Arab and Islamic funds commit $72M for development projects: Palestinian PM

Arab and Islamic funds have financed more than 210 development projects in the West Bank, including East Jerusalem, Gaza and Palestinian refugee camps in Lebanon, with a total value of $72 million, Palestinian Prime Minister Mohammad Mustafa said Monday.

The announcement came during the signing ceremony of agreements approving the projects, which Mustafa sponsored and attended at his office in the city of Ramallah.

The projects span the most needed sectors: education, public works, local governance, vocational training, health, economic empowerment, community development and rural areas.

In terms of funding, a statement by the premier's office said the Al-Aqsa Fund, managed by the Islamic Development Bank, provided $32.7 million, and the Arab Fund for Economic and Social Development contributed $38.5 million.

These projects "represent part of the executive steps of the government's broader program, the national program for development and modernization, which is being implemented through 10 vital initiatives across important sectors," according to the statement.

Work continues to strengthen the resilience of the Palestinian people "despite all circumstances and impediments," it added.

The support from the Arab and Islamic funds comes as the Palestinian Authority faces a severe financial crisis. The prime minister said Thursday this crisis stems directly from Israel withholding Palestinian tax revenues.

The statement called on donor countries and international partners to pressure Israel to release the withheld funds and to provide immediate budget support for six months.

Since 2019 Israel has deducted portions of these revenues for various reasons and has reportedly withheld transfers entirely for about six months, with the accumulated withheld sums reaching nearly $4 billion, plunging the Authority into a severe financial crisis.

Nasser Qatami, an adviser to the prime minister for Arab and Islamic funds, said the role of the Arab funds has not been limited to financing alone but has been a true partner in bolstering Palestinian resilience.

He noted that over 23 years these funds have supported thousands of development projects across the West Bank and in the refugee camps in Lebanon.

More than 493,000 Palestinian refugees live in Lebanon, facing difficult conditions in camps administered by Palestinian factions under informal arrangements dating back to the 1969 Cairo Agreement.

More than half of them reside in 12 camps officially recognized by the UN agency for Palestinian refugees (UNRWA).