Fostering Sustainable Economic Development The action will contribute to digital transformation and green transition of the Palestinian economy, help expand Palestinian trade and investment as well as provide access to finance to allow Palestinian businesses to grow. The intervention will act as a stimulus package to key high-growth economic sectors, including digital and green, it will help the PA with policies and assist businesses to unlock trade and investment and it will also ease access to finance particularly for vulnerable groups. The action will contribute to the economic recovery efforts in Gaza addressing needs that result from destruction and the economic repercussions of the hostilities.¿The action will consist of three core components and will be complemented by two blending operations[1], which on a systemic level mutually reinforce each other through their positive impact on the Palestinian economy at large, stimulating sustainable, green and digital development, economic growth, creation of employment and welfare. Several of the below components will operate both in the West Bank and in Gaza. ·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Component 1: Digital Transformation for Youth and Jobs (EUR 7.5 million ¿ Indirect Management with International Organisation):The component will assist the Palestinian IT sector to use its dynamism towards job creation. It will strengthen firm capabilities, foster innovation and entrepreneurship, improve demand from international buyers and investors, and stimulate the absorption of high-tech knowledge in the Palestinian digital ecosystem.&nbsp;·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Component 2: Trade and Investment, Standards and Infrastructures (EUR 17 million ¿ Procurement, Grant, Indirect Management with International Organisation): The component will support expansion of Palestinian trade and better attraction of investment. It will help the PA to put in place adequate policies in areas of trade, investment and standards, assist businesses to innovate and green their export. It will help develop economic and trade-related infrastructures, including in response to the recent hostilities and wide-scale destruction in Gaza.&nbsp;·&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Component 3: Resilience and Recovery for Gazan Micro, Small and Medium Sized Enterprises (EUR 6 million ¿ Indirect Management with Member State Organisation):The component will strengthen the resilience of Gazan economy and help its recovery from the hostilities. It will help create local market opportunities for Gazan micro, small and medium-sized enterprises, notably those led by young people, and promote adoption of green and circular economy models into the Gazan business ecosystem and industrial enterprises.   [1] Complementing Blending Operations are part of a separate Commission Decision. For the sake of completeness, the overall approach including blended finance is displayed in this Action Document, notably with regards to Context, Problem Analysis and Lessons Learned.&nbsp;&nbsp;