Financial leasing is an important financing tool in the Palestinian market, as it provides flexible financing alternatives that enable institutions and individuals to acquire productive and operating assets without the need for immediate ownership. This activity has attracted growing interest in recent years, given its role in supporting various economic sectors, promoting investment, and improving the efficiency of capital utilization. Financial leasing activity is subject to the supervision and regulation of the Palestine Capital Market Authority, ensuring that entities operating in the sector comply with the provisions of applicable laws, regulations, and instructions, while enhancing transparency, protecting the rights of the contracting parties, and contributing to the stability and financial soundness of the sector.
The PCMA’s supervision of this sector falls within its mandate as stipulated in Law No. (13) of 2004 and Decree-Law No. (6) of 2014 on Financial Leasing, which forms the legislative framework regulating the contractual and professional relationships among the various parties in this field.
The importance of financial leasing lies in its role in improving the efficiency of using financial resources and strengthening the investment capacity of institutions, particularly in light of challenges related to limited access to traditional financing. This activity contributes to reducing direct financing burdens, improving liquidity, and enabling institutions, especially small and medium-sized enterprises, to modernize their assets and enhance their operational efficiency and competitiveness. At the macroeconomic level, financial leasing contributes to stimulating investment, increasing productivity, supporting economic growth, and creating job opportunities, thereby strengthening financial stability and sustainable economic development.
The structure of the local market shows diversity in the models of operating companies, including independent companies and companies affiliated with asset suppliers, while no company affiliated with a financial institution has been established to date. Licensed companies are also divided into companies that provide traditional financial leasing and others that provide Sharia-compliant financial leasing, reflecting the sector’s growth potential and flexibility in meeting the needs of different categories of beneficiaries.
