Legal Encounter in Birzeit: Regulation of the Palestinian Capital Market - Foundation Office Palestinian Territories
Mr. Zobi explained the concept of the capital market in the Palestinian Autonomous Territories and stressed that the concept of a Palestinian capital market dates back to 1932, when the Arab Bank was introduced in Palestine. By that time, the Ottoman Civil Code (Mejelle) as well as Company Laws in force were used to govern and regulate the trade of shares of public shareholding companies between sellers and purchaser. This legal framework is particularly important as it still regulates the current capital market, although the Law No. 13 (2004) of the Capital Market Authority is now applicable.
Furthermore Mr. Zobi highlighted that the legal regulation of the capital market is relatively modern, due to the fact that it was created with the recent establishment of the Palestinian National Authority (PNA). Moreover, the framework that regulates the Palestinian capital market is both a legal and a contractual one, as it is based on the Convention of Insertion.
Mr. Zobi summarized the existing laws which regulate the capital market in Palestine and showed how these laws have determined the securities traded in the capital market.
Additionally, the speaker described the relation between the capital market itself and the Palestinian Capital Market Authority (PCMA) as a complementary one. This enables the market to witness positive and progressive developments over a short period of time.
The Konrad-Adenauer-Stiftung (KAS) supports the evolution of legal structures and the rule of law in the Palestinian Autonomous Territories in cooperation with the Institute of Law at Birzeit University and deals mainly with the topic of economic law. The event was held as part of the Legal Encounter Series, which is organized by the Institute of Law and KAS.