Analyzing the Performance of the Palestine Stock Exchange and Enhancing its Role in Attracting Foreign Investments

Abstract

The study aimed to analyze the performance of the Palestine Stock Exchange and its role in attracting foreign investments. The study used the descriptive and analytical approach. The study reached a set of recommendations, the most important of which is the necessity to provide the investment environment by providing the legislative, economic, legal, and security environments, such as the companies' law, competition, etc. As well as providing sound economic and financial policies to achieve long-term development by encouraging and motivating companies that not listed on the Palestine Stock Exchange to list their shares. That is to increase market depth and enhance its confidence although the law forces them to do so. The study also found a slight development in its performance despite achieving high returns, as the profitability rate was recorded at 300% in the year 2009, and the market value and trading volume increased by more than 45%. As for the Jerusalem index, it has witnessed an increase since 2004. It fluctuated slightly after 2004.