SANAD invests USD 1 million in Palestine Islamic Bank to expand financing opportunities for MSMEs
• USD 1 million investment to increase access to financing for local businesses
Luxembourg and Ramallah, February 03, 2022 – The SANAD Fund for MSME (SANAD) has partnered with Palestine Islamic Bank (PIB) to improve access to financing for local micro, small and medium enterprises (MSME). The fund’s investment of USD 1 million will enable PIB to expand liquidity to its MSME clients, which have been especially hard hit by the economic challenges presented by the ongoing COVID-19 crisis.
PIB operates through a wide network with 45 branches across the region, offering banking services to retail and MSME clients.
To mark this investment, along with five other agreements, a signing ceremony was held in the framework of the 3rd high-level meeting of the European Union (EU) – Palestine Investment Platform attended by the Prime Minister of Palestine, the EU Representative, representatives of the Governments of France and Germany as well as Germany’s KfW Development Bank, one of the initiators of SANAD. The initiative comes as a joint effort of Team Europe partners, the Palestinian Authority and private sector institutions to foster European investment contributing to job creation, sustainable growth, and welfare in the Palestinian territories.
SANAD Board Chairperson Dr. Daniela Beckmann said, “PIB is an optimal partner for helping SANAD pursue its mission of spreading financial inclusion in the Middle East and North Africa. Business owners need access to financial resources to grow, support jobs, and stimulate the local economy. PIB has strong experience in reaching out to our target group of entrepreneurs, and we are looking forward to generating on-the-ground impact together.”
PIB General Manager, Dr. Imad Al Sadi, concurred that this partnership is consistent with the bank’s policy to support MSMEs in overcoming their financial difficulties, which in return, will reflect positively on the economic activity and growth rate in Palestine. Further noting: “MSMEs are considered a main pillar of the national economy, and we have taken several measures since the beginning of the pandemic to support it overcome the crisis by increasing the volume of funding granted and offering various facilities to help the sector withstand this hardship.”
The SANAD Fund for MSME finances micro, small, and medium enterprises and low-income households in the Middle East and North Africa and selected countries in sub-Saharan Africa via qualified local lenders. SANAD thereby fosters economic development and job creation – including youth employment – agriculture, affordable housing, and innovations in finance and financial technologies. SANAD strives to meet these goals by providing debt and equity financing to its local partners. The SANAD Technical Assistance Facility multiplies the fund’s development impact and outreach through capacity-building with partner institutions, developing financial infrastructures according to the principles of responsible finance and conducting much required R&D.
An impact investment fund advised by Finance in Motion, SANAD’s investors include the KfW Development Bank, which initiated the fund; the German Federal Ministry for Economic Cooperation and Development (BMZ); the European Union; Switzerland’s State Secretariat for Economic Affairs (SECO); OeEB, the Development Bank of Austria; Germany’s GLS Bank and GLS Treuhand; the Dutch development bank FMO; and Calvert Impact Capital.
For more information on the SANAD Fund for MSME, please visit: www.sanad.lu
For more information on Finance in Motion, please visit: www.finance-in-motion.com
About Palestine Islamic Bank
The mission and vision of PIB revolve around providing comprehensive high quality and modern banking solutions, following the provisions of the Islamic Sharia laws, and investment within an advanced technological perspective. It also sets a deliberate strategy to proceed with the digital transformation process, which resulted in launching pioneering digital services such as the 24-hour digital contact center, Islami Online, and Islami Mobile, which offer a distinctive package of banking services through an easy and secure environment that enhances the digital experience for its individual and corporate customers. PIB has also recently won "The Best Islamic Bank Award" and " The Best Digital Bank Award" in Palestine for the year 2021, according to International Business Magazine (INTLBM).
For more information, please visit: www.Islamicbank.ps
Media contact – SANAD
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Media contact – Palestine Islamic Bank
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