Whilst this situation was to all intents and purposes stagnant throughout 1996, the beginning of 1997 has seen a limited increase in the amount of trade flowing between the two areas. The DRC's work resulted in the following overview of this sub-sector. Textile and garments combined, make up the largest sector of industrial activity in the Gaza Strip. The largest activity by far is subcontracting to Israeli firms. The quality of these products is generally low.
Functions undertaken by local firms, include primarily cutting, sewing and trimming.
However, no patterns or original designs are produced locally. Automated embroidery and handmade rugs also occupy a small niche in the local market. Embroidery employs 90 workers in Gaza in 24 firms, and handmade rugs account for 150 workers in approximately 20 firms and four training centers. The potential for developing a tourist trade in these handmade fabrics is high. Denim garment production is the other major area of concentration in Gaza.