In West Bank, Israeli Army Operation Batters War-Depleted Economy

Israeli army vehicles drive along a damaged road near the main entrance to Jenin refugee camp during an ongoing Israeli military operation in the West Bank city of Jenin, 05 February 2025. (EPA)
Israeli army vehicles drive along a damaged road near the main entrance to Jenin refugee camp during an ongoing Israeli military operation in the West Bank city of Jenin, 05 February 2025. (EPA)
TT

In West Bank, Israeli Army Operation Batters War-Depleted Economy

Israeli army vehicles drive along a damaged road near the main entrance to Jenin refugee camp during an ongoing Israeli military operation in the West Bank city of Jenin, 05 February 2025. (EPA)
Israeli army vehicles drive along a damaged road near the main entrance to Jenin refugee camp during an ongoing Israeli military operation in the West Bank city of Jenin, 05 February 2025. (EPA)

When a ceasefire began in Gaza last month, Palestinian activist Ahmad Kilani hoped the pause in fighting would also bring a return to peace in his hometown of Yabad in the occupied West Bank.

But his joy turned to fear when, just two days later on Jan. 21, large columns of Israeli army vehicles backed by helicopters and drones stormed the nearby Jenin refugee camp at the start of a major crackdown in the West Bank.

Israel has since blown up some 20 buildings in the camp, sending plumes of heavy smoke over the densely populated area, and carried out air strikes.

It says it is targeting armed groups that receive support from Iran, including Hamas and Islamic Jihad.

The United Nations' Palestinian relief agency (UNRWA) has said that almost all of Jenin camp's 20,000 residents have been displaced over the past two months.

UNRWA said the area "has been rendered a ghost town" in a statement carried by Reuters.

The Israeli military set up roadblocks and checkpoints across the kidney-shaped stretch of land about 100 km (62 miles) long, and dozens of people were killed or injured in fighting.

"After the ceasefire in Gaza, the war here expanded," Kilani, a member of the Committee for Humanitarian Work in Palestine, an aid group active in the West Bank and Gaza, told the Thomson Reuters Foundation.

"We saw destruction that we did not anticipate seeing. Even though we heard about it, we did not expect it to happen so quickly and in this way."

Since that incursion, hundreds of Israeli troops backed by helicopters, drones and armored vehicles have been waging sporadic gun battles with Palestinian fighters while carrying out searches in streets and alleyways for weapons and equipment.

At least 25 Palestinians have been killed, including nine members of armed groups, a 73-year-old man and a 2-year-old girl, according to Palestinian officials. The Israeli military says it has killed at least 35 gunmen and detained more than 100 wanted people.

Israeli roadblocks have made travelling even short distances between towns and villages into an hours-long trial for Palestinians.

"Nothing can describe the situation we are living in, and every day is worse than the day before. If we discuss something now, it would be worse in a couple of hours," Kilani said.

Relatively well-off friends who once raced to dish out alms and aid are now themselves on the lookout for charity, he said. People have locked themselves indoors to avoid the incessant security operations and Israeli checkpoints, he added.

"Sometimes I scream at myself - what are we headed towards?"

ECONOMIC FREE FALL

The war in Gaza - where more than 47,000 people have been killed and almost the entire population of 2.3 million displaced in a landscape reduced to rubble by Israeli air strikes - was already taking a heavy toll on the occupied West Bank's economy.

The conflict started on Oct. 7, 2023 when Hamas-led fighters attacked southern Israel, killing about 1,200 people and seizing 250 hostages, according to Israeli tallies.

Hundreds of people have been killed in the West Bank since the start of the war in Gaza. Many of the dead were gunmen, but young people throwing stones and civilians were also killed, and thousands have been arrested.

Palestinian attacks in the West Bank and Israel have also killed dozens of Israelis. On Tuesday, two Israeli soldiers were killed and eight wounded when a gunman opened fire on troops in the area, setting off a gunfight in which the shooter was killed by Israeli soldiers, the Israeli military said.

Economic activity in the occupied West Bank fell by 23% in first half of 2024, the World Bank said in a report in December.

