Annual Report

Contents

Message from the 04 President of the State of Palestine

2 ANNUAL REPORT 2019 6 Message from the Chairman of the Board of Directors

10 About PIF

13 Governance

20 Energy Sector

Infrastructure and industrial parks sector 24

28 Real Estate Sector

34 Tourism Sector

38 Agriculture Sector

40 Health Sector

43 Education Sector

Technology Secto 44

46 SMEs Sector

52 Industry and Trade Sector

58 Financial Sector

PIF 3 Message from the President of the State of Palestine

4 ANNUAL REPORT 2019 The Palestine Investment Fund (PIF) has effectively contributed towards laying the IRXQGDWLRQV IRU D VHOIVXI¿FLHQW QDWLRQDO HFRQRP\ 'HVSLWH WKH SUHYDLOLQJ FKDOOHQJHV 3,)PDQDJHGWRPDNHVHYHUDODFKLHYHPHQWVEHQH¿WWLQJWKHFRXQWU\DQGWKH3DOHVWLQLDQ SRSXODWLRQ LQ WKH ¿UVW SODFH $PRQJ WKH PDMRU DFFRPSOLVKPHQWV DUH WKH VXFFHVVHV LQ WKHHQHUJ\VHFWRUSDUWLFXODUO\UHQHZDEOHHQHUJ\WKHVXSSRUWRIDODUJHQXPEHURIVPDOO HQWHUSULVHV WKH FUHDWLRQ RI PDQ\ MRE RSSRUWXQLWLHV LQ DGGLWLRQ WR UHDVRQDEOH ¿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and staff for their dedication towards building an institution with a solid governance base DQGDSLRQHHULQJHFRQRPLFYLVLRQRQWKHULJKWSDWKWRZDUGVDQLQGHSHQGHQW3DOHVWLQLDQ VWDWHZLWK$O4XGV$O6KDULIDVLWVFDSLWDO

Mahmoud Abbas President of the State of Palestine

PIF 5 Message from the Chairman of the Board of Directors

$OORZPH¿UVWWRWDNHWKHRSSRUWXQLW\WRWKDQNDQGH[SUHVVP\XWPRVWUHVSHFWWRRXU3DOHVWLQLDQ SHRSOHZKRGHPRQVWUDWHGDKLJKVHQVHRIUHVSRQVLELOLW\GHVSLWHWKHGLI¿FXOWFRQGLWLRQVVNHWFK- ing the most beautiful scene of steadfastness and solidarity in the face of a pandemic, embod- ying the spirit of brotherhood and collaboration among all diverse community members as they may be, coming together in support of their leadership represented by President Mahmoud $EEDVWRFRQIURQWWKHVHFKDOOHQJLQJDQGGLI¿FXOWFRQGLWLRQV

7KURXJKRXWWKHVHGLI¿FXOWLHV3,)ZDVQRWLQLVRODWLRQIURPLWV3DOHVWLQLDQFRQWH[WEXWUDWKHULV part and parcel of this national fabric that is a source of pride for us in terms of its institutions, PHPEHUVDQGFRPSRQHQWV3,)UHPDLQVDV\RXKDYHDOZD\VNQRZQLWWREHDPRQJWKH¿UVW supporters of the various national institutions in curbing this pandemic

Sisters and brothers, DFKLHYLQJUHDVRQDEOHUHWXUQVRQLQYHVWPHQWV %XLOGLQJ XSRQ 3,)¶V DFKLHYHPHQWV DQG DV SDUW RI 3,) RQJRLQJ HYDOXDWLRQ RI LWV SHUIRUPDQFH DQG FRQWLQXRXV ,WLVP\SHUVRQDOSOHDVXUHDQGRQEHKDOIRIPHPEHUVRI search for the most effective means for achieving its ob- - WKH3,)%RDUGRI'LUHFWRUVWRSUHVHQWWR\RXWKH3,)$Q MHFWLYHVWKH%RDUGRI'LUHFWRUVKDVSDVVHGDPXOWLIDFHW- QXDO5HSRUWLQFOXGLQJWKH¿QDQFLDODQGDGPLQLVWUDWLYH ed strategy for the coming years that will mostly focus on UHSRUWDVZHOODVDQRYHUYLHZRIWKHVWUDWHJLFGLUHFWLRQVRI WKHIROORZLQJREMHFWLYHV 3,)¶VZRUNDQGLWVPDLQLQYHVWPHQWSRUWIROLRV )LUVW FKDPSLRQLQJ VHFWRUV WKDW DUH VHOHFWHG EDVHG RQ :H WDNH SULGH LQ WKH DFFRPSOLVKPHQWV WKDW 3,) UHDOL]HG clear criteria in terms of their alignment with PIF’s mis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¶VPLVVLRQ7KDWEH HQDEOHUVUHODWHGWRWKHFXUUHQWSUHYDLOLQJUHDOLW\7KLVQH- LQJWRFRQWULEXWHWRZDUGVDQLQGHSHQGHQWVHOIVXI¿FLHQW cessitates the need to focus investments on vital eco- HQDEOHGDQGNQRZOHGJHEDVHGHFRQRP\WKDWLVGULYHQE\ QRPLF VHFWRUV VXFK DV HQHUJ\ KHDOWK DQG KHDOWKFDUH DYLEUDQWSULYDWHVHFWRUDQGEXLOWRQWKHHQWUHSUHQHXUVKLS VHUYLFHVDJULFXOWXUHDQGIRRGLQGXVWULHVLQFOXGLQJDQL- DQGWKHZHDOWKRIWKHKXPDQFDSLWDORIRXUSHRSOHZKLOH

6 ANNUAL REPORT 2019 mal fodder and logistical infrastructure (bonded DUHDV LQ RUGHU WR LPSURYH VHOI VXI¿FLHQF\ LQ these vital sectors and achieve economic security RI 3DOHVWLQH

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This involves streamlining of business functions ZLWKLQ 3,)¶V GLIIHUHQW GHSDUWPHQWV VXEVLGLDULHV DQG LQYHVWPHQWV¶ SRUWIROLR LQ RUGHU WR DFKLHYH PD[LPXP YDOXH IRU PRQH\ DQG HIIHFWLYHQHVV RI RSHUDWLRQV Investment portfolios in strategic and development sectors

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PIF 7 0:H[SHFWHGWREHFRPSOHWHGGXULQJWKHWKLUGTXDUWHURI LQYHVWPHQWVWRGHYHORSSURGXFWLYHPDUNHWLQJDQGLQIUD- :HDOVRFRPSOHWHGWKH¿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ealthcare Services Sector YLWDOSURMHFWVDUHSDUWRIWKHVWUDWHJLFSODQRIWKH1RRU3DO- HVWLQH6RODU3URJUDPZKLFKDLPVDWWUDQVIRUPLQJWKHODU- JHVWHQHUJ\FRQVXPHUVWRSURGXFHUVRIWKLVVWUDWHJLFFRP- PIF has been investing in this sector for years based on PRGLW\ LWVXQGHUVWDQGLQJRIWKHVLJQL¿FDQFHDQGYLWDOLW\RIWKLV VHFWRUDQGWKHQHHGWRDFKLHYHVHOIVXI¿FLHQF\VXEVWL- 3,)LVSURXGRILWVDELOLW\WRDFFHVVORDQVIURPLQWHUQDWLRQDO tute medical referrals abroad that have a heavy toll on - ¿QDQFLQJ LQVWLWXWLRQV QDPHO\ IURP WKH (XURSHDQ ,QYHVW WKHWUHDVXU\DQGWKHQHHGWRSURYLGHKLJKTXDOLW\KHDOWK- PHQW%DQN (,% DQGWKH,QWHUQDWLQRDO)LQDQFH&RUSRUDWLRQ FDUHVHUYLFHVIRU3DOHVWLQLDQFLWL]HQVDQGWRFRQWULEXWH ,)& IRUDWRWDODPRXQWRIPLOOLRQGROODUVWRZDUGV3,) WRZDUGVWKHGHYHORSPHQWRI3DOHVWLQLDQPHGLFDOSURIHV- LQYHVWPHQWVIRUWKH¿QDQFLQJRIWKH6FKRROV6RODU5RRIWRS VLRQDOVDQGFDGUHVZKRDUHFDSDEOHRIVHUYLQJWKH3DO- 3URJUDP7KH3URJUDPKDVZRQWKH¿UVWSODFHDWWKHOHYHO HVWLQLDQ SHRSOH RIWKH0LGGOH(DVWDQG1RUWK$IULFDLQWKHFRPSHWLWLRQWKDW - ZDVRUJDQL]HGE\WKH8$(EDVHG0LGGOH(DVW6RODU,QGXV ,Q3,)¶VHIIRUWVDORQJZLWKLWVSDUWQHUVKDYHUHVXOWHG WU\ $VVRFLDWLRQ WKH ODUJHVW JDWKHULQJ RI WKH VRODU SRZHU LQPDMRUDGYDQFHPHQWWRFRPSOHWHWKHHVWDEOLVKPHQWRI VHFWRULQWKH0(1$UHJLRQ ,EQ6LQD6SHFLDOLVW+RVSLWDOLQWKHFLW\RI-HQLQFXUUHQW- O\H[SHFWHGWREHLQDXJXUDWHGE\WKHHQGRI7KLV 3,) DOVR FRQWLQXHV WR OHDG WKH HIIRUWV WR EXLOG WKH -HQLQ KRVSLWDOZKLFKLVWKH¿UVWRILWVNLQGLQWKH-HQLQJRY- - 3RZHU3ODQZLWKDSURGXFWLRQFDSDFLW\RI0:LQSDUW HUQRUDWHFRPHVDVDFXOPLQDWLRQRIDORQJSDUWQHUVKLS QHUVKLSZLWKDJURXSRI3DOHVWLQLDQSULYDWHVHFWRUSDUWQHUV ZLWKWKH3DOHVWLQLDQSULYDWHVHFWRUDQGEXLOGVXSRQ3,)¶V VXFK DV 3$',&2 3DO7HO $UDE %DQN *URXS 3DOHVWLQLDQ SUHYLRXVH[FHOOHQWSDUWQHUVKLSH[SHULHQFHZLWKWKH$UDE (OHFWULFLW\&RPSDQ\$3,&LQDGGLWLRQWRORFDOEDQNVVXFK 6SHFLDOLVW 0HGLFDO &RPSOH[ &RPSDQ\ ZKLFK PDQDJHV DV%DQNRI3DOHVWLQH$O4XGV%DQNDQGWKH&DLUR$PPDQ DQGLQYHVWVLQDQXPEHURISLRQHHULQJKRVSLWDOVLQ3DO- %DQNDQGRWKHUORFDOLQYHVWRUV HVWLQHVXFKDV$UDE6SHFLDOLVW+RVSLWDOLQ1DEOXVDQG ,VWLVKDUL+RVSLWDOLQ$O5HHKDQQHLJKERUKRRG Agriculture and Food Industries Sector Important portfolio in Jerusalem

