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.

At the end of 30/06/2011 Alquds Index closed at level 492.71 points up by 0.64% from year 2010, while the Market capitalization reached 2,814,420,639 dollar for the same period; meanwhile the number of listed companies increased to 46 and the market value of the listed companies rose by 15%.