The European Investment Bank has pledged to make a EUR5m anchor investment in the first venture capital fund to target investments in export-oriented IT companies being launched in the Palestinian territories.
The EIB’s commitment was announced at a signature ceremony in Ramallah supported by the Palestinian Prime Minister and attended by Hassan Abu Libdeh, Minister of the Economy, and Mashhour Abu Daqqa, Minister of Telecommunications and Information Technology.
Prime Minister of the Palestinian National Authority Salam Fayyad (pictured) said: “Palestine is open for business. We support the Middle East Venture Capital Fund efforts to contribute to economic growth in Palestine and benefit from development of stronger business ties and shared experience with the outside world and thank the European Investment Bank for their trust in this project.”
Philippe de Fontaine Vive, European Investment Bank vice president responsible for Mediterranean partner countries, said: “The EIB is pleased to support the Middle East Venture Capital Fund in its goal to unlock significant business opportunities through combining international industry experience and risk capital, with the untapped talent pool and entrepreneurial energy that exists in the Palestinian territories.”
The fund will support the development of high-growth, export-oriented IT and communications companies through equity investment in early stage ventures. At present the expansion of this sector is held back by limited access to venture finance and by limited access to international markets. The fund will begin to operate once it receives additional commitments.
EIB is supporting the fund through the Facility for Euro-Mediterranean Investment and Partnership Trust Fund, enabling coordinated support for economic development in Mediterranean partner countries.
