Arab and Islamic funds commit $72 million for Palestinian development

Arab and Islamic development funds have committed $72 million to finance more than 210 development projects across Palestinian territories and refugee camps in Lebanon, Palestinian Prime Minister Mohammad Mustafa announced Monday. The substantial funding package aims to strengthen Palestinian institutions and infrastructure despite ongoing financial pressures and political challenges facing the Palestinian Authority.

Project Distribution and Funding Sources

The development initiatives will span critical sectors including education, public works, healthcare, vocational training, economic empowerment, and rural community development. According to the Prime Minister's office, the Al-Aqsa Fund managed by the Islamic Development Bank contributed $32.7 million, while the Arab Fund for Economic and Social Development provided $38.5 million. The projects represent implementation of the government's "national program for development and modernization" through ten vital sectoral initiatives designed to strengthen Palestinian resilience.

Addressing Severe Financial Crisis

The funding announcement comes as the Palestinian Authority confronts a severe financial crisis exacerbated by Israel's withholding of Palestinian tax revenues. Prime Minister Mustafa stated that Israel has withheld revenue transfers for approximately six months, with accumulated frozen funds reaching nearly $4 billion since 2019. The Palestinian government has called on international donors and partners to pressure Israel to release the withheld revenues and provide immediate budget support for the next six months to maintain essential services.

Longstanding Partnership and Regional Impact

Nasser Qatami, the prime minister's adviser for Arab and Islamic funds, emphasized that these institutions have served as "true partners in bolstering Palestinian resilience" beyond mere financiers. Over the past 23 years, these funds have supported thousands of development projects throughout the West Bank and in Palestinian refugee camps in Lebanon, where approximately 493,000 refugees face difficult living conditions. More than half reside in twelve camps officially recognized by UNRWA, maintaining Palestinian presence and infrastructure despite numerous challenges.