- Governance Instructions for Public Shareholding Companies Listed on the Palestine Exchange
The PCMA, in partnership with the International Finance Corporation (IFC), worked on developing corporate governance rules for public shareholding companies in Palestine, originally issued in 2009. This development aligns with the new Companies Law issued under Law by Decree No. (42) of 2021 and recent advancements in corporate governance principles. The current situation was assessed, and gaps were identified based on specific standards and the experiences of regional and neighboring countries. A comparative evaluation was conducted with seven countries: Jordan, Egypt, Saudi Arabia, Turkey, South Africa, the United Kingdom, and Vietnam, leading to the draft of corporate governance instructions for companies listed on the Palestine Exchange. Additionally, a set of optional governance rules was developed to align with the prevailing conditions and legislations in Palestine, incorporating updates from the new Companies Law No. (42) of 2021. The draft also considers recommended governance principles and standards based on current best regional and international practices, with a greater focus on the regulatory environment, written policies, disclosure, and the integration of environmental and social governance measures.
In addition to the mandatory instructions for the governance rules of companies listed on the Palestine Exchange, optional governance rules will be issued that companies can follow in order to achieve advanced levels of governance, in addition to the Environmental and Social Disclosure Guideline, which contains financial sustainability indicators that listed companies will use as a reference when preparing their sustainability reports.
- Corporate Governance Course Program in Palestinian Universities
The PCMA continued implementing the program to integrate the corporate governance course into Palestinian universities through agreements signed with the International Finance Corporation (IFC) and the universities involved, ensuring the course is included in their curriculum each semester. The PCMA aims to incorporate the course into as many Palestinian universities as possible. In 2023, five Palestinian universities collaborated with the PCMA to include the course in their curriculum: Birzeit University, Palestine Technical University – Kadoorie, Al-Quds Open University, the Arab American University, and Palestine Ahliya University.
From the launch of the program until the first semester of the 2023/2024 academic year, 5,974 students enrolled in the course, with 5,364 students successfully completing it, resulting in a 90% pass rate and a 10% failure rate, as illustrated in Figure 1 below. Students who pass the course receive a certificate accredited by the PCMA and the IFC. Figure 2 below shows the gender distribution of the course enrollees, with 34% male and 66% female students.
With the new plan introduced by the PCMA at the end of 2023, it is expected that the course will be integrated into the majority of Palestinian universities, which will offer the course in their curricula for students in upcoming semesters. This initiative is anticipated to positively impact society by fostering a generation well-versed in corporate governance, integrity, and transparency practices in companies.
Figure 1: Percentage of Students who Have Successfully Completed the Course Since the Launch of the Program
