DIB Instruments

Development Impact Bond (DIB)

Is a market-driven financing instrument designed to enhance the employability of the Palestinian workforce by aligning skills development with the needs of the private sector. The instrument targets young people aged 18 to 29 years and focuses on equipping them with the technical and employability skills demanded by employers. Under the DIB, financing is linked to the achievement of predefined results rather than the delivery of activities. Based on demonstrated private sector demand, the instrument finances specific outputs and outcomes, including the successful completion of training programs, placement in apprenticeships, internships, or other work-based learning opportunities, and sustained employment. This results-based approach incentivizes service providers to deliver high-quality training that leads to measurable labor market outcomes.