The history of the Palestine Exchange (PEX) began when the Palestine Development and Investment Company (PADICO) and the Palestinian National Authority (PNA) took steps toward the establishment of a local securities exchange.
The Palestine Securities Exchange (PSE) was established in 1995 to promote investment in Palestine as a private shareholding company and the first trading began on February 18, 1997. By the end of 2007, the number of listed companies on the PSE had increased to 35 and the number of brokerage firms increased to 9. The PSE evolution continued when it was renamed the Palestine Exchange (PEX).
In 2010, the PEX transformed into the only publicly-traded Arab stock exchange entirely owned by the private sector. An important milestone was reached in 2016 when the PEX gained Frontier Market status at FTSE indices. It operates under the supervision of the Palestinian Capital Market Authority.
As of December 31, 2017, there are 48 listed companies on PEX with total market capitalization of approximately $3,9 billion across five main economic sectors, which are banking and financial services, insurance, investments, industry and services. Most of the listed companies are profitable and trade in Jordanian Dinar, while others trade in US Dollars.