The Road to the SDGs

impacts and reach a larger group of Palestinians, IsDB set up the EEFPP, with an initial target capital of US$ 500 million. X IsDB will also contribute a further US$ 100 million (20% of the target capital) to the Fund’s capital. X IsDB envisions that the new fund will empower more than 300,000 Palestinian families in the next decade. X The EEFPP is founded on a scientific economic vision, striving to establish an integrated framework and interlocking all economic fields in order to achieve the following objectives: – Resource sufficiency to cover the major needs of the target population – Scaling-up IsDB’s economic empowerment interventions in Palestine – Supporting the economic development and contributing to strengthening the resilience and immunity of the Palestinian economy – Developing and disseminating the concept of economic empowerment through Islamic finance mechanisms. X The EEFPP is expected to fulfil its mandate through the following modes of intervention: – Establishment of economic empowerment financial institutions in Palestine – Provision of lines of financing (LoF) to local banks and FIs to be leveraged to finance economic empowerment projects in Palestine – Equity participation in FIs and high-impact private sector companies and businesses – Provision of LoF to the economic empowerment programmes and projects – Capacity development, research, technical studies, M&E – Short-term investments — Investing in other funds or vehicles serving the mandate of the EEFPP. X The EEFPP will work in full partnership with the private sector as well as financial and non-financial institutions in Palestine and will coordinate with relevant government bodies such as the Palestinian Monetary Authority (PMA), the Palestinian Investment Promotion Authority (PIPA), the Palestinian Capital Market Authority (PCMA), and the Ministry of Economy and Social Development. ACHIEVEMENTS X One year after its establishment, the Fund mobilised an additional US$ 120 million from various partners, which increased its capital to US$ 220 million, or 44% of the final target. X This success comes at an early stage of the Fund’s operation and ahead of a comprehensive planned resource mobilisation activity. X Regarding the Fund’s governance, the Board of Shareholders has met twice under the chairmanship of IsDB President, and the Management Committee has met three times. X The Fund’s Board adopted the internal regulations of the Board of Shareholders and the Management Committee, the investment procedures and management rules, the reporting system, the LoF guidelines, and the business model of due diligence for LoF applicants. X The Fund’s team reviewed six investment opportunities, four of them approved by the Management Committee for further due diligence, and the remaining two will be submitted to the Management Committee in the second half of 2021. X The first contributions from the shareholders were settled according to the Shareholders’ Agreement. INVESTMENT X The following is a list of the Fund’s current shareholders: – IsDB: US$ 100 million – ISFD: US$ 52 million – Palestine Investment Fund: US$ 25 million – IZDEHAR Palestine Fund: US$ 30 million – Al-Aqsa Fund: US$ 13 million. X With regard to the Fund’s investments, three MoUs have been signed with the PMA, the PIPA and the PCMA, with the objective of obtaining the required incentive packages the Fund might need. X The Fund’s team is also working on updating a study for the establishment of the first economic empowerment company or bank in Palestine. E C O N O M I C E M P O W E R M E N T F U N D F O R T H E P A L E S T I N I A N P E O P L E IsDB set up the EEFPP with an initial target capital of US$500 million and will contribute a further US$100 million The Fund is expected to empower more than 300,000 Palestinian families in the next decade [ 131 ] T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S