Global Investment House KSCC - February 3, 2009 - Back to Resources Page

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What was once regarded as a limitation for the Palestinian economy turned out to be its
saving grace in 2008, as the Palestinian Securities Exchange (PSE) was able to ward off
the devastating effects of the global financial crisis in the year 2008. With Palestine being
a relatively closed and small economy, its exposure to foreign financial markets was rather
limited. Furthermore, PSE exhibited resilience midst the mounting political instability and
the grinding poverty in the West Bank and Gaza.

Nonetheless, the PSE saw Al Quds Index shedding 16.2% in 2008 from its level in the
previous year, unfazed by the sharp declines in regional bourses. The index reached a peak
of 738.7 pts in April 2008, with an increase of 40.4%. However, troubled by the ongoing
political turmoil in the Palestinian Territories and with the advent of the global financial
crisis, the PSE began to witness some strain in its share prices and reached its lowest level of
407.3 pts on November 26, 2008 before recovering some of its losses toward the year-end to
close at 441.7 pts, falling by 28.4% in the last three month of the year alone.

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Global Investment House KSCC - February 3, 2009 - Back to Resources Page