The study aimed to identify the role of Islamic lending institutions in the economic development in Palestine. The study examined the most important fields of economic development in Palestine, namely GDP, poverty and unemployment. The researcher used the analytical descriptive method. The study society consisted of two groups. The first was the employees of the Islamic lending institutions, and the second consisted of the beneficiaries of the services of the Islamic lending institutions. The study found many results. the most important of which was that the contribution of the Islamic finance institutions to the increase in the Palestinian GDP was high from the point of view of the employees in the institutions. In addition, its role was high in reducing the rate of unemployment in Palestine from the point of view of both employees in institutions and beneficiaries of its services. However, its role was moderate in reducing the poverty rate from the point of view of employees in institutions, but from the point of view of beneficiaries was high role. The study recommended the need for attention in the Palestinian areas with a high poverty rate, especially the Palestinian camps and the Palestinian countryside. As well as work on building a unified database for the distribution of poverty and unemployment. Also the need to activate the role of the unified Sharia’s supervisory board for Islamic banks to include Islamic lending institutions.