Call for Proposals for Economic Development Studies under EPEC Project (Palestine)

Deadline: 29-Mar-2026

The Italian Agency for Development Cooperation (AICS) in Jerusalem has launched a call for proposals to conduct three research studies aimed at improving the business environment for Palestinian Micro, Small, and Medium Enterprises (MSMEs). Each study is funded with EUR 20,000, for a total program value of EUR 60,000. Eligible applicants include Palestinian universities, research institutions, and qualified individuals, with proposals due 29 March 2026.

Overview of the Funding Opportunity

The Italian Agency for Development Cooperation (AICS) – Jerusalem Office has announced a Call for Proposals inviting qualified applicants to conduct three strategic studies focused on strengthening the business environment for Palestinian Micro, Small, and Medium Enterprises (MSMEs).

This initiative is part of the project:

“Enhancing the Business Environment for the Micro, Small and Medium Palestinian Enterprises (EPEC) – AID 11399.”

The project aims to:

Strengthen Palestinian institutional capacity
Support private sector development
Identify economic and institutional challenges affecting MSMEs
Promote sustainable business growth and internationalisation

The studies will generate evidence-based insights to help policymakers, development partners, and institutions better support Palestinian entrepreneurship and economic development.

Key Research Areas (Study Themes)

The call is divided into three thematic studies, each addressing a critical area of the Palestinian economic ecosystem.

1. Role of Local Institutions in Private Sector Development

This study will examine how local institutions contribute to the growth of the private sector, particularly MSMEs.

Research may focus on:

Institutional policies supporting businesses
Public-private collaboration
Capacity gaps within local institutions
Regulatory and administrative barriers
Opportunities to strengthen institutional support systems

2. Women’s Economic Empowerment in the Green Economy

This study explores how women entrepreneurs can participate in and benefit from the green economy.

Key research areas include:

Women-led green businesses
Sustainable economic sectors
Barriers to women’s participation in green industries
Policies promoting gender equality in green entrepreneurship
Opportunities for green innovation

3. Characteristics of Informal Enterprises

This study focuses on understanding the informal sector, which represents a significant part of the Palestinian economy.

Topics may include:

Size and structure of informal businesses
Economic contributions of informal enterprises
Challenges faced by informal entrepreneurs
Pathways for formalization
Policy recommendations for supporting informal businesses

Project Background: The EPEC Initiative

The EPEC Project (AID 11399) is designed to strengthen the economic ecosystem supporting Palestinian MSMEs.

Objectives of the EPEC Project

Improve the overall business environment
Support evidence-based economic policies
Enhance institutional capacity
Promote entrepreneurship and innovation
Facilitate the internationalisation of Palestinian enterprises

By funding these studies, the project aims to create actionable knowledge that can guide future development programs and economic reforms.

Funding and Contract Value

The call provides funding for three separate research contracts.

Financial Structure

Total contract value: EUR 60,000
Funding per study: EUR 20,000
Number of studies: 3

Each study corresponds to a separate lot, meaning applicants may apply for:

One study, or
Multiple studies (if they demonstrate sufficient expertise and capacity)

Expected Deliverables

Selected applicants will be responsible for conducting high-quality research and delivering structured outputs.

Required Deliverables

Each selected contractor must provide:

Detailed Research Methodology
Draft Table of Contents for the Study
Comprehensive Research Analysis
Policy Recommendations
Final Study Report aligned with program objectives

The studies should generate insights that support policy development, institutional strengthening, and private sector growth.

Who Is Eligible?

The call welcomes proposals from qualified Palestinian institutions and individuals with relevant expertise.

