Category: Uncategorized

Masri: We are determined to continue developing our economy

Rawabi, 11 May 2022 

The General Assembly of Palestine Development and Investment Company Ltd (PADICO) held its 27^th annual meeting on 11 May 2022 via electronic communication technology, with the participation of shareholders who hold shares in person and by proxy at 70.7% of the company’s capital, the company’s Secretary General as rapporteur for the meeting, the legal advisors, the external auditor, the representatives of the Palestinian Capital Market Authority and the Palestine Exchange.

During the meeting, the Chairman of BOD, Bashar Masri, presented the Board’s report of 2021, highlighting the most important achievements and successes achieved by the company despite the challenges it faced in that year.

All topics and recommendations on the agenda were also discussed, and the General Assembly approved the administrative report of 2021, the financial statements and the auditor’s report for the fiscal year 2021, in addition to acquitting the members of the BOD, re-electing Ernst & Young as an auditor for the fiscal year 2022 and delegating the Chairman of the Board of Directors to determine its fees.

During the meeting, Masri said, in 2021 were able to overcome Corona pandemic repercussions, after it negatively affected most economic sectors in Palestine and the world at large. We also succeeded, despite the damages our facilities in the Gaza Strip suffered during the last aggression, in moving forward with our vision for the development of the Palestinian economy, and praise be to God, we have reaped the fruits of the great effort and continuous work of manage PADICO’s companies during the last period, which appeared through the financial results 2021. We are determined to continue developing our path, support our investments, and enhance our financial and operational performance in various sectors.”

He added, “Our vision for this year and upcoming years is represented in creating further job opportunities, focusing on areas that witness exceptional circumstances, which investors find it difficult to take risk in them, especially in Jerusalem and Gaza Strip.”

It is worth noting that PADICO achieved large growth of more than 400% in 2021, which amounted to $21.1 million compared to $4.1 million in 2020. It is also noted that the company was able to achieve great success in the third issue of its bonds, the proceeds of which were allocated to amortize the previous bonds, and the bond subscription process witnessed a large acceptance from investors that exceeded the required amount.

As regards the financial performance for the first quarter of 2033, the company achieved net profits that amounted to $6.8 million compared to $5.9 million for the same period of 2021, equivalent to 16%. On this issue, Masri commented that this growth in profits confirms the integrity of the vision and strategy adopted by the Board of Directors in the past few years and is an obvious reflection of the financial position of the company.

In his response to some questions from shareholders about the non-distribution of dividends, Masri said: “once again, I stress that the company’s current policy, which was approved by the Board of Directors on behalf of the shareholders, is to strengthen the company’s financial position to inject more liquidity into the Palestinian economy, which suffers from a scarcity of investors. Some investors want us to distribute dividends, while most shareholders invested in PADICO to be a part of a long-term investment in Palestine and prefer to achieve better returns and sustainable distributions in the future. We hope that the company will be able to distribute dividends to shareholders in the coming years, noting at the same time that PADICO and its companies have distributed more than $1.5 billion since its establishment.

At the level of the important developments witnessed by the PADICO group of companies, Masri pointed out the importance of the efforts led by PADICO during the past two years in modifying the structure of the Palestinian Telecommunications Company to focus its work and basic activities on the communications and information technology sector, by transferring real estate and financial investments to a new company specialized in the field of real estate development in Palestine. Masri added that these efforts were recently culminated by registering “Arkaan Real Estate” company whose founders will be the shareholders of Paltel, each according to his/her number of shares in Paltel on the expected maturity date at the end of next month, and the set date will be announced next month and the new company will be listed in Palestine Exchange at the beginning of the coming July after a few days of the maturity date.

It is expected that “Arkaan Real Estate” company becomes one of the largest listed companies with an asset base of $350 million, including the Jericho Gate project which is being implemented on a total area of more than three (3) million square meters, in addition to a strategic land portfolio in the West Bank and Gaza Strip that qualifies it to implement large real estate projects, along with local developers and contractors on a partnership basis, and to provide the necessary support for the development of this vital sector in order to achieve an urban renaissance.

