This study employs four criteria for assessing the attractiveness of the Palestinian Securities Exchange (PSE) to foreign investors: macroeconomic factors; factors related to the financial market; factors relating to the protection of the investor; and factors relating to awareness and marketing. While the study acknowledges the high degree of political and economic instability, it demonstrates that the tax system is fairly attractive, that the level of bribery and corruption is comparably low, and that the time needed to complete transactions is lower than that found in many neighboring countries.

The study shows that the number of registered companies in the market is low, which shows the shallowness of the market and minimizes its effectiveness in attracting foreign investors. In spite of the relatively high average rate of return to investments in those companies, it fluctuates considerably, thus reflecting a high degree of risk. On the other hand, the analysis shows that the PSE is efficiently and effectively using IT systems, and that the laws and regulations under which the market operates ensure free flows of funds, promote the principles of governance and transparency, and prevent manipulation and speculation. This reassures investors, and protects their rights. The PSE has developed a special program for investment awareness, made efforts to reach out to foreign investors, and attempted to integrate with other financial markets in the region. The study concludes with a set of recommendations that could assist in increasing the attractiveness of the PSE to foreign investors.

This volume includes a focus on the important events of the year 2007, in addition to the economic surveys conducted in 2006 by the Palestinian Central Bureau of Statistics, which included the industrial, construction, services, internal trade, transportation, storage and communication sectors, as well as the education survey conducted by the Ministry of Higher Education.

This volume of the monitor has adopted a new approach, aiming to address a very important topic, which is the issue of the gender gap that exists in Palestinian society in the political, economic, and social spheres. The spur for this approach is the profound belief that the central tasks which Palestinian society looks forward to achieving, both at the level of national liberation and of socio-economic development, cannot be properly completed without genuine efforts to close this gender gap.

This volume entailed the participation of a number of researchers at MAS, in coordination with researchers from the PCBS and the Palestinian Monetary Authority, with support from the German Development Cooperation, GTZ.