The Palestinian Union of Small and Microfinance Companies (Sharakah), in cooperation with the Palestine Economic Policy Research Institute (MAS), held a workshop to discuss the findings of a study entitled “A Comparative Analysis of the Legal and Tax Aspects and Interest Rate Frameworks Governing Microfinance Companies in Palestine and Selected Countries in the Middle East and North Africa.” The workshop was attended by a number of specialists, experts, and representatives of stakeholders in the microfinance sector.
The study was supported by Daman for Small Enterprises and funded by Finance in Motion – SANAD Fund. It was prepared by Development Solutions Consulting, with the aim of examining the legal, regulatory, and tax environment in which the microfinance sector operates in Palestine and comparing it with the frameworks applied in a number of countries across the region.
The study examined key challenges and opportunities related to the sustainability and development of the microfinance sector, including the impact of regulatory and tax requirements and operational burdens on microfinance institutions, as well as the need for frameworks that are better aligned with differences in institutional size, business models, and risk levels.
During the workshop, Mr. Rani Nahhas, Director of Development Solutions, presented the study’s key findings and discussed the implications of regulatory, tax, and pricing frameworks for the efficiency and sustainability of microfinance institutions, as well as their capacity to expand and reach their target groups.
The study also explored opportunities for expanding digital services and operations, which could contribute to improving efficiency, reducing costs, and enhancing access to financial services.
The workshop featured an extensive discussion of the study’s findings and recommendations, with the participation of representatives from MAS, the Palestine Monetary Authority, and the Ministry of Finance. Discussions focused on developing a regulatory and tax environment that is better suited to the nature of the microfinance sector, while emphasizing the importance of governance, beneficiary protection, and stronger collaboration among relevant stakeholders.
Daman for Small Enterprises’ contribution to supporting this study comes within the framework of its efforts to strengthen an enabling environment that allows small and micro enterprises to access financing and financial services. It also reflects Daman’s support for research and dialogue among financial institutions, regulators, and policymakers, contributing to the development of a more sustainable financing sector capable of reaching the targeted groups and enterprises.
