Abraaj Capital has opened an office in Palestine’s West Bank to support small-to-medium enterprise investment activity in Palestine.
Part of the firm’s SME platform, Riyada Enterprise Development, the Ramallah office will source and manage deals for the “Palestine Growth Capital Fund”, a Palestinian SME fund that Abraaj established in January in partnership with the Palestine Investment Fund (PIF).
Both parties committed $15 million each to the fund, which has a $50 million target. The Bank of Palestine is also among its limited partners, having committed $5 million. The fund intends to make between 20 and 25 investments over the next four years. It held a first close in January but has not yet made any investments.
The fund comes at an important time for the Palestinian economy when it is projected to grow by more than 7 percent this year.
Husseini said in a statement the fund was exactly what Palestinian entrepreneurs needed, adding: “The fund comes at an important time for the Palestinian economy when it is projected to grow by more than 7 percent this year, and when the Palestinian government is focusing more and more on developing the SME sector.”