Arkaan Real Estate company will have investments in financial companies, which will generate annual profits that enhance its financial position and capability to invest in real estate development.

It is worth noting that the Board of Directors of BRICO Real Estate Company is expected to decide not to invest in new projects so that Arkaan Real Estate Company will become the only real estate investment arm of the group.

In line with the state of growth and advancement witnessed by the PADICO Group, Masri pointed out that the company is continuing to consolidate the rules of governance to include all aspects and leadership levels in the group by providing the boards of directors of its subsidiaries and affiliates companies with diverse expertise and competencies.

Rawabi, 31 October 2021

PADICO Holding announced the results of its performance and financial statements by the end of the third quarter of 2021. The financial results of the company revealed a growth in its net profits at $17 million compared to $2.3 million for the same period of last year, which is an increase of 600%.

Regarding these positive financial results, the chairman of PADICO BOD Bashar Masri said, “PADICO continues to grow and develop.” He attributed the profit growth in the third quarter to the improvement in the business results of most of the subsidiaries and affiliates companies, especially since the private sector companies returned to better operation and production, with the exception of the tourism sector companies, which are still suffering from the repercussions of the pandemic in light of the continued restrictions on incoming tourism.

Masri continued saying that the company achieved profit growth despite its investments in the Gaza Strip, which is still suffering from losses as a result of the last aggression and the continuous siege on Gaza that led to the economy shrinking.

Masri added that the company was able to achieve during the third quarter a considerable achievement by issuing new bonds worth 120 million dollars last August with the participation of 11 local and regional investors, from banks operating in Palestine, in addition to joining new investors to this issuance including financial and public institutions and provident funds, where there was an oversubscription of 15% over the total value of the issue, which reflects the state of satisfaction of bondholders, as a result of the company’s fulfillment of all its obligations in the previous issuances, which also affirms the strong financial position of the company.

Moreover, the equity grew by 9.7%, rising from $448.9 million at the end of 2020 to $492.5 million at the end of the third quarter of this year, equivalent to $43.6 million, and assets grew from $780.0 million to $809.3 million, equivalent to 3.8%. As for liabilities, they decreased by $14.3 million, as a result of a decrease in the level of borrowing from $253.7 million to $242.6 million, equivalent to 4.4%.

Operating a solar power plant and adding a new source of water in Jericho Agro-Industrial Park (JAIP)

Rawabi, 24 October 2021 

The Investment Promotion and Industrial Estate Agency (IPIEA) signed an agreement with Jericho Agro-Industrial Park (JAIP) for the development, management and operation of JAIP, a subsidiary of PADICO Holding, a management, operation and maintenance agreement of the Solar Energy Project in JAIP, and another agreement to provide JAIP with additional water resources through the Palestinian Water Authority.

IPIEA in the two agreements was represented by the Chairman and the Minister of National Economy Khaled Osayli, while the Water Authority was represented by Minister Mazen Ghneim and JAIP was represented by its Chairman Khaled Anabtawi.

The solar energy system project aims to provide alternative energy with a production capacity of two megawatts that will contribute to reducing the cost of electric power to factories, which will contribute to increasing the competitiveness of JAIP. This project was implemented with the support of the United Nations Development Program (UNDP) and the Japanese government.

While the second agreement aims to provide JAIP with an additional regular source of water from the sources available in the Jericho Governorate and the Jordan Valley, at a rate of 150 cups per day, for industrial and drinking purposes.

In this context, Al-Osayli affirmed the authority’s commitment to providing facilities to investors in general, especially projects in industrial areas, which are considered a national priority for their ability to advance development, production and creating job opportunities.

For his part, Anabtawi said that solar energy projects are very feasible for industrial facilities and have an effective role in reducing production costs, as electricity is one of the most important production inputs. Consequently, the presence of solar energy to feed these factories with electricity is not only beneficial to them, but also contributes to increasing the competitiveness of these factories with their local and regional counterpart.

Anabtawi added, “The solar energy system project was implemented on the roofs of 22 hangars in JAIP, with a total area of ​​21,000 square meters, especially since the staff of PADICO has experience in managing and operating alternative energy projects, and the water agreement comes to ensure regular and permanent water supply for factories, which contributes to ensuring the continuity of their production.”

