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Minister of National Economy passes a decision endorsing the conversion of Palestine Securities Exchange from a private joint stock company to a public joint stock company
 

Ramallah, February 6,2010: H.E. Dr. Hasan Abu Libdeh, the Palestinian Minister of National Economy, issued a decision regarding finalising the conversion of Palestine Securities Exchange (PSE) from a private joint stock company to a public joint stock company. The decision followed the PSE application which was submitted earlier in 2006, but was suspended by the Minister of National Economy at the time. This decision represents the auspices of efforts carried out by Palestine Development and Investment Ltd. (PADICO Holding) and PSE along with the Minister of National Economy, Company Controller and Palestinian Capital Market Authority (PCMA).

Mr. Munib R. Masri, Chairman of PADICO Holding, commended Dr. Abu Libdeh’s decision regarding listing the PSE on the stock exchange. He emphasized that it was a significant and strategic step in the process of restructuring and promoting PADICO Holding’s investments.

Mr. Samir Hulileh, CEO of PADICO Holding, welcomed the decision and stated that it represents a vital step towards finalizing the restructuring process of the Palestinian financial market in consistence with PCMA requirements. The conversion will reflect the transparency and solid corporate governance that PADICO Holding is committed to in its investments and overall operations. It is also expected that the decision will enhance the local and foreign investors’ confidence in the Palestinian financial market, and increase the number of companies listed on the PSE. Mr. Hulileh also expressed his profound gratitude to the Minister of National Economy, Company Controller and PCMA for their relentless effort to support and strengthen the Palestinian private sector. It is worth mentioning that PADICO Holding owns 78% of the PSE capital while the remaining 22 % is owned by other local and foreign investors. This decision will enable PADICO to offer some of its shares in the PSE for sale to other potential investors.

Mr. Ahmad Aweidah, CEO of PSE, affirmed that the decision to turn PSE into a publicly traded entity will be a step forward towards improving the norms of transparency and integrity within the Palestinian public sector. He also stressed that the PSE has long supported the conversion in light of the numerous advantages that it would bring about for the national economy. Mr. Aweidah emphasised that this endeavour will contribute to PSE efforts towards attracting foreign investment and investment portfolios. Mr. Awaidah asserted that the decision will provide an opportunity to finalise PSE restructuring procedures in coordination with PCMA. It is anticipated that the procedures of separating the Clearing and the Depository and Settlement Centre (CDS) from PSE would soon be announced.

It is worth noting that PSE will be the second Arab securities exchange to trade its stocks publicly. At the regional leve, Dubai Financial Market was the first Arab securities exchange to go public. Moreover, it is the only Arab financial market in which the majority of the shares is owned by the private sector.

 

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