Eligible Applicants

Applicants must fall into one of the following categories:

Palestinian universities or academic institutions
Registered Palestinian research centers
Independent research institutions established under Palestinian law
Qualified individual researchers

Additional Eligibility Requirements

Applicants must:

Be recognized Palestinian institutions, or
Be individuals holding Palestinian or East Jerusalem identification
Demonstrate relevant knowledge and research experience
Show the capacity to conduct economic and policy analysis

Applicants should also demonstrate expertise in fields such as:

Economics
Development studies
Business environment analysis
Gender studies
Sustainable development
Institutional governance

Why This Call for Proposals Matters

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of most developing economies, including Palestine.

However, MSMEs often face challenges such as:

Limited access to financing
Weak institutional support
Informal business structures
Gender inequality in entrepreneurship
Regulatory constraints

The funded studies will help:

Improve policy frameworks for entrepreneurship
Strengthen institutional support systems
Promote women’s participation in economic development
Support formalization and growth of informal enterprises
Enable sustainable economic development

Evidence-based research can play a critical role in shaping effective economic policies and development programs.

How to Apply

Applicants must submit a complete proposal package to the Italian Agency for Development Cooperation – Jerusalem Office.

Step-by-Step Application Process

Step 1: Choose the Study Lot

Applicants must identify which study they are applying for:

Institutional role in private sector development
Women’s economic empowerment in the green economy
Informal enterprise characteristics

Applicants may apply for one or multiple studies.

Step 2: Prepare Required Documents

Applications must include the following materials:

Submission Letter

The letter must include:
- Applicant’s full name
- Institutional affiliation (if applicable)
- Contact details
- Identification of the study lot(s) applied for
Self-Declaration of Representation Power (if applicable)
Research Methodology

The methodology should outline:
- Research approach
- Data collection methods
- Analytical framework
- Expected outputs
Draft Table of Contents

Provide a proposed structure for the study.
Proposed Budget

The budget should clearly explain expected project expenditures.

Step 3: Submit the Proposal

Applications can be submitted through either method:

Postal submission to the AICS office in Sheikh Jarrah, Jerusalem
Email submission to the addresses provided by the agency

Submission Deadline

Applicants must submit their proposals by:

Sunday, 29 March 2026 – 5:00 PM (Jerusalem Time)

Late submissions may not be considered.

Common Mistakes to Avoid

Applicants should avoid the following issues when preparing proposals.

1. Weak or unclear research methodology

A strong proposal should clearly explain how the research will be conducted.

2. Missing required documents

Ensure all required materials are included before submission.

3. Lack of expertise alignment

Applicants must demonstrate relevant experience in the research theme.

4. Vague budget proposals

Budgets should clearly explain how funding will be used.

5. Poorly structured research plans

Use a logical structure with clear research objectives and outputs.

Frequently Asked Questions (FAQ)

1. What is the purpose of this call for proposals?

The call supports three research studies aimed at improving the business environment for Palestinian MSMEs.

2. Who is organizing this funding opportunity?

The call is organized by the Italian Agency for Development Cooperation (AICS) – Jerusalem Office.

3. How much funding is available?

The total funding is EUR 60,000, with EUR 20,000 allocated for each study.

4. Can applicants apply for more than one study?

Yes. Applicants may apply for one or all three studies, depending on their expertise.

5. Who can apply?

Eligible applicants include:

Palestinian universities
Research centers
Academic institutions
Qualified individual researchers with Palestinian or East Jerusalem identification

6. What documents are required in the application?

Applicants must submit:

Submission letter
Methodology
Draft table of contents
Budget proposal
Representation declaration (if applicable)

7. When is the application deadline?

The deadline for submissions is 29 March 2026 at 5:00 PM (Jerusalem Time).

Conclusion

The AICS Jerusalem Call for Proposals represents an important opportunity for researchers and institutions to contribute to strengthening the Palestinian business environment.

By producing research on institutional development, women’s participation in the green economy, and informal enterprises, the selected studies will generate knowledge that supports economic growth, entrepreneurship, and sustainable development.

For qualified researchers and institutions, this call offers both financial support and the opportunity to influence policies that shape the future of Palestinian MSMEs.

For more information, visit Italian Agency for Development Cooperation.