Palestinians get 1st private equity fund

Semi-official fund, Dubai-based private equity firm to provide initial $15 million in hopes of raising total to $50 million this year.

January 31, 2010 17:50
1 minute read.
Palestinians get 1st private equity fund

Fayad 298. (photo credit: AP)


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

Two Arab investment companies on Sunday announced the launch of the first private equity fund designed to boost the Palestinian economy.

The semi-official 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 $50 million this year. The investments would target small- and medium-sized businesses in the West Bank.

Be the first to know - Join our Facebook page.

Palestinian Authority Prime Minister Salam Fayyad, an internationally respected economist, 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 percent 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 managed well 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 the Palestinian 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

Muslim pilgrims circle the Kaaba and pray at the Grand mosque ahead of annual Haj pilgrimage in the
August 20, 2018
Muslims at hajj blame Arab disunity for Jerusalem embassy move