West Bank Economy in Tatters as Gaza War Rages

Hafeth Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530). - AFP
Hafeth Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530). - AFP
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West Bank Economy in Tatters as Gaza War Rages

Hafeth Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530). - AFP
Hafeth Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530). - AFP

In the occupied West Bank, Hafeth Ghazawneh waits in quiet frustration for customers to visit his falafel stall, which has been deserted since the October 7 Hamas attacks in Israel.

His breakfast and lunch offerings were popular with craftsmen from workshops near Al-Bireh, the twin city of Ramallah, before the Israel-Hamas war broke out.

"Now they're bringing their meals from home because the situation is so difficult," Ghazawneh tells AFP, fearing he will have to shut up shop if the war in the Gaza Strip continues.

Ghazawneh says his income has plummeted from around 7,000 shekels ($1,850) per month to just 2,000 ($530).

His worsening situation reflects the current status of the West Bank economy, which is in tatters as the war in Gaza rages.

The conflict erupted after Hamas militants attacked southern Israel on October 7. Israel's blistering retaliation has killed at least 24,448 people, around 70 percent of them women, children and adolescents, according to the Hamas government's health ministry in Gaza.

The World Bank has estimated the West Bank's GDP could fall by six percent this year, while the International Labor Organization said 32 percent of jobs have already been lost.

The unemployment rate has skyrocketed to 30 percent, up from 14 percent before the war, according to Taher al-Labadi, a researcher at the French Institute for the Near East (Ifpo).

Israel has also withdrawn 130,000 work permits from Palestinians in the West Bank, leaving many with no source of income.

The three million Palestinians living in the West Bank, which Israel has occupied since 1967, cannot travel to Israel without a permit.

Bishara Jubran, manager of a household products and cosmetics factory in Ramallah, considers himself lucky because he has been able to keep all 70 of his employees on the books.

But his business has stopped producing soaps made from Dead Sea ingredients which he used to sell to hotels.

As the war rages and visitors stay away, he estimates his losses at $200,000 last year.

He keeps his factory afloat by selling washing powder and other household products on the Palestinian market.

But none of his goods are allowed into Gaza, a key market that used to make up 20 percent of his sales.

In the West Bank, transport costs have increased because of a growing number of checkpoints and the sealing off of certain towns by the Israeli army, Bishara says.

"Many times the truck leaves and it takes them like four or five hours to reach... the north in Nablus to find out that he cannot enter the city. So he just comes back," he says.

Now he makes a delivery every two or three days, down from two a day before the war.

Such factors have led to a contraction of the economy, which is now operating at 50 percent of its capacity, according to Abdo Idris, president of the Palestinian Chamber of Commerce.

The Palestinian economy was already "asphyxiated" and highly dependent on Israel before the war, researcher Labadi says.

Under the Oslo Accords of the 1990s, it was agreed that a political status quo would be maintained and Palestinians were promised economic development.

But this status quo was undermined by Israel's "colonization of the West Bank", Labadi says, lamenting that Palestinian economic development "did not take place".

As a result, in times of crisis, the increasingly fragile Palestinian economy finds itself "deprived of all its resources and with a very limited capacity for resilience", he says.

Israel controls the borders of the West Bank and collects taxes on Palestinian products, which it must then pass on to the Palestinian Authority.

But since October 7, those taxes have not been paid.

As of December, Israel had not paid two billion shekels in taxes imposed on Palestinian products, according to the Palestinian finance ministry.

The Palestinian Authority has struggled to pay public servants since the taxes were withheld.

Civil servants told AFP their salaries for December have still not been paid.

In October, they received 50 percent of their wages, and 65 percent in November.

"The fear of the unknown is killing us," Jubran says. "We don't know if we'll be able to go to work tomorrow."



Damascus’ Mazzeh 86 Neighborhood, Witness of The Two-Assad Era

Members of the Syrian Arab Red Crescent stand near the wreckage of a car after what the Syrian state television said was a "guided missile attack" on the car in the Mazzeh area of Damascus, Syria October 21, 2024. REUTERS/Firas Makdesi
Members of the Syrian Arab Red Crescent stand near the wreckage of a car after what the Syrian state television said was a "guided missile attack" on the car in the Mazzeh area of Damascus, Syria October 21, 2024. REUTERS/Firas Makdesi
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Damascus’ Mazzeh 86 Neighborhood, Witness of The Two-Assad Era

Members of the Syrian Arab Red Crescent stand near the wreckage of a car after what the Syrian state television said was a "guided missile attack" on the car in the Mazzeh area of Damascus, Syria October 21, 2024. REUTERS/Firas Makdesi
Members of the Syrian Arab Red Crescent stand near the wreckage of a car after what the Syrian state television said was a "guided missile attack" on the car in the Mazzeh area of Damascus, Syria October 21, 2024. REUTERS/Firas Makdesi

In the Mazzeh 86 neighborhood, west of the Syrian capital Damascus, the names of many shops, grocery stores, and public squares still serve as a reminder of the era of ousted Syrian President Bashar al-Assad and his late father, Hafez al-Assad.

