The European Bank for Reconstruction and Development (EBRD) is partnering with the Palestinian Ministry of National Economy to develop a comprehensive insolvency law for businesses and citizens in the West Bank and Gaza.

The new insolvency law will enhance the competitiveness of the Palestinian economy and build on the success of the recently approved Companies Law. The reform will focus on modernising the legal and regulatory framework and aligning it with international best practices.

Addressing existing gaps, the new insolvency framework will provide more support at an earlier stage for financially distressed but viable businesses and help vulnerable people who are struggling to manage their debts. By fostering a culture of early action, the authorities hope to encourage entrepreneurship and better governance and reduce the stigma associated with insolvency.

The reform is being supported by legal experts, including Andersen Palestine and EMA Global.

A public consultation event was held in Ramallah in November to present an outline of the key concepts of the new legislation and to collect public feedback. Mohammad Al-Amour, Palestinian Minister of National Economy, opened the event and stressed the importance of new insolvency legislation for social and financial stability.

Mr. Al-Amour said: “This partnership with the EBRD represents a significant step towards strengthening the Palestinian legal and institutional framework for economic growth. By establishing a clear and predictable insolvency regime, we aim to create a more resilient economy that benefits all stakeholders.”

The draft insolvency law is expected to be submitted to the Palestinian Ministry of National Economy in the second quarter of 2025.