The Palestinian Banking Sector Under Fire... While Major Companies Quietly Profit Without Disclosing Their Financial Data

Exclusive SadaNews Economy: As the Palestinian banking sector faces widespread public criticism following the publication of its annual profits through the Palestine Stock Exchange, major Palestinian companies continue to achieve huge profits silently, without disclosing their financial data or making any significant community contributions.

These companies, which are legally classified as "family-owned," benefit from the absence of mandatory disclosure regulations, even as they rake in millions of shekels monthly from the pockets of citizens, controlling vital sectors such as dairy, meat, ice cream, gold, and iron, among others.

In contrast, the Palestinian banking sector is forced into full transparency, listing its financial data on the Palestine Stock Exchange, and contributing to the Palestinian community through loans, donations, and financing infrastructure projects. Despite modest profits compared to the volume of deposits, it remains at the forefront of criticism, while large family-owned companies evade accountability.

Companies Earning Millions... Yet Not Disclosing

Conversely, there are large Palestinian companies operating in the dairy, meat, ice cream, gold, and iron sectors that make monthly profits in the millions of shekels, yet they do not disclose their financial data or provide any tangible community responsibility. These companies are legally classified as "family-owned" and not as public shareholding companies, which exempts them from disclosure obligations.

For example, there are Palestinian dairy companies that market their products inside Israel and achieve massive profits; conversely, the entry of Israeli products such as "Tnuva" and "Strauss" is permitted in the Palestinian market.

Likewise, ice cream companies and some Palestinian food companies also enter the Israeli market, earning huge profits, but they do not disclose their financial data nor offer any community contributions. Furthermore, the gold trade, which is one of the most profitable sectors, provides no financial or social transparency, despite its direct impact on the local economy.

Legislative Defect or Lack of Will?

Palestinian law only mandates public shareholding companies to disclose financial information, while it does not compel "family-owned" companies to do so, even if they are making profits exceeding those of four banks combined, according to the economic affairs editor at SadaNews. Although there is a law at the Ministry of Economy that allows for the conversion of family-owned companies into public shareholding ones if certain conditions are met, its application is not mandatory, leaving the door open for evasion of transparency.

More alarmingly, SadaNews revealed that the new companies law does not prevent companies listed on the stock exchange from transforming into private shareholding companies, which has actually happened with two companies since its issuance, threatening the future of financial disclosure in Palestine.

Modest Profits Despite Large Deposits

According to official data, the total profits of the Palestinian banking sector reached only about $46 million in the first half of 2025, compared to the paid-up capital of $1 billion, which is less than 4.5%.

The banks are among the most transparent institutions in disclosing their financial data, subjected to direct supervision by the Palestinian Monetary Authority, and periodically listing their results on the Palestine Stock Exchange.

However, the role of the banking sector is not limited to mere profit; it is considered one of the pillars of the Palestinian economy, sometimes viewed as a "parallel government". It owes the government and the private sector, provides donations to Gaza, grants loans to citizens for purchasing homes and vehicles, contributes to building schools and paving roads, and funds various development projects.

Despite this vital role, it remains vulnerable to public attack, perhaps because it is one of the few sectors that disclose its profits and community responsibility, unlike other massive sectors that remain silent.

What is the Role of the Ministry of Economy?

The Palestinian Ministry of National Economy is the body responsible for regulating this issue, but it has yet to take measures to compel major companies to convert into public shareholding companies, unlike the requirements placed on banks since the establishment of the Palestinian Monetary Authority, which also applies to insurance companies.

It is noteworthy that the absence of mandatory legislation threatens the future of family-owned companies, which often crumble when transitioning from the first to the second generation, weakening the national economy and depriving it of strong institutions that could contribute to sustainable development.

In light of this reality, Palestinian citizens have the right to know what community responsibilities are offered by companies that profit from their pockets, and that all economic sectors are treated with unified transparency standards, regardless of legal classifications used as a pretext for evading disclosure.

Several questions arise here: Is the Ministry of Economy moving to correct this defect? Is the government initiating measures to enforce transparency across the board? Or will the banking sector remain alone under attack while other companies continue to reap profits silently?

The economic affairs editor at SadaNews tried several times to contact the companies registrar at the Palestinian Ministry of Economy to pose these questions and clarify the legal standpoint of the Ministry of Economy to the public, but received no response.