PIB signs agreement with SANAD to support MSMEs in Palestine
Under the patronage and presence of HE the Prime Minister Dr. Mohammad Shtayyeh, Palestine Islamic Bank (PIB) signed an investment agreement with the SANAD Fund to support micro, small and medium enterprises (MSMEs) in Palestine at the Prime Minister’s Headquarter in Ramallah.
The agreement will allow SANAD to extend financing to MSMEs valued at USD 1 million through PIB to support these entities, particularly those that were affected by the Covid-19 pandemic and its economic repercussions.
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.
Dr. Imad Al Sadi further noted: “This sector is 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. This comes in addition to the financing provided by the “Estidama Fund” program in partnership with the Palestine Monetary Authority.
Dr. AlSadi confirmed that PIB stands ready and open to consider more local or foreign partnerships that contribute to strengthening the MSME sector given its importance to the overall economic growth of the country and in fulfilling sustainable development objectives.
Dr. Al-Sadi thanked PM Shtayyeh for his ongoing support of the Bank and for sponsoring this type of commitments that contribute to development and to the sustainable growth of the Palestinian economy.
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.”
The agreement was signed in the presence of HE the Governor of the Palestine Monetary Authority Dr. Firas Melhem and a number of bank general managers, in addition to EU representative Sven Kühn von Burgsdorff, Consul General of France Rene Troccaz and representatives of the Federal Republic of Germany, the German Development Bank and the European community.
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.
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).