


Israel-Hamas war: West Bank economy on the verge of collapse
FeatureIn the Palestinian territory, subjected to increasingly violent Israeli military raids, marked by extensive checkpoints and starved of tax revenues, trade and investment have come to a standstill.
Majd Al-Saadi, manager of the Cinema Hotel, arrived in a rush. In the lobby of the most luxurious establishment in Jenin, in the north of the occupied West Bank, he got to the heart of the matter with a broad, sweeping gesture. Apart from the receptionist smiling stoically behind her counter, the place was empty. "This is the effect of the war in Gaza. Our clientele is 95% Israeli Arabs. Since October 7, we've lost all these customers, who can no longer come to the West Bank to shop and enjoy themselves as usual," he said.
The northern tip of the Gaza Strip is more than 93 miles away, but the blast effect of the Israeli bombardments can be felt as far away as the West Bank. The Jalameh military roadblock, the access route to Jenin from Israeli territory, has been closed since October 7. Other crossing points, all too rare, remain open. Using them though means making such detours that Palestinians in Israel refuse to do so. Inside the West Bank itself, some roads are blocked by mounds of earth and concrete blocks whose location is constantly changing, and others have become dangerous, due to the risk of being attacked by Jewish settlers.
Finally, the Israeli army, which has been regularly entering Jenin since the start of the Gaza war to arrest or kill members of the armed groups, is an ultimate deterrent for those still tempted to shop in the town. As soon as a military operation begins, access roads to Jenin are closed.
Forced unemployment
The restrictions on movement, introduced after October 7, are even more far-reaching. Nearly 200,000 Palestinians from the West Bank who worked in Israel before the war have had their permits suspended since the outbreak of hostilities. Now forcibly unemployed, they no longer take their wages home with them. According to the latest report from the Palestine Economic Policy Research Institute (MAS) in Ramallah, the total value of purchases made by Palestinians from Israel in the West Bank in 2020 was $1.4 billion (€1.3 billion). Their preferred destination was Jenin (50% of visits).
Developing a business in a country under military occupation – Al Saadi knows this headache by heart. His brother, suspected of belonging to Hamas, is wanted by Israeli forces. In mid-October, they reportedly advised his father, Abdullah, to evacuate the hotel, suggesting that if his son did not surrender, the establishment might be targeted. All to no avail. But that didn't help bring back the clientele. The town, considered a stronghold of armed groups in the West Bank, continues to be the scene of raids by the Israeli army. A few weeks ago, fighting broke out in front of the hotel. The latest military operation, on the night of Tuesday, December 12, left seven people dead.
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