Palestinians gets first private-equity fund

The investments will target small- and medium-sized businesses in the Palestinian Authority.

By BY ASSOCIATED PRESS
February 4, 2010 22:51
1 minute read.
Palestinian Authority Prime Minister Salam Fayyad.

fayyad 58. (photo credit: AP)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

RAMALLAH  – Two Arab investment companies this week announced the launch of the first private-equity fund designed to boost the Palestinian economy.

The semiofficial Palestine Investment Fund and Dubai-based private-equity firm Abraaj Capital will provide an initial $15 million, they said in a statement, hoping to raise the total to $50m. this year. The investments would target small- and medium-sized businesses in the Palestinian Authority.

Be the first to know - Join our Facebook page.


The cash is a welcome infusion into the battered Palestinian economy, which has been hobbled by the ongoing conflict with Israel, internal conflicts and restrictions on trade and cross-border traffic imposed by the IDF, citing security.

PA Prime Minister Salam Fayyad has said his government would work on boosting the economic and legal infrastructure needed for statehood in two years.

Fayyad has said he would move along with those plans irrespective of progress in peace talks with Israel. The fund could be significant in stimulating the kind of growth needed to bolster self-sufficiency for a government that relies on foreign aid for its revenues.

Bassim Khoury, a former PA economy minister, said the fund would represent a little less than 1 percent of the Palestinian gross domestic product of $4.5 billion.

About 40% of the government’s revenue comes in the form of direct foreign aid, he said.



Khoury said the fund could benefit the economy, assuming it is well-managed and sustainable.

“If you can ensure it is properly invested in the Palestinian economy, it can have a big effect,” he said.

The Palestine Investment Fund focuses on investments in PA-controlled territories. Dubai-based Abraaj Capital, which will manage the fund, works throughout the Middle East and North Africa, with offices in six countries.

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS