New dawn for a Palestinian economy: Padico's bond issuance and the increased aid to Palestine from international donors both contribute to the growing investor confidence in the West Bank's economy.

The Middle East › Nbr. 2011, January 2011

Author: Smith, Pamela Ann

Position:: BOND RAISES $90 MILLION

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BOND RAISES $90 MILLION

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New dawn for a Palestinian economy: Padico's bond issuance and the increased aid to Palestine from international donors both contribute to the growing investor confidence in the West Bank's economy.

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Padico, a huge holding company in the West Bank, whose interests run from telecoms and plastics to hotels and real estate, hit the global headlines in May when it became the first Palestinian company to raise a corporate bond--worth $70 million--in the international markets. Its success is seen as a sign that both private and foreign investment in the territories is about to increase markedly as the prospect of the UN's recognition of Palestinian statehood looms in September.

International donors, who are due to meet in Paris at the end of this month (July), are upping their aid substantially as well. Meanwhile, the interim government of Prime Minister Salah Fayyad has been preparing the groundwork for an independent economy...

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