Project Overview
Gaza has the worst rate of employment in Palestine with around 38% of the population unemployed. Youth unemployment is much higher, 60% of 20-24 year-olds cannot find work. Poverty is on the increase and more than 60% of people who took part in a recent survey indicated that their first priority was to either find food or work.

To help alleviate poverty, Islamic Relief is assisting small businesses through a small business loans scheme (Murabaha and Qard Hasan).

Problem / Project Background
Social conditions in the Gaza Strip have steadily deteriorated since 2000.

There are 87,400 unemployed people in Gaza, and those who can find work have to settle for pay which is well below their needs. Around 50% of the workforce earn wages that are below the poverty line.

To help stimulate economic growth in a very difficult environment Islamic Relief supports small businesses through a 'Murabha' and 'Qard Hasan' interest-free business loans program.

Project Activities
Since the beginning of the project, more than 458 small businesses have received loans. This has created over 857 jobs and directly benefited 3,365 people.

Loans are given out to support business in several different sectors including agriculture, commercial, services, and industry.

Project Objectives
1. Providing disadvantaged Palestinians who lack traditional forms of collateral with access to small loans.

2. Increasing the self-confidence and self-sufficiency of the poor, and assisting them to manage their business finances.

3. Improving living standards of families and individuals through the establishment of income-generating projects.

4. Creating jobs for the unemployed to support their families, especially those with large families.

Project Goal
This project addresses the needs of the poor and provides access to interest-free credit. This has enabled many people set up businesses which in turn creates employment and improves the standard of living in the Gaza Strip.

Beneficiaries
By the first quarter of 2006, 3,365 people and 458 businesses have benefited from this project. The beneficiaries include the unemployed and their families, and families with low incomes in the Gaza Strip.