The Holy Father named the women saints in a ceremony in Saint Peter's Square, just days after the Vatican formalised Palestine as an independent state.
Both Sister Marie-Alphonsine Danil Ghattas, Sisters of the Most Holy Rosary of Jerusalem founder, and Maryam Baouardy, who founded a Carmelite convent in Bethlehem were canonised and the ceremony emphasised Pope Franics' drive to help Christian communities in the Middle East.
It was attended by Palestinian president Mahmoud Abbas and a delegation of senior clergy including the Latin Patriarch of Jerusalem Fouad Twal, who said the nuns entered the religious orders in the late 1800s.
He added that they were an example for Christians, Muslims and Jews: "It is a sign of our modern time which suggests that we can talk about the three religions without any discrimination."
The canonisations of the two Palestinians were the first of their kind "since the days of the apostles", he said.
It was reported that the Pope called Palestinian president Mahmoud Abbas "an angel of peace" when the two met over the weekend.
He said the example of the two newly canonised saints "affirms our determination to build a sovereign, independent and free Palestine based on the principles of equal citizenship."
He asked Palestinian Christians not to leave but to "stay with us and enjoy the rights of full and equal citizenship, and bear with us the difficulties of life until we achieve liberty, sovereignty and human dignity."
They are the first from the region to receive sainthood since the early days of Christianity, and the first Arabic-speaking Catholic saints in history.
