On 8-9 November 2022, the OECD organised a public-private dialogue (PPD) on “Improving access to finance for SMEs in Palestine” jointly with the European Union, the Ministry of National Economy and the Palestine Monetary Authority. It was the third meeting of the Working Group on SMEs Finance in the framework of the European Union – Palestine Investment Platform and was organised under the EU-OECD Programme on Investment in the Mediterranean, which supports reform efforts to advance sustainable growth in the Middle East and North Africa region.

The meeting was opened by H.E. Dr. Feras Milhem, Governor of the Palestine Monetary Authority and featured the participation of Ministers of National Economy and Telecommunication and Information Technology. Access to finance for MSMEs in Palestine is of crucial importance for the Palestinian economy given that they represent more than 95% of all firms, contribute to over 55% of GDP, and employ around 85% of the active working population. Although Palestinian banks have sufficient liquidity to finance projects, issues such as high collaterals and high interest rates are still limiting factors for the expansion of small enterprises.

The meeting discussed policy options to improve the enabling environment for SMEs access to finance in Palestine and define a set of priority reforms to improve financial inclusion, advance the green and digital transition agenda, as well as improve data availability for SME access to finance. The Minister of National Economy, Mr. Khalid Al-Esseily also stressed the need for real dialogue and partnership between the public and private sectors to improve the national economy, as well as the importance of addressing informality and integrating women into the economic process.

The meeting gathered around 100 participants on site and online from different ministries and the private sector, academia, international organisations, EU embassies, and was covered by the media (1) (2). Following the PPD, the OECD is engaging in further discussions with the Investment Promotion and Industrial Estate Agency and relevant ministries for possible further support on start-ups and entrepreneurship.