The Oslo Agreement and its annexes is considered as the agreement that has determined the Palestinian economic features and development, in addition to its economic relationship with the occupying state. Though twenty four years have passed since the signing of this agreement, the Palestinian economy is still encountering an obvious weakness, especially in its great dependence on foreign aids and the taxes collected by the occupying state in favor of the Palestinian Authority. Hence, there is a need to diagnose the reality of the Palestinian economic development in order to examine the causes of the economic failure in Palestine and provide suggestions that would improve the economy and reduce the rate of poverty and unemployment. To achieve these objectives, the research employed the descriptive analytical approach. The research found that the economy has become more dependent on the occupation and foreign aids after signing the Paris Economic Agreement. Then the economic growth has become so fluctuated and deceptive that it has not symbolized the economic reality. In addition, the economic development has become lost, while the foreign trade is still weak. The trade deficit has continue.
Keywords:Palestine, development, foreign aids, Palestinian economy