He also pointed out that JAIP has become, after the signing of these two agreements, a more attractive district for investment, noting that the industrial electric tariff has been approved previously by the government.

It is worth noting that the total area of JAIP is 615 thousand square meters. The first phase of the development of the Park, which is located on 140 thousand square meters with an integrated and appropriate infrastructure to meet the needs of the industrial and agricultural projects, was completed. And it was built with a high level of technology with its inclusion of multiple systems that preserve the environment and energy within effective management. Currently, preparations are underway to start work on the infrastructure works for the second phase of the project.

Rawabi, 23 October 2021 

The Gaza Industrial Estate Rooftop Solar Energy Project of Gaza Industrial Estate (GIE), which was established by PADICO Holding, received the United Nations Global Climate Action Award entitled “Self-Reliance”, in the category of financing for the purpose of investing in environmentally friendly projects in cooperation with between the International Finance Corporation (IFC), the World Bank Group and PADICO Holdings. The UN Global Climate Action Award was announced in Bonn. The handover ceremony will take place at the United Nations Climate Change Conference (COP26) to be held in Glasgow next month.

The International Prize for Climate Action is a prestigious global award, which is granted by the United Nations World Climate Organization for the first time to Palestine, highlighting creative projects and the ability of peoples around the world to confront climate change.

Masri inaugurated the generation of electric power from solar energy project in Gaza Industrial City last March, in line with PADICO’s vision of investing in environmentally friendly development projects. This project is considered the biggest of its kind in Palestine and the second in the Middle East with a production capacity reaching 7.3 megawatts and a total amount of around $12 million.

The project provides electricity for all factors, commercial facilities and the international organizations existing in the Gaza Industrial City.

Masri expressed his pride that the project has been awarded this prestigious award by the United Nations, especially since it is considered an ideal solution to the large deficit in electrical energy that the Gaza Strip suffers from, due to the siege imposed on the Strip for 14 years.

Masri added that this award is to our steadfast people in Gaza Strip living under the siege with patience after the destruction to heal their wounds. This strategic project has been launched to alleviate their sufferings and to contribute to strengthening the economic structure there, despite the destruction of a large part of it during the last aggression on the Gaza Strip, which incurred Gaza Industrial Estate losses exceeding $12 million. Moreover, this award confirms the capability of our people to build their state and economy through sustainable projects. We have a strong will and solid determination to build the economies of countries and today we seek to advance our state and people.

In his turn, Khaled Anabtawi, Chairman of the Board of Directors of PADICO (the developer of Gaza Industrial City), said that the project contributed to the high rates of operation and the reduction of production costs in Gaza Industrial City, as a result of the availability of a permanent and uninterrupted source of electricity, which means creating additional job opportunities. This greatly affected the private sector and economic facilities in Gaza, and today the factories in JAIP are working permanently with regular electricity and at a lower tariff.

He added that PADICO staff has worked for long years on this project challenging several difficulties and obstacles in order to bring in materials and special solar cells in the construction of the project. But thanks to God and everyone’s efforts, we have overcome that and were able to complete the project in record time.

He pointed out that this is the second international award granted to this electricity generation project from solar energy on rooftops in Gaza Industrial City, where the project received the Excellence Award from the World Bank Group in 2019, in recognition of the efforts it made in overcoming all risks to ensure the sustainability of the project that meets one of the main needs in the sector.

Bashar Masri: Strong results give rise to optimism and the second half will be better

Rawabi, 15 August 2021 

PADICO Holding achieved a qualitative growth in its profits for the first half of 2021, which amounted to $12.8 million compared to losses of $2 million during the same period of 2020, despite the huge losses incurred by the company’s investments and projects in the Gaza Strip during the recent Israeli aggression in the Gaza Industrial City, and the damage to the solar power generation project from solar energy that was operated last March.

Bashar Masri, PADICO’s Chairman of BOD said that the results of the first half are an indication that PADICO is going in the right direction, as it was able to cross a difficult stage with stability and steadfastness, achieving exceptional growth despite the difficult conditions experienced by the global economy, which directly and indirectly affected the company during the Corona pandemic.