Unemployment stands at about 35% as Palestinian laborers have been banned from travelling to work in Israel since October 2023.

Before then, about 177,000 Palestinians worked in Israel. By the second quarter of 2024, the number had dropped to 27,000, the World Bank said.

Many of the Palestinians employed by the Israeli economy work in settlements in the West Bank, according to the International Labour Organization (ILO).

"The conflict's impact has now exceeded all previous economic crises in the Palestinian territories over the past two decades," the World Bank report noted.

Economic contraction in the occupied West Bank is estimated to have more than doubled the short-term poverty rate from 12% in 2023 to 28% by mid-2024, the ILO said last year.

In August, Israeli banks began refusing shekel cash transfers from Palestinian banks in the West Bank, a move that Palestinian officials said could soon prevent Palestinians from accessing vital goods and services.

Olive oil bandits have also appeared as desperate people steal olives from groves with the intent of pressing them into oil and selling them on the black market, Kilani said.

"This wasn't something that existed before," he said.

He described a society coming apart at the seams.

"It is not that one school is closed; it is that schools have been closed for a year; health (clinics) are closed, and people cannot get their medicine," Kilani said.

"Companies are closing, banks are closing, and people cannot get to their lands to plant them."

NO WORK

Israel has occupied the West Bank of the Jordan River, which Palestinians want as the core of an independent state, since the 1967 Middle East war.

It has built Jewish settlements there that most countries deem illegal. Israel disputes this and cites historical and Biblical ties to the land.

The United Nations Human Rights office says the new Israeli military operation in the West Bank could endanger the Gaza ceasefire and has called for an immediate end to the violence and a halt on expanding settlements.

As economic prospects disappear, residents like Robeen Idris are becoming increasingly desperate.

The 45-year-old lives in Hebron in the southern West Bank with his wife, seven children and parents. His mother has cancer, and his dad wears a pacemaker.

"There is no work because the roads are closed, and the situation is difficult," he said. "I cannot spend money to buy them food, water, and medicine."

Idris has been unemployed since August 2023. Before then, he worked in sanitation in Israeli hotels. Now those jobs are out of reach, and he has developed diabetes, which he blames on stress.

Economic conditions are forcing business and factory owners to cut their workforce, often replacing laborers like himself with their own family members, he added.

"There is no need for them to employ strangers," he said.



US Consumer Prices Likely Increased Moderately in July as Gasoline Prices Eased

A woman shops for food items from a wholesale retailer in Alhambra, California on August 11, 2026. (AFP)
A woman shops for food items from a wholesale retailer in Alhambra, California on August 11, 2026. (AFP)
TT

US Consumer Prices Likely Increased Moderately in July as Gasoline Prices Eased

A woman shops for food items from a wholesale retailer in Alhambra, California on August 11, 2026. (AFP)
A woman shops for food items from a wholesale retailer in Alhambra, California on August 11, 2026. (AFP)

US consumer prices likely increased moderately in July, which could further reduce financial market expectations for the Federal Reserve to raise interest rates this year.

The Labor Department's Consumer Price Index report on Wednesday would follow on the heels of news last week of surprise job losses last month.

Economists said the United States' position as a net oil exporter and the drawing down of petroleum inventories had cushioned the hit on the economy from the oil price shock sparked by the Middle East conflict.

Still, they viewed inflation risks as tilted to the upside, with no resolution to the US-Israeli war with Iran. President Donald Trump accused Iran of being "devious negotiators" in an interview released late on Monday and described some of his current options in the war — "just bop along" and let Tehran fail economically or hit them "really, really hard."

"I don't ‌expect any significant ‌firework when the numbers come out," said Sung Won Sohn, a finance and economics ‌professor at ⁠Loyola Marymount University. "I ⁠don't really see the Fed either raising or lowering interest rates, unless things turn out badly for both unemployment and the CPI."

The CPI likely rebounded 0.1% last month, a Reuters survey of economists predicted, after falling 0.4% in June - the first decline in six years. In the 12 months through July, the CPI was forecast to have increased 3.4% after advancing 3.5% in June.

