Financial Instruments

Development Impact Bond (DIB)

The Development Impact Bond (DIB) matches socially-motivated investors with high-performing workforce development organizations to reduce youth unemployment in the West Bank and Gaza, thus improving the lives of young people and strengthening the Palestinian economy on the whole.

Through the DIB, organizations which provide job-matching services, vocational training, or other workforce development services are funded. Given that the DIB uses funding from investors, service delivery organizations are compelled to change approaches as necessary to get the maximum results.


DIB Methodology


Partners in the DIB will agree on a set of outcomes – in particular, the number of Palestinians aged 18 to 29 who gain new or better employment – that they will seek to achieve through various interventions. Partners will also determine the evaluation method and metrics that will be used to verify employment outcomes. Investors will select service providers to deliver interventions aimed at achieving the pre-agreed results and provide the working capital required to cover the delivery costs. If the pre-agreed results are independently verified, outcomes funders will repay investors, with returns linked to the results achieved. 

Investors will contract with a DIB Manager who will oversee the program on a day-to-day basis and will coordinate with a consortia of service providers to ensure that the program is performing well.


DIB Factsheet