The Palestine Capital Market Authority has issued new instructions for sharia compliant financial leasing, creating a dedicated regulatory framework for the activity and making the rules effective from their publication in the Official Gazette. The measure is intended to regulate a fast-growing segment of sharia compliant finance by setting clearer governance, standards, roles and responsibilities for companies operating in the sector. The instructions prohibit carrying out the activity without a licence and bar a single company from combining conventional financial leasing with sharia compliant financial leasing. They also require companies to appoint an independent Sharia adviser and strengthen transparency and disclosure requirements. Compliance is to be assessed against sharia requirements including standards of the Accounting and Auditing Organization for Islamic Financial Institutions, decisions of the Higher Sharia Supervisory Board and the opinions of Sharia advisers. Companies already conducting sharia compliant financial leasing have up to six months to regularise their position under the new rules.
Palestine Capital Market Authority 2026-05-10
Palestine Capital Market Authority issues sharia compliant financial leasing rules requiring licensing separate operations and independent Sharia advisers
The Palestine Capital Market Authority has issued new instructions establishing a regulatory framework for sharia compliant financial leasing, including licensing requirements, governance standards and clarified roles and responsibilities. The rules prohibit firms from combining conventional and sharia compliant financial leasing, mandate appointment of an independent Sharia adviser, and strengthen transparency and disclosure obligations, with compliance assessed against sharia requirements and relevant standards.