The number of financial leasing companies licensed by the Palestine Capital Market Authority reached nine companies as of the end of 2025. The licensed companies are:
No. | Company | Type of Financial Leasing | ||
1 |
| Traditional Financial Leasing | ||
2 | Palestinian Ijara Company | Sharia-compliant Financial Leasing | ||
3 | Ritz Leasing Company | Traditional Financial Leasing | ||
4 | Lease 4 You Financial Leasing Company | Traditional Financial Leasing | ||
5 | Lease and Go Financial Leasing Company | Traditional Financial Leasing | ||
6 | JEDCO Financial Leasing Company | Traditional Financial Leasing | ||
7 | Al-Mutakamela Leasing Company | Traditional Financial Leasing | ||
8 | Arab Leasing Company | Traditional Financial Leasing | ||
9 | Afaq Islamic Ijara Company | Sharia-compliant Financial Leasing
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In line with the strategic directions of the Palestine Capital Market Authority, which has given special attention to strengthening the regulatory and legal framework for Ijara activity, the PCMA continues its efforts to develop Sharia-compliant financial leasing products. In this regard, the PCMA worked on preparing specialized regulatory instructions governing the operations of companies engaged in Sharia-compliant financial leasing activity (Ijara), which are expected to be issued at the beginning of 2026.
These instructions focused on consolidating the principles of Sharia governance, in line with the decisions and recommendations of the Higher Sharia Supervisory Board, by emphasizing the clear separation between traditional financial leasing activities and Sharia-compliant activities, requiring the appointment of a Sharia advisor according to specified criteria, and regulating the relationship between applicable national legislation and the standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). These instructions are expected to contribute to expanding the base of beneficiaries of financial leasing services and meeting the needs of a broader segment of financial service users who prefer Sharia-compliant products, thereby enhancing financial inclusion and supporting sustainable economic development.
In the context of the PCMA’s third strategic goal, which relates to the sustainability of the financial sectors under its supervision and strengthening their contribution to economic development, as well as the sub-goal related to expanding the scope of financial leasing services, preparations were made to begin drafting instructions that include standards and principles for consumer protection and market conduct in the financial leasing sector, as well as solvency instructions for financial leasing companies. Several preparatory meetings were held, and these instructions will be implemented in 2026.
During the year, Decision No. (3) of 2025 regarding the controls regulating the pledging of leased assets in financial leasing contracts was also issued on 05/11/2025. The decision included a set of provisions regulating the process of pledging assets leased under financial leasing contracts and the use of pledges over such assets, in order to protect lessees and ensure that assets financed through financial leasing are not burdened with pledges. This is intended to ensure that the pledging of leased assets remains an exceptional procedure resorted to only for the purpose of obtaining the financing necessary to conduct financial leasing activity, in cases where other financing means that do not require leased assets to be provided as collateral are unavailable.
In addition, the decision reaffirmed the provisions of Decree-Law No. (6) of 2014 on Financial Leasing regarding the lessor’s obligation to transfer ownership of the leased asset within fifteen (15) days from the date on which the lessee becomes entitled to own the leased asset, free of any real right, including any pledge, attachment, or other encumbrance. Accordingly, these policy interventions stem from the PCMA’s fundamental role in achieving financial stability and protecting the rights of the parties operating in the financial leasing sector.
Key Financial Indicators of the Sector:
This section presents the key comparative financial indicators of the financial leasing sector for 2024 and 2025.
Item | 2025, USD | 2024, USD |
Total Assets | 227,069,467 | 191,316,318 |
Total Liabilities | 157,964,665 | 134,431,743 |
Total Equity | 69,104,802 | 56,884,575 |
Paid-in Capital* | 47,775,636 | 45,360,456 |
Net Investment in Financial Leasing Contracts | 162,754,138 | 142,015,273 |
Default Rate** | 12.75 % | 15.85% |
* The difference in paid-in capital is due to exchange-rate differences, as some companies prepare their financial statements in Israeli shekels.
** The rate was calculated from the semi-annual financial reports for the period ended 31/12/2025.
Sector Statistics
The total value of investment in financial leasing contracts registered with the PCMA by the end of 2025 reached approximately USD 118.4 million, across 1,944 contracts. The 2025 statistics represent an increase of 27.7% in contract value compared with 2024, and an increase of 12.4% in the number of contracts.
This increase is attributable to the beginning of the recovery of the Palestinian economy in the West Bank from the repercussions of the Israeli aggression on the Gaza Strip and its negative impact on the financial leasing sector as one component of the broader economy.
The charts illustrate the monthly increases and decreases in the value and number of financial leasing contracts between 2024 and 2025.
As for the distribution of the financial leasing contract portfolio in 2025 by asset type and purpose of use, personal-use vehicles were the most commonly financed assets, with contract value accounting for 78.51% of the total value of contracts and 66.73% of the total number of contracts.
The chart below reflects the distribution of movable assets, including machinery, equipment, production lines, and others, by asset type in terms of value and number. These assets accounted for 41.4% of the value of contracts and 72.0% of the number of registered contracts. The following is the classification of these assets by type and the share of each type within the movable assets portfolio:
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As for the share of each economic sector in financial leasing, the chart below illustrates the share of each sector in terms of contract value and number. The consumer sector was the largest beneficiary, with contracts accounting for 33.51% of the total contract value and 94.72% of the total number of contracts. These contracts represent financing for personal-use vehicles, which is consistent with the prevailing consumption-based economic pattern.
As for the nature of lessees, whether individuals or companies, individual lessees accounted for 56% of the total contract value and 81% of the total number of contracts, as illustrated in the following charts:
