The Center for American Progress, Fried, Frank, Harris, Shriver & Jacobson LLP, The Portland Trust, and other individuals commit to conduct an initial market research assessment to determine a need for a political risk insurance product that if available would allow companies to take advantage of commercially attractive investment opportunities in the Gaza Strip/West Bank. It should be noted that currently traditional political risk insurance products may not adequately address the unique needs of foreign investors in this region.
Jobs and economic opportunity are among the most important elements to establishing law, order, stability and security for Palestinians, a better future for the peoples of the region, and a more secure world. The level and nature of political violence in Gaza and the West Bank and the extent to which business development and commercial traffic has been affected by it prompted this effort. By creating and offering a new political risk insurance product we aim to reduce identified impediments to certain types of foreign direct investment. In creating such an insurance product, we seek to encourage additional investors, particularly in small and medium size enterprises in specific sectors in the Palestinian territories. With increased investor pressure, we anticipate greater responsiveness from government actors in addressing infrastructure issues that have impeded investment previously. We also see benefit in increasing the number and nature of non-governmental individuals and organizations, including those willing to put capital at risk, invested in working to resolve the Israeli-Palestinian conflict.
The Center for American Progress and its partners, including insurance industry experts who have worked on political risk insurance efforts previously, are well suited to manage and organize the project Moreover, the working group co-led by partner organizations Fried, Frank, Harris, Shriver & Jacobson LLP, and The Portland Trust combines legal, investment banking, private equity and insurance industry reach that ensures access to the full range of expertise needed.