Palestine's economy has lost close to half a million jobs since the Gaza war began in October with the gap between revenue and public expenditure widening significantly, according to the World Bank.
An estimated 200,000 jobs have been lost in the Gaza Strip, while 144,000 people are no longer employed in the occupied West Bank as a result of the escalating violence and its repercussions on supply chains, production capacity and breadwinners’ inability to access their workplace, the multilateral lender said in a report on Friday.
About 148,000 cross-border commuters from the West Bank were also denied access to the Israeli labour market due to the continuing war, pushing unemployment levels higher in the Palestinian territory.
Meanwhile, the fiscal situation of the Palestinian Authority, which runs the West Bank, has also dramatically worsened in the past three months, “significantly raising the risk of a fiscal collapse”, the report titled The Impact of the Conflict in the Middle East on the Palestinian Economy, said.
“Revenue streams have largely dried up due to the drastic reduction in clearance revenue transfers payable to the Palestinian Authority and a massive drop in economic activity,” the report said.
Clearance revenue are those collected by the Israeli government and transferred to the Palestinian Authority after certain deductions have been made. Most clearance revenue are value-added tax and import duties, and they are remitted on a monthly basis.
The rapidly widening gap between the amount of revenue coming in and the amount needed to finance essential public expenditure is driving a “fiscal crisis” in Palestine, the report said.
As of the end of 2023, this financing gap reached $682 million and is projected to double within the coming months, reaching up to $1.2 billion, according to the Washington-based lender.
“A focus on fiscal policies, especially those improving spending efficiency (particularly regarding the unsustainable wage bill) and enhancing tax mobilisation, must remain a top priority in the reform agenda,” the report said.
The Israel-Gaza war has devastated Palestine’s economy, with severe damage to infrastructure and increasing poverty levels.
The Palestinian economy is projected to contract anywhere between 6.5 and 9.4 per cent during 2024, the World Bank said.
However, the outlook remains highly uncertain, “depending on the severity and duration of the conflict, changes in Israeli policies in the West Bank, including those related to access to the Israeli labour market, and the outcome of the clearance revenue dispute”, it added.
Naser Mufrej, professor of finance and economics at the Arab American University in Ramallah, told The National that Palestine's economy has suffered a lot since the Israeli aggression, with the economy in Gaza “almost now with zero function”.
“The Gaza economy lost all its contribution to Palestine gross domestic product, which is estimated on an annual basis at about $4 billion, and as to the West Bank GDP, it lost around 15 to 20 per cent so far.”
He also cited the same reasons for the situation including the denial of access to Palestinian workers in Israel, the collapse of business activity in Gaza and the West Bank, as well as reduction in clearance revenue from Israel.
“Israel has withheld 50 per cent of clearance revenue due to Palestinians,” Mr Mufrej said.
“For the last seven months, they transferred only around 50 per cent of the previous level of clearance revenue, which is about $120 million, representing around 40 per cent of the payroll that the Palestine Authority needs to pay for its employees and staff either in military or civil services.”
The fiscal position situation of the Palestinian Authority “is so tough, so difficult”, he added.
“The authority faces an unprecedented level of uncertainty and unprecedented financial stress because of the decline of liquidity. Even domestic local tax revenue have declined because of the drop in economic activity.
“If the situation continues, the Palestine Authority will find itself unable to meet its obligations, even at minimum,” Mr Mufrej said.
The World Bank also highlighted the hit to Palestine's GDP per capita amid the Gaza war. In 2023, it stood at $3,360, a 12 per cent drop from 2022. For Gaza alone, there was a 28 per cent drop, it said, while adding that in 2023, Gaza’s per capita real income “was the lowest ever recorded”.
Poverty levels have continued to rise amid the Israeli bombardment of the Palestinian territories.
“In the wake of the conflict, living standards plummeted, accentuating the stark divide between the West Bank and Gaza, with the latter reporting its lowest-ever income per capita in 2023. Nearly every Gazan is currently poor.”
Using night-time lights as a proxy for economic activity, the output decline in Gaza has been in a range of approximately 90 per cent, since immediately after the war broke out between the two sides on October 7. To date, it has not rebounded, the World Bank said.
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
THE LOWDOWN
Romeo Akbar Walter
Rating: 2/5 stars
Produced by: Dharma Productions, Azure Entertainment
Directed by: Robby Grewal
Cast: John Abraham, Mouni Roy, Jackie Shroff and Sikandar Kher
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KEY HIGHLIGHTS
Healthcare spending to double to $2.2 trillion rupees
Launched a 641billion-rupee federal health scheme
Allotted 200 billion rupees for the recapitalisation of state-run banks
Around 1.75 trillion rupees allotted for privatisation and stake sales in state-owned assets
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
ESSENTIALS
The flights
Emirates, Etihad and Swiss fly direct from the UAE to Zurich from Dh2,855 return, including taxes.