Masri added that these strong results give optimism and I hope that the performance in the second half of the current year will be better, God willing, and I assure all that the future carries further growth, especially with the determination and confidence of investors and shareholders in the capability of the company to accomplish achievements.

Revenues grew in the first half of this year by 37%, from $47.4 million to $65 million. PADICO attributed this growth in revenues to the increase of PADICO share from the results of the allied companies from $7.5 million to $17.4 million.

As for equity, it grew by 9% as a result of its increase from $448.8 million to $490.6 million, an increase of $41.8 million. This growth was supported by the increase in the prices of many traded shares in which PADICO and its subsidiaries and affiliates invest in the local and regional markets.

As regards the assets, it grew by 4.3%, equivalent to $34 million, from $780 million at the end of 2020 to $814 million in the end of the first half of 2021. At the level of liabilities, in its turn, it dropped by $8.1 million as a result of the decrease in the level of borrowing from $253.7 million to $246.8 million, equivalent to 2.7%.

It is noteworthy that PADICO Holding achieved great success, a few days ago, by issuing bonds worth 120 million dollars, as it witnessed a large acceptance from investors, which resulted in an oversubscription of 15% over the total value of the issuance.

It is remarkable that PADICO Holding invests in vital and diversified sectors, most important of which is communications and information technology, financial services, real estate, tourism, industry and agriculture and industrial cities, in addition to infrastructure and energy. It continues to work to achieve its mission and commitment to help develop the Palestinian economy, create job opportunities, and launch creative economic initiatives.

Masri: The great success indicates the confidence of investors

Rawabi, 10 August 2021

PADICO Holding issued new bonds in $120 million, with a term of five years, where the entire value of the issue was covered, in a private subscription with the participation of 11 local and regional investors.

Bashar Masri, Chairman of PADICO’s Board of Directors, expressed his happiness for the high confidence in PADICO, especially that the subscription process witnessed great acceptance by investors, especially from banks operating in Palestine, in addition to the joining of new investors in this issuance from financial and public institutions and provident funds. The volume of the subscription amounted to 138 million dollars, a 15% surplus over the total value of the issuance, which amounted to 120 million dollars.

Masri clarified that the majority of banks that subscribed to the first and second issues renewed their subscriptions to the new issue, which reflects the state of satisfaction of bondholders, as a result of the company’s fulfillment of all its obligations in previous issues.

The general assembly of subscribers in bonds held its first meeting with legal quorum, in participation with representatives of investors, including banks and financial institutions in the presence of the Governor of the Monetary Authority, Dr. Firas Melhem, CEO of the Palestinian Capital Market Authority Buraq Al-Nabulsi, Director General of the Palestinian Deposit Insurance Corporation Zaher Al-Hamouz, Chairman of the Board of Directors of the Palestine Exchange Maher Masri and founders of PADICO Sabih Masri and Munib Masri and members from its Board of Directors and Executive Management.

The general assembly of subscribers of bonds elected the Arabi Group Company for Investment as the trustee of the issuance.

The general assembly of subscribers in PADICO Company had previously approved during an extraordinary meeting, the issuance of the new bonds in an amount of $120 million.

In this context, the governor of the Monetary Authority, Firas Melhem said, “The decision of PADICO Company to issue the third bonds is in line with the direction of the Monetary Authority to encourage major companies to obtain financing through the issuance of bonds. We consider the new issuance as an achievement for PADICO and the Palestinian economy, especially since it comes after a ten years of experience for the Company, where it was the first to issue bonds at the level of the private and public sectors, and we wish PADICO all success in its growth and giving.”

For his part, the CEO of the Palestinian Capital Market Authority Buraq Al-Nabulsi said that PADICO complied to all the requirements of bonds issuance, specifically the Securities Law No. (12) of 2004, and the instructions for issuing securities issued by the Authority’s Board of Directors in 2008, including the Bonds Issuance Publication that included information and data needed to be included in the publication, so as to enable investors to take the decision to subscribe in bonds.

