Trading in 2025 on the Palestine Stock Exchange: A Sign of Growing Confidence in Investment in Palestine

SadaNews Economy - The listed companies in the Palestinian financial market are proving their leading role in economic and social development, especially after two years burdened by obstacles and challenges that directly affected the financial performance of most of them and limited their ability to provide services or market their products.

Despite this, the year 2025 witnessed a notable growth in trading values and volumes, enhancing liquidity in the Palestine Stock Exchange, which affirms investors' confidence in the shares of listed companies and the regulatory and legislative environment governing the Palestinian securities sector, which aims to provide high levels of protection and reduce unforeseen risks.

Furthermore, the total market capitalization of the Palestine Stock Exchange constituted about 34% of the GDP in 2025, compared to 23% before the war, reflecting the robustness and stability of listed companies amid the continued decline of other economic indicators.

Positive Performance Indicators

Trading was executed over 244 trading days, indicating the continuity of the market and its operational efficiency despite extraordinary challenges, where the "Al-Quds Index" increased by 24%, compensating for most of the losses incurred since the onset of aggression on the Gaza Strip, while the Islamic Al-Quds Index, which includes companies listed on the Palestine Stock Exchange that comply with Islamic law, rose by 20%.

The value of traded stocks during the year 2025 reached approximately $383 million, compared to $164 million in the previous year, while the market capitalization of the Palestine Stock Exchange exceeded $862 million, reaching $4.9 billion, an increase of 21% compared to the previous year 2024, thus nearing levels before the aggression in 2023.

At the sectoral level, the investment sector recorded the highest increase rate of 38%, followed by the services index with a remarkable increase of 22%, while the industrial index rose by 11%. Both the banking and insurance indices also increased by 6% and 0.4%, respectively.

Growth of Foreign Investment

By the end of 2025, local investment in the Palestine Stock Exchange constituted approximately 62% of the total value of securities, compared to 38% that was represented by foreign investment, an increase from the rates observed at the end of the third quarter of 2023 (before the aggression), which reached 34%. This increase reflects the confidence of foreign investors, particularly those in the Palestinian diaspora, who have begun to inject significant investments in support of the national economy and confidence in the performance of listed companies.

New Issuances Deepen the Market

The Palestine Stock Exchange witnessed 4 new issuances last year, estimated at around 44.2 million shares, valued at approximately $51.7 million. These issuances included the Arab Palestinian Investment Company "APIC", which carried out a secondary public offering worth $30 million; a secondary public offering on the shares of the Palestine Islamic Bank worth $6 million; and the Palestine Bank executed two private offerings on about 8.2 million shares, totaling approximately $12.7 million including issuance premium.