At different points during the 1890s to the 1940s Nicaragua, and many other Latin American countries, established laws or issued ordinances that restricted the entry of Arabs, forbade the stay of Arabs already present in the country and curtailed the expansion of their commercial activities.

[1] Although the exact number of Palestinians is not available, Guzmán writes "it is possible that from the end of the nineteenth century until 1917, when the Ottoman Empire entered its final decline, during World War I, 40 Palestinian families arrived in Nicaragua".

The Palestinians that arrived in Nicaragua were mostly Christians and a small number of Muslims, the majority of which came from rural villages near Ramallah, Jerusalem, Beit Jala and Bethlehem.

When the Palestinians arrived in Nicaragua, many came from rural areas and had experience with agricultural work which most continued doing, however, not many were able to buy land.

They received great profits after founding stores in cities such as Managua, Granada and Masaya, where the majority of which decided to settle.