Middle East Investment Initiative

The Middle East Investment Initiative (MEII) is a unique public/private partnership created by the Aspen Institute

to help foster economic activity, create new jobs and help Palestinians develop a strong stake in the future stability of the region. 

A 2004 study by the Portland Trust looking at the possibility of such a Palestinian loan guarantee initiative found that if investment capital was made available, small firms predicted a 400% increase in employment; medium and larger businesses predicted a 240% increase in employment; and firms across the sample predicted a 90% increase in average output.

An Overview:

Middle East Initiative (MEII) has partnered with the Overseas Private Investment Corporation (OPIC) and the Palestinian Investment Fund (PIF) to create a $160 million loan guarantee program for small and medium-sized businesses in the West Bank (and in Gaza when circumstances permit).

These small– and medium-sized enterprises businesses represent 90% of all registered businesses but are seriously hampered by a lack of access to credit. MEII will guarantee up to 70% of local bank loans to these businesses, offering additional support to banks to enhance lending capacity.

The initiative has received a strong endorsement from senior Palestinian officials and has been greeted enthusiastically by local banks.

Program Goals:

• Increase the credit available to Palestinian businesses
• Reduce collateral requirements
• Improve productive capacity of Palestinian businesses

Impact:

• Stimulate economic growth
• Create sustainable jobs
  Develop economic stakeholders

Find out more about CHF International's long-standing presence in the West Bank/Gaza