The European Bank for Reconstruction and Development (EBRD) has provided an additional $5 million in trade finance to Arab Islamic Bank (AIB), doubling the Palestinian bank’s total credit line to $10 million, according to an EBRD announcement. The move is designed to sustain trade flows between the West Bank and international markets at a time when access to international banking services in the territory remains severely constrained. The EBRD says the support underscores its continued commitment to keeping the Palestinian financial sector functioning.
AIB joined the EBRD’s Trade Facilitation Programme (TFP) in 2023 with an initial limit of just $2 million, which has now been increased three times to reflect the bank’s growing trade finance activity. Since joining, AIB has used the facility to finance essential imports including food and medical equipment — goods that are critical in the current environment. As the largest Islamic bank in the West Bank and Gaza and a subsidiary of Bank of Palestine, AIB plays a central role in the Palestinian market, and the expanded credit line also connects it to a global network of more than 100 issuing banks and over 800 confirming banks.
The EBRD’s Trade Facilitation Programme, launched in 1999, supports international trade across the Bank’s regions through guarantees and short-term loans to participating banks for on-lending to local exporters, importers, and distributors. The EBRD has been operating in the West Bank and Gaza since 2017 and has approved 38 projects there with a total investment volume of €196.5 million. The latest expansion of AIB’s trade finance line is a small but concrete step toward keeping basic commerce alive in one of the world’s most economically fragile territories.