In his turn, the Arab Bank Regional Director, in his capacity as the trustee, expressed his appreciation and thanks to the bonds’ owners for the confidence and election of the Arabi Group for Investment as trustee of the issuance, affirming that the group will work with PADICO and the bonds’ owners to complete the issuance procedures and commitment to laws and regulations in a manner that guarantees the success of the process.

It is noteworthy that the new issuance bonds bear specifications and conditions similar to the previous issuance in terms of coverage ratio, guarantees and other conditions. They are bonds secured by a share pledge and represent an excellent debt, as the value of these shares covers 130 percent of the total nominal value of the bonds, and it includes shares traded for subsidiaries and affiliates of PADICO.

The investors in PADICO bonds will earn a return of not less than 5% during the five-year period of the bonds and the return will be paid semi-annually.

It is worth noting that PADICO Holding invests in various vital sectors, the most important of which are communications and information technology, financial services, real estate, tourism, industry and agriculture, and industrial zones, in addition to infrastructure and energy. It continues to work to achieve its mission and commitment to help develop the Palestinian economy, create job opportunities, and launch creative economic initiatives.

Masri:  Recent events will only increase our determination to invest for the sake of the country

Amman, 31 May 2021

PADICO General Assembly held its 26^th annual meeting through visual communication technology, today, Monday, in the presence of shareholders holding shares in person and by proxy, which constitute 72% of the company’s capital, in addition to the company’s Secretary General as rapporteur for the meeting, the legal advisor and the external auditor.

The meeting was headed by the Chairman of PADICO BOD Bashar Masri, who welcomed the attendants and presented the Board’s report of 2020, mentioning the most important achievements accomplished by the company and the challenges confronted during the year.

In his presentation, Masri said, “the year 2020 constituted an unprecedented challenge in our path due to Corona pandemic, which affected the entire economic sector that the company invests in them. The largest damage was in the tourism sector, which has witnessed a complete cessation of work since the first of March 2020, as its losses exceeded $1.5 billion in Palestine, and the gross domestic product decreased by 12%.”

Masri added, “We passed through this difficult stage with stability and steadfastness thanks to the wise policies adopted by the company’s BOD in the past few years, which were represented in controlling expenses, carefully distributing profits, and stopping the bleeding emanating from some projects, which contributed to strengthening the company’s financial position.” Masri pointed out that despite the large impact of the Covid-19 pandemic on the entire economic sectors in Palestine, PADICO and its subsidiaries and affiliates achieved good operational profits. But the decline in share prices on local and regional stock exchanges and the failure to receive dividends from these investments had a tangible impact on the decline in profits in the year 2020 from their normal level.

Masri said, “we were looking forward to the best and working hard at the beginning of this year, but the beginning was not successful, especially with the continuation of the effects of the Corona pandemic, and then the Israeli aggression on the Gaza Strip and the massive destruction incurred on our investments there, but we confirm once again the permanent BOD decision to focus on investment in Gaza and Jerusalem. My message for all the shareholders is that PADICO was established to invest in Palestine despite the risks and I am quite sure of your confidence in us and your support to us to flourish our national economy, and we are determined to invest for the sake of our homeland.”

PADICO’s performance in 2021

The operational performance witnessed a significant decline in the performance of PADICO companies operating in the tourism sector, due to the effects of the Corona pandemic, as previously mentioned, especially since all hotels stopped working and closed completely early last year.

At the level of PADICO’s largest investment, the Palestine Telecommunication Company (Paltel) achieved good results from its operational processes despite the repercussions of Corona pandemic. Paltel sought to enhance and develop its services and products and stimulate optimal technological solutions for subscribers, but its net profits were affected, like many other private sector companies by the decline in the performance of the stock portfolio.

At the level of the industrial sector, Palestine Company for Industrial Investment achieved growth in its operational performance, despite the challenges witnessed in Palestine, including closures and cessation of work. The company continued the construction of a huge dairy factory in Al-Nabi Saleh area in Ramallah and Al-Bireh Governorate, which is expected to start production in the first quarter of 2022. The company is also working on establishing a fodder factory with a local investor in Bethlehem governorate to expand its market share in the southern West Bank, and the actual production will start in 2022. The company is also working on expanding its investments in livestock projects, where its completed the first cow farm in Tulkarem governorate.

