Palestine-based Al Baraka Islamic Insurance Company has signed a cooperation agreement with the Ministry of Agriculture to implement a pilot agricultural insurance project.
The project aims to launch the first agricultural insurance products in the Palestinian market, the insurer announced in a statement yesterday. The product is designed, based on commercial compensation, as a protection and stability tool for farmers in the face of natural hazards and climate change.
The agreement between the insurer and the Ministry is part of the "Building Palestinian Agricultural Insurance Systems and Services" project, funded by the European Union and implemented by Oxfam and the Economic and Social Development Centre of Palestine.
The pilot project's first phase aims to insure 650 greenhouse tomato farms with a total area of 975 dunums (97.5ha), 50 open-field grape farms with a total area of 150 dunums, and two consecutive cycles to secure 35 poultry farms.
Qualitative move
During the signing ceremony, Minister of Agriculture Professor Rezq Salimia said that the agricultural insurance launch is a qualitative step towards empowering farmers and protecting them from natural disasters and production risks.
The Ministry affirmed that signing the agreement represented a practical step towards consolidating partnerships with the private sector to advance the agricultural insurance market, enhance food security, encourage safe agricultural investment, and facilitate farmers' access to financing and borrowing, thus instilling a culture of risk management and strengthening the resilience of rural agricultural communities .
Mr Awadallah Ibrahim Awad, chairman of Al Baraka Islamic Insurance, said, "We at Al Baraka believe that supporting agriculture supports the national economy and food security in Palestine. Our partnership with the Ministry of Agriculture and the funding and implementing entities reflects our unwavering commitment to national and social responsibility and our keenness to invest in strategic projects that directly benefit citizens, especially in rural and productive areas."
He added, " This agreement represents a significant milestone in the company's journey toward providing innovative insurance solutions that support the Palestinian agricultural sector and enhance farmers' resilience in the face of climate and natural challenges. We have worked to design advanced insurance policies based on international best practices, and through this project, we seek to open new horizons for farmers to access comprehensive protection and sustainable financing."