The EU and the Palestinian Authority review EUR 1.42 billion of ongoing European investments in the Palestinian economy

Ramallah/PNN/

During a high-level policy meeting, the first edition of the European Union – Palestine Investment Review was presented, outlining Team Europe investments at a remarkable amount of EUR 1.42 billion, which forms over 10% of the Palestinian gross domestic product.

The Investment Review details and analyses all investment projects promoted by the EU as part of its Economic and Investment Plan, EU Member States, and European Financial Institutions, forming Team Europe in Palestine. It reveals that over the last years European partners stepped up their investments into the Palestinian economy. Of the total amount of EUR 1.42 billion, around 60% were committed only in the last two years showing remarkable growth in the mobilization of finance for Palestine.

The overall investments mobilized by Team Europe represent more than 10% of the Palestinian annual GDP.

The big bulk of investments is dedicated to boosting access to finance for SMEs, the backbone of the Palestinian economy.

Another significant area of investment is finance for energy, including renewables, energy infrastructure as well as energy efficiency.

The 3rd meeting of the European Union – Palestine Investment Platform was chaired by the Prime Minister’s Office and the European Union Representative Office with the participation of several representatives of Palestinian and European public intuitions. The event was attended by senior officials of the Palestinian Energy and Natural Resources Authority, Palestine Monetary Authority, Ministry of National Economy, Investment Promotion and Industrial Estates Agency as well as executives of the European Investment Bank, European Bank for Reconstruction and Development, French Development Agency Group, KfW German Development Bank and FMO Netherlands Development Bank.

The Prime Minister of Palestine, Dr. Mohammad Shtayyeh, said: ‘Upon launching of the EU – Palestine Investment Platform, it was clear that this is a significant, timely agreement that intersects with the Palestinian government’s goals and priorities to support and strengthen the private sector, especially SMEs that have been affected by the Covid-19 pandemic. We thank the European Union for this strategic partnership.

Europe has always been a champion in standing by Palestine politically while providing economic support and institution-building assistance, to achieve an independent, sovereign Palestinian state on the 1967 borders with Jerusalem as its capital.’

The European Union Representative, Sven Kühn von Burgsdorff, said: ‘Around one year ago, together with the Palestinian Prime Minister we launched a new joint policy forum to foster European investment in Palestine, the EU – Palestine Investment Platform.

Today we see a very positive trend of increasing volumes of quality investment by European partners through their development banks and financial institutions in cooperation with their Palestinian counterparts, working across different sectors of the economy, contributing to job creation and tackling climate change, sustainable growth, and welfare.’

The EU–Palestine Investment Platform was established by the EU and PA in an effort to foster policy dialogue on investment and to help better identify, prioritize, coordinate and promote investment opportunities that the EU External Investment Plan offers through its many instruments in Palestine.

The Platform serves to discuss policy priorities and investment projects in order to ensure alignment of publicly sponsored investments with political, policy, and reform priorities of Palestine.

The Platform also offers a coordination mechanism to enhance the process of planning, identifying, and implementing investment projects in Palestine.

The work of the Platform contributes to the EU’s ‘Renewed partnership with the Southern Neighbourhood: A new agenda for the Mediterranean’, the objective of which is to address common challenges, take advantage of shared opportunities and unlock the region’s economic potential for the benefit of its people.

The activities of the Platform feed into the accompanying ‘Economic and Investment Plan for the Southern neighbors’ which foresees to support partner countries in their recovery efforts, contribute to increasing competitiveness and support sustainable and inclusive growth

The EU’s ambitious External Investment Plan has been set up to encourage investment in its partner countries. It is promoting inclusive growth, job creation, and sustainable development. The External Investment Plan is crowding in private investors, where viable business proposals meet social needs, and where limited public funds can attract private money.

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