In 2020, PADICO inaugurated the generation of electric power from a solar energy project in Gaza Industrial City with a production capacity reaching 7.3 megawatts, which is considered the biggest of its kind in Palestine and the second in the Middle East. But during the last aggression, Gaza Industrial City was bombed, which led to the destruction of 30% of the project.

At the real estate level, Jericho Gate for Real Estate Investment continued the implementation of its unique and prestigious project, as the entire residential lands were sold in the first phase of the project after completing the infrastructure completely. This is in addition to selling other areas within the second and third phases of the project and the company achieved good operational profits.

At the level of new strategic projects, the company, through its investment arm in the real estate sector (PRICO), signed a partnership and investment agreement with the Board of Trustees of Birzeit University to establish a commercial building in Ramallah, which contributes to consolidating the relationship between the private and academic sectors and enhancing cooperation with civil society institutions in a number of investment areas.

At the level of financial indicators, the company, despite the negative impact of Corona pandemic on all the economic sectors in Palestine and the world, was able to achieve consolidated profits of $4.8 million in 2020, the consolidated revenues amounted to $109 million, total assets $780 million, equity $449 million and book value per share $1.49.

The meeting presented PADICO’s participation of the Palestinian civil society during Corona pandemic, as it was one of the first to put the company’s facilities at the disposal of the Palestinian Ministry of Health for the benefit of public service. In Jerusalem, PADICO cooperated with the Jerusalem Consortium by equipping Saint George Hotel as premises for social quarantine. In Gaza, the Blue Beach resort was placed as a center for quarantine and care for returnees from abroad for about a year, and in Bethlehem, the Jacir Palace Hotel was placed at the disposal of officials to support efforts to deal with the epidemic.

It’s worth noting that PADICO Holding invests in vital and a variety of sectors most important of which are communications and information technology, financial services, real estate, tourism, industry and agriculture and industrial zones, in addition to infrastructure and energy. It continues to work to achieve its mission and commitment to help develop the Palestinian economy, create job opportunities, and launch creative economic initiatives.

Gaza, 18 May 2021

The continuous Israeli aggression on the Gaza Strip for the ninth consecutive day targeted the Gaza Industrial City, causing damage to a number of factories, and the electric power generation from solar energy on the roofs of buildings project.

Khaled Anabtawi, the Chairman of BOD of Gaza Industrial City, one of PADICO’s investments in Gaza, clarified that the Israeli occupation targeted on two consecutive days the Industrial City, with several raids launched by the occupation’s warplanes and artillery, which led to severe damage of more than 10 factories.

Anabtawi added that the Israeli raids on the Industrial city caused severe damage to the electric power generation from solar energy on the roofs of buildings project in Gaza Industrial city that was inaugurated by Bashar Masri, the Chairman of PADICO Holding BOD, two months ago in Gaza.

 “Praise be to God, there were no human casualties during the recent raids on the Industrial City, and this is the most important thing for us, but unfortunately we cannot overlook the enormous economic damage caused by the aggression on the sector as a whole, including the Industrial City,” he said.

Anabtawi added that the electric power generation project aims to permanently provide electricity for factories due to the electricity problem in Gaza Strip but today this project, whose estimated cost amounted to $12 million, is again threatened with shelling and complete destruction. This is in addition to the losses of the factories that have been subjected to shelling and cessation of their works since the beginning of the aggression and the other losses due to the siege that has been imposed on Gaza for approximately 14 years. However, we have not yet been able to count the financial losses, but they are estimated at tens of millions of dollars, and the numbers are doubling every minute.

Anabtawi held the Israeli occupation authorities accountable for all the damage to the Gaza Industrial City and the factories located in it, especially since all the factories are owned by businessmen who did not pose any threat or danger as the Israeli occupation claims. Not only that but also since the beginning of the aggression, these factories have not been able to operate due to the danger in the movement of its workers, wondering, “what justification is the Israeli occupation using to fabricate its aggression here?”