This is evident in landmarks like the “Al-Hafez Restaurant,” one of the prominent features of this area. Squares such as “Al-Areen,” “Officers,” and “Bride of the Mountain” evoke memories of the buildings surrounding them, which once housed influential officials and high-ranking officers in intelligence and security agencies. These individuals instilled fear in Syrians for five decades until their historic escape on the night of the regime’s collapse last month.

In this neighborhood, the effects of Israeli bombing are clearly visible, as it was targeted multiple times. Meanwhile, its narrow streets and alleys were strewn with military uniforms abandoned by leaders who fled before military operations arrived and liberated the area from their grip on December 8 of last year.

Here, stark contradictions come to light during a tour by Asharq Al-Awsat in a district that, until recently, was largely loyal to the former president. Muaz, a 42-year-old resident of the area, recounts how most officers and security personnel shed their military uniforms and discarded them in the streets on the night of Assad’s escape.

He said: “Many of them brought down their weapons and military ranks in the streets and fled to their hometowns along the Syrian coast.”

Administratively part of Damascus, Mazzeh 86 consists of concrete blocks randomly built between the Mazzeh Western Villas area, the Mazzeh Highway, and the well-known Sheikh Saad commercial district. Its ownership originally belonged to the residents of the Mazzeh area in Damascus. The region was once agricultural land and rocky mountain terrain. The peaks extending toward Mount Qasioun were previously seized by the Ministry of Defense, which instructed security and army personnel to build homes there without requiring property ownership documents.

Suleiman, a 30-year-old shop owner, who sells white meat and chicken, hails from the city of Jableh in the coastal province of Latakia. His father moved to this neighborhood in the 1970s to work as an army assistant.

Suleiman says he hears the sound of gunfire every evening, while General Security patrols roam the streets “searching for remnants of the former regime and wanted individuals who refuse to surrender their weapons. We fear reprisals and just want to live in peace.”

He mentioned that prices before December 8 were exorbitant and beyond the purchasing power of Syrians, with the price of a kilogram of chicken exceeding 60,000 Syrian pounds and a carton of eggs reaching 75,000.

“A single egg was sold for 2,500 pounds, which is far beyond the purchasing power of any employee in the public or private sector,” due to low salaries and the deteriorating living conditions across the country,” Suleiman added.

On the sides of the roads, pictures of the fugitive president and his father, Hafez al-Assad, were torn down, while military vehicles were parked, awaiting instructions.

Maram, 46, who previously worked as a civilian employee in the Ministry of Defense, says she is waiting for the resolution of employment statuses for workers in army institutions. She stated: “So far, there are no instructions regarding our situation. The army forces and security personnel have been given the opportunity for settlement, but there is no talk about us.”

The neighborhood, in its current form, dates back to the 1980s when Rifaat al-Assad, the younger brother of former President Hafez al-Assad, was allowed to construct the “Defense Palace,” which was referred to as “Brigade 86.” Its location is the same area now known as Mazzeh Jabal 86.

The area is divided into two parts: Mazzeh Madrasa (School) and Mazzeh Khazan (Tank). The first takes its name from the first school built and opened in the area, while the second is named after the water tank that supplies the entire Mazzeh region.

Two sources from the Mazzeh Municipality and the Mukhtar’s office estimate the neighborhood’s current population at approximately 200,000, down from over 300,000 before Assad’s fall. Most residents originate from Syria’s coastal regions, followed by those from interior provinces like Homs and Hama. There was also a portion of Kurds who had moved from the Jazira region in northeastern Syria to live there, but most returned to their areas due to the security grip and after the “Crisis Cell” bombing that killed senior security officials in mid-2012.

Along the main street connecting Al-Huda Square to Al-Sahla Pharmacy, torn images of President Hafez al-Assad are visible for the first time in this area in five decades. On balconies and walls, traces of Bashar al-Assad’s posters remain, bearing witness to his 24-year era.