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8 ANNUAL REPORT 2019 EHQH¿WIURPWKHVHFRQGVWDJHRIWKH-HUXVDOHP*UDQW)D- FLOLW\LPSOHPHQWHGE\3DOHVWLQHIRU'HYHORSPHQW)RXQGD- Ladies and gentlemen, WLRQLQSDUWQHUVKLSZLWKWKH(87KH)DFLOLW\DLPVDWFR¿- QDQFLQJ60(VRSHUDWLQJLQWKHFLW\60(VZLOOEHQH¿W (YHU\RQHLVDZDUHRIWKHVRFLDODQGHFRQRPLFKDUGVKLSV IURPWKLVVWDJHWKURXJKRXWWKHHQGRIWKXVFRQWULEXW- DQGGLI¿FXOWLHVWKDW3DOHVWLQLDQVKDYHOLYHGDQGFRQWLQXH LQJWRZDUGVWKHFUHDWLRQRIDWRWDORIMRERSSRUWXQLWLHV WROLYHXQGHU'HVSLWHWKDW3,)KDVDFKLHYHGJRRG¿QDQ- IRU 3DOHVWLQLDQV LQ -HUXVDOHP GXULQJ WKH ¿UVW DQG VHFRQG FLDOUHWXUQVWKDWFRUUHVSRQGZLWKWKHQDWXUHRILWVPLVVLRQ VWDJHV7KURXJKRXWLWVOLIHWLPHDWRWDORIDSSUR[LPDWHO\ in guaranteeing its sustainability and managing its invest- HQWHUSULVHVZRXOGEHQH¿WIURPWKLVIDFLOLW\ PHQW SRUWIROLRV 3,) SUR¿WV IRU WKH \HDU DPRXQW- HGWRPLOOLRQGROODUVSULRUWRWD[GHGXFWLRQZKLOH MSMEs and Entrepreneurship Fi- WKHQHWSUR¿WVDPRXQWHGWRPLOOLRQGROODUVSDUWRI ZKLFKZDVGLVWULEXWHGDQGWUDQVIHUUHGWRWKHWUHDVXU\%\ nancing Sector WKHHQGRI3,)DVVHWVXQGHUPDQDJHPHQWZHUHHV- WLPDWHGDWELOOLRQGROODUV 3,)KDVDOZD\VDWWDFKHGJUHDWLPSRUWDQFHWRWKLVYLWDOVHF- tor that constitutes the backbone of the Palestinian nation- )LQDOO\ , WDNH WKH RSSRUWXQLW\ WR H[SUHVV WKH JUDWLWXGH DQGDSSUHFLDWLRQWRWRWKH3DOHVWLQLDQOHDGHUVKLSUHSUH- DOHFRQRP\3,)OHDGVQLQHSURJUDPVWKDWWDUJHW¿QDQFLQJ VHQWHGE\3UHVLGHQW0DKPRXG$EEDVIRUKLVJXLGDQFH 060(VDQGVWDUWXSVVHFWRULQFOXGLQJWKH,7VHFWRUDQG DQGRQJRLQJVXSSRUWIRU3,),DOVRZRXOGOLNHWRWKDQN HQWUHSUHQHXUVKLSLQSDUWQHUVKLSZLWKDODUJHQXPEHURIOR- WKHJRYHUQPHQWDQGDOOQDWLRQDOLQVWLWXWLRQVIRUWKHLUUH- FDODQGLQWHUQDWLRQDOSDUWQHUV OHQWOHVVHIIRUWVDQGDFWLRQVWRZDUGVSURYLGLQJWKHDSSUR- SULDWHHQYLURQPHQWIRUWKHSULYDWHVHFWRULQJHQHUDODQG )RU WKH SXUSRVH RI VWUHQJWKHQLQJ WKH PLFUR¿QDQFLQJ IRU3,)LQSDUWLFXODUHQDEOLQJLWWRXQGHUWDNHLWVUROHDF- VHFWRU 3,) PDQDJHV D SURJUDP WR VXSSRUW 0LFUR )L- FRUGLQJWRWKHQDWLRQDOOHJLVODWLRQPHDVXUHVDQGVWDQ- QDQFH ,QVWLWXWLRQV 0),V RSHUDWLQJ LQ 3DOHVWLQH ZLWK WKH GDUGV DLP RI H[SDQGLQJ WKH EDVH RI EHQH¿FLDULHV LQFUHDVH WKH QXPEHURIORDQVDQGH[SDQGWKHUHDFKDQGFRYHUDJHRI ,ZDQWWRDOVRWKDQNP\FROOHDJXHVWKHPHPEHUVRIWKH WKHVHLQVWLWXWLRQVWRLQFOXGHPRUHHFRQRPLFVHFWRUV7KLV - is achieved either through direct lending to these institu- %RDUGRI'LUHFWRUDQG*HQHUDO$VVHPEO\IRUWKHLUFRP PLWPHQWWRSURYLGHWKHLUEHVWWRZDUGVGHYLVLQJ3,)VWUDW- WLRQV ORDQJXDUDQWHH SURJUDPV DQGRU LQYHVWLQJ LQ WKHLU HJLHVDQGVHHLQJWKHPWKURXJKLQWKHEHVWPDQQHUSRV- ZRUNLQJFDSLWDO$PRQJWKH0),VZKLFKEHQH¿WHGIURPWKLV VLEOH,DOVRWKDQNWKHH[HFXWLYHPDQDJHPHQWRI3,)DQG SURJUDPDUH$VDOD&RPSDQ\IRU&UHGLWDQG'HYHORSPHQW LWVVXEVLGLDULHVDQGDOOWKHVWDIIIRUWKHLUGHGLFDWHGZRUN DQG 3DOHVWLQH IRU &UHGLW DQG 'HYHORSPHQW )DWHQ ZKLFK WRDFKLHYHWKHREMHFWLYHVDQGPLVVLRQRI3,)WRZDUGVHI- ERWKKDYHVXFFHHGHGE\WKHHQGRILQ¿QDQFLQJDS- IHFWLYHFRQWULEXWLRQLQLQYHVWPHQWLPSDFWDQGHVWDEOLVK- SUR[LPDWHO\ HQWHUSULVHV $GGLWLRQDOO\ WKHUH DUH ,MDUD PHQWRIVROLGIRXQGDWLRQVIRUDVWURQJDQGLQGHSHQGHQW DQG3DO/HDVHOHDVLQJFRPSDQLHVZLWKVHUYLFHVEHQH¿WWLQJ QDWLRQDOHFRQRP\ DURXQGFRPSDQLHVVLQFHWKH\HDUWKXVKHOSLQJLQ WKHFUHDWLRQDQGUHWHQWLRQRIKXQGUHGVRIMREV3,)LVDOVR DPDLQLQYHVWRULQ,EWLNDUDYHQWXUHFDSLWDOIXQGWKDWVXS- SRUWV,7DQG,QQRYDWLYHHDUO\VWDUWXSV,EWLNDUKDVLQYHVWHG 'U0RKDPPDG0XVWDID LQVWDUWXSVVLQFHLWVHVWDEOLVKPHQW Chairman of the Board of Directors µ)LQDQFHIRUMRE )- ¶ZDVDOVRODXQFKHGDVWKH¿UVWVSH- ă FLDOL]HG GHYHORSPHQW LPSDFW ERQGV IRU WKH GHYHORSPHQW RIVNLOOVDQGHPSOR\PHQWRI3DOHVWLQLDQ\RXWK7KLVXQLTXH SURMHFWKDVEHHQHVWDEOLVKHGZLWKIXQGLQJIURPWKH:RUOG %DQNLQSDUWQHUVKLSZLWK3,)DQGWKH(XURSHDQ%DQNIRU 5HFRQVWUXFWLRQ DQG 'HYHORSPHQW (%5' WKH 'XWFK 'H- YHORSPHQW %DQN DQG 3DOHVWLQH ,QYHVWPHQW )RXQGDWLRQ WKURXJKWKH&KLOH3DOHVWLQH,QYHVWPHQW)XQG7KHSURMHFW DLPVDWEULGJLQJWKHJDSEHWZHHQWKHTXDOL¿FDWLRQVRIMRE VHHNHUVDQGWKHPDUNHWGHPDQG7KHGHYHORSPHQWLPSDFW ERQGVWDUJHWDQDSSUR[LPDWHQXPEHURIEHQH¿FLDULHV PDQ\RIZKRPZLOOEHHPSOR\HGLQPDUNHWGHPDQGHGVHF- WRUVVXFKDVKHDOWKFDUHVHUYLFHVQXUVLQJHPDUNHWLQJ,7 HGXFDWLRQHQJLQHHULQJDQGRWKHUV

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PIF 9 About PIF

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10 ANNUAL REPORT 2019 Investment strategy

PIF’s investment strategy is premised around concentrating its projects and programs inside Palestine, thus contributing towards the revitalization of the national economy and the development of vital economic sectors that create job opportunities for

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PIF managed to implement this strategy with more than 90% of its total investments

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PIF implements its investment programs and projects through several specialized

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PIF 11 Main indicators of impact investment

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12 ANNUAL REPORT 2019 Governance

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Full member of the International Forum for Sovereign Wealth Funds

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PIF 13 Board of Directors

$%RDUGRI'LUHFWRUVRI HOHYHQPHPEHUVZLWKH[SHULHQFHLQYDULRXV¿HOGVRYHUVHHVWKHZRUNRI3,)7KH3UHVLGHQWRIWKH6WDWH of Palestine appoints the chairman and members of the board.

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Dr Mustafa is currently the Chairman of the Board of Palestine Investment Fund (PIF). He served as the Deputy Prime Minister in the 15th Palestinian Government and the Deputy Prime Minister for Economic Affairs, and the Minister of the National Economy in the 16th Palestinian Government. Prior to this, Dr Mustafa was the CEO of PIF, where he led the fund to become a leading economic institution in Palestine that has been able to achieve UHPDUNDEOH ¿QDQFLDO UHVXOWV ,Q DGGLWLRQ KH OHG WKH ODXQFK RI VHYHUDO OHDGLQJ 3DOHVWLQLDQ companies in vital and strategic sectors such as telecommunications, real estate, energy, SMEs, construction, hospitality, tourism and infrastructure. Earlier, Dr. Mustafa worked at the World Bank in Washington, an Economic and Investment Reform Advisor in Kuwait and Saudi Arabia, CEO of Paltel and an instructor at George Washington University.

0U$]]DP$O6KDZD *RYHUQRU DQG &KDLUPDQ RI 3DOHVWLQH 0RQHWDU\ $XWKRULW\ IRUPHU +HDG RI (QHUJ\ $XWKRULW\DQGDPHPEHURIVHYHUDOORFDODQGLQWHUQDWLRQDOHFRQRPLFRUJDQL]DWLRQVDQG LQVWLWXWLRQV 0U $O 6KDZD KROGV D EDFKHORU¶V GHJUHH LQ PDWKHPDWLFV IURP 0HPSKLV 8QLYHUVLW\

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0U0D]HQ6LQRNURW &KDLUPDQRIWKH%RDUGRI'LUHFWRUVDQG&(2RI6LQRNURW*OREDO*URXS0U6LQRNURW LV WKH IRUPHU 0LQLVWHU RI WKH 1DWLRQDO (FRQRP\ DQG IRXQGHU RI WKH 3DOHVWLQH 7UDGH &HQWHU 3DOWUDGH +H REWDLQHG KLV GHJUHH LQ 3URGXFWLRQ 0DQDJHPHQW DQG ,QGXVWULDO (QJLQHHULQJIURP1RWWLQJKDP8QLYHUVLW\

0U6DPHU.KRXU\ &(2 RI 7KH &RQVROLGDWHG &RQWUDFWRUV &RPSDQ\ &&& 0U .KRXU\ VHUYHV DV D ERDUGPHPEHULQQXPHURXVHQWLWLHVZRUOGZLGH+HKROGVD%DFKHORU¶VGHJUHHLQ&LYLO (QJLQHHULQJIURP&DOLIRUQLD6WDWH8QLYHUVLW\DQGD0DVWHU¶VGHJUHHIURPWKH8QLYHUVLW\ RI6RXWKHUQ&DOLIRUQLD

