PSE has a clear Vision & Mission

2. PSE has a clear Vision & Mission • To create a model for Arab and regional financial markets, through: • providing innovative services, • proposing ideal investment opportunities in securities, • attracting investments, • the use of state of the art technology, • compliance to the rules of corporate governance , and • establishing constructive relations with Arab, regional and global markets. PSE VISION • To provide a fair, transparent and efficient market for trading • securities that: • serves investors, • protects their interests, • contributes in creating an enabling environment that attracts local and foreign investments, • interacts with local and Arab relevant institutions, in a manner that serves the national economy and enhances the culture of investment in financial markets. PSE MISSION

3. The PSE has been trading since 1997 • 1995 Palestine Development and Investment Company (PADICO) and Palestine National Authority sign an agreement for operating the securities exchange • 1997 First trading session held • A well established exchange with turnover in 2009 of US$ 500 million and a market capitalization of $ 2.37 billion • Public Shareholding Company

4. 39 companies are listed on the PSE

5. New capital raised by shares Initial Public Offerings (value of money raised at first listing): Secondary public offerings (new capital raised for companies already traded):

6. Expected listing for 2010

7. Ownership Profile

8. Regulatory Framework • PCMA was established in 2005 • Securities Law No. (12) of the year 2004 • Companies Law No. (12) of the year 1964 • PSE regulations: Trading, Listing, Disclosure, Dispute settlement, Code of Corporate Governance • Applicable regulations at the PSE are compatible with best international practices • Seeking WFE membership

9. Trading @ the PSE • System: Horizon, NASDAQ OMX • E-Trading since 2007 (one of the first in the Arab World) • Fully automated trading, clearing, and settlement system 9 9

10. Surveillance @ the PSE SMARTS • Best of breed application • Adopted by the PSE and the Palestinian Capital Market Authority • Monitors the trading session instantly to detect any unusual behaviors of prices or trading volumes • Any violation is subject to the adopted penalties and fines.

11. Foreign investment • Friendly and encouraging legal and regulatory environment vis-à-vis foreign investment in the stock exchange. • No capital gain taxes and no income tax on the revenues generated out of trading. • The only determinant for foreign investments is the preferences of listed companies for foreign ownership of shares in their capital. • Custodian: HSBC

12. PSE Daily turn oversince inception

13. Composition of the Al-Quds Index

14. Turn Over ratios for 2009

15. Breakdown between: Retail Investors and Institutions

16. Ownership structure of listed companies by nationality

17. More positive intervention will lead for better economic growth and stability Steady GDP/GNI with growing inward flows and consumption

18. Comparison of trading activity (2009 with 2008)

19. PSE in comparison with other regional exchanges

20. PSE recovers from the impact of the current global crisis with good performance PSE stands in the mid between regional markets In 2009, MENA markets de-coupled then re-coupled, but not entirely! 20

21. The Palestinian stock market recovery is relatively steady Quarterly Closing Values of Al-Quds Index 1997 - 2010 Daily closing values of Al-Quds Index From Jan.2009 until Feb. 2010

22. Daily closing of Al-Quds Index during 2010

23. PSE : A Functioning Profitable Business

24. Why invest in the PSE? Small, yet robust and growing fast Great spring back potential Efficient structure & operations within best international practice Regulated market within international standards PSE: Tried & “TESTED” Undervalued stocks Listed companies: consistent good financial performance Strong reliable infrastructure and banking sector Strong donor support in state building

25. Thank You www.p-s-e.com