Abbas reportedly requested Mustafa to develop strategies for the reunification of administration in the occupied West Bank and Gaza, spearhead government, security services, and economic reforms, and combat corruption.
Mustafa takes over from former Prime Minister Mohammed Shtayyeh, who, along with his government, stepped down in February due to the need for change amid Israel's war in Gaza.
Mustafa has held high-ranking posts at the World Bank and formerly held the roles of deputy prime minister, economy minister and the chairman of the Palestine Investment Fund.