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14 ANNUAL REPORT 2019 'U0RKDPPDG1DVU $VVRFLDWH3URIHVVRURI(FRQRP\DWWKH%LU]HLW8QLYHUVLW\'U1DVULVWKH&KDLUPDQRIWKH %RDUG RI 7UXVWHHV RI WKH 3DOHVWLQH (FRQRPLF 3ROLF\ 5HVHDUFK ,QVWLWXWH +H KROGV D 3K' DQG0$LQ(FRQRP\IURP2KLRVWDWHXQLYHUVLW\DQG0$LQ%XVLQHVV$GPLQLVWUDWLRQIURP :D\QH6WDWH8QLYHUVLW\

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0UV/DQD$EX+LMOHK ([SHUWRQORFDODQGLQWHUQDWLRQDOGHYHORSPHQWDQGFLYLOVRFLHW\0UV$EX+LMOHKLVFXUUHQWO\ WKH'LUHFWRU*HQHUDORI*OREDO&RPPXQLWLHVLQWKH:HVW%DQNDQG*D]D6WULSVLQFH 6KHSUHYLRXVO\VHUYHGDV$VVLVWDQW5HVLGHQW5HSUHVHQWDWLYHIRUWKH81'36KHVHUYHVRQWKH ERDUGVRIPDQ\RUJDQL]DWLRQVLQ3DOHVWLQH

0U7DPHU%D]]DUL )RXQGHUDQG&(2RI*HQHUR&DSLWDODQGIRUPHU&(2IRU5DVPDOD,QYHVWPHQW%DQN0U %D]]DULKDVKHOGSRVLWLRQVLQWKH'XEDL)LQDQFLDO0DUNHW(UQVW

PIF 15 Board Committees

3,)¶V%RDUGRI'LUHFWRUVLQFOXGHVWKUHHSHUPDQHQWFRPPLWWHHVWKDWDUHFRPSULVHGRIERDUGPHPEHUVLQOLQHZLWKWKH FRPSDQ\¶VE\ODZVDQGWKHJRYHUQDQFHPDQXDO7KHVHFRPPLWWHHVDUH

Audit and Governance Human Resources Investment Committee Committee Committee

Reviews investment pro- Reviews outputs and 5HYLHZV3,)¶VKXPDQ posals and the perfor- results of the Internal and resources policies in- PDQFHRI3,)¶VVXEVLGLDULHV external audits of PIF and cluding determining the ensuring investments are its subsidiaries to ensure *HQHUDO0DQDJHU¶VVDO- made in sound, strategic WKH¿QDQFLDOVWDWHPHQWV ary and bonuses, salary sectors with acceptable and operations transparen- scale and employment returns and high impact. cy. In addition, the commit- policies. tee oversees PIF governance including policies and regulations and ensures compliance with internal governance codes and SURWHFWVDJDLQVWFRQÀLFWVRI interest.

Dr. Mohammad Mustafa – – 0U7DPHU%D]DUL Eng. Nabil Al Sarraf- Chairman Chairman Chairman

0U0D]HQ6LQRNURW 0U0D]HQ6LQRNURW Mrs. Lana Abu Hijleh- Member Member Member

Mr. Maher Al Masri -Mr. Maher Al Masri Mr. Samer Khoury- Member Member Member

Dr. Mohammad Nasr- Mr. Mohammad Member Abu Ramdan- Member

16 ANNUAL REPORT 2019 PIF General Manager

7KH %RDUG RI 'LUHFWRUV VHOHFWV 3,)¶V *HQHUDO 0DQDJHU and raise the recommendation to the President of the State of Palestine for approval.

7KH *HQHUDO 0DQDJHU PDQDJHV WKH KROGLQJ FRPSDQ\ DQG UH- ports to the Board of Directors.

7KH*HQHUDO0DQDJHUDVVLVWVWKH%RDUGRI'LUHFWRUVLQVHWWLQJ 3,)¶VDQQXDOSODQVPRQLWRULQJDQGHYDOXDWLQJRILWVVXEVLGLDULHV¶ performance.

Fadi Dweik 0U)DGL'ZHLNKDVEHHQWKH*HQHUDO0DQDJHURI3,)VLQFH+HSUHYLRXVO\VHUYHGDVWKH&KLHI)LQDQFLDO2I¿FHUDQGOHG WKHLQWHUQDODXGLWDW3,)0U'ZHLNZRUNHGZLWKVHYHUDOLQWHUQDWLRQDOFRPSDQLHVLQWKH¿HOGVRIFRQVXOWLQJDQGDVVXUDQFHULVN management, and corporate governance. He has experience in a wide range of industries including investments, real estate, EDQNLQJDQG¿QDQFLDOLQVWLWXWLRQVLQGXVWULDOKRVSLWDOLW\QRQSUR¿WRUJDQL]DWLRQVJRYHUQPHQWDOLQVWLWXWLRQVDQGKHDOWKFDUH providers. In addition to his work with PIF, Mr. Dweik serves on the boards and executive committees of several entities and 1*2VLQ3DOHVWLQH0U'ZHLNKROGVD%DFKHORU¶VGHJUHHLQ$FFRXQWLQJDQGD0DVWHU¶VGHJUHHLQ%XVLQHVV$GPLQLVWUDWLRQERWK IURP%LU]HLW8QLYHUVLW\

PIF 17 The General Assembly

3,)¶V*HQHUDO$VVHPEO\LVFRPSULVHGRILQGLYLGXDOVZKRUHSUHVHQWYDULRXVVHJPHQWVRIWKH3DOHVWLQLDQVRFLHW\LQFOXGLQJWKH business community, regulatory agencies, and civil society. Members of the General Assembly are appointed by the Palestin- LDQ3UHVLGHQWLQDFFRUGDQFHZLWKWKH%\ODZV7KH\GRQRWUHFHLYHDQ\¿QDQFLDOUHPXQHUDWLRQIRUWKHLUZRUNDQGPHPEHUVKLS

The Role of the General Assembly 'LVFXVVDQGDSSURYHWKH%RDUGRI'LUHFWRU¶V$QQXDO5HSRUW 'LVFXVVDQGDSSURYHWKH$XGLWRU¶V5HSRUW 'LVFXVVDQGDSSURYHWKH%RDUGRI'LUHFWRUV¶UHFRPPHQGDWLRQVRQGLYLGHQGVGLVWULEXWLRQ • Discharge members of the Board of Directors. • Appoint an external auditor.

7KH*HQHUDO$VVHPEO\PHHWVSHULRGLFDOO\ZKHUHWKHRUGLQDU\DQQXDOPHHWLQJLVKHOGHYHU\\HDULQWKHSUHV- HQFHRIWKH&RPSDQLHV¶&RQWUROOHU$SUHVVUHOHDVHRIWKHPHHWLQJDQGLWVUHVXOWVLVSXEOLVKHGLPPHGLDWHO\ DIWHUWKHPHHWLQJRQWKHPHGLDDQGXSORDGHGRQ3,)¶VRI¿FLDOZHEVLWH Members of the General Assembly

&KDLUPDQDQG0HPEHUVRI3,)¶V%RDUGRI'LUHFWRUV Mr. Abdulkader Al Husseini

Head of the Palestinian Private Sector Coordination Council Dr. Mahmoud Abu Al Rob

Representative of the Court of the Presidency Dr. Imad Abu Kishek

5HSUHVHQWDWLYHRIWKH%RDUGRI'LUHFWRUVRIWKH:RPHQ¶V%XVLQHVV)RUXP Mr. Mohammad Nafeth Al Hirbawi

Dr. Ali Abu Zuhri Mr. Ahed Bseiso

Dr. Nabil Qassis Mr. Nassar Nassar

Mrs. Hind Khoury Mr. Jawdat Al Khudari

Dr. Atef Alawneh Mr. Hashem Al Shawwa

'U6DID¶1DVU$O'HHQ Mr. Sami Irsheid

Dr. Ziad Al Bandak Dr. Suheil Sultan

Mr. Hisham Al Omari

18 ANNUAL REPORT 2019 Financial Highlights

$850 $24.3 Million Million

&XPXODWLYHSUR¿WWKDW3,) 1HWSUR¿WIRU transferred to the State’s Treasury since its establishment

Approx $200 $1.06 Million Billion

Taxes and fees that PIF &XPXODWLYHSUR¿WVVLQFHLWV transferred to the State’s Treasury establishment since its establishment

PIF doubled its asset base since inception with a 131% growth in assets prior to dividend distribution.

PIF’s total distributions to the State’s Treasury reached 136% of invested capital.

PIF 19 Energy Sector

7KHHQHUJ\VHFWRUUHSUHVHQWVDFUXFLDOFRUQHUVWRQHIRUHFRQRPLFGHYHORSPHQW and an engine for industrial development in Palestine. With electricity occupying WKHODUJHVWFRPSRQHQWLQWKH3DOHVWLQLDQHQHUJ\VHFWRURI3DOHVWLQH¶V electricity is secured through imports. Against this backdrop, the PIF has launched a large-scale energy investment program to support energy security and clean energy through various strategic projects such as “Noor Palestine 6RODU3URJUDP´WKH-HQLQ3RZHU3ODQW 33*& *D]D0DULQHDQGRWKHUSURMHFWV

Recent Developments in 2019

Noor Palestine - Schools’ Solar Rooftops Program

1 )LQDOL]HGWKH¿UVWEDWFKRIWKHSURJUDPWKURXJKLQVWDOOLQJURRIWRSVRODU39V\VWHPV on 31 public schools.

Secured additional funding for the program through signing a $18 million loan agreement with the European Investment Bank (EIB).

Noor Palestine – Solar Utility-Scale Power Plants 2 $IWHU ¿QDOL]LQJ LWV GHYHORSPHQW WKH -HULFKR 6RODU 39 SODQW ZDV VROG WR VHYHUDO EHQH¿FLDULHVLQFOXGLQJWKH1DWLRQDO%DQN 71% %LU]HLW3KDUPDFHXWLFDO&RPSDQ\DQG Istishari Arab Hospital.

Completion of grading and digging works for the Jenin Power Plant in Kufrdan with a 3 WRWDOFDSDFLW\RI0HJDZDWW 0: 7KH¿QDOL]DWLRQRIDOOZRUNVDQGRSHUDWLRQDOL]DWLRQ of the plant is expected to be due in the third quarter of 2020.

20 ANNUAL REPORT 2019 ĪŉĸĉŹťŐĚżĹũĽŤēĚŜĔŉŤēĚũōŬĉĘżŠĴĜ6FKRROV6RODU5RRIWRSVSURJUDPIRU 50030 SXEOLFVFKRROVĚżŨŵšĨĚĸĳİŨ

PIF 21 Noor Palestine Solar Program 7KH3,)WKURXJKLWVHQHUJ\LQYHVWPHQWDUP0DVVDGHULVDFWLYHO\FRQWLQXLQJWKHGHYHORSPHQWRIµ1RRU3DOHVWLQH6RODU3URJUDP¶ WRSURGXFH0:RIVRODUHQHUJ\:LWKDQLQYHVWPHQWVL]HRIPLOOLRQWKHSURJUDPLQFOXGHVVHYHUDOSURMHFWVLQFOXGLQJ WKHXWLOLW\VFDOHVRODUSDUNVDQGWKHVFKRROV¶VRODUURRIWRSSURMHFW

Jericho Solar PV Plant (Noor Jericho)

:LWKDQLQYHVWPHQWVL]HRIPLOOLRQWKH3,)GHYHORSHGDSRZHUSODQWLQ-HULFKRFRYHULQJGXQXPVLQ-HULFKRDWDFDSDFLW\ of 7.5MW, equivalent to the electricity consumption of 3,600 houses in Palestine.

