History

The Middle East Investment Initiative (MEII) was created in 2005, in response to the growing economic challenges in the region. MEII was developed through efforts of the Aspen Institute Middle East Strategy Group, in which principals from the Overseas Private Investment Corporation (OPIC) and the Palestine Investment Fund (PIF) also participated. MEII's inaugural project, the $160 million loan guarantee facility for the nearly 90 percent of Palestinian businesses that are small and medium-sized, was launched in Ramallah on July 18, 2007, with OPIC and the PIF.

President George W. Bush endorsed U.S. support for the MEII loan guarantee concept in a July 16, 2007 speech, when he authorized OPIC's partnership in the facility and stated, "The world can do more to build the conditions for peace." The loan guarantee facility concept was incubated between 2005 and 2007 through discussions sponsored by Aspen's Middle East Strategy Group, under the leadership of former Secretary of State Madeleine Albright and Senators Dianne Feinstein and Chuck Hagel.

By the end of 2009, the portfolio consisted of nearly 200 loans totaling more than $46,000,000 reflecting diversity across Palestinian sectors and geography. LGF recipients’ growth projected to support more than 1,300 direct jobs. There have been no defaults on any of the loans to date.

As MEII worked to create the loan guarantee facility, Palestinian banking officials, local business leaders, and others made clear their interest in insurance tools to mitigate risks related to trade disruption and potential political violence. Local leaders believed that such products, designed appropriately, held tremendous potential with respect to investment, business growth, and job creation. On this track, MEII's efforts were carried out as part of a steering committee of the Clinton Global Initiative, where the idea was first announced by President William J. Clinton in September 2005, and advanced further at the 2007 CGI annual meeting. After President Clinton had the opportunity to discuss the risk insurance initiative with President Bush, President Bush encouraged OPIC to join MEII on this effort as well, and on May 22, 2008, MEII signed an agreement with OPIC and National Insurance Company, based in Ramallah, to create this new risk insurance product targeting Palestinian businesses' specific needs.

MEII is also starting to work elsewhere in the region. On July 29, 2008, MEII signed an agreement to begin developing an affordable housing initiative in Jordan.

MEII is determined to make an impact in the daily lives of people in the region. It is an organization focused on action and results, rather than rhetoric. The success of its efforts to date result from the team work, cooperation, and insights of its volunteers, supporters, and colleagues in the field and around the world. MEII continues to welcome all support, ideas, and comments on existing projects, and possible new areas in which it might make an effective contribution.