AI Tsunami Plunges Millions into Unemployment

“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
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AI Tsunami Plunges Millions into Unemployment

“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)

The year 2025 brought no respite for Lebanese language editor and proofreader Hamida Al-Shaker. Before the year had run its course, her decades-long professional journey was abruptly cut short.

Nearly 60, Al-Shaker had never used artificial intelligence tools or held a conversation with ChatGPT, as millions now do. She was unaware that the technologies rapidly spreading across mobile phones and computers were already doing her job, faster and more efficiently than any human could.

That quiet technological advance proved devastating. A sweeping transformation in the labor market became a tsunami, pushing Al-Shaker and millions of workers worldwide toward unemployment, sparing no sector and few age groups. The impact has been particularly harsh on employees over 50 who failed to keep pace with the accelerating speed of technological change.

According to the website allaboutai, the adoption of artificial intelligence has already contributed to the loss of around 14 million jobs globally. And the wave is far from over. As many as 92 million jobs could disappear worldwide over the next five years.

At its core, artificial intelligence enables computer systems to mimic human thinking, make decisions, and execute complex tasks, from planning to practical application, particularly in editorial and knowledge-based work.

Shock and an uncertain future

Al-Shaker was unaware of this reality, a fact that led to a shock, followed by another, during 2025, which saw the widest spread yet of AI applications. The first shock came when she received a call from the human resources department informing her that her salary would be cut by 50 percent due to “financial difficulties facing the company.” Less than five months later, a second call informed her that she was being laid off, without explanation.

According to Al-Shaker, citing her department head, she was not alone. Half of the team lost their jobs due to the impact of artificial intelligence on client contracts, as companies increasingly turned to AI to draft their news, statements, and reports, either for free or at minimal monthly subscription costs, compared with the sums they previously paid to public relations and advertising agencies.

In this context, economic analyses published by Reuters indicate that annual subscriptions to advanced AI tools, even at the enterprise level, often do not exceed the cost of paying a single employee’s salary for a limited number of months. From a purely managerial perspective, this makes such decisions easy to justify financially.

As a result, Al-Shaker and her colleagues became just another figure in a cold equation. Companies boost profits and cut production costs, while growing numbers of workers are pushed out of the labor market, not because they lack competence, but because algorithms are cheaper than people.

Most affected sectors

Al-Shaker’s story is not an isolated case. It is part of a growing global phenomenon affecting workers across multiple sectors. Specialized reports indicate that jobs based on routine tasks or repetitive data processing are most vulnerable, as automation and generative AI tools expand. Among the most affected sectors are:

Customer service and call centers, where intelligent chat systems and text and voice analysis tools can now handle user inquiries with high efficiency, according to TechRT.

Data and administrative support tasks, such as data entry, file classification, and secretarial work, are being replaced by advanced automation tools, according to Complete AI Training.

Retail and supply chains, where self-checkout systems, smart warehouses, and inventory automation have reduced the need for cashiers and traditional warehouse workers, according to Pleeq Software and ninjatech.blog.

Manufacturing and production, where the spread of robots and automated control systems has intensified the impact of AI on manual labor jobs, according to All About AI.

Accounting and financial operations, where demand for basic roles has declined due to reliance on intelligent financial software capable of handling bookkeeping and routine processes, according to Complete AI Training.

Content creation and media, which have not been spared, are now threatened as AI is capable of writing, summarizing, and rewriting content, posing a challenge to a range of basic writing tasks.

Many workers who lost their jobs do not realize that they are victims of the so-called Fourth Industrial Revolution, which Klaus Schwab, founder and executive chairman of the World Economic Forum at the time, warned about years earlier.

Speaking at the World Government Summit in Dubai in 2016, Schwab said the world was “on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another.”

He added that the scale, scope, and complexity of the changes would be unprecedented, and that while their exact shape remained unclear, the response would have to be integrated and comprehensive across the public and private sectors, academia, and civil society.

Market demands and human skills

Much of what Schwab predicted has now come to pass, particularly in recent months, as companies worldwide accelerate their adoption of AI tools. Experience alone is no longer enough to remain competitive in the labor market. Traditional jobs are changing rapidly, and the required human skills have become more specialized and complex, with greater emphasis on working alongside intelligent systems and turning information into added value.

Professionals who understand how to integrate AI tools into their daily work without sacrificing quality or analytical depth are increasingly in demand, according to Maziad Hijaz‏, Editor-in-Chief at Hewar Group‏ in Riyadh.

Hijaz told Asharq Al-Awsat that artificial intelligence has become an essential part of daily work in terms of speed and volume, while review, editing, and analysis remain entirely human responsibilities to ensure quality.

He added that the sector now requires new skills, and those who fail to adapt will be left behind. These include utilizing AI tools for writing and analysis, developing data literacy, employing predictive analysis, and transforming information into compelling narratives. Combining human skills with AI tools is what ensures excellence.

Firas Barakat, a strategic communications expert in Saudi Arabia, said AI represents a pivotal turning point in labor markets, enhancing efficiency while reshaping the nature of jobs and required skills.

Speaking to Asharq Al-Awsat, Barakat said AI has undoubtedly caused the loss of traditional roles involving routine tasks, but at the same time, it is a major engine for generating new jobs in advanced fields such as data analysis, cybersecurity, smart systems management, and digital solutions engineering, roles that did not exist just a few years ago.

History repeats itself

Technology expert Hassan Yahya, based in the United States, offered a historical perspective. He said this is not the first time the world has been stunned by technological advances, noting that similar fears over job losses have accompanied every major innovation.

He pointed to 1959, when General Motors introduced the industrial robot Unimate, triggering widespread warnings about threats to employment.