7KH-HULFKRVRODU39SODQWDLPVWRVODVKHOHFWULFLW\LPSRUWVE\1,6PLOOLRQ6KHNHOVDQQXDOO\DQGDURXQG1,6PLOOLRQ 6KHNHOVWKURXJKRXWWKHH[SHFWHG\HDUOLIHVSDQRIWKHSODQW7KHSODQWLVFXUUHQWO\LQIXOORSHUDWLRQDQGKDVEHHQLQWHUOLQNHG ZLWK-HUXVDOHP'LVWULFW(OHFWULFLW\&RPSDQ\¶V -'(&2 HOHFWULFLW\JULG

,QWKH3,)VROGWKHSODQWWRVHYHUDOEHQH¿FLDULHVIURPWKHSULYDWHVHFWRULQFOXGLQJ%LU]HLW3KDUPDFHXWLFDO&RPSDQ\ ,VWLVKDUL$UDE+RVSLWDODQGWKH1DWLRQDO%DQN 71%

-HQLQ6RODU393ODQW³1RRU-HQLQ´LQ.XIUGDQ

:LWKDQLQYHVWPHQWVL]HRIPLOOLRQWKHGHYHORSPHQWRI³1RRU-HQLQ´SRZHUSODQWLVFXUUHQWO\XQGHUFRQVWUXFWLRQ7KLVSODQW covers an area of 53 dunums at an operating capacity of 5MW.

After signing an agreement with the North Electricity Distribution Company (NEDCO), this plant will be interconnected with 1('&2¶VJULG,WLVSODQQHGWRVHOOWKLVVRODUSDUNWREHQH¿FLDULHVE\WKHHQGRIWKH\HDU

Schools solar Rooftops Program for 500 public schools 7KLVSURJUDPLVLPSOHPHQWHGLQSDUWQHUVKLSZLWKWKH0LQLVWU\RI(GXFDWLRQDQGWKH-HUXVDOHP(OHFWULFLW\'LVWULFW&RPSDQ\ (JEDCO), the North Electricity Distribution Company (NEDCO), and the Hebron Electricity Company (HEPCO) to provide 500 SXEOLFVFKRROVZLWKURRIWRS39V\VWHPVRYHUDIRXU\HDUWLPHIUDPH

:LWKDQLQYHVWPHQWVL]HRIPLOOLRQWKLVSURJUDPDLPVWRJHQHUDWH0:RIHOHFWULFLW\WKURXJKVRODUSRZHU:LWKVXFK VLJQL¿FDQWVRODUFDSDFLW\LWLVH[SHFWHGWRUHGXFHHOHFWULFLW\ELOOFRVWVE\PLOOLRQDQQXDOO\ 7KHDFFRPSOLVKPHQWVRIWKLVSURJUDPKDYHEHHQPDGHSRVVLEOHWKURXJKWKH3,)¶VVXFFHVVIXODWWUDFWLRQRILQWHUQDWLRQDO¿QDQ- FLDOLQVWLWXWLRQV ,),V +HQFHWKH3,)ZDVDEOHWRREWDLQDUDQJHRI¿QDQFLDODVVLVWDQFHLQFOXGLQJD0QJUDQWIURPWKH:RUOG Bank, with additional $15Mn and $18Mn loans from the International Finance Corporation (IFC) and the European Investment Bank (EIB) respectively.

,QWKH¿UVWSKDVHRIWKHSURJUDPZDV¿QDOL]HGFRYHULQJWKHLQVWDOODWLRQRI39V\VWHPVRYHUVFKRROV¶URRIWRSVLQ3DOHVWLQH

,QHVVHQFHWKLVSURJUDPVHHNVWRUDLVHORFDODZDUHQHVVDPRQJSXEOLFVFKRROVDQGLWVVXUURXQGLQJFRPPXQLW\WRUHDOL]HWKH immense importance of clean energy in Palestine. At the same time, the rooftop solar program supports the reduction of electricity bills on Palestinian public schools, thus reducing costs on the government.

22 ANNUAL REPORT 2019 Gaza Marine Offshore Natural Gas Field

7KH3DOHVWLQLDQ1DWXUDO*DV¿HOG*D]D0DULQHLVORFDWHGLQWKH3DOHVWLQLDQPDULWLPH]RQHDQGLQFOXGHVDQHVWLPDWHGUHVHUYH RIWULOOLRQFXELFIHHW 7&) RI1DWXUDO*DVDSSUR[LPDWHO\ELOOLRQFXELFPHWHUV %&0 *D]D0DULQHGHYHORSPHQWFRVWVDUH HVWLPDWHGDWELOOLRQ7KHSURMHFWZLOOEHGHYHORSHGWRIXO¿OWKHGRPHVWLFPDUNHWQHHGVIRUQDWXUDOJDVDQGWRXOWLPDWHO\HQDEOH the development of large-scale power generation programs in Palestine.

7KHJDV¿HOGZDVGLVFRYHUHGLQE\%ULWLVK*DV %* IROORZLQJDVHLVPLFVXUYH\DQGWKHGULOOLQJRIWZRH[SORUDWLRQZHOOV 7KHGHYHORSPHQWRI*D]D0DULQHLVFRQVLGHUHGDVDFHQWUDOSLOODUIRUDFKLHYLQJHQHUJ\VHFXULW\LQ3DOHVWLQHUHGXFLQJWKHKHDY\ reliance on electricity imports and thus gaining a relative degree of energy independence, as well as lowering the current trade GH¿FLWLQ3DOHVWLQH Jenin Power Plant

/RFDWHGLQ-HQLQWKH3DOHVWLQH3RZHU*HQHUDWLRQ&RPSDQ\ 33*& LV3DOHVWLQH¶V¿UVWODUJHVFDOHJDV¿UHGSRZHUSODQWDWD generation capacity of approximately 450 MW, powered through natural gas.

7KHSODQWLVEHLQJGHYHORSHGWKURXJK33*&DQGLVVXSSRUWHGE\DUDQJHRIODUJH3DOHVWLQLDQLQYHVWRUVLQFOXGLQJWKH3,)3DO- HVWLQH'HYHORSPHQWDQG,QYHVWPHQW&RPSDQ\3DOHVWLQH7HOHFRPPXQLFDWLRQV&RPSDQ\WKH$UDE%DQN*URXSWKH3DOHVWLQH (OHFWULF&RPSDQ\DQGWKH$UDE3DOHVWLQLDQ,QYHVWPHQW&RPSDQ\7KHVHLQYHVWRUVDUHMRLQHGE\RWKHUORFDOLQYHVWRUVLQFOXGLQJ local banks such as Bank of Palestine, Al Quds Bank, and Cairo-Amman Bank.

6RIDUDJRRGZLOOOHWWHUZLWKWKHGHYHORSHUVRIWKH3DOHVWLQLDQQDWXUDOJDV¿HOG *D]D0DULQH ZDVVLJQHGLQRUGHUWRSURYLGHQDW- XUDOJDVWRWKHSODQW$VSURMHFWHGWKH-HQLQ3RZHU3ODQWZLOOVHFXUHDSSUR[LPDWHO\RI3DOHVWLQH¶VFXUUHQWWRWDOHOHFWULFLW\ consumption with a total project cost of approximately $650 million dollars. Jerusalem District Electricity Company (JDECO)

As JDECO plays a pioneering role in providing electricity for a range of Palestinian governates including Ramallah, Jerusalem, -HULFKRDQG%HWKOHKHPWKH3,)LQYHVWVLQ-'(&2¶VVKDUHV

JEDCO is constantly exploring ways to diversify its electric sources as well as to develop a local electric power generation capacity from clean energy sources, particularly through solar energy. Palestinian Electricity Company (Gaza Power Plant) 3,)LVRQHRIWKHOHDGLQJLQYHVWRUVRIWKH3DOHVWLQLDQ(OHFWULFLW\&RPSDQ\WKDWRZQVWKHSRZHUSODQWLQ*D]D6WULSDORQJVLGH PDQ\RWKHUORFDO¿QDQFLQJFRPSDQLHVDQGLQVWLWXWLRQV&XUUHQWO\3,)FRQWLQXHVLWVHIIRUWVDORQJZLWKWKHSDUWQHUVWRLQFUHDVH the capacity of the plant by shifting it to operate using natural gas.

PIF 23 Infrastructure and industrial parks sector

,QIUDVWUXFWXUHSURMHFWVSOD\DFUXFLDOUROHLQFRQWULEXWLQJWRZDUGVWKHLQGXVWULDOL]DWLRQ DQGWKHGHYHORSPHQWRIWKHQDWLRQDOHFRQRP\7KH3,)LQSDUWQHUVKLSZLWKDODUJH number of local and international partners, implements a series of projects under WKLV VHFWRU VXFK DV WKH -HULFKR $JUR,QGXVWULDO 3DUN 7DUTXPLD ,QGXVWULDO 3DUN Ooredoo Palestine, as well as other projects and investments.

Highlights of recent accomplishments in the infrastructure sector in 2019

1 2

,QFUHDVH LQ WKH VXEVFULEHUV¶ EDVH RI A range of studies and plans Ooredoo Palestine mobile company were conducted to support the amounting to 1.3 million subscribers GHYHORSPHQW RI 7DUTXPLD ,QGXVWULDO by the end of 2019, a growth of 3% Park. compared to 2018.

24 ANNUAL REPORT 2019 1XPEHURI6XEVFULEHUVLQ2RUHGRRĚŠĴļŽŠĴĝĽŨįēİŐĉŏĔřĜĳē Ooredoo,QFUHDVHGWRUHDFK ĚżŭżŉĹťřŤēĚżŭňŵŤēŦŻĔĖŵŨ ŹŤčŦŁżŤ 1.3 PLOOLRQVXEVFULEHUVşĴĝĽŨūŵżťŨ

PIF 25 Tarqumia Industrial Park and Bonded Area /RFDWHGQHDU+HEURQ7DUTXPLD,QGXVWULDO3DUNVHHNVWRRSHUDWHDVDQLQGXVWULDOSDUNDQGDERQGHGDUHD7KHPDVWHUSODQRI this project aims to enable the park to facilitate the movement of goods to regional and international markets – serving as a VWUDWHJLFFRQQHFWLRQWRLQWHJUDWHWKHHFRQRPLHVRI*D]DDQGWKH:HVW%DQN$VWKH3,)ZDVDVVLJQHGE\WKHJRYHUQPHQWWR develop and operate the park, the costs of this project are estimated at $105 million. 7KHSDUNZLOOEHFRQQHFWHGWRWKHSRUWVDQGWKH-HULFKR$JUR,QGXVWULDO3DUNHQDEOLQJ3DOHVWLQHWRDFFHVV$UDEFRXQWULHVDQG the rest of the world. It will provide investors and companies with warehouses, large swaths of land, modern technological logistics solutions to strengthen Palestinian products, and promote competencies in the Palestinian industrial supply chain, DQGRWKHUEHQH¿WV

Jericho Agro-Industrial Park (JAIP) Covering an area of 615 dunoms, the Jericho Agro-Industrial Park is located on the eastern side of the city, 7 kilometres from the Karama border crossing and 30 kilometres from Jerusalem. In essence, this project aims to increase Palestinian exports in international markets through facilitating improved trade infra- VWUXFWXUHDQGSURFHVVHV7KHSURMHFWZLOOSURYLGHXSRQFRPSOHWLRQRIDOOVWDJHVDERXWGLUHFWMREVDQGDWOHDVW indirect jobs. It will also stimulate economic activity in Jericho. :LWKDQLQYHVWPHQWVL]HRIPLOOLRQWKHSURMHFWLVGHVLJQHGWRFUHDWHDFRQGXFWLYHLQYHVWPHQWHQYLURQPHQWDVZHOODVWR enhance the standards and quality of Palestinian products to increase its competitiveness in international markets. 7KH¿UVWSKDVHRIWKHSURMHFWZDVFRPSOHWHGRQDQDUHDRIWKRXVDQGVTXDUHPHWHUVRILQWHJUDWHGLQIUDVWUXFWXUHIHDWXULQJ commercial, industrial, storage and distribution facilities. In 2019, 10 factories were operating in the park and additional 30 factories signed contracts to operate in the park. PIF is one of the main shareholders and founders of the project in partnership with Palestine Real Estate Investment Company - PRICO and Sanabil Investment Company.

