Supporting economic resilience in times of war
Supporting Economic Resilience in Times of War
In August 2024, SANAD along with a consortium of leading finance institutions came together and signed a financing agreement with the Bank of Palestine.
Impact spotlight
In the face of conflict and economic strain, the resilience of Palestinian territories' micro, small, and medium enterprises (MSMEs) is critical for the local economy. These businesses, which make up 85% of the country's economic activity, are central to local livelihoods and community stability. As the region copes with the ongoing repercussions of the Gaza conflict, access to liquidity remains very important.
To help meet this need, in 2024, SANAD partnered with the International Finance Corporation (IFC) and PROPARCO, the investment arm of the French Development Agency, to deliver a $65 million financing package to the Bank of Palestine—of which SANAD contributed $10 million. This support will enable the bank to extend vital financing to MSMEs, helping them survive today’s challenges.
This is more than a financial partnership, it’s a commitment to the people and businesses driving the Palestinian territories' future. By backing MSMEs, we aim to preserve jobs, support MSME resilience, and invest in a more resilient economy.
The financing credit line by the international consortium of IFC, PROPARCO and SANAD is an important financing tool equipping the bank with liquidity and the long-term ability to provide needed financing for a vital economic sector. The health of this sector would enable the real economy to revive, recover and grow.
Hashim Shawa | Chairman, Bank of Palestine
Use of proceeds
Bank of Palestine is one of the leading lenders to MSMEs and a main contributor to financial inclusion, sustainability and entrepreneurship. SANAD is providing essential liquidity to the bank to help finance MSME activities during the current crisis phase.
Impact of the partnership
This partnership will allow Bank of Palestine to increase its support for MSMEs, which are a core segment of its business operations. The financing expects to provide liquidity for many MSMEs in the West Bank, empower small businesses and support economic stability. The fund, through its advisory and capacity building arm, plans to support the bank with crisis-response grants for the end-borrowers.
