SMEs Sector
SMEs are the backbone of the Palestinian economy. They make up 98% of the operating establishments in Palestine and are the largest employer of the Palestinian workforce.
Ibda’ Program for Young Entrepreneurs
Training track
Targeting entrepreneurs and young vocational trainees; The training section of Ibda’ program was launched in 2016 in partnership with the Ministry of Education and International Labor Organization (ILO) as well as some local organizations in order to provide them with the skills and knowledge necessary for entrepreneurship and starting their own businesses.
By the end of 2019, PIF have trained and qualified 250 teachers in all vocational schools and technical colleges in Palestine on “Know about Business (KAB)” curriculum. During the same year, about 40 small enterprises, with more than 50% of the beneficiaries were women, were launched by those trained in the program.
Ibda’ Program for Young Entrepreneurs- Funding track
It aims at providing loans to young entrepreneurs through Micro Finance Institutions (MFIs) and financial leasing companies operating in Palestine, to support both Start-ups and existing projects. The Arab Fund for Economic and Social Development provided a loan of $30 million to the program.
By the end of 2019, Ibda’ provided loans worth of $20.5 million to Microfinance Institutions and financial service providers, who in their return financed 1,712 projects through loans with a total value of $16.10 million. These loans contributed to the provision of 3,500 jobs. 40% of the beneficiaries of the total portfolio for these projects were women while all the loans targeted youths’ projects aged 18-35 year.
Economic Empowerment program for Palestinian Refugees in Lebanon
The program was launched to provide loans (ranging from $500-$5,000) targeting income-generating projects for Lebanon Palestinian refugees. It is implemented through four Palestinian and Lebanese lending institutions operating in Lebanon.
By the end of 2019, more than 4058 loans were provided in Palestinian refugee camps and communities, with a total value of $ 7.25 million. 51% of the total number of beneficiaries are young people, while 27% are women. Since its inception in 2012, this program succeeded in creating and retaining a record of 6,500 jobs.
Tamkeen Fund
PIF decided to invest an amount of $25 million in Tamkeen Fund over the coming few years. The Fund is an investment development vehicle with a capital of $500 million that was established by the Islamic Development Bank in Jeddah with a mission to enable the Palestinian economic environment by investing in economic viable projects that have developmental and social impact.
Jerusalem Matching Grants Facility
This program -funded by the EU and PIF – provides grants (matched by the beneficiary) to SMEs operational in Jerusalem, taking into consideration that MSMEs are the backbone of the economy in the holy city. A second phase of the program was launched in mid-2018 based on the successful track record of phase one that ended in 2017. The program targets SMEs that demonstrate their ability expand and develop their business activities with the goal of creating jobs for Jerusalemites.
By the end of 2019, it provided 25 SMEs with loans at the value of 870.00 Euro, thus; creating and retaining 180 jobs. 65% of the beneficiaries are young people (less than 36 years) and 24% are women, and 30% of the supported projects are start-ups.
Additionally, in partnership with Oxfam and loans from the Swedish Agency for International Development (SIDA); technical support (planning, feasibility studies, and needs assessment) was provided for 15 projects in the Old City of Jerusalem to develop projects and plans that incentivize shop-keepers to reopen their shops in Bab Al Jadid and Qataneen Market. Most of the shops that were supported were closed since 50 years due to the challenges set by the Israeli occupation in the Old City.
Jerusalem Program for lending SMEs
The program provides funding for SMEs operating in Jerusalem with flexible terms. The Arab Fund provided a $4.5 million loan portfolio for this program. Around 64 loans of a total value of $3 million were provided to SMEs in Jerusalem, covering various sectors including industry, services, trade, and tourism. The program managed to create 550 new job opportunities.
Development Impact Bond (DIB) Program
“Finance For Jobs – F4J” was launched as a first of its kind Development Impact Bond DIB in Palestine with the target of developing the skills young graduates in partnership of PIF, the European Bank for Reconstruction and Development (EBRD), Netherlands Development Finance Company (FMO), Invest Palestine, The Palestinian Chile Investment Fund “Olives Seeds” and a funding from the World Bank.
The main purpose of the First Palestinian Employment DIB is to match employment opportunities with suitable employees by purposefully training job seekers in employer-demanded skills. The DIB will target an estimated cohort of 1,000 Palestinian job seekers aged 18–29 years (of which at least 30 percent will be women) in several sectors such as; healthcare, nursing, online marketing, IT, education, engineering and others.
Asala Company for Credit and Development
PIF is a key shareholder in Asala, which aims to empower Palestinian women with low income and give them access to their economic and social rights. Since inception, Asala has provided over $ 45 million of loans to more than 20,000 beneficiaries.
Palestinian Ijara Company
Launched in 2013 through a partnership between PIF, the Islamic Corporation for the Development of the Private Sector (ICD) and Palestine Islamic Bank, Ijara is the first and only specialized Islamic leasing company in Palestine offering Islamic leasing solutions (ljara) to SMEs.
The company leases machines, equipment, vehicles and production lines on a lease-to-own basis; targeting the productive sectors and SMEs in the Palestinian market. With an initial investment of $12 million. Since its inception, Ijara has granted total leasing portfolio of over $34 million, and has executed more than 1,100 financial leases to over 500 companies.
Corporate Social Responsibility
During 2019, Palestine for Development (PsDF) which is PIF Social Investment arm continued to provide small grants to development programs and projects that seek to create sustainable impact in a wide range of areas such as; the local education, entrepreneurship, cultural, artistic, , medical and women organizations. It supported 41 organizations and associations in WB, Gaza and Jerusalem. PsDF continues its work within the social responsibility program and PIF’s Social Investment vision during 2020 to create sustainable community impact.
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