The chalet
Chalet N is currently open in winter only, between now and April 21. During the ski season, starting on December 11, a week’s rental costs from €210,000 (Dh898,431) per week for the whole property, which has 22 beds in total, across six suites, three double rooms and a children’s suite. The price includes all scheduled meals, a week’s ski pass, Wi-Fi, parking, transfers between Munich, Innsbruck or Zurich airports and one 50-minute massage per person. Private ski lessons cost from €360 (Dh1,541) per day. Halal food is available on request.
SPECS
Toyota land Cruiser 2020 5.7L VXR
Engine: 5.7-litre V8
Transmission: eight-speed automatic
Power: 362hp
Torque: 530Nm
Price: Dh329,000 (base model 4.0L EXR Dh215,900)
EMERGENCY PHONE NUMBERS
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Coffee: black death or elixir of life?
It is among the greatest health debates of our time; splashed across newspapers with contradicting headlines - is coffee good for you or not?
Depending on what you read, it is either a cancer-causing, sleep-depriving, stomach ulcer-inducing black death or the secret to long life, cutting the chance of stroke, diabetes and cancer.
The latest research - a study of 8,412 people across the UK who each underwent an MRI heart scan - is intended to put to bed (caffeine allowing) conflicting reports of the pros and cons of consumption.
The study, funded by the British Heart Foundation, contradicted previous findings that it stiffens arteries, putting pressure on the heart and increasing the likelihood of a heart attack or stroke, leading to warnings to cut down.
Numerous studies have recognised the benefits of coffee in cutting oral and esophageal cancer, the risk of a stroke and cirrhosis of the liver.
The benefits are often linked to biologically active compounds including caffeine, flavonoids, lignans, and other polyphenols, which benefit the body. These and othetr coffee compounds regulate genes involved in DNA repair, have anti-inflammatory properties and are associated with lower risk of insulin resistance, which is linked to type-2 diabetes.
But as doctors warn, too much of anything is inadvisable. The British Heart Foundation found the heaviest coffee drinkers in the study were most likely to be men who smoked and drank alcohol regularly.
Excessive amounts of coffee also unsettle the stomach causing or contributing to stomach ulcers. It also stains the teeth over time, hampers absorption of minerals and vitamins like zinc and iron.
It also raises blood pressure, which is largely problematic for people with existing conditions.
So the heaviest drinkers of the black stuff - some in the study had up to 25 cups per day - may want to rein it in.
Rory Reynolds
The specs
Engine: 5.0-litre V8
Power: 480hp at 7,250rpm
Torque: 566Nm at 4,600rpm
Transmission: 10-speed auto
Fuel consumption: L/100km
Price: Dh306,495
On sale: now
Mica
Director: Ismael Ferroukhi
Stars: Zakaria Inan, Sabrina Ouazani
3 stars
The biog
Favourite colour: Brown
Favourite Movie: Resident Evil
Hobbies: Painting, Cooking, Imitating Voices
Favourite food: Pizza
Trivia: Was the voice of three characters in the Emirati animation, Shaabiyat Al Cartoon
if you go
The flights Fly Dubai, Air Arabia, Emirates, Etihad, and Royal Jordanian all offer direct, three-and-a-half-hour flights from the UAE to the Jordanian capital Amman. Alternatively, from June Fly Dubai will offer a new direct service from Dubai to Aqaba in the south of the country. See the airlines’ respective sites for varying prices or search on reliable price-comparison site Skyscanner.
The trip
Jamie Lafferty was a guest of the Jordan Tourist Board. For more information on adventure tourism in Jordan see Visit Jordan. A number of new and established tour companies offer the chance to go caving, rock-climbing, canyoning, and mountaineering in Jordan. Prices vary depending on how many activities you want to do and how many days you plan to stay in the country. Among the leaders are Terhaal, who offer a two-day canyoning trip from Dh845 per person. If you really want to push your limits, contact the Stronger Team. For a more trek-focused trip, KE Adventure offers an eight-day trip from Dh5,300 per person.
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
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Sholto Byrnes on Myanmar politics
More about Middle East geopolitics
if you go
The flights
Emirates flies to Delhi with fares starting from around Dh760 return, while Etihad fares cost about Dh783 return. From Delhi, there are connecting flights to Lucknow.
Where to stay
It is advisable to stay in Lucknow and make a day trip to Kannauj. A stay at the Lebua Lucknow hotel, a traditional Lucknowi mansion, is recommended. Prices start from Dh300 per night (excluding taxes).
Five expert hiking tips
Always check the weather forecast before setting off
Make sure you have plenty of water
Set off early to avoid sudden weather changes in the afternoon
Wear appropriate clothing and footwear
Take your litter home with you
