Mahmoud Shawa on the outlook for the territory's economy in 2021.

Palestine’s banks have to contend with challenges that include political tensions, an underbanked population and no national currency.

The global interest in HSBC's recent IPO for Palestinian telecoms company Wataniya Mobile was not only a big success for the young telco, but also for Palestine in general, as it showed that the territory is a safe and potentially lucrative destination for capital markets.

Despite achieving strong results last year, Palestine's banking sector is working to address its weaknesses. With ample customer deposits, the focus is now on developing the processes used to grant loans to broaden out profit-making opportunities. Witer Stephen Timewell