In the West Bank and Gaza, founders build in fragments. Power cuts, movement restrictions, and blocked payments are part of daily life, yet a lean, agile, and export-focused tech ecosystem has emerged from these constraints.

Over the past decade, the ecosystem has grown around universities, innovation centres, donor programs, and a limited pool of early-stage funding. Most activity is concentrated in Ramallah and Nablus, where startups and service providers have established hubs that support the broader tech community. Ramallah has become the corporate and administrative centre, enabling companies to register formally and engage with local and international clients. Together, these cities provide the infrastructure, networks, and collaborative culture needed to sustain a competitive and innovative tech sector.

Palestinian founders typically focus on three main areas: software outsourcing, SaaS, and impact-driven innovation. Software is often the easiest asset to move without transporting people or goods, while impact-focused funding has been more accessible than traditional investment. Local funds such as Ibtikar Fund have helped address early-stage gaps by providing seed and pre-Series A funding, helping build an investable pipeline of startups that now operates across the Middle East.

A Market That Encourages Regional Thinking

The domestic market in Palestine is small and fragmented, so many startups design their products with regional or global markets in mind from the outset. The World Bank’s Digital Economy Diagnostic calls this the “test local, scale regional” approach: products are first validated with early users in Ramallah or Gaza, then scaled to markets such as Jordan, Egypt, or the Gulf.

This model has benefited outsourcing and SaaS startups in particular. For example, a fintech API company in Ramallah runs its back-end development in Gaza, while an edtech startup in Hebron trains teachers remotely across the MENA region. These companies compete not only on cost but also on reliability, giving them a distinct advantage in regional markets.

The EBRD’s Role in Supporting Startups

While the Palestinian tech ecosystem has matured, startups have historically had limited access to investment and structured business support. Many organisations have stepped in to fill this gap, with the European Bank for Reconstruction and Development (EBRD) emerging as a key player in 2023. As one of the largest multilateral financial institutions, the EBRD supports private sector development in emerging markets through finance and capacity-building programs, helping startups professionalize, grow, and access investors.

In 2024, the EBRD invested $3 million in Ibtikar Fund II, a $25 million vehicle supporting up to 25 early-stage tech companies in Palestine and beyond. This marked the Bank’s first equity investment in a West Bank–based venture capital fund. Complementing this, the Star Venture programme, launched in late 2023, provides selected startups with mentoring, investment readiness training, and access to domestic and international investors. The programme guides founders in refining business models, improving operations, and preparing for regional expansion. Workshops and one-on-one mentoring cover corporate finance, governance, product-market fit, and pitching to investors, helping startups overcome structural barriers and become investment-ready.

Impact of the Star Venture Programme

The Star Venture programme in the West Bank and Gaza helps early-stage startups strengthen operations, expand into new markets, and attract investment. Through tailored advisory, mentoring, and international networking, the programme equips founders with the skills, knowledge, and connections needed to grow sustainably and professionally.

Since its inception, 13 startups have participated, collectively raising €2.5 million, completing business-matching trips, and undertaking targeted advisory projects. Companies such as Flowless, Sellenvo, and Tawazon have leveraged the programme to build international partnerships, expand investor networks, and maintain business continuity despite operational challenges. Startups have also refined business models, improved operational processes, and gained exposure to best practices in governance, finance, and investor pitching.

Beyond individual success stories, the programme strengthens the broader ecosystem. By addressing structural barriers, fostering professionalism, and enabling regional expansion, Star Venture helps create a more competitive and resilient tech sector in the West Bank and Gaza, providing a foundation for sustained growth and long-term impact.

Looking Ahead

Looking ahead, the Palestinian tech ecosystem will continue to depend on the resilience and creativity of its founders, as well as on sustained support from investors and development partners. While challenges remain, Palestinian entrepreneurs have repeatedly shown their ability to adapt and compete beyond their borders. With continued support and stronger regional integration, the tech sector in the West Bank and Gaza can keep growing and creating new opportunities for innovation, employment, and economic development.