26 ANNUAL REPORT 2019 Ooredoo Palestine 7KHVHUYLFHVRI2RUHGRR3DOHVWLQHZHUHODXQFKHGLQDVDSDUWQHUVKLSEHWZHHQ3,)DQG2RUHGRR,QWHUQDWLRQDO*URXS7KH company commenced operations in the West Bank in the same year. It offered its shares for the initial public offering in 2010, ZKLOHLWVVKDUHVZHUHOLVWHGRQ3DOHVWLQH6WRFN([FKDQJHLQ,WVXFFHHGHGLQODXQFKLQJLWVFRPPHUFLDOVHUYLFHVLQWKH*D]D Strip in 2017 despite the many obstacles and launched 3G services in 2018 in the West Bank. Ooredoo continued its year-on- year success, bringing its total subscriber base to 1.3 million at the end of 2019.

Palestine Telecommunications Group (Paltel Group) 7KH ¿UVW RSHUDWRU LQ WKH WHOHFRPPXQLFDWLRQ VHUYLFHV LQ Palestine, wherein PIF is considered a co-founder. Paltel commenced operations in 1997 as a public shareholding company for the purpose of providing wired and wireless telecommunications and internet services in Palestine through building the necessary infrastructure.

MADA Al-Arab for Telecommunica- tions and Internet Services 0DGD$O$UDELVD3DOHVWLQLDQEURDGEDQGDQGLQWHUQHWVHU- YLFHSURYLGHU,QDQHIIRUWWRVXSSRUWGLJLWDODFFHVVLQ3DO- HVWLQHWKH3,)LQYHVWVHTXLW\VKDUHVZLWK0DGD$O$UDE ă

PIF 27 Real Estate Sector

7KHUHDOHVWDWHVHFWRULQ3DOHVWLQHZLWQHVVHGODUJHVFDOHGHYHORSPHQWDQGJURZWK WKURXJKRXWDOOJRYHUQRUDWHV3,)LVIRFXVLQJRQDKRUL]RQWDOUHDOHVWDWHGHYHORSPHQW strategy across all districts through land development by developing large lots of ODQG SURYLGLQJ VWDWH RI WKH DUW LQIUDVWUXFWXUH OHYHOLQJ ZRUNV ]RQLQJ DQG XUEDQ SODQQLQJ 7KHVH ODQG ORWV ZLOO WKHQ EH DYDLODEOH IRU UHDO HVWDWH GHYHORSHUV DQG LQGLYLGXDOVLQRUGHUWRFRYHUWKHJDSLQWKHVL]HRIODQGVVXLWDEOHIRUGHYHORSPHQW PIF will effectively invest and contribute to the development of physical and social infrastructure of the steadily growing Palestinian society to support the Palestinian economy and develop a solid, independent, and self-reliant economy.

Highlights of accomplishments in the real estate sector during 2019

During 2019, approximately 42% of Al Bustan neighborhood project in Jericho has 1 EHHQVROGWRDQXPEHURIEHQH¿FLDULHV7KHFRPSDQ\ZRUNVRQGHYHORSLQJWKHODQG lots with the aim of providing land parcels ready for construction works.

Signed two new contracts with Istishari Arab Hospital and Maslamani Home to join 2 $PDDU7RZHULQ(UVDO&HQWHUZKHUH,VWLVKDUL$UDE+RVSLWDOZLOOXVHWKHVHRI¿FHVDV WKHLUKHDGRI¿FHVIRUWKHH[HFXWLYHPDQDJHPHQWDQG0DVODPDQL+RPHRQHRIWKH OHDGLQJKRPHDSSOLDQFHVFRPSDQ\ZLOORSHQDVKRZURRPUHWDLOVWRUHDW$PDDU7RZHU

6WDUWHG WKH SURFHVV RI SODQQLQJ DQG ]RQLQJ RI DQ DGGLWLRQDO 640 LQ $O 3 Reehan neighbourhood to make available for sub developers and individuals for investment.

Approval of detailed engineering designs for Jerusalem Commercial Center project. 4 Endorsement and approval to issue a license for the start construction works is expected to take place during the second quarter of 2020.

Approval of detailed engineering plans for Beit Hanina Heights project. Endorsement 5 and approval to issue a license for the start construction works is expected to take place during the second quarter of 2020.

28 ANNUAL REPORT 2019 PIF 29

Beit Hanina Heights (Jerusalem) 7KLVXQGHUFRQVWUXFWLRQSURMHFWLVORFDWHGLQWKHFHQWHURI-HUXVDOHPLQ%HLW+DQLQDRQHRIWKHPRVWLPSRUWDQW3DOHVWLQLDQ UHVLGHQWLDODUHDVLQWKHFLW\DERXWNLORPHWHUVIURPWKHROGFLW\DQGNLORPHWHUVIURP5DPDOODK7KHSURMHFWFRQVLVWVRIWZR UHVLGHQWLDOWRZHUVDQGXQGHUJURXQGSDUNLQJORWV7KHWRWDOUHVLGHQWLDODUHDRIWKHKRXVLQJLVDSSUR[LPDWHO\VTXDUH PHWHUVZLWKVTXDUHPHWHUVIRUSDUNLQJORWV7KHUHVLGHQWLDODUHDLVGLYLGHGLQWRDSDUWPHQWVUDQJLQJIURPWR square meters.

Jerusalem Commercial Center (Jerusalem) 7KLVXQGHUFRQVWUXFWLRQFHQWHULVLQWKHKHDUWRI(DVW-HUXVDOHPZLWKHDV\DFFHVVWRSXEOLFWUDQVLW,WLVDERXWD±PLQXWH ZDONIURPWKH2OG&LW\DQGKRO\VLWHV,WFRQVLVWVRIÀRRUVZLWK XQGHUJURXQGÀRRUVIRUSDUNLQJORWVDQGVWRUHV,WDOVR KDV JURXQGÀRRUVIRUVKRSVDQG ÀRRUVIRURI¿FHVDVZHOODV ÀRRUVIRUDKRWHO7KHWRWDODUHDRIWKHFHQWHULV square meters.

30 ANNUAL REPORT 2019 Al Reehan Neighborhood PIF has made excellent accomplishment, creating several iconic landmarks in many governorates. One of the most well-known DFKLHYHPHQWVDQGVXFFHVVVWRU\LVWKHGHYHORSPHQWRI$O5HHKDQQHLJKERUKRRG7KLVUHVLGHQWLDOQHLJKERUKRRGKDVVHWVWDQGDUGV RIWKHUHDOHVWDWHGHYHORSPHQWLQ3DOHVWLQH7KHUHDUHFXUUHQWO\RYHUKRXVLQJXQLWVLQWKHQHLJKERUKRRGZLWKDVWDWHRIWKHDUW modern infrastructure and investments in several sectors including medical, academic, and tourism.

7KH0LOOLRQ1HLJKERUKRRGLVORFDWHGQRUWKRI5DPDOODKDQGLVRQO\NLORPHWHUVDZD\IURPWKHFLW\FHQWHU7KHQHLJKERUKRRGLV within the Ramallah Municipality jurisdiction.

PIF was keen to engage with the Palestinian private sector and the local developers, since the beginning, giving them the opportunity WRLQYHVWDQGDFKLHYHSUR¿WVE\SDUWLFLSDWLQJLQGHYHORSLQJVRPHVWDJHVRIWKHQHLJKERUKRRGRUWKURXJKWKHELGVDZDUGHGWRWKH 3DOHVWLQLDQFRQWUDFWLQJHQJLQHHULQJDQGGHVLJQ¿UPV7KHVHHIIRUWVOHGWRWKHFUHDWLRQRIDQLFRQLFIDPLO\UHVLGHQWLDOQHLJKERUKRRG and attracted a set of vital services investments such as Istishari Arab Hospital, Lacasa Mall and the higher studies facility of the Arab American University.

Al Reehan Neighborhood sets forth the features of the urban expansion and development of the cities of Ramallah and Al-Bireh.

Al Jinan Neighborhood PIF constructed and developed the project of Al Jinan residential neighborhood and its now fully constructed and sold and fully occupied with its residents. It covers an area of 77 dunums in the center of the suburbs of Jenin, in a strategic location 3 kilometers east of the city center and 5 kilometers northwest of the Arab American University.

,WLVWKH¿UVWRILWVNLQGLQWKHQRUWKHUQSDUWRIWKH:HVW%DQN$O-LQDQLQFOXGHVEDFNWREDFNYLOODVUHVLGHQWLDOEXLOGLQJV with 28 apartments, a shopping outlet to serve residents, and central green areas.

PIF 31 Ersal Center Ersal Center is the signature commercial complex in Ramallah and Al-Bireh, covering an area of 58 donums. PIF has developed DQGSURYLGHGWKHDUHDZLWKDOOLQWHJUDWHGLQIUDVWUXFWXUHVHUYLFHVDQGXUEDQSODQQLQJPDNLQJLWSRVVLEOHDQGUHDG\IRU¿QDQFLDO commercial, and residential projects to be established in this area. Ersal Center is located in the vibrant heart of Ramallah and Al-Bireh, offering land lots for different purposes and investments. In DGGLWLRQ$PDDU7RZHUORFDWHGLQ(UVDO&HQWHURIIHUVVSDFLRXVRI¿FHVSDFHDYDLODEOHIRUFRPSDQLHVDQGRUJDQL]DWLRQV2WKHU towers such as CCC building is already constructed, and more to come. 2QFHFRPSOHWHG(UVDO&HQWHUZLOOOHDG5DPDOODKDQG$O%LUHKWRZDUGVGHYHORSPHQWDQGSURVSHULW\7KHSURMHFWZLOOLQFOXGH 11 commercial towers for multiple facilities while in an area suitable to include public parks, playgrounds, commercial stores, VFKRROVDQGLQVWLWXWLRQVLQRUGHUWRHQFRXUDJHDQGDWWUDFWPRUHLQYHVWPHQWV7KH&HQWHUZLOOVHUYHWKRXVDQGVRI3DOHVWLQLDQV Ersal center, attracted several companies to take advantage of its strategic location, services, and infrastructure. During 2019 several businesses moved into the center.

