Ikea, the Swedish furniture chain store that has become a global brand, is considering opening a branch in Ramallah, the economic hub of the West Bank.

If the plan comes to fruition, Ikea will be one of a tiny number of international chains operating in Palestine. KFC and Pizza Hut have branches in the West Bank, but there are no global brand outlets in Gaza.

Talks between representatives of Ikea's franchising operation and Palestinian officials have been under way for several months, according to media reports. The Palestinian economy minister, Jawad al-Naji, is believed to be enthusiastic.

Ramallah has seen a huge construction boom over recent years, with apartment blocks springing up all over the city. A new Palestinian city, Rawabi, which will provide 10,000 homes, is also nearing completion.

However, in March, the World Bank warned that "Israeli-imposed economic restrictions continue to constrain sustainable economic growth. This situation is unlikely to change as long as political progress remains absent."

In the absence of major global chains, a string of West Bank coffee shops called Stars & Bucks has had considerable success. Using a logo almost identical to the US chain Starbucks, the Palestinian outlets in Ramallah, Bethlehem and Jenin serve cappuccinos in branded mugs, with free Wi-Fi, smoothies and sandwiches also on offer.

Ikea has two outlets in Israel and a third is due to open next year.