Corporate Governance in Palestine
Overview
Corporate governance in Palestine is shaped by company legislation, securities market regulation, and specialized supervisory requirements for banks and other financial institutions. The framework combines general statutory rules governing commercial companies with additional obligations for publicly listed companies and regulated financial institutions. Recent legal reforms have strengthened the formal requirements concerning board accountability, shareholder rights, conflicts of interest, and corporate oversight.
The Companies Law by Decree No. 42 of 2021 provides the principal legal foundation for company formation, administration, shareholder rights, and corporate decision-making. It replaced the previous company legislation applicable in the northern governorates and introduced a modernized framework intended to address differences in company law, simplify registration procedures, and strengthen corporate governance. The law recognizes several forms of commercial companies, including general partnerships, limited partnerships, limited liability companies, private shareholding companies, and public shareholding companies. It also establishes requirements concerning directors’ duties, shareholders’ meetings, corporate management, disclosure, and the protection of minority shareholders. The Ministry of National Economy administers company registration and related corporate procedures.
The Palestine Capital Market Authority (PCMA) is responsible for regulating and supervising the capital market and relevant non-bank financial activities. Its responsibilities include oversight of securities market activities, insurance companies, financial leasing companies, and mortgage finance companies. The Securities Law No. 12 of 2004 provides the legal foundation for securities market regulation, including the registration and supervision of market participants, securities issuance, disclosure obligations, and investor protection.
Corporate governance requirements for publicly listed companies have been strengthened through updated instructions applicable to companies listed on the Palestine Exchange. The new instructions, issued in 2025 and effective from 29 June 2026, establish mandatory governance requirements for listed companies, supplementing the general company and securities legislation. They address the responsibilities and functioning of boards of directors, internal control arrangements, conflicts of interest, written governance policies, and accountability in corporate decision-making. The framework is intended to improve disclosure, strengthen investor confidence, and align listed-company practices with contemporary governance principles.
The banking sector is supervised separately by the Palestine Monetary Authority (PMA), which regulates banks and other institutions within its jurisdiction. Its supervisory framework addresses institutional governance, risk management, internal controls, financial reporting, compliance, and the responsibilities of boards and senior management. These requirements seek to support the stability of the financial system and ensure that supervised institutions maintain appropriate systems for identifying, monitoring, and controlling risks.
Governance obligations therefore differ according to an entity’s legal form, activities, and regulatory status. Ordinary commercial companies are governed principally by company legislation and their constitutive documents, while publicly listed companies and regulated financial institutions face additional requirements concerning disclosure, audit, internal controls, and supervisory compliance. Shareholder rights, transparent financial information, responsible board oversight, and the management of conflicts of interest are important elements of the framework.
Overall, Palestine’s corporate governance framework combines general company law with specialized regulation of listed companies, securities markets, and financial institutions. Recent reforms have strengthened the statutory basis for corporate accountability and listed-company governance. The effectiveness of these provisions depends on consistent implementation, regulatory enforcement, transparent reporting, and the ability of shareholders and investors to exercise their rights.
References
Ministry of National Economy – Companies Law and Company Registration
https://www.mne.gov.ps/
Palestinian Official Gazette – Companies Law by Decree No. 42 of 2021
https://mjr.ogb.gov.ps/Decrees/ViewText/32039
Palestinian Official Gazette – Securities Law No. 12 of 2004
https://mjr.ogb.gov.ps/Decrees/Details/26009/
Palestine Capital Market Authority – Corporate Governance
https://www.pcma.ps/en/ereport_post/financial-sustainability-services-2024/corporate-governance-2024/
Palestine Capital Market Authority – Official Website
https://www.pcma.ps/
Palestine Monetary Authority – Official Website
https://www.pma.ps/
Palestine Exchange – Official Website
https://www.pex.ps/
Contact
Organization: Palestine Capital Market Authority (PCMA)
Address: Surda, Ramallah and Al-Bireh, Palestine; P.O. Box 4041
Phone: +970 2 2946946
Email: diwan@pcma.ps
Website: https://www.pcma.ps/
Disclaimer: This information was collected in April 2026 using AI tools and may contain errors or be out of date. Please submit any updates to: admin@ecgi.org