Yahya said that AI is already affecting millions of jobs, with projections from the World Economic Forum indicating that 92 million jobs will disappear over the next five years. However, more than 170 million new jobs are expected to be created, meaning a fundamental transformation of work rather than mass unemployment.

He added that eliminating jobs without replacing them does not serve companies or economies, making the creation of new roles inevitable. However, this requires learning how to work with AI, as ignoring the shift could leave many people outside a rapidly changing labor market.

Cost-cutting and profit maximization

The experiences of employees cannot be separated from a recurring economic equation that is evident in thousands of companies worldwide. Instead of retaining experienced staff with associated salaries, insurance, and end-of-service benefits, many firms are opting to replace them with AI.

A World Economic Forum report found that 41 percent of global companies plan to reduce their workforce by 2030 due to increased reliance on AI and automation.

Hijaz said AI adoption has also reshaped relationships with clients, accelerating work and significantly improving quality. He cited a Deloitte study showing that integrating AI into public relations reduced content production time by 25 to 35 percent while improving accuracy.

A market worth billions

The gains are split between business owners and AI companies, whose financial returns contrast sharply with the reality faced by thousands of displaced workers. In mid-2025, a Reuters report stated that OpenAI, the developer of ChatGPT, had reached annual revenues of around $10 billion by the end of the first half of the year, on track to exceed $12.7 billion by year's end, driven by surging demand for its services.

This growth is not limited to OpenAI. A Forbes report showed that other global technology companies with AI divisions are generating billions of dollars in additional annual revenue, making AI one of the most important profit sources for major tech firms, even as some lay off staff to improve cost efficiency.

Key players

The main players in the sector include OpenAI, best known for ChatGPT and a leader in large language models, with a strategic partnership with Microsoft.

Google DeepMind follows, having developed powerful models such as Gemini and AlphaGo, and leading in scientific, medical, and research-oriented AI.

Microsoft itself has become a global force in AI, investing billions in OpenAI and integrating AI across Windows, Office through Copilot, and Azure AI.

NVIDIA focuses on developing the chips and processors that power AI, while Meta offers open-source models such as LLaMA. Amazon Web Services leads in cloud-based AI, and Anthropic has emerged as a strong competitor in the field of language models.

The global AI market was estimated at around $747.9 billion in 2025 and is projected to grow to $2.74 trillion by 2032, according to AffMaven.

Concerns over consequences

The stark contrast between multibillion-dollar AI revenues and the growing risk facing millions of workers raises a central ethical and economic question. Why do companies benefit from technology to cut costs and boost profits while often postponing or ignoring their social responsibility toward displaced employees?

Economists warn that such savings are frequently achieved without genuine retraining efforts or alternative job creation, deepening global unemployment rather than addressing it.

Islam Al-Shafii, an economist based in New York, cited remarks by US Federal Reserve Chair Jerome Powell on Dec. 20, warning of waves of layoffs linked to AI or companies halting job postings for the same reason.

Al-Shafii said the current fear of AI remains precautionary, as it has not yet fully replaced humans. The real risk, he said, is that work previously requiring five employees can now be done by one person using AI.

He added that while some professions remain relatively safe for now, such as skilled trades, concerns persist over safety and decision-making, with international organizations expressing reservations.

Breaking monopolies

Yahya argued that confronting these changes requires breaking three major monopolies: the monopoly of university degrees in hiring, as companies like Google and Dell focus on skills rather than diplomas; the technological monopoly, as AI empowers individuals to execute ideas without large teams; and the language monopoly, as AI allows interaction in native languages, opening the digital economy to millions.

The digital economy is expected to exceed $24 trillion by 2025, accounting for approximately 21 percent of the global economy and growing faster than traditional sectors.

Capitalism under strain

Al-Shafii warned that advanced capitalist societies, which rely heavily on tax revenues from employees, could face systemic strain if jobs are replaced by AI. Without a sufficient tax base, governments may struggle to fund essential services, which can potentially lead to social instability and collapse.

He noted that business owners who once built factories in East Asia for cheap labor are now returning home to rely on robots for production.

United Nations concern

The issue has also reached the United Nations, particularly at its headquarters in New York. Al-Shafii stated that there is a deep concern over AI, but institutions often focus on gains while overlooking the associated losses.

He noted that AI supports many sustainable development goals and cybersecurity efforts, but its negative aspects, including cyber fraud and surveillance risks, have yet to be fully addressed. UN Secretary-General Antonio Guterres has repeatedly warned against militarizing AI and entrusting humanity’s future to algorithms.

Threat or opportunity?

Concerns over AI extend beyond job losses to issues of transparency and information security. Hijaz said AI requires greater responsibility to ensure accuracy and disclosure.

Asked whether AI is a threat or an opportunity, he said it is an inevitable development that must be harnessed. Like the computer and the internet before it, initial fears will likely give way to empowerment.

He added that creativity remains a uniquely human value that AI cannot replace, and that technology enhances rather than eliminates it.

Not a replacement

Translation professor Mohammed Khair Nadman told Asharq Al-Awsat that AI tools now save around 60 percent of time in translation and writing, supporting but not fully replacing human work. He warned that AI can still make serious errors, making human oversight essential.

M. A. Hadi, MD, Head of the Department of Pathology at a hospital in the United States, said that the current wave of misinformation fueled by easy access to online medical content and artificial intelligence "will not last long if simple regulations are put in place".

He explained that reading medical information online or collecting data through AI does not make someone a physician, just as reading news does not make a journalist, nor learning about car engines makes one a mechanic. "In the same way," he noted, "having extensive legal knowledge through AI does not qualify someone to be