The passing of the “Industrial Cities and Free Zones” ( Law No. 10 / 1998 ) by the PLC was aimed at encouraging local and foreign investors in developing export-oriented industries in specified geographical locations (mainly the borders with Israel and Jordan) through many incentives such as customs and tax relieves.

The current building of the dividing wall by the Israelis has made the vision of prospering industrial cities or free-zones in Palestine unrealistic at the present.