In the context of the COVID-19 pandemic, we aim to identify and understand the obstacles and barriers in applying electronic exams successfully in the process of distance education. We followed an exploratory descriptive approach through a questionnaire (one general, open question) with a sample of university teachers and students in four of the largest universities Palestinian in Gaza. A total of 152 were returned from 300 distributed questionnaires. The results indicate that the university teachers and students faced 13 obstacles, of which 9 were shown to be shared between teachers and students, with a significant agreement in the regression analysis. Several of the obstacles perceived by respondents are in line with the literature and can be addressed by improved examination design, training, and preparation, or use of suitable software. Other obstacles related to infrastructure issues, leading to frequent power outages and unreliable internet access. Difficult living conditions in students’ homes and disparities in access to suitable devices or the internet make social equity in connection with high-stakes examinations a major concern. Some recommendations and suggestions are listed at the end of this study, considering local conditions in the Gaza governorates.