The Reform Party (or Hizb-al-Islah) was established by Husayn al-Khalidi in Palestine on 23 June 1935.

At the time of the party's formation, al-Khalidi was mayor of Jerusalem. It did not have a large following outside Jerusalem but its views were widely published in the Arab press. Its program called for freedom for Palestine, self-government, welfare for farmers and workers, encouragement of education and opposition to a Jewish national home.

From its formation on 25 April 1936, al-Khalidi was a member of the Arab Higher Committee as the party's representative.Military Preparations of the Arab Community in Palestine, 1945-1948: 1945-1948, by Haim Levenberg, Routledge, 1993, p. 7 On 1 October 1937, following disturbances and violence during the 1936–39 Arab revolt in Palestine, the British Mandate administration outlawed the AHC and several other Arab political parties and arrested a number of Arab political leaders. The Reform Party was one of the parties dissolved and Khalidi was one of the leaders arrested.A Survey of Palestine - prepared in December 1945 and January 1946 for the information of the Anglo-American Committee of Inquiry. Reprinted 1991 by The Institute of Palestine Studies, Washington. Volume II. . p.949 He was removed as mayor of Jerusalem and deported to the Seychelles, together with four other Arab nationalist political leaders.

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