Saudi Arabia, Palestinian govt join forces to boost economic stability

The Arab Monetary Fund (AMF) and the Palestinian government have signed a letter of intent on Friday to govern the financial support program initiated by Saudi Arabia. This agreement was reached during the annual meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) in Washington, D.C.

The letter outlines a governance framework for the Saudi financial assistance aimed at bolstering vital sectors of the Palestinian economy. The initiative focuses on implementing economic reforms that address the pressing challenges faced by the Palestinian government, including improving domestic revenue, controlling expenditures, enhancing governance, and increasing transparency within public finance management.

“The crisis facing the State of Palestine has caused severe economic damage, leading to economic contraction,” stated Mohammed Al-Jadaan, the Saudi Minister of Finance. He emphasized that the Kingdom’s monthly financial support is designed to mitigate these challenges and stressed the importance of establishing a clear governance mechanism to ensure the aid effectively counteracts the economic downturn.

Echoing this sentiment, Dr. Feras Milhem, Governor of the Palestinian Monetary Authority, expressed profound gratitude for Saudi Arabia’s consistent support, which he credited with helping the Palestinian people navigate their economic hardships.

The Palestinian Ministry of Finance committed to actively collaborating with the AMF to oversee and ensure the effective disbursement of funds, pledging to monitor the progress of the reform initiatives as detailed in the agreement. They assured full cooperation with both the AMF and the Saudi Ministry of Finance by providing necessary reports to track implementation progress.

This partnership marks a pivotal moment in the efforts to strengthen the Palestinian economy amidst ongoing challenges, signaling a renewed commitment to sustainable development and economic resilience.