Economic development

Italy is driving transformation in Palestine with a significant commitment to economic development, allocating about a third of available funds to this crucial sector. With an investment of over 35 million euros, our initiatives focus on three key areas: Private Sector Development, Employment, and the Energy Sector.

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AICS is one of the most active donors in Palestine in the field of economic development, with a current portfolio of approximately €74.3 million, divided between concessional loans and bilateral cooperation projects.

Italy’s approach in Palestine focuses on three main operational areas: the development of the private sector, job creation, and support for the energy transition.

In terms of concessional loans, the three active credit lines aim to stimulate economic growth by revitalizing the local private sector, improving the electricity network in the West Bank, and promoting employment and income generation for the most vulnerable segments of society.

Other forms of funding, provided as grants, are intended to foster financial inclusion for disadvantaged groups, enhance the competitiveness of Palestinian businesses both domestically and internationally, strengthen the cooperative system and social entrepreneurship, and improve access to the labor market for young people through continuous vocational and technical training.

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Last update: 28/08/2025, 12:57