The anticipated small monthly increase in the CPI would reflect a further decline in gasoline prices, which averaged $4.064 a gallon in July compared to $4.184 in June, according to data from the Energy Information Administration. Gasoline ⁠prices have dropped from an average of $4.609 a gallon in May.

Food prices likely ‌increased marginally, in line with their recent trend. Goods prices, including ‌household furniture and apparel amid the fading pass-through from tariffs, will likely account for the moderate rise in the CPI.

INFLATION STILL ‌RUNNING ABOVE TARGET

Outside the volatile energy and food components, the CPI was forecast to rise 0.2% last month ‌after being unchanged in June. That would translate to a year-on-year increase of 2.5% in the so-called core CPI inflation.

The US central bank tracks the Personal Consumption Expenditures price indexes for its 2% inflation target. While cooler inflation readings could further temper rate hike expectations, they would likely be of little comfort to consumers, with wages not keeping up with prices.

"It's an improvement, but ‌both of those numbers are still extremely high and unpleasant for consumers," said Tani Fukui, an economist at MetLife Investment Management.

The high cost of living has ⁠soured many Americans' views ⁠of Trump, and could weigh on the Republican party's chances in the November midterm elections that will determine control of the US Congress for the next two years.

Trump won the 2024 presidential election in large part because of his promise to lower inflation.

Core inflation was seen lifted by rebounds in the prices of used cars and trucks as well as education and communication goods. Increases were also expected in airfares.

A mild pick-up in rents was anticipated, but economists were divided on whether prices for hotel and motel rooms would continue their decline.

Still, benign core CPI inflation readings were unlikely to be replicated in the core PCE price measure, which left some economists to continue to expect the Fed to tighten monetary policy in September.

Prior to the data, economists forecast core PCE inflation rising 0.2% over the month after gaining 0.1% in June. That would translate to a year-on-year increase of 3.3%, which would match June's rise. Components in the core basket have different weights in the core CPI basket.

"A report in line with our expectations would strengthen the case for the Fed hiking in September," said Stephen Juneau, a U.S. economist at Bank of America Securities.


Riyadh Presses ahead with Housing Market Stabilization Through Real Estate Balance Measures

Residential units in Riyadh developed by Saudi Arabia’s Ministry of Municipalities and Housing. (SPA)
Residential units in Riyadh developed by Saudi Arabia’s Ministry of Municipalities and Housing. (SPA)
TT

Riyadh Presses ahead with Housing Market Stabilization Through Real Estate Balance Measures

Residential units in Riyadh developed by Saudi Arabia’s Ministry of Municipalities and Housing. (SPA)
Residential units in Riyadh developed by Saudi Arabia’s Ministry of Municipalities and Housing. (SPA)

Riyadh’s housing market is entering a new phase with the opening of applications for the second year of the Real Estate Balance Program, reflecting the Saudi capital’s drive to address housing market challenges by increasing residential supply while implementing regulatory and financing policies aimed at expanding homeownership.

The Royal Commission for Riyadh City (RCRC) announced Monday that applications will be accepted from August 16 through September 15 through the program’s online platform.

Housing costs

The program continues as Riyadh undergoes rapid population, economic and urban expansion, driven by major projects and accelerating investment, increasing the need for balanced growth in real estate supply to meet rising demand.

Real estate experts told Asharq Al-Awsat that by offering planned and developed residential plots at fixed prices, Riyadh is seeking to reduce one of the main components of housing costs and provide citizens with a more sustainable path to building their own homes.

The move could gradually ease price pressures stemming from limited land availability.

Financing and construction

Khalid Al-Jasir, a real estate specialist and President of Amaken International Group, said the program’s impact extends beyond the land market to financing, construction, building materials and housing-related services, supporting economic activity and deepening the investment cycle in the Saudi capital.

He told Asharq Al-Awsat that the program’s strength lies not only in providing land at set prices, but in addressing the root of the problem by increasing supply.

As more residential land becomes available in an organized manner, citizens gain more options and scarcity has less power to drive prices higher, he remarked.

“The program’s real success will become apparent over the medium term, when the allocated plots are turned into actual homes, rather than simply owned as land,” Al-Jasir stated. “The next phase should focus on facilitating construction and financing so the link between land and housing is completed.”

