusalem, which holds such a significant place in the Palestinian consciousness, we have undertaken three real estate endeavors in our Holy City: Rabiyat Al Quds housing project in Beit Sfafa, Saint George Hotel and Al-Hambra Palace.

At PADICO HOLDING we see our commitment towards our shareholders as a non-negotiable priority, as they form the community which has believed in us and chosen PADICO HOLDING as their investment outlet. In line with this commitment, at our AGM in April payout of dividends of 6% (6 cents per share) to shareholders was approved. Over our 20 years in operation we have paid out USD 234.1 million to our shareholders USD 194.1 million in cash profits and USD 40 million in free shares. We are confident that the next few years will bring further growth in profits.

Our strategy for the coming years will focus primarily on developing our existing projects in order to increase the profitability of the company. In addition, we will continue to engage in the reconstruction efforts in Gaza Strip, working to heal the wounds that still remain from the recent war.

Finally, as I conclude this letter, I would like to express my deepest gratitude to our family at PADICO HOLDING, represented by the Board of Directors which has spared no effort to ensure the continued success of our endeavors. I commend all of our staff for working together with such dedication to ensure that PADICO HOLDING continues to enjoy the high status it holds within the Palestinian economy as a leader of the private sector. 

Please allow me to express my deepest gratitude to you, our valued shareholders, as well, for placing your trust in PADICO HOLDING for the investment of your capital. We are truly grateful for your support and faith in our company throughout its journey. Let us renew our commitment to work together to create a better future for the Palestinian people through the holistic development of a strong economy. I conclude with a renewed commitment to invest in Palestine, because it deserves our best today and every day. 

       With my esteemed regards,

 Munib R. Masri

All rights reserved for PADICO HOLDING 2012
Designed and developed by PRIMUS
Home Search Sitemap Careers Contact Us