SAWA II, implemented in the West Bank and Gaza Strip and funded by the EU and the SDC, an extension of the successful SAWA I in Gaza Strip, reflects a comprehensive and collaborative approach to strengthening the resilience, competitiveness, and sustainability of Micro, Small and Medium Enterprises (MSMEs) across Palestine. Building on an integrated model that combines tailored technical and financial support, green and circular economy transition, institutional capacity development, innovation support for youth, and strengthened business support ecosystems, SAWA II addresses both immediate economic shocks and long-term structural challenges. By promoting women’s economic empowerment, sustainable production practices, digitalized management systems, and inclusive access to business and financial services, the project fosters systemic change that enables Palestinian enterprises not only to recover and adapt, but to innovate, grow, and generate sustainable livelihoods in a fragile and evolving context.