Sector Overview

 The securities sector in Palestine emerged in 1995 when the Palestine Securities Exchange was set up as a private company, it has provided, from the onset, a set of rules and regulations that organized the work of the securities sector in Palestine, in addition to the latest electronic systems for monitoring, trading, settlement and transfer of securities. It was subject to the supervision of the Palestinian Ministry of Finance since its establishment until 2005 when the Palestine Capital Market Authority was set up.

The year 2004 witnessed the issuance of the Securities Law No. "12" and the Law of the Capital Market Authority No. "13" for the year 2004.

In 2005, Palestine Capital Market Authority was established as an autonomous agency by law No. (13) of the year 2004, thus, becoming the agency that organizes, supervises and controls the capital markets in Palestine. A set of resolutions and circulars were issued governing the functioning of the securities sector regarding the issuance, ​​ disclosure, control, licensing and trading commissions. It has also kept pace with the main developments and legislations in the securities sector through the implementation of instructions approved by the Board of Directors.

In February 2010 and as a respond to the principles of transparency and good governance the Palestine securities exchange became a public shareholding company licensed from the PCMA.

In accordance with the Securities Law No. "12" and the Capital Market Authority Law No."13" for the year 2004, Palestine Securities sector consists of the following bodies supervised and controlled by the PCMA. These are as follows:

1.    Palestine Exchange and the Centre of Depository and settlement.

2.    Public-shareholding companies.

3.    Securities companies members of the Palestine Exchange.

4.    Financial professionals.

5.    Investment funds.

During 2013, PCMA dedicated significant efforts to comply with the International Organization of Securities Commissions (IOSCO) requirements. These efforts were culminated in February 2014 when PCMA was admitted as an ordinary member to IOSCO and the State of Palestine was accepted, through PCMA, as a new signatory to the Multilateral Memorandum of Understanding (MMoU). In addition, PCMA focused on improving its regulations and supervision over the securities sector. Thereby, PCMA prepared the Management and Audit Instructions in 2013, and developed new supervision methods and inspection techniques taking into consideration the IOSCO recommendation to move from rule-based supervision toward risk-based supervision. Meanwhile, PCMA paid equal attention to stimulating securities trading in Palestine Exchange (PEX) through introducing new instructions that permit and organize using trade on margin as a new trading tool, improving the diversity of trading tools available to investors in the market. As well, PCMA’s Board of Directors decreed extending the trading session in the Palestine Exchange (PEX) and limited fluctuation rates in securities prices as follows %7.5 for the primary market and %5 for the secondary market.
At the end of 2015, Al-Quds index closed at 532.73 points, %4.10 higher than the previous year, while the market capitalization reached $3,339,196,379 for the same period, increasing by %4.77 from its prior year record. Meanwhile the number of listed companies is 49 at the end of 2015.