The 10th Global Conference on Sustainable Manufacturing Stone and Marble Industrial Sector in Palestine - Model for Sustainability Ahmed Abu Hanieh 1 , Sadiq AbdElall 2 , Afif Hasan 1 1 Department of Mechanical Engineering, Birzeit University, Palestine 2 Department of Machine Tools and Factory Management, Technische Universität Berlin, Germany Abstract Stone and Marble industry is considered as one of the main sources of the Palestinian economy. This sector contributes to about 50% of the local production, 30% of the exports and 14% of the employment capacity. This paper discusses some statistical numbers and historical information about Stone and Marble sector in Palestine. It concentrates on environmental, economic, and social impact of this industry, presents the lifecycle of stone and marble, and proposes strategy for proper and efficient use of resources including natural stone, water and energy during production processes. 3Rs (Reclaim, Reuse and Recycle) principles have been used to minimize the waste at each stage of stone and marble lifecycle. Keywords: Stone and Marble; Sustainable Model; Value Contribution. 1 INTRODUCTION 1.1 Palestinian economy and resources With a high (91%) adult literacy rate, Palestinians are the most educated population in the Middle East and North Africa region [1]. At the crossroads of Europe, Asia and Africa, with a clement climate, fertile soil, and highly-educated and entrepreneurial population, the occupied Palestinian territory has enormous economic potential. Yet neglect of infrastructure, severe restrictions on the movement of people and goods, frequent destructive military operations, and a situation of dependency have been actively encouraged by Israeli occupation. This phenomenon described as “de-development”, has left the structure of the Palestinian economy stagnant. According to World Bank reports the economic outlook of the OPT remains the same as it was prior to 1967 takeover of Israel. 57.3% of Palestinians live below the poverty line, and about 48% live in extreme poverty. The aid-dependent Palestinian economy is still reeling from a devastating hit it took when the donors decided to boycott a Hamas government formed after the election in January 2006 [2]. Palestine progresses towards statehood require fostering industrial sector economy and an attractive environment for national and foreign investors. There are many potential opportunities for further growth of the industrial sector in Palestine, such as the abundant human resources and the absorptive capacity of the market as well as potentials for export to regional and international markets. More specifically Palestine can improve growth by creating an environment, which develops competitiveness, as well as services related to the industry. As shown in Figure 1 the gap between import and export is huge, and lot of opportunities to close this gap by importing less and producing more. The graph shown in Figure 2 illustrates industry share of Palestinian GDP in 2007. 1.2 Statistics and historical review Palestine is renowned for its natural lime stone that is characterized by its bright attractive colors. These are highly demanded in international markets. The Palestinian stone and marble industry is still considered a labor-intensive industry, although highly automated in certain functional areas, [3]. Figure 1: Palestinian trade deficit 1996 – 2006 (Palestinian Central Bureau of Statistics). Figure 2: Industry share of Palestinian GDP in 2011 (Palestinian Central Bureau of Statistics). The Stone and Marble industry is considered one of the most significant and most active industrial sectors in Palestine, as this sector contributes to approximately 25% of Palestine’s overall industrial revenue and 4.5% of the total Palestinian GNB [3]. The Palestinian share in stone and marble is 4% of the whole world 0 1000 2000 3000 4000 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Exports Imports US $ Million Public adminstratio n 15% Other services 21% Financial intermediat 5% Transport and telecom 7% Wholesale trade 10% Construction 10% Mining, manufacturi ng, electric and water 13% Agriculture and fishing 7% Others 12% Palestine GDP    34