Moon City 2 After successful implementation and sale of the project of Moon City (1) on an area of 550 dunums of land, with lots for different FRPPHUFLDOKRXVLQJDQGWRXULVPSURMHFWVWKDWPHHWWKHLQFUHDVLQJGHPDQGE\WKHQDWLRQDOFRPSDQLHVDQGRUJDQL]DWLRQVRQ WKHORWVRIODQGVIRUGHYHORSPHQWSXUSRVH3,)ODXQFKHGWKH¿UVWVWDJHVRISODQQLQJIRU0RRQ&LW\ ,WFRYHUVDFFRUGLQJWR WKHSODQVDQDUHDRI PLOOLRQVTXDUHPHWHUVRIODQGFORVHWR0RRQ&LW\ LQ-HULFKRDQG$O$JKZDU WKH-RUGDQ9DOOH\ DUHD 7KHSURMHFWVKDOOEHRIIHUHGWRGHYHORSHUVRUJDQL]DWLRQVDQGLQGLYLGXDOV7KHORFDWLRQRIWKHSURMHFWLVPDJQL¿FHQWO\XQLTXHVR WKDWLWVKDOOFRQWULEXWHWRGHYHORSLQJWKH3DOHVWLQLDQUHDOHVWDWHVHFWRUDQGZLOOSURYLGHDIIRUGDEOHSDUFHOVIRULWVEHQH¿FLDULHV

32 ANNUAL REPORT 2019 Surda Hills in Ramallah and Al Bireh 7KLVSURMHFWVSDQVRYHUWKHKLOOVRIWKHWRZQRI6XUGDQRUWKRI Ramallah city, about (2) kilometers from the iconic Al Reehan Neighborhood where public, educational, health, entertainment and commercial facilities are available for the residents of the area.

Surda Hills offers 50 land lots that cover an area of 500-900 square meters. Each lot is sorted with a title deed and has all WKHDGHTXDWHLQIUDVWUXFWXUHVHUYLFHV7KHSURMHFWDLPVWRFRQ- nect Surda Hills with main roads to attract all those who search for excellence.

Birzeit Heights in Ramallah and Al Bireh 7KLV SURMHFW LV DSSUR[LPDWHO\ WZR NLORPHWHUV DZD\ IURP WKH FHQWHURIWKHWRZQRI%LU]HLWWRWKHQRUWKRI5DPDOODK7KURXJK this project, Amaar effectively offers adequate infrastructure to build residential neighborhoods outside city centers and largely SRSXODWHG ORFDOLWLHV XQGHU LWV KRUL]RQWDO UHDO HVWDWH GHYHORS- ment strategy.

7KHSURMHFWLVSODQQHGZLWKORWVRIVTXDUHPHWHUVVRUW- HGZLWKWLWOHGHHGDOORZLQJLWVSRWHQWLDOEX\HUVWRVWDUWXWLOL]LQJ the land lots that are already equipped with the necessary infrastructure such as road networks, water and electricity, and is connected with the main roads network between major Pal- estinian cities.

Al Bustan Neighborhood in Jericho and Jordan Valley 7KHSURMHFWLVORFDWHGNLORPHWHUVIURPWKHFHQWHURI-HULFKR FLW\RIIWKHURDGWR+LVKDP3DODFH7KHSURMHFWRIIHUVORWVRI land with 750 square meters each. During the year 2019, 42% of the project was sold.

PIF 33 Tourism Sector

PIF paid special attention to investment in the tourism sector, mainly in Jerusalem, JLYHQWKHVLJQL¿FDQFHRIWKLVVHFWRUWRWKH3DOHVWLQLDQQDWLRQDOHFRQRP\ODFNRI QDWXUDOUHVRXUFHVRUGHYHORSHGLQGXVWULHV7RXULVPKDVDVLJQL¿FDQWSRWHQWLDOUROHWR play in achieving economic growth at this stage, and it contributes to providing job RSSRUWXQLWLHVWRWKH3DOHVWLQLDQSHRSOH,WDOVRUHYLWDOL]HVRWKHUHFRQRPLFVHFWRUV

Top Tourism Accomplishments in 2019

1 2

Obtaining development rights New Capitol Hotel was opened in early necessary approvals to build 2019 and achieved during the same Golden Gate Hotel in Jerusalem. year an occupancy rate of 70%. It is 7KH\ ZHUH REWDLQHG DIWHU DOO a success story of investment in this technical requirements were promising sector in Jerusalem. presented to the municipality. It shall include 208 rooms.

34 ANNUAL REPORT 2019 PIF 35 Golden Gate Hotel (Jerusalem) 7KLVSODQQHGKRWHOZLOOKDYHURRPVLQWKHKHDUWRI-H- UXVDOHPLQ6KLHNK-DUDKQHLJKERUKRRG7KHKRWHOLVWREH constructed on an area of 3,200 square meters with total build up area of 21,000 square meters, with an estimated LQYHVWPHQWRIPLOOLRQ7KHSURMHFWZLOOHQKDQFHWKH FLW\¶VVXVWDLQDEOHWRXULVPRIIHUE\SURYLGLQJDQGLPSURYLQJ the tourism facilities owned by Jerusalemites.

New Capitol Hotel (Jerusalem) ,WLVDURRPKRWHOZLWKDQLQYHVWPHQWVL]HRIPLOOLRQ 7KHKRWHOLVVWUDWHJLFDOO\ORFDWHGRQ6DODK(O'LQ6WUHHW the commercial artery of Jerusalem. It is established in partnership with Al Quds Electricity Company. During the stage of construction, it provided 200 job opportunities. $IWHULWZDVRSHQHGRYHULQERXQGWRXULVPRI¿FHVZHUH contracted.

Grand Park Hotel (Jerusalem) 7KLVURRPKRWHOLVORFDWHGLQWKHKHDUWRIWKH2OG&LW\RI Jerusalem. It is owned by PIF and Al Quds Holding Com- pany.

Jacir Palace Hotel (Bethlehem) Jacir Palace Hotel is an iconic touristic feature in Bethle- KHPFLW\,WLVD¿YH±VWDUKRWHORIEXLOGLQJVVSDQQLQJ over 800 square meters. PIF is one of the major shareholders of the hotel along with other shareholders.

36 ANNUAL REPORT 2019 Millennium Hotel (Ramallah) It is one of the International Millennium Hotels series. It is located in Ramallah which is the most vibrant city in Pal- estine. It is just a few minute- walk from the downtown. 7KLVVWDUKRWHOLVWKHVROHLQWHUQDWLRQDORQHLQ3DOHVWLQH It spans over 9665 square meters and PIF is the largest shareholder in it along with other shareholders.

Bethlehem Convention Palace 7KH&RQYHQWLRQ3DODFHLVDQDUFKLWHFWXUDOPDVWHUSLHFHDQG the best venue for meetings, events and activities, folkloric DQGFXOWXUDOHYHQWVLQ3DOHVWLQH,WLVFKDUDFWHUL]HGZLWKLWV strategic location and services facilities that are designed according to the best international standards. It can host big international events. PIF is one of the shareholders in it along with others.

Grand Park Hotel (Ramallah) It is a 5-star hotel with 83 rooms and meeting halls. It is built in a strategic and comfortable area (Al Masyoun) in the city of Ramallah according to international standards.

Al Mashtal Hotel (Gaza) It is a hotel of 250 rooms with meeting halls, restaurants, café shops, and other entertainment facilities in the city of *D]D PIF invests in the hotel alongside other leading Palestinian companies.

PIF 37 Agriculture Sector

Within its strategy which aims to concentrate investments in the productive sectors that have high added value, PIF is currently managing and implementing an investment portfolio in agriculture in the different areas of Palestine, particularly LQ$UHD&,WLVDGLYHUVL¿HGSRUWIROLRWKDWWDUJHWVDJULFXOWXUDODQGOLYHVWRFNSURMHFWV as well as food industries and others.

Top Agriculture Accomplishments in 2019

1 Rehabilitating, developing and cultivating around 540 dunums of arable land in the VRFDOOHGµ$UHD&¶

2 Contributing to the production of over 900 tons of agricultural crops.

38 ANNUAL REPORT 2019 Al Dalyeh – Early Seedless Grape Farm Al Dalyeh Farm for the production of early seedless grapes ZDVHVWDEOLVKHGRQGXQXPVLQ(LQ$O%HLGD7XEDV in Area C, in partnership with Sawafta Brothers Corpora- tion. Currently, the farm is being expanded to reach 540 GXQXPV7KLVSURMHFWDLPVWRGHYHORSKLJKYDOXHDJULFXO- tural crops in Palestine and enhance the resilience of the Palestinian population, especially in Area C.

Al Rabyeh Animal Feed Plant In partnership with Palestine Industrial Investment Com- pany (PADICO Industrial), a modern animal feed plant is EHLQJ HVWDEOLVKHG LQ +HEURQ 7KH IHHG SURGXFWLRQ SUR- cess will be based solely on plant inputs for ruminants and poultry. 7KHSODQWZLOOFRQWULEXWHWREULGJLQJWKHVXSSO\JDSLQWKH feed market in the southern West Bank, and to substitute WKH FXUUHQWO\ PRVWO\ LPSRUWHG IHHGV LQ WKH PDUNHW 7KH plant will have a maximum annual production capacity of 230,000 tons and a three-month grain reserve, which will HQKDQFH3DOHVWLQH¶VIHHGVHFXULW\

The National Agriculture Invest- ment Company 7KLVFRPSDQ\LVFXUUHQWO\LQWKHPDNHDQGZLOOEHVSHFLDO- L]HGLQDJULFXOWXUDOLQYHVWPHQWLQFOXGLQJLQYHVWPHQWLQDJ- ribusiness industries, logistics and marketing, food industries and livestock. It is being developed in cooperation with the European Union and the European Investment Bank, in partnership with the Palestinian private sector.

PIF 39 Health Sector

,WLVDYLEUDQWVHFWRUWKDWGLUHFWO\DIIHFWVWKHOLIHRIWKH3DOHVWLQLDQFLWL]HQV'UDZLQJ on that, PIF believes in the importance of developing and upgrading this sector to SURYLGHKLJKTXDOLW\KHDOWKFDUHVHUYLFHVIRUWKHFLWL]HQV

Top Health accomplishments in 2019

1 2

Opening cancer, blood and bone )LQDOL]LQJ FRQVWUXFWLRQV ZRUN RQ ,EQ marrow transplant section, pediatrics 6HQD 6SHFLDOL]HG +RVSLWDO ZKLFK LV section and pediatric intensive care expected to open during 2020 in unit at Istishari Arab Hospital Jenin.

40 ANNUAL REPORT 2019 PIF 41 6SHFLDOL]HG$UDE0HGLFDO&RPSOH[&RPSDQ\ ,WLVDSULYDWHVKDUHKROGLQJFRPSDQ\ZKLFKZDVHVWDEOLVKHGLQ1DEOXVLQ7KLVFRPSDQ\LQZKLFK3,)LVDVKDUHKROGHU PDQDJHVDQGLQYHVWVLQVHYHUDOOHDGLQJKRVSLWDOVLQWKH3DOHVWLQLDQKHDOWKVHFWRUVXFKDVWKH$UDE6SHFLDOL]HG+RVSLWDOLQ1D- blus and the Istishari Arab Hospital in Al Reehan Neighborhood.

Istishari Arab Hospital – Al Reehan Neighborhood ,VWLVKDUL+RVSLWDOLVRQHRIWKHPRVWLPSRUWDQWLQYHVWPHQWVE\WKH$UDE6SHFLDOL]HG0HGLFDO&RPSOH[&RPSDQ\LQWKH3DOHVWLQ- LDQKHDOWKVHFWRUZLWKDQLQYHVWPHQWVL]HRIPLOOLRQ,WRIIHUVKLJKTXDOLW\KHDOWKVHUYLFHV,WFRQWULEXWHGWRWKHUHSODFHPHQW of outside country referrals, and gave patients access to all the services provided by competent and skilled national staff. It also offers an accommodating environment where the needs of the patients and their companions and visitors are available. It started operating in 2016 with an operational capacity of 100 beds in the primary operational stage. It has today 330 beds, half of which are of high quality.

