Establishing an export finance facility for Palestine
The objectives of this activity is to provide practical support to Palestine to contribute to unlocking access to finance for MSMEs by conducting a study that will help establish an export finance mechanism to better serve the financial needs of SMEs exporters and help them expand, grow and create employment.
This study has been requested by the Palestinian authorities as a follow up the workshop on access to finance organised in Ramallah, on 8 February 2017. As spotted during this seminar, the underdevelopment of facilities meant at financing export stands as an impediment to the integration of Palestine into the global economy. The financial sector expressed a strong interest in crafting solutions that may include 1) export credit insurance to protect companies against non-payment due to commercial and political risks, 2) loans for Pre-Export Needs, 3) long-term open account credit, 4) long-term buyer credit, etc.
The establishment of some of these instruments will have a quick impact on the trade balance, investment flows and employment
Mr. Hussain Al Hijaz, CEO of Al Hijaz co., in a meeting that was conducted to discuss the need to establish an Export finance mechanism for Palestine, highlighted the importance of such mechanism for Palestinian economic development in general, and for developing Palestinian exports in specific. “This mechanism will encourage companies to export and expand the markets share of current exporters in regional and international markets, leading to more profit and job creation in the country” said MR. Al Hijaz.
Furthermore, he added: “The opening of an economy through exports is a driver of local investment, value chain upscaling and job creation. Exports of transformed products or services exert a structuring effect on local value chains that involve suppliers of inputs, service providers and small infrastructure builders that impact positively on local SMEs growth. Supporting exports of manufactured products and value added services is of particular importance and requires special attention in countries with limited market size and little access to the global trade corridors. This is notably the case for Palestine”.