A number of Ministers resigned on 11 September 2002, facing a vote of no-confidence in the Palestinian Legislative Council (PNC).

While Israel since the signing of the Oslo Accords in 1993 continued establishing and expanding settlements throughout the Palestinian territories (including in Gaza until 2005) and refused to withdraw as stipulated in the Oslo Accords,[2][3] President Arafat was reluctant to transfer power, and opposition was growing from within and outside his own party, Fatah.

The Palestinian Authority infrastructure was largely destroyed[4][5][6] and in June 2002, after further extensive destruction, President Arafat was held hostage in his Mukataa in Ramallah for the second time within a few months.

Ministers were just appointed and dismissed by President Arafat, whose own term was the interim period of the Oslo Accords.

This 2002 Basic Law stipulated that it only applied to the interim period set by the Oslo Accords.

According to the Law, the Legislative Council (which should approve the Government) as well as the President of the Palestinian Authority (who should appoint the Ministers) were envisioned to function until the end of the interim period.

The 2002 Cabinet functioned until the 2003 Basic Law came into force in March 2003 and the political system was changed.