7RGD\LWKDVDFDQFHUDQGEORRGGLVHDVHVDQGERQHPDUURZWUDQVSODQWVHFWLRQZLWKLQWKHIUDPHZRUNRILWVQDWLRQDOVWUDWHJ\WR offer diverse medical services specially for cancer patients.

Ibn Sena Specialized Hospital ,EQ 6HQD 6SHFLDOL]HG +RVSLWDO LV WKH ¿UVW VSHFLDOL]HG KRVSLWDO LQ -HQLQ 7KH KRVSLWDO will include an emergency department, car- diology, intensive care unit, surgery, radiolo- gy, maternity ward, ophthalmology, pathol- ogy, medical lab, and outpatient clinics. It is expected to commence operations by the end of 2020.

42 ANNUAL REPORT 2019 Education Sector

Education is pivotal for economic development and for creating a developed society and a young generation capable of facing the challenges and opportunities of the VWFHQWXU\3,)WKHUHIRUHJDYHWKLVVHFWRUSULRULW\DQGZRUNHGZLWKVSHFLDOL]HG partners to contribute to improving and developing the quality of education.

Top Education Accomplishments in 2019

1 Contributing to providing educational opportunities for 740 students through holistic technology and science curriculum.

Al Jinan International School Established in 2018, Al Jinan International School is the ¿UVWJUDGHSULYDWHVFKRROLQ3DOHVWLQHWRRIIHUFRGLQJ and robotics as an integrated part of its curricula through- RXWDOOJUDGHV7KHVFKRROZDVMRLQWO\HVWDEOLVKHGE\$O Jinan Real Estate Investment Company, PIF and a number of local investors, academics and business-peoples LQ-HQLQ7KHVFKRROFXUUHQWO\KDVVWXGHQWVDQGKDV capacity to host over 1,100 students within its facilities.

The American International School in Gaza $,6*ZDVHVWDEOLVKHGLQ*D]DFLW\LQDVDQLQGH- pendent co-educational school and caters to all levels primary and secondary levels. Most of its graduates were able to join prominent international universities and col- leges. It offers an American academic curriculum in English, while Arabic and French are provided to students as 2nd and 3rd languages.

PIF 43 Technology Sector

7HFKQRORJ\KDVUHYROXWLRQL]HGRXUZRUOGDQGGDLO\OLYHV,WIDFLOLWDWHVRXUHFRQRPLF DFWLYLWLHVDQGHQDEOHVXVWRIXO¿OORXUPLVVLRQVHDVLO\DQGVSDUHWLPHDQGHIIRUW,W impacts al economic sectors, including agriculture, industry, energy, trade, tourism and others.

Top IT Accomplishments in 2019

6XSSRUWLQJ,7UHODWHGVWDUWXSV through Ibtikar Fund

44 ANNUAL REPORT 2019 Ibtikar Fund PIF is a shareholder in the Ibtikar Fund, a $10-million fund that invests in innovative Palestinian start-ups at early VWDJHV7KURXJKLWVVWDNHLQ,EWLNDU3,)VHHNVWRHPSRZ- HUVWDUWXSVDQGWRVWUHQJWKHQWKH,7HFRV\VWHPVHFWRULQ Palestine.

Play 3arabi PIF is a shareholder in Play 3arabi, a mobile game pub- OLVKHU IRFXVHG RQ $UDELF PRELOH JDPHV 7KH FRPSDQ\ collaborates with international game developers to offer games in Arabic that are relevant to the Arab culture and to enrich the Arabic digital content.

PIF 45 SMEs Sector

60(VDUHWKHEDFNERQHRIWKH3DOHVWLQLDQHFRQRP\7KH\PDNHXSRIWKH operating establishments in Palestine and are the largest employer of the Palestinian workforce.

Top SMEs Accomplishments in 2019

Announcing the second phase of Jerusalem Matching Grants Facility that provided 1 JUDQWVWREHQH¿FLDULHV

Providing 1.000 loans for SMEs in the Palestinian refugee camps in Lebanon within 2 Economic Empowerment program for Palestinian Refugees in Lebanon

:LWKLQ,EGD¶3URJUDPIRU

/DXQFKLQJ WKH ¿UVW GHYHORSPHQW LPSDFW ERQGV ZLWKLQ ³)LQDQFH IRU -REV )- 4 H[HFXWHG LQ SDUWQHUVKLS ZLWK QDWLRQDO DQG LQWHUQDWLRQDO RUJDQL]DWLRQV ,W LV WKH ¿UVWGHYHORSPHQWLPSDFWERQGVFRQFHUQHGZLWKGHYHORSLQJVNLOOVDQGHPSOR\LQJ Palestinian youths. 5 Contributing to establishing and developing more than 1500 small and micro HQWHUSULVHVWKURXJKSDUWQHUOHQGLQJDQG¿QDQFLQJFRUSRUDWLRQV

Within the frame of the SME Loan Program in Jerusalem, an agreement worth of 6 $2.3 million was signed with the Palestinian Banking Corporation. Loans worth of $500,000 were provided in the primary stage, for approximately 13 companies in Jerusalem.

46 ANNUAL REPORT 2019 PIF 47 Ibda’ Program for Young Entrepreneurs Training track: 7DUJHWLQJHQWUHSUHQHXUVDQG\RXQJYRFDWLRQDOWUDLQHHV7KHWUDLQLQJVHFWLRQRI,EGD¶SURJUDPZDVODXQFKHGLQLQSDUWQHU- VKLSZLWKWKH0LQLVWU\RI(GXFDWLRQDQG,QWHUQDWLRQDO/DERU2UJDQL]DWLRQ ,/2 DVZHOODVVRPHORFDORUJDQL]DWLRQVLQRUGHUWR provide them with the skills and knowledge necessary for entrepreneurship and starting their own businesses. %\WKHHQGRI3,)KDYHWUDLQHGDQGTXDOL¿HGWHDFKHUVLQDOOYRFDWLRQDOVFKRROVDQGWHFKQLFDOFROOHJHVLQ3DOHVWLQH on “Know about Business (KAB)” curriculum. During the same year, about 40 small enterprises, with more than 50% of the EHQH¿FLDULHVZHUHZRPHQZHUHODXQFKHGE\WKRVHWUDLQHGLQWKHSURJUDP

Ibda’ Program for Young Entrepreneurs- Funding track: ,WDLPVDWSURYLGLQJORDQVWR\RXQJHQWUHSUHQHXUVWKURXJK0LFUR)LQDQFH,QVWLWXWLRQV 0),V DQG¿QDQFLDOOHDVLQJFRPSDQLHV RSHUDWLQJLQ3DOHVWLQHWRVXSSRUWERWK6WDUWXSVDQGH[LVWLQJSURMHFWV7KH$UDE)XQGIRU(FRQRPLFDQG6RFLDO'HYHORSPHQW provided a loan of $30 million to the program. %\WKHHQGRI,EGD¶SURYLGHGORDQVZRUWKRIPLOOLRQWR0LFUR¿QDQFH,QVWLWXWLRQVDQG¿QDQFLDOVHUYLFHSURYLGHUV ZKRLQWKHLUUHWXUQ¿QDQFHGSURMHFWVWKURXJKORDQVZLWKDWRWDOYDOXHRIPLOOLRQ7KHVHORDQVFRQWULEXWHGWRWKH SURYLVLRQRIMREVRIWKHEHQH¿FLDULHVRIWKHWRWDOSRUWIROLRIRUWKHVHSURMHFWVZHUHZRPHQZKLOHDOOWKHORDQVWDUJHWHG \RXWKV¶SURMHFWVDJHG\HDU

Economic Empowerment program for Palestini- an Refugees in Lebanon 7KHSURJUDPZDVODXQFKHGWRSURYLGHORDQV UDQJLQJIURP $5,000) targeting income-generating projects for Lebanon Pal- estinian refugees. It is implemented through four Palestinian and Lebanese lending institutions operating in Lebanon. By the end of 2019, more than 4058 loans were provided in Pales- tinian refugee camps and communities, with a total value of $ 7.25 PLOOLRQRIWKHWRWDOQXPEHURIEHQH¿FLDULHVDUH\RXQJSHRSOH while 27% are women. Since its inception in 2012, this program succeeded in creating and retaining a record of 6,500 jobs.

48 ANNUAL REPORT 2019 Tamkeen Fund 3,)GHFLGHGWRLQYHVWDQDPRXQWRIPLOOLRQLQ7DPNHHQ)XQGRYHUWKHFRPLQJIHZ\HDUV7KH)XQGLVDQLQYHVWPHQWGHYHO- opment vehicle with a capital of $500 million that was established by the Islamic Development Bank in Jeddah with a mission to enable the Palestinian economic environment by investing in economic viable projects that have developmental and social impact.

Jerusalem Matching Grants Facility 7KLVSURJUDPIXQGHGE\WKH(8DQG3,)SURYLGHVJUDQWV PDWFKHGE\WKHEHQH¿FLDU\ WR60(VRSHUDWLRQDOLQ-HUXVDOHP taking into consideration that MSMEs are the backbone of the economy in the holy city. A second phase of the program was ODXQFKHGLQPLGEDVHGRQWKHVXFFHVVIXOWUDFNUHFRUGRISKDVHRQHWKDWHQGHGLQ7KHSURJUDPWDUJHWV60(VWKDW demonstrate their ability expand and develop their business activities with the goal of creating jobs for Jerusalemites. %\WKHHQGRILWSURYLGHG60(VZLWKORDQVDWWKHYDOXHRI(XURWKXVFUHDWLQJDQGUHWDLQLQJMREVRI WKHEHQH¿FLDULHVDUH\RXQJSHRSOH OHVVWKDQ\HDUV DQGDUHZRPHQDQGRIWKHVXSSRUWHGSURMHFWVDUHVWDUWXSV $GGLWLRQDOO\LQSDUWQHUVKLSZLWK2[IDPDQGORDQVIURPWKH6ZHGLVK$JHQF\IRU,QWHUQDWLRQDO'HYHORSPHQW 6,'$ WHFKQLFDO support (planning, feasibility studies, and needs assessment) was provided for 15 projects in the Old City of Jerusalem to de- YHORSSURMHFWVDQGSODQVWKDWLQFHQWLYL]HVKRSNHHSHUVWRUHRSHQWKHLUVKRSVLQ%DE$O-DGLGDQG4DWDQHHQ0DUNHW0RVWRI the shops that were supported were closed since 50 years due to the challenges set by the Israeli occupation in the Old City.

