The Palestine Investment Fund (PIF), a publicly owned investment fund, and private equity group Abraaj Capital announced Sunday the first closing of a $50 million private equity fund dedicated to Palestine.
The private equity fund will focus on investing in small- and medium-sized enterprises (SMEs) in Palestine across a range of sectors and stages of maturity.
With a first closing at $15 million, the initial commitments from the sponsors -- PIF and Abraaj -- will be supplemented by funds raised from investors in further closings planned later this year.
SMEs account for more than 95 percent of enterprises in Palestine, 84 percent of private-sector employment and 55 percent of gross domestic product, according to a statement from the firm.
Although SMEs are a critical backbone of the local economy, the sector is underserved in terms of access to capital and degree of institutionalization. The private equity fund will give access to much needed capital for growth and expansion, as well as leverage managerial, operational, strategic know-how and regional networks. It will also help strengthen corporate governance.
"Through this fund we are directly addressing the needs of Palestinian entrepreneurs who, as in other parts of the world, have the capacity to transform the lives of those around them by creating sustainable job-growth and raising living standards," said Arif Naqvi, founder and CEO of Abraaj.
© Daily News Egypt 2010
