07 May 2009
Large world maps adorn the neatly arranged office of Roubin Joulani, general manager of Eagleflex, a company that produces grinding wheels for the construction and extractive industries. Located in Hebron, a bustling city in the southern part of the West Bank, the company employs 29 staff and has operated since 1994.
Hebronites are known for their commercial acumen and ambition, and Mr Joulani is no exception. His sights are set on the Gulf region. "Dubai is where it's all happening: the unique building projects, the famous construction companies, the growth."
There is a large demand in the Gulf for grinding wheels that can cut stainless steel, with most oil companies using them in their operating processes. "We've been thinking for a while about developing the wheels, but the product development process is complicated and risky," says Mr Joulani.
However, when Eagleflex started receiving support from a DFID-funded grant scheme aimed at Palestinian businesses, Mr Joulani and his colleagues were able to take the first steps into this new market.
Breaking new ground
With financing from the Facility for New Market Development (FNMD), Eagleflex bought a license allowing it to produce the grinding wheels. Learning how to manufacture the wheels, however, proved less straightforward. An Israeli firm invited Eagleflex engineers to visit its factory in Haifa for research purposes, but even with support from the Hebron Chamber of Commerce, it took 25 days for entry permits into Israel to be secured.
Such obstacles are familiar to Palestinian businesses. The movement and access restrictions that have been in place since 1993 have prevented companies from expanding their operations, but the Palestinian private sector must be allowed to grow if the economy of the OPTs is to flourish.
The engineers' trip showed just how invaluable business visits over the border can be. "We watched every step of their production process and have now overhauled our way of working," says Jamal Seed, Eagleflex's production manager. As a result, the product development process is well underway, with prototypes currently being tested against international standards.
Meanwhile, Mr Joulani has completed a visit to the United Arab Emirates to find new customers and learn more about the marketplace there. "Since our production costs are lower and Palestinian goods are exempt from local customs, we'll be able to offer very competitive prices," he says. "We hope to increase our export sales by 10 to 15%."
Mr Joulani can now concentrate on expanding its range of products, taking on new staff and, in so doing, playing a part in reversing decades of economic decline in the OPTs. "Without the support given by FNMD, we wouldn't have gone ahead," he reflects. "Our company could not have shouldered the risk of such a large investment alone."
Facts and stats
- DFID is making £3 million available over three years through the FNMD to help Palestinian companies enter new markets and develop new products. The World Bank is also contributing to the scheme.
- Eagleflex produces 9,650 wheels per day of its existing products. The company has recently added a new oven to its production line, greatly enhancing capacity and enabling the production of an estimated 4,000 to 5,000 of the new stainless steel wheels daily.