It may come as a surprise that Palestine has a successful stock exchange, especially given the recent political difficulties that have dislodged the economy. However, with a total market capitalization of $1.9 billion, the Palestinian Securities Exchange (PSE) accounts for only a small portion of the would-be state’s economy and investment opportunities. Inevitably the exchange’s development and economic prospects will be intricately linked to the outcome of the new peace negotiations kicked off by the Annapolis talks in late 2007. Nonetheless, given political stability, it has strong potential for growth, a factor that led Kuwait’s Global Investment House (GIH) to take a 10% stake in the exchange, in February 2007. Based in Nablus, with offices in Ramallah, the PSE is controlled by the Palestinian Development and Investment Company (PADICO) and was incorporated in 1995, following a period of relative optimism. During this time a significant number of successful and ambitious
