EU, EIB roll out 400 million euro financing for Palestinian businesses

Brussels – The massive European funding package of 400 million euros to revive the Palestinian business sector has officially been launched. The agreement, signed in October 2025 between the European Investment Bank (EIB), the European Commission and the Palestinian Monetary Authority (PMA), is now entering its operational phase: according to the EIB, €395 million will be injected into local banks to support micro, small and medium-sized enterprises, while the remaining €2.1 million will be invested in technical assistance programmes. 

Deputy Governor of the PMA, Mohammad Manasrah, welcomed the news. “The implementation of this package marks a concrete step in reinforcing the Palestinian financial sector’s ability to support businesses during a period of exceptional strain… enabling businesses to continue operating, adapt to difficult conditions and sustain economic activity,” he noted.

With this funding, the European Union is continuing the “multiannual programme for Palestinian recovery and resilience,” a plan worth 1.6 billion euros adopted  by the EU Commission in April 2025 to support Palestine’s recovery and resilience over the next three years. Since October 2023, the EU’s financial commitments to Palestine have amounted to nearly 740 million euros in grants and loans. 

The funds will be distributed through five local banks: the Bank of Palestine, the National Bank, Quds Bank, Cairo Amman Bank, and Palestine Investment Bank, to expand access to credit for Palestinian businesses that continue to face the severe economic pressures of the conflict. According to Gelsomina Vigliotti, Vice-President of the EIB, the EU is making funding available “precisely where it is most needed.” Meanwhile, the Acting Director-General of the European Commission’s Directorate-General for the Middle East, North Africa and the Gulf, Michael Karnitschnig, highlights that the fund allocated to Palestine “is delivering tangible results” because “it is not just an investment in enterprises; it is an investment in jobs, resilience, and the future of Palestinians.”