The European Investment Bank (EIB) will invest €5m in the first venture capital fund aimed to support the economic growth in the new Palestinian Territories.
The new Middle East Venture Capital Fund, which will be managed by Saed Nashef and Yadin Kaufmann, will make equity investments in high-growth, export-oriented IT and communications early stage companies. It will begin to operate once it receives additional commitments.
The investment vehicle is expected to contribute to the development of the local ICT sector, a key priority for the Palestinian Territories as it is the only economic activity to have seen near continuous growth over the last decade. Software exports are not subject to the impacts of political uncertainty, such as obstacles to movement and access.
In order to succeed, the managers intend to partner with the Palestine ICT Incubator (PICTI) and other insititutions operating in the Palestinian ICT sector.
The fund will be supported through the EIB Facility for Euro-Mediterranean Investment and Partnership Trust Fund (FEMIP), which enables coordinated support for economic development in Mediterranean partner countries. Through it, the EIB has committed over €165m to 31 investment funds across the region.
FinSMEs
22/12/2009