RAMALLAH, February 8, 2011 (WAFA)- Bashar Masri , chief of Massar international, announced on Tuesday in a press conference  the  launching of Siraj Palestine Fund I,  the first private equity fund in Palestine.

Siraj Fund initial closing was $60 million and is expected to close at $80 million in the coming months.  

The Fund’s capital includes a 50% participation of foreign investors, the other half are Palestinians and Arabs.

 Foreign investors include the US government-owned Oversee Private Investment Corporation (OPIC), the Soros Economic Development Fund, the Pension Boards of the United Church of Christ and Crescent Investments of the United Arab Emirates.

The participation of foreign investors in Palestine is crucial for the Palestinian economy, said Masri. 

Palestinian investors include the fund sponsor, Massar International, and other Palestinian companies and investors.

The aim of the Fund is to finance family-owned businesses due to the insufficiency of their capital, he said. Siraj will finance companies at a rate between $250,000 up to $12 million. So far, about 30 local companies have applied for assistance from the Fund.

 Siraj Fund’s main goals are to increase profits and achieve continuity in the companies it has invested in. The Fund also seeks to support several Palestinian sectors such as healthcare, transportation, telecommunication, IT and social services.

The main obstacle Massar faced in the set-up of the fund is the political turmoil in Palestine, said  Masri.

Thus, investing in Palestine is a crucial step in supporting Palestinian economy and growth in spite of the Israeli occupation.

Established in 1994, Massar International is a holding company headquartered in Ramallah that oversees and manages network of more than 15 subsidiaries including Siraj Fund Management Company.

 Masser also is building Rawabi, the first Palestinian planned city, which is one of the largest projects set by Massar.

R.S./M.A.