The private equity fund, with a first closing at $15m, will focus on investing in small- and medium-sized enterprises (SMEs) in Palestine across a range of sectors and stages of maturity.
Reportedly, SMEs account for more than 95% of enterprises in Palestine, 84% of private-sector employment and 55% of gross domestic product. However, 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, and leverage managerial, operational, strategic know-how and regional networks.
Abraaj, through its SME investment-management platform Riyada Enterprise Development, will manage the fund, which is expected to make 20 to 25 investments over the next four years.
Arif Naqvi, founder and CEO of Abraaj, said: “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. Through it we also aim to provide top-tier returns to our investors.”
Mohammad Mustafa, chairman and CEO of PIF, said: “This is a great vote of confidence for the Palestinian economy highlighting that Palestine is open for business and that the country offers excellent opportunities for investors.
“Investments like these not only give investors – local and international – potentially excellent returns but are crucial in strengthening our economy, supporting innovation and entrepreneurship, building locally based regional platforms, transferring know-how and creating hundreds, if not thousands of new jobs.”
Abraaj Capital, a member of the Abraaj Capital group, is licensed by the Dubai Financial Services Authority. It is a private equity group in the Middle East, North Africa and South Asia (MENASA). It operates offices in six countries across the region, including Turkey, Egypt, Saudi Arabia and Pakistan, with its base in Dubai.
The Palestine Investment Fund, a publicly owned investment company, focuses on real estate, hospitality, finance, industry, telecommunications, power & energy sectors.