More balanced market

Real estate specialist and developer Ahmed Omar Basodan told Ahsarq Al-Awsat that extending the program into a second year sends an important message that tackling high housing costs requires a sustained approach rather than a temporary decision.

Riyadh is growing rapidly, meaning supply must continually keep pace with population and economic expansion, he stressed. The program’s most important impact, however, may extend beyond land prices to changing market behavior itself.

“When investors and developers realize that residential supply will continue to increase, it becomes harder to keep betting on land scarcity as a permanent driver of higher prices,” he explained. “Success will lie in creating a more balanced market that benefits citizens, developers and the economy at the same time.”

Narrowing the supply-demand gap

The second year is part of the program’s annual framework to increase the supply of planned residential land.

The RCRC aims to provide between 10,000 and 40,000 plots annually at prices not exceeding SAR1,500 per square meter, helping narrow the gap between supply and demand and support stability in Riyadh’s real estate market.

Applications are open to married Saudi citizens or those over 25, provided they have not previously owned property, have lived in Riyadh for at least three years and meet the remaining eligibility requirements.

The RCRC said eligibility is not determined by the order in which applications are submitted and that registration does not guarantee final acceptance. Applicants from the first year who were found eligible and entered the electronic lottery will automatically be included in the approved process for the second year.

All applications will undergo electronic verification. After the application period closes, the program will move through eligibility checks, announcement of results, appeals, an electronic lottery for eligible applicants and completion of off-plan sale procedures in accordance with regulations.

First results

Last year, the RCRC announced the results of the first electronic lottery for residential land purchases after completing eligibility checks and reviewing appeals.

The draw was overseen by an independent committee comprising representatives from the RCRC, Ministry of Justice, Real Estate General Authority, Riyadh Municipality and Saudi Data and AI Authority (SDAIA). Advanced technical systems were used to ensure fairness and equal opportunity among eligible applicants.

According to the RCRC, the result allocated residential plots totaling 6.3 million square meters, including sites within Riyadh’s existing urban fabric and others at locations still being designed. The plots are spread across Al-Qirawan, Al-Malqa, Al-Nakheel, Al-Narjis, Namar, Al-Rimayah, Al-Rimal and Al-Janadriyah, with each plot measuring 300 square meters.


ADES Resumes All Saudi Suspended Offshore Rigs

An ADES offshore rig. (ADES)
An ADES offshore rig. (ADES)
TT

ADES Resumes All Saudi Suspended Offshore Rigs

An ADES offshore rig. (ADES)
An ADES offshore rig. (ADES)

ADES Holding Company (ADES) said on Tuesday it has received resumption notices covering all of its temporarily suspended offshore drilling rigs in Saudi Arabia, marking the sustained strength of the company's offshore market fundamentals across the GCC.

ADES said in a statement to the Saudi stock exchange that the contracted jackup utilization already holding around 90% and day rates remaining firm, underscoring the continued strength of the offshore drilling market fundamentals.

The company said the temporary suspensions were event-driven rather than demand-driven and were expected to be short-term in nature. The latest development is consistent with the outlook communicated by ADES in its Fiscal Year 2026 guidance issued in March 2026.

The US-Israel and Iran conflict started on February 28 and continues despite a temporary peace plan reached in June.

Commenting on the announcement, Dr. Mohamed Farouk, CEO of ADES Holding, said the swift resumption of all temporarily suspended offshore rigs demonstrates the Group’s operational readiness and commitment to maintaining the highest standards of safety.

He emphasized that the safety of ADES personnel and assets remains the company’s highest priority and that the disciplined approach adopted during the suspension period enabled the company to preserve operational integrity and resume activities quickly once conditions permitted.

The company reiterated its 2026 EBITDA guidance range of 4.50-4.87 billion Saudi riyals, underpinned by the scale and diversification of its 123 rigs, continued conversion of Shelf Drilling synergies and supportive momentum across its international markets.

ADES Holding Company shares climbed roughly 4% to 18.26 riyals on Tuesday after the Saudi Tadawul Group listed driller announced it received the resumption notices.