Abu Dhabi, Aug 1 (IANS):  The United Arab Emirates (UAE) has provided 165 million dirhams (about $44 million) to Palestine to undertake developmental works, WAM news agency reported Saturday.

The money from the Abu Dhabi Fund for Development (ADFD) will be used to build infrastructure, which in turn will help develop the sagging Palestinian economy, the report said.

The grant follows a memorandum of understanding (MoU) signed by ADFD acting director general Mohammed Saif Al Suwaidi and representative of the Palestinian authority to the UAE Khairi Al Aridi.

Al Suwaidi said: "This funding is to be used to boost the standard of living and address the needs of the Palestinians by implementing various social and developmental projects in Palestine. We are keen to support the setting up of infrastructure that is pivotal to meet the needs of the local economy."

Al Aridi has praised the ADFD for its support to Palestine in building the economy.

ADFD had earlier contributed 228 million dirhams for building the Sheikh Zayed City in the Gaza Strip. Spanning over 400 sq km, the city has 3,500 housing units, schools, mosques, commercial and office buildings, with power and water supply.