RAMALLAH/ PNN/
The European Union and the Palestinian Authority announced a €28.3 million investment under the Palestine Financial Sustainability Initiative on Tuesday, aimed at boosting access to finance for Palestinian businesses and supporting economic recovery amid mounting challenges.
The announcement came during the 7th meeting of the EU-Palestine Investment Platform, convened at the office of Palestinian Prime Minister Mohammad Mustafa. The meeting brought together Palestinian officials, European representatives, and leaders from the private and banking sectors.
The initiative, backed by the EU and the European Investment Bank (EIB) in partnership with the Palestine Monetary Authority, includes a €16 million EU guarantee facility and a €12.3 million EU grant. The funding will support micro, small, and medium-sized enterprises (MSMEs), with a focus on businesses in Area C, East Jerusalem, and Gaza, when conditions allow.
“This initiative is a concrete step toward empowering the Palestinian private sector and fostering economic recovery across the occupied Palestinian territories,” said Alexandre Stutzmann, the EU’s representative to the Palestinian Authority. “However, sustainable economic development cannot be fully realised without a political solution.”
Stutzmann reiterated the EU’s commitment to a two-state solution, calling for “an independent, viable, and sovereign Palestinian state living side by side in peace and security with Israel.” He added that economic progress and political resolution are interconnected, saying, “Today’s investment is a testament to our belief that stability and growth are essential parts of this vision.”
The EU-Palestine Investment Platform was established in 2020 as a mechanism for identifying and promoting investment opportunities in the Palestinian economy. It works to mobilize public and private financing under the EU External Investment Plan, prioritizing sectors aligned with Palestine’s development goals.
According to the EU, its member states and European financial institutions have so far provided approximately €1.15 billion in loans and financial instruments to vital sectors of the Palestinian economy.
The latest investment comes as Gaza remains in the grip of a worsening humanitarian and economic crisis. The EU said the initiative demonstrates its ongoing commitment to Gaza’s reconstruction and economic recovery when conditions permit.
The Palestine Financial Sustainability Initiative will complement existing EIB credit lines by offering portfolio guarantees, investment grants, and technical assistance to Palestinian businesses.
Prime Minister Mustafa welcomed the investment, emphasizing its role in stabilizing the economy and supporting private sector growth.
