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Publication Palestinian Digital Economy Assessment(World Bank, Washington, DC, 2021-12-22) World Bank GroupThe world of tomorrow will be driven by digital transformation across sectors and industries, and the global coronavirus disease of 2019 (COVID-19) pandemic is accelerating this process. Digital technology is already playing an important role in the West Bank and Gaza (WB and G), and development of the digital economy is among the national priorities. This report aims to assess the state of digital economy development in WB and G, identify opportunities for further growth, and inform reforms and donor support programs in WB and G. The report provides a comprehensive overview of digital economy development in WB and G across the five foundational pillars - digital infrastructure, digital platforms, digital financial services, digital businesses, and digital skills. The report is based on several fact-finding missions, structured interviews, surveys, focus group discussions, and analysis of secondary data. The findings show that despite recent progress, the potential of the digital economy in WB and G is not fully exploited. Accelerating digital transformation and building a well-connected Palestinian economy will entail strengthening both analog and non-analog foundations. Three key areas that require the immediate attention of Palestinian policy makers are: (1) improving the digital infrastructure, (2) updating the legal and regulatory framework, and (3) ensuring institutional coordination and resource mobilization.