SANAD invests USD 2 million in Palestine Ijara Company to expand access to financing for local businesses

Luxembourg and Ramallah, January 31, 2020 – The SANAD Fund for MSME (SANAD) has partnered with Palestine Ijara Company (PIC) to improve access to financing for local small and medium enterprises. The fund’s facility of USD 2 million will support PIC in extending leases to entrepreneurs – an important financing tool for companies whose limited collateral can hamper their ability to obtain bank loans.

This is SANAD’s second partnership in the Palestinian leasing sector. A leading provider of business leases, PIC shares the fund’s focus on expanding financing to small and medium enterprises. PIC closely tailors its products to the needs of this clientele and is the only local company which offers Islamic leasing services, giving access to finance to those who prefer Islamic over conventional financing. The company will use part of the SANAD investment to support entrepreneurs in the particularly underserved Palestinian agricultural sector.

SANAD Board Chairperson Dr. Daniela Beckmann said, “PIC is an optimal partner for helping SANAD pursue our mission of spreading financial inclusion in the Middle East and North Africa. Business owners need access to resources in order to grow, support jobs, and stimulate the local economy. PIC has strong experience in reaching out to our target group of entrepreneurs, and we are looking forward to generating on-the-ground impact together.”

Ijara Board Chairperson Mr. Bayan Qasem said, “This partnership is a proof of sustainability of the Palestinian financial sector and its ability to grow. It comes as a result of following high standards of governance, integrity and transparency, which gave SANAD confidence to invest with us. This investment will support the development of the Palestinian economy, especially the SME sector, and meet the financing needs of the local market by providing more integrated Islamic financial leasing services programs. SANAD is a strategic partner which will help PIC expand its financial capabilities and programs that will impact an important developing sector in Palestine.”

About SANAD 

The SANAD Fund for MSME finances micro, small, and medium enterprises and low-income households in the Middle East and North 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 Ijara Company

Palestine Ijara Company “PIC” is a specialized company in providing rental services compatible with Islamic Sharia. PIC rent out machines, equipment, and production lines with lease-to-own programs to all developing sectors in the Palestinian market, especially the industrial, agricultural and construction sectors. 
PIC was established in November 2013 and commenced its activities in 2014, in partnership with the Palestine Islamic Bank and Palestine Investment Fund and the Islamic Corporation for the Development of the Private Sector (Jeddah).

For more information, please visit: www.palijara.com

Media contact – SANAD Fund for MSME
Nikki Eggers
Senior Officer, Marketing & Communications
Phone: +49 (0)69 271 035-470 
Email: press@sanad.lu

Media contact – Palestine Ijara Company
Aseel Asfour
Administration Officer
Phone: +(970) or (972) 2 297 9895/6/7
Email: info@palijara.com