Norway supports private investment in Palestine through guarantee fund
Government of Norway
News story | Date: 17/10/2025
At the World Bank Annual Meetings on 15-16 October, Minister of International Development Åsmund Aukrust announced support of approximately NOK 50 million (approximately USD 5 million) to the World Bank's guarantee fund for the West Bank and Gaza (the MIGA West Bank and Gaza Investment Guarantee Trust Fund).
'The need for reconstruction and development in Palestine is immense - particularly in Gaza. The private sector plays a vital role in maintaining economic activity and creating jobs in Palestine. At the same time, the risks of investing are high. That is why it is important to have effective mechanisms in place to manage risk and encourage private investment,' said Minister of International Development Åsmund Aukrust.
The World Bank's Multilateral Investment Guarantee Agency (MIGA) provides guarantees to private investors against political risks such as war and civil unrest. Since its establishment in 1997, the guarantee fund has helped create thousands of jobs and improved food security through investments in the agricultural sector. The Norwegian contribution will help expand MIGA's guarantee activities to include financial institutions and private banks, which are crucial for stimulating trade and economic activity.
While the fund has so far primarily focused on providing guarantees to private companies in the West Bank, it may in the longer term also support investments in Gaza's reconstruction. This will, however, require additional donor contributions.
In 2025, Norway invested NOK 250 million in hybrid capital - a debt instrument in the World Bank. Interest income of around NOK 50 million from this investment will be used to support MIGA's guarantee fund for Palestine.
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