PIF 49 Jerusalem Program for lending SMEs Funded by the Arab Fund for Economic and Social Development 7KHSURJUDPSURYLGHVIXQGLQJIRU60(VRSHUDWLQJLQ-HUXVDOHPZLWKÀH[LEOHWHUPV7KH$UDE)XQGSURYLGHGDPLOOLRQORDQ portfolio for this program. Around 64 loans of a total value of $3 million were provided to SMEs in Jerusalem, covering various VHFWRUVLQFOXGLQJLQGXVWU\VHUYLFHVWUDGHDQGWRXULVP7KHSURJUDPPDQDJHGWRFUHDWHQHZMRERSSRUWXQLWLHV

Development Impact Bond (DIB) Program ³)LQDQFH)RU-REV±)-´ZDVODXQFKHGDVD¿UVWRILWVNLQG'HYHORSPHQW,PSDFW%RQG',%LQ3DOHVWLQHZLWKWKHWDUJHWRI developing the skills young graduates in partnership of PIF, the European Bank for Reconstruction and Development (EBRD), 1HWKHUODQGV'HYHORSPHQW)LQDQFH&RPSDQ\ )02 ,QYHVW3DOHVWLQH7KH3DOHVWLQLDQ&KLOH,QYHVWPHQW)XQG³2OLYHV6HHGV´ and a funding from the World Bank. 7KHPDLQSXUSRVHRIWKH)LUVW3DOHVWLQLDQ(PSOR\PHQW',%LVWRPDWFKHPSOR\PHQWRSSRUWXQLWLHVZLWKVXLWDEOHHPSOR\HHVE\ SXUSRVHIXOO\WUDLQLQJMREVHHNHUVLQHPSOR\HUGHPDQGHGVNLOOV7KH',%ZLOOWDUJHWDQHVWLPDWHGFRKRUWRI3DOHVWLQLDQMRE VHHNHUVDJHG±\HDUV RIZKLFKDWOHDVWSHUFHQWZLOOEHZRPHQ LQVHYHUDOVHFWRUVVXFKDVKHDOWKFDUHQXUVLQJRQOLQH PDUNHWLQJ,7HGXFDWLRQHQJLQHHULQJDQGRWKHUV

50 ANNUAL REPORT 2019 Asala Company for Credit and Development PIF is a key shareholder in Asala, which aims to empower Palestinian women with low income and give them access to their HFRQRPLFDQGVRFLDOULJKWV6LQFHLQFHSWLRQ$VDODKDVSURYLGHGRYHUPLOOLRQRIORDQVWRPRUHWKDQEHQH¿FLDULHV

Palestinian Ijara Company Launched in 2013 through a partnership between PIF, the Islamic Corporation for the Development of the Pri- vate Sector (ICD) and Palestine Islamic Bank, Ijara is WKH¿UVWDQGRQO\VSHFLDOL]HG,VODPLFOHDVLQJFRPSDQ\ in Palestine offering Islamic leasing solutions (ljara) to SMEs. 7KH FRPSDQ\ OHDVHV PDFKLQHV HTXLSPHQW YHKLFOHV DQGSURGXFWLRQOLQHVRQDOHDVHWRRZQEDVLVWDUJHW- ing the productive sectors and SMEs in the Palestinian market. With an initial investment of $12 million. Since its inception, Ijara has granted total leasing portfolio of over PLOOLRQDQGKDVH[HFXWHGPRUHWKDQ¿QDQ- cial leases to over 500 companies.

Corporate Social Responsibility During 2019, Palestine for Development (PsDF) which is PIF So- cial Investment arm continued to provide small grants to development programs and projects that seek to create sustainable LPSDFWLQDZLGHUDQJHRIDUHDVVXFKDVWKHORFDOHGXFDWLRQ entrepreneurship, cultural, artistic, , medical and women organ- L]DWLRQV,WVXSSRUWHGRUJDQL]DWLRQVDQGDVVRFLDWLRQVLQ:% *D]DDQG-HUXVDOHP3V')FRQWLQXHVLWVZRUNZLWKLQWKHVRFLDO UHVSRQVLELOLW\SURJUDPDQG3,)¶V6RFLDO,QYHVWPHQWYLVLRQGXULQJ 2020 to create sustainable community impact.

PIF 51 Industry and Trade Sector

7KH WUDGH VHFWRU LV RQH RI WKH SURPLVLQJ HFRQRPLF VHFWRUV LQ 3DOHVWLQH ,W VWLOO plays a pivotal role in the Palestinian economy in terms of its volume, structural DQGGHYHORSPHQWLPSDFW7KLVFDQEHRZHGWRVHYHUDOIDFWRUVLQFOXGLQJLWVLPSDFW of the other economic productive sectors and its impact on the labour market, balance of payments and its provision of the local market with production supplies, consumables and other materials.

7KHLQGXVWULDOVHFWRULVRQHRIWKHOHDGLQJSURGXFWLYHVHFWRUVWKDWJLYHPRPHQWXP to economic growth. It has a pivotal role in leading inclusive development process. ,QGXVWU\GHYHORSPHQWDFKLHYHVKLJKHFRQRPLFJURZWKUDWHVFUHDWHVGLYHUVL¿HGMRE opportunities and economic diversity that is necessary for improving social growth.

Top Industry and Trade Accomplishments 2019

Sanad Construction Resources Company began to establish the cement mill with 1 a productive capacity of 1.1 million tons of cement annually which will meet around 50% of the current Palestinian market demand.

Executed investment deal to acquire an additional portion of the shares of Siniora 2 Food Industries Company. PIF possess now 29% of the company.

52 ANNUAL REPORT 2019 Arab Palestinian Investment Compa- ny (APIC) Arab Palestinian Investment Company (APIC) was established in 1994 by a group of Arab businessper- VRQVZKRORRNHGIRUZDUGWRLQYHVWLQJLQ3DOHVWLQH7KH shares of APIC were listed in Palestine Stock Exchange in 2014. APIC invests in the manufacturing, trading, distribution and services sectors in Palestine, Jordan, Saudi Arabia, and the United Arab Emirates through 9 subsidiaries. Siniora Food Industries Company Siniora Food Industries was established in 1920 in Jeru- VDOHP7KHFRPSDQ\¶VPLVVLRQLVWRSURYLGHIRRGSURGXFWV and high-quality services to consumers by employing a FDGUH RI WKH PRVW LPSRUWDQW H[SHUWLVH DQG TXDOL¿FDWLRQV ZKLOH UHVSHFWLQJ LWV KHULWDJH 7KH FRPSDQ\ VWDUWHG H[- porting its products beyond the Jordanian and Palestini- an markets to Syria, Lebanon, Saudi Arabia, United Arab (PLUDWHV.XZDLW4DWDU2PDQ

PIF 53 Financial Sector

)LQDQFLDOPDUNHWVDUHQHFHVVDU\IRUDFKLHYLQJHFRQRPLFEHQH¿WVDQGFDWDO\]LQJ WKHFRPSDQLHVWKHVKDUHVRIZKLFKDUHOLVWHGLQWKHVWRFNH[FKDQJH7KH\PRWLYDWH WKHPWRLPSURYHWKHLUSHUIRUPDQFHDQGLQFUHDVHWKHLUSUR¿WVWRVSLNHWKHSULFHVRI their shares. Financial markets prepare the environment necessary for promoting local investments and attract foreign investments through monitoring issuance RIVHFXULWLHVWUDGLQJWKHPDPRQJGHDOHUVPDLQWDLQLQJLQYHVWRUV¶SURSHUWLHVDQG EXLOGLQJLQYHVWRUV¶FRQ¿GHQFHLQWKHORFDOFRPSDQLHV

Top Financial Markets Accomplishments 2019

1 PIF acquired additional shares of “Palestine Investment Bank”, reaching slightly in excess of 25%.

54 ANNUAL REPORT 2019 PIF 55 3,)PDQDJHVFDSLWDOPDUNHWVSRUWIROLRVLQUHJLRQDODQGLQWHUQDWLRQDOFDSLWDOPDUNHWV7KHVHGLYHUVHSRUWIROLRVDGKHUHWRVWULFW LQYHVWPHQWJXLGHOLQHVWKDWDUHLQOLQHZLWK3,)¶VULVNDSSHWLWHDQGLQYHVWPHQWVWUDWHJ\

Rasmala Palestine Equity Fund 5DVPDOD3DOHVWLQH(TXLW\)XQGZDVLQLWLDWHGDQGOHGE\3,)DORQJZLWKNH\SDUWQHUVLQZLWKDQLQYHVWPHQWVL]HRI million. It aims to attract local and global investment in Palestinian securities.

Arab Islamic Bank $UDE,VODPLF%DQNLVWKH¿UVW,VODPLFEDQNLQ3DOHVWLQHHVWDEOLVKHGLQDVDSXEOLFVKDUHKROGLQJFRPSDQ\,WFRPPHQFHG operations in 1996, and it provides banking services in accordance with the provisions of Islamic sharia (Islamic Law). It has a QHWZRUNRIEUDQFKHVDQGRI¿FHVDOORYHU3DOHVWLQH

56 ANNUAL REPORT 2019 Palestine Investment Bank Palestine Investment Bank was established as a public shareholding company with the participation of a group of bankers and EXVLQHVVSHUVRQVIURP3DOHVWLQHDQG$UDEFRXQWULHV7KHEDQNLVWKH¿UVW3DOHVWLQLDQEDQNWRREWDLQWKHQHFHVVDU\OLFHQVHVWR conduct its business from the Palestinian government, registered with a paid-in capital of $20 million.

Bank of Palestine %DQNRI3DOHVWLQHZDVHVWDEOLVKHGLQZLWKWKHYLVLRQRISURPRWLQJEDQNLQJVHUYLFHVLQ3DOHVWLQH¿QDQFLQJWKHGHYHORS- PHQWRISURMHFWVDQGPHHWLQJWKH¿QDQFLDODQGEDQNLQJQHHGVRIWKHYDULRXVVHJPHQWVRI3DOHVWLQLDQV7KH%DQNKDVTXDOL¿HG VWDIIZKRSURYLGHVHUYLFHVWRPRUHWKDQFOLHQWVLQFOXGLQJLQGLYLGXDOVFRUSRUDWHVDQGRUJDQL]DWLRQV

Al Safa Bank Al Safa Bank was established in 2016 as a public shareholding company by a group of companies, institutions and legal en- WLWLHV,WFRPPHQFHGRSHUDWLRQVLQDVDVKDULDFRPSOLDQWEDQNLQJLQVWLWXWLRQ7KHEDQN¶VFDSLWDOLVPLOOLRQDQGVHHNV to meet the Palestinian market needs for Islamic banking services and products.

PIF 57 Financial Statements Palestine Investment Fund Consolidated Financial Statements 31 December 2019

58 ANNUAL REPORT 2019 PIF 59 60 ANNUAL REPORT 2019 PIF 61 62 ANNUAL REPORT 2019 PIF 63 64 ANNUAL REPORT 2019 PIF 65 66 ANNUAL REPORT 2019 PIF 67 68 ANNUAL REPORT 2019 PIF 69 70 ANNUAL REPORT 2019 PIF 71 72 ANNUAL REPORT 2019 PIF 73 74 ANNUAL REPORT 2019 PIF 75 76 ANNUAL REPORT 2019 PIF 77 78 ANNUAL REPORT 2019 PIF 79 80 ANNUAL REPORT 2019 PIF 81 82 ANNUAL REPORT 2019 PIF 83 84 ANNUAL REPORT 2019 PIF 85 86 ANNUAL REPORT 2019 PIF 87 88 ANNUAL REPORT 2019 PIF 89 90 ANNUAL REPORT 2019 PIF 91 92 ANNUAL REPORT 2019 PIF 93 94 ANNUAL REPORT 2019 PIF 95 96 ANNUAL REPORT 2019 PIF 97 98 ANNUAL REPORT 2019 PIF 99 100 ANNUAL REPORT 2019 PIF 101 102 ANNUAL REPORT 2019 PIF 103 104 ANNUAL REPORT 2019 PIF 105 106 ANNUAL REPORT 2019 PIF 107 108 ANNUAL REPORT 2019 PIF 109 110 ANNUAL REPORT 2019 PIF 111 112 ANNUAL REPORT 2019 PIF 113 114 ANNUAL REPORT 2019 PIF 115 116 ANNUAL REPORT 2019 PIF 117 118 ANNUAL REPORT 2019 PIF 119 120 ANNUAL REPORT 2019 PIF 121 122 ANNUAL REPORT 2019 PIF 123