The largest in Palestine and the second in the Middle East

Gaza, 10 March 2021 

PADICO Holding launched the electric power generation from solar energy, which is considered the largest in Palestine and the second in the Middle East, project in Gaza Industrial City.

The project includes more than 21 thousand solar cells installed on 32 industrial buildings in Gaza Industrial City, with a production capacity of (7.3) megawatts, and a total value of about $12 million.

The project will provide electricity for all governmental factories and offices, international organizations and commercial facilities based in Gaza Industrial City.

The project was inaugurated Bashar Masri, PADICO Holding Chairman of BOD, in the presence of the Deputy Minister of National Economy, Chairman of the Board of Directors of the Investment Promotion and Industrial Cities Authority in Gaza, Dr. Rushdi Wadi, the Vice Chairman of the Energy Authority in Gaza, Eng. Samir Mutair, the Director General of the Electricity Distribution Company in the Governorates of Gaza, Engineer Maher Ayesh, and the Director of the Financing Project for Job Creation (F4J) Mazen Asaad, in addition to a number of businessmen in the Gaza Strip.

In this context, Masri affirmed the importance of the project in the enhancement of the economic structure of Gaza Strip, and its contribution to breaking the siege and alleviating the suffering of our people there, saying, “With God’s Will and everyone’s determination, Gaza will return as before and better, by creating job opportunities for young people, because our people have the right to work and live in freedom and dignity.”

Masri described the project as strategic and important, especially at this difficult time that the Palestinian economy is going through and the great deficit in the energy sector in Gaza, calling on investors and businessmen to increase investment in the beloved Gaza Strip as a promising area, in addition to its dire need for economic projects, especially those that affect the daily life aspects and today our people is in need to leadership decisions that ensure change and move the national economy engine quickly.

For his turn, Wadi said that Gaza Strip is suffering from a deficit in electric power by 50% because of the siege and restrictions imposed on the entry of fuel, the matter that causes an electricity crisis, as it only works for a maximum of 4-8 hours per day without regularity, which considerably impacted the private sector and economic facilities. This project is considered an ideal solution specifically for the Industrial City that regularly and permanently needs the availability of electricity.

Wadi praised Masri efforts for investing in most areas that actually need work, despite the fear of many businessmen from coming and investing their money there. Moreover, this national project opens the way for factories operating in Gaza Industrial City to increase their production capacity after electricity becomes permanently available without interruption and at a less cost, in addition to the opening of new factories.

For his part, Mutair said that this national project is in line with renewable energy efficiency and the Palestinian government’s direction, represented by the Energy Authority, to develop alternative energy sources and promote their use in all sectors, which contributes to reducing dependence on imported energy, achieving energy security, diversifying energy sources, sustainable development and protecting the environment.

Mutair stressed that this project, the first of its kind in Palestine, is an encouraging step for all private sector companies and potential investors in the energy sector, to contribute to solving the issue of the acute shortage of electric power in the Gaza Strip.

For his part, Asaad re-affirmed the importance of supporting investment projects and promoting investments of the private sector that generate new and sustainable job opportunities, within the innovative financial instrument “the Joint Financing Investment Fund”, which works to provide the required partial financing to enable investors to launch viable investments that have economic and social benefits, such as this project, which will have a positive role in providing more than 800 direct and indirect job opportunities in the Gaza Industrial Zone. This is in addition to its role in reducing demand for conventional energy and improving the distribution timetable, especially that the concentration of factories in the Gaza industrial zone will be on renewable energy.

Asaad pointed out that the financing project aims to create job opportunities and it is a project of the Palestinian Ministry of Finance and is implemented by the Developmental Alternatives Company (DAI) and with the World Bank.

For his part, PADICO Chairman of the Board of Directors (Gaza Industrial City Developer) Khaled Anabtawi, gave a brief explanation of the project and the steps that have been accomplished in it, especially the difficulties we faced in introducing materials and special solar cells in the construction of the project, but thanks to God and the efforts of everyone, we overcame that and were able to complete the project in record time.

He pointed out that it is expected that the rates of employment and productivity in Gaza Industrial City will rise with the increase in the number of factories as a result of the availability of a permanent and uninterrupted source of electricity, which means creating additional job opportunities for our people.