Investment Fund, EU Launch Phase 2 of the Jerusalem Finance Facility for SMEs

Jerusalem, MINA — The Palestine Investment Fund (PIF) announced in a ceremony in Jerusalem on Wednesday the launch of the second phase of the Jerusalem Finance Facility that provides funding in the form of matching grants to Jerusalem-based small and medium-sized enterprises (SMEs) as a step to strengthen Palestinian SMEs in Jerusalem and provide them with the tools and support they need to thrive, WAFA reported,citing to a press release.

PIF launched the Jerusalem Finance Facility in early 2014. The program, funded by the European Union and implemented by the Palestine for Development Foundation (PsDF), supports SMEs in a number of sectors in Jerusalem, including tourism, manufacturing, IT, services, and tourism. The Facility has supported 21 SMEs with financing totaling some 1.7 million Euros, directly creating more than 110 jobs across six local sectors and within various target demographics, including youth and women.

Mohammad Mustafa, chairman of PIF’s Board of Directors, commended the program’s importance for Palestinians in Jerusalem. “PIF is committed to strengthening Palestinians in Jerusalem and contributing to their resilience. It is implementing a number of programs aimed at developing the city’s economy and creating sustainable employment opportunities. PIF is proud to be cooperating with the European Union in developing Jerusalem’s economy and private sector,” he said, adding that, “We hope to extend our cooperation with the EU to parts of Palestine classified as ‘Area C’.”

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Mustafa went on to remark on the importance to support and encourage private sector development in Jerusalem. “By funding entrepreneurs, the Jerusalem Finance Facility has contributed around 3.5 million Euros to Jerusalem’s economy. The ‘grant-matching’ mandate in the Facility requires beneficiaries to invest an amount equal to or greater than the grant they receive, demonstrating the commitment of these Jerusalem beneficiaries to pushing their work to new heights and boosting their operational and financial efficiency.”

He went on to point out that “boosting local efficiency helps generate new work opportunities for Palestinians in Jerusalem, thereby boosting economic activity in the city.”

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For his part, Ralph Tarraf, the European Union Representative in Jerusalem, expressed his pleasure in announcing the start of the second phase of the Jerusalem Finance Facility.

“Today, we are closing the project and launching what could be considered the second phase of that same project with the Palestinian Investment Fund. Through our engagement, we have provided grants to a number of micro, small and medium-sized enterprises in East Jerusalem. The EU considers the promotion of Palestinian businesses and the support in particular of the SME sector in Jerusalem as being of paramount importance—not just for economic, but also for political reasons,” said Tarraf.

“Our support inscribes itself in the perspective of our support to a two-state solution to the Israeli-Palestinian conflict. This perspective includes a vision for Jerusalem as a capital for both, the State of Israel and a future State of Palestine,” he added.

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Jamal Haddad, Director of the Palestine for Development Foundation, thanked the European Union for its role in providing matching grants in the programs first and second phases.

“The focus in the upcoming phase will be on smaller projects, in an effort to increase the number of beneficiaries. We aim to reach at least 50 beneficiaries in the next phase—demonstrating the Palestine for Development Foundation’s commitment to support Jerusalem’s economy,” said Haddad.

He added, “The Foundation implements a range of financing programs aimed at boosting economic development in Jerusalem, and partners with a number of international institutions as well as with the Arab Fund for Economic and Social Development. In the longer-term, we hope to increase and expand the Jerusalem Finance Facility’s funding, and reach many more beneficiaries.” . (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA