Given their vital role in economic and social development, small and medium-sized enterprises (SMEs) lie at the heart of the Palestinian economy. That is why, the city of Jerusalem is believed to be largely dependent on maintaining efficient and ever-growing SMEs. Following the success of the first phase of Jerusalem Financing facility (More than 20 SMEs were supported during 2014-2017, 1.72M EUR grants were provided, and 110 new jobs were created), PIF and the European Union decided to launch a second phase of the Jerusalem Finance Facility, which targets the small and medium-sized Jerusalem businesses that operate mainly in a number of economic sectors. The program provides financing in the form of matching-grants (10,000 – 50,000 Euros) to businesses that prove their ability to implement its expansion plan and develop its business activities in order to achieve sustainable growth and sustain/create jobs for people in the Holy City and its surroundings. The program was launched in mid-2018 for the period of 36 months, with a total value of 2.30M EU. According to the agreed plan it is expected that 25-30 businesses will be supported IN 2019, noting that more than 55 SMEs are expected to be supported during the facility life (3 years) with more than 110 jobs to be created.

In 2018 PsDF, in collaboration with Oxfam with the financial support from SIDA, agreed to provide financing for small and medium businesses working to implement its expansion plan and develop its business activities. The program provided support mainly to finance the purchase of equipment and machinery that had impact on supporting the progress of work developing the project or assisting in the establishment of new ones mainly small-scale businesses. The average funding provided is around $10,000 (Matching concept – minimum 30% matching by the beneficiary). 9 projects were financed during 2018, where the facility will be working on monitoring, follow-up and finalizing the program in the first half of 2019.

PIF signed an MOU with Arab fund back in 2011. The MoU stipulated that Arab Fund would provide 4.5M USD to support Jerusalem SMEs through providing loans indirectly by financial institutions. To date PIF received 1.44M USD as first tranche of the total grant allocated to Jerusalem. By end of 2018 around 53 loans were provided to Jerusalem SMEs, with a total value of 2.5M USD, covering different sectors including Manufacturing, Services, trading, and Tourism. More than 50 direct jobs were created through the help of financing. A new Contract with Palestine Development fund (Microfinance institution operating in Jerusalem) was signed in the end of 2018 with a total value of 2.30M USD. PsDF will follow-up on the loan disbursement process and monitor the implementation process by PsDF.

Stemming from PIFs belief in the importance of creating sustainable programs that advance the development of the Palestinian economy, PsDF allocates resources for supporting programs that contribute, both directly and indirectly to the development of the Palestinian economy. In 2018, PsDF supported 40 organizations working in the fields of education, economy, culture, health, entrepreneurship and others.