The European Bank for Reconstruction and Development (EBRD) is boosting Palestinian export and import activities by providing a US$ 2 million trade finance line to the Arab Islamic Bank (AIB).
The trade finance line, given under the EBRD’s Trade Facilitation Programme (TFP), will be used to issue guarantees in favour of confirming banks for pre-export and post-import financing, and help private businesses there with their trade finance activities. This limit comes at a crucial time for the West Bank and Gaza, as the war in Gaza which started in October 2023 is impacting the economy of the West Bank. Recent estimates indicate that the local economy contracted by at least 6.4 per cent at the end of 2023 due to employment losses and rising security tensions, which affected mobility and business activity.
By joining the TFP and receiving the trade line, AIB will gain access to a global community of more than 100 issuing banks and 800 confirming banks, expanding its correspondent banking network and international business opportunities. AIB employees will be able to benefit from a wide range of seminars and training on trade finance best practice.
AIB is the largest Islamic Bank in West Bank and Gaza and a subsidiary of the Bank of Palestine (BoP), the largest bank in West Bank and Gaza and an EBRD client since 2020.
Mike Taylor, EBRD Director for Financial Institutions of the Southern and Eastern Mediterranean region, said: “We are delighted to welcome the Arab Islamic Bank into our network. This trade finance limit is our first limit with an Islamic bank in West Bank and Gaza, and will not just support Palestinian exporters and importers but also provide opportunities for trade finance training at AIB.”
Hani Nasser, General Manager of AIB, commented: “The cooperation with the EBRD is an important milestone for AIB as it will enhance trade facilitation services provided for AIB’s clients, in addition to having access to banks around the world through the network of EBRD partners. It’s an opportunity for AIB to establish strong relationships with new correspondent banks.— ebrd
