Last year witnessed several major economic, financial, and political developments. Most significant was the recognition of Palestine as a non-member observer State by the United Nations General Assembly on
29 November 2012. At the same time, Palestine has been experiencing serious financial and economic challenges, predominantly caused by Israeli occupation that has been and remains to be the single largest obstacle inhibiting sustained economic growth, and forcing its reliance on foreign aid.
Despite of these challenges, PIF has achieved positive results at the three levels: financial, economic, and institutional building. Thus presenting a model of a Palestinian institutions ability to sustain and deliver in an unstable economic environment.