The project will be developed and managed by Bayti, which is owned by Qatari Diar and Massar International.
Qatari Diar has provided additional capital and together with its partner Massar International, will develop and construct the new town.
The partnership with Massar International is widely viewed as an unequivocal endorsement of the project's viability and its anticipated added value for Palestinian quality of life.
Qatari Diar CEO Ghanim bin Saad al-Saad travelled to Palestine to sign a partnership agreement with Massar Chairman Bashar F. Masri. The signing took place in Bethlehem under the aegis of the Palestine Investment Conference.
Speaking at the signing in Bethlehem, Mr Saad al-Saad stated "Qatari Diar and our partner Massar International are truly committed to the advancement of the Palestinian economy and the welfare of the Palestinian people.
Building Rawabi will create thousands of job opportunities as well as the chance for ordinary Palestinians to own their own home."
"Qatari Diar's investment represents a true development milestone for Rawabi, specifically, and the Palestinian economy as a whole. Massar is excited to partner with such a visionary investor who understands the risks involved and yet, remains deeply committed to the creation of better lives for Palestinians. Today, the Rawabi project officially moves from the drawing board to the implementation phase. Very soon, people will be able to witness tangible changes taking shape on the ground,"stated Massar Chairman Masri.