Palestine Economic Policy Research Institute - December 31, 2008 - Back to Resources Page

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Stock exchanges play a crucial role in economic development, attracting
foreign investment while keeping national savings in the country and
transferring them into productive projects, thus contributing to lower
unemployment and poverty and a higher standard of living. Many
countries in the world are competing to attract foreign investment through
providing incentives, investment guarantees, and a business environment
that offers reasonable returns and acceptable risk.

The Palestinian Securities Exchange (PSE) has developed remarkably in
the years since it was established. The number of firms listed has increased
from 18 in 1997, with a capital not exceeding $82 million, to 35
companies with a capital of around $950 million by the end of 2007. The
number of shares owned by foreigners more than doubled during the
period 2001-2006, and the value of foreign investment increased from
$283 million in 2001 to a peak of more than two billion dollars in 2005.
These indicators reflect the ability of the stock market to attract and absorb
foreign investment if the necessary requirements are met.

The goal of this study is to evaluate the attractiveness of the stock market
to foreign investment, the obstacles which hinder it from doing so, and the
steps that need to be taken to increase these investments. We hope that the
study’s recommendations will contribute to the development of policies
that enhance the role of the stock market in Palestine and increase its
capacity to attract foreign investment, which will have a significant impact
on the Palestinian development process.

To download the full report please click below:

Attachment	Size
strengthening role of PSE.pdf	102.16 KB

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Palestine Economic Policy Research Institute - December 31, 2008 - Back to Resources Page