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Minister of Economy issues a decision approving the transfer of Palestine Securities Exchange from a private company to public shareholding

2010-02-07

Ramallah - The Minister of National Economy, Dr. Hassan Abu Libdeh issued a decision to approve the transfer of Palestine Securities Exchange Company from a private company to a public shareholding company, basing from the company"s request in 2006, which was halted by the Minister of National Economy at that time. The decision came after intensive consultations that included PADICO and Palestine Securities Exchange on one side with the Ministry of National Economy and the Controller of Companies and the Capital Market Authority on the other. Munib Al Masri the chairman of PADICO which in its turn owns 78% of the market commended on the minister"s decision, considering it as a strategic and important step in the process of restructuring and strengthening of investment which PADICO had approved by the Board of Directors. For his part, Samir Huleileh the CEO of PADICO welcomed the resolution, regarding it as an important step in the process of completion of the restructuring of the financial market in accordance with the requirements of the Capital Market Authority, confirming that this step is a reflection of the principle of transparency and governance pursued by PADICO in its work and through its investments in subsidiaries and affiliates, adding that it is expected to have a positive outcome of this resolution that will be represented in increase the confidence of local and foreign investors in the Palestinian market and increase the number of listed companies. Huleileh also thanked the Minister of National Economy and the Controller of Companies at the Ministry and the Capital Market Authority for their efforts and continuing support for the advancement of the Palestinian private sector. In this context, the Chief Executive Officer of Palestine Securities Exchange Ahmad Awaida assured that the decision to convert the market to a public shareholding company will be another step towards strengthening the principles of transparency and integrity, noting that the market for many years has been the main supporter of this move, and had initiated and called early to take such an important step in regarding the many benefits and advantages that can benefit the national economy as a whole. Awaida stressed out that the move will seriously strengthen the efforts of the market in attracting foreign investments; as well it will open the wide door to foreign investment and the flow of investment funds to the Palestine Securities Exchange. In a related context, Awaida assured that this resolution would open the door to the completion of the restructuring of the PSE in coordination with the Capital Market Authority, where it is expected to be announced soon on the completion of the procedures of separating the Clearing & Depository and Settlement Centre. It is worth noting that Palestine Securities Exchange will be the second Arab market to take this step in terms of Arab financial markets, in preparation for listing and trading in the stock exchange. Dubai Financial Market was the first Arab market to be transferred into a public shareholding company and to be traded, and the only Arab market that is majority-owned by the private sector.