Palestine Monetary Authority

Circular No. (2022/313)
To all Islamic banks operating in Palestine
Date: Tuesday, 20 December 2022

Subject: Purchase Permits

With reference to the above subject, attached is the decision of the Cabinet of Ministers No. (18/176) dated 2022/09/26 regarding the mechanism for issuing purchase permits. Please take the necessary measures to comply with the content of the decision.

Supervision Group
Palestine Monetary Authority

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State of Palestine

Cabinet of Ministers

Cabinet Decision No. (18/176) of 2022

(1.M/C.M)

Approval of the recommendations of the Ministerial Committee on studying the criteria for issuing purchase permits for Palestinians with foreign nationality from Palestinians with foreign nationality Based on the powers vested in us by law, and based on public interest requirements, and after reviewing the Basic Law of Justice for the year 2003 and its amendments; and on the Prime Ministership System No. (21) for the year 2021; and on the Working System of the Cabinet's Subcommittees for the year 2004; and Decision No. (18/169/07) for the year 2022.

The Cabinet of Ministers decided in its meeting held in Ramallah on (2022/09/26) the following:

Article One

Approving the recommendations of the Ministerial Committee for studying the criteria for issuing purchase permits for Palestinians with foreign nationality from Palestinians with foreign nationality, in its meeting No. (01) dated 2022/09/11, attached to this decision, and authenticated with the seal of the General Secretariat of the Cabinet of Ministers.

Article Two

The competent authorities shall implement the provisions of this decision as they pertain to them, and it shall be effective from the date of its issuance.

Issued in Ramallah on 2022/09/26.

State of Palestine

Cabinet of Ministers

Cabinet Decision No. (18/176) of 2022

(1.M/C.M)

Approving the recommendations of the Ministerial Committee on studying the criteria for issuing purchase permits for Palestinians with foreign nationality from Palestinians with foreign nationality, in its meeting No. (01) dated 2022/09/11, attached to this decision.

1. Deleting paragraph (b) from item (1) of Article Two of Cabinet Decision No. (18/14/11) of 2019, regarding the auditing mechanism and additional criteria for issuing purchase permits for lands and rights.

2. Tasking the Ministry of Interior with establishing necessary auditing rules for buyers holding foreign nationalities of Palestinian origin, such that the Land Authority, upon permit submission, shall forward the Ministry of Interior's determination on contacting competent authorities, and submit the recommendation to the Land Authority.

3. The aforementioned mechanism does not permit foreigners of Palestinian origin to purchase lands classified as (C), restricting them to areas classified as (A, B) only.

4. For foreigners dealing with Islamic banks and Islamic financing institutions, the application for a purchase permit must be submitted before signing the financing contract with the bank, and before registering the property in the bank's name, following the procedures for obtaining a purchase permit through the competent Land Authority. The permit shall remain valid for 3 months, and shall be specific to the property, specifying its area and characteristics; so that it is not used more than once or for more than one property.

5. Upon the expiration of the lease-to-own contract and settlement of installments by the buyer, and after obtaining prior approval from competent authorities before concluding the contract mentioned in item (4) above, if a legal or security prohibition is found, legal measures shall be taken to place a restriction notice on the property, concurrently with registering the property in the buyer's name. The Land Authority shall do this after coordinating with the Ministry of Interior, without requiring a new purchase permit. The restriction notice shall be lifted if the buyer's status is regularized, according to a mechanism agreed upon between the Ministry of Interior and the Land Authority.

6. Regarding real estate transactions organized under the Islamic financing season with foreign buyers of Palestinian origin without prior permit approval, the necessary legal measures shall be taken to grant them the permit before signing the ownership transfer contract.

7. Tasking the Ministry of Justice with studying the issuance of a new decision to regulate the procedures for ownership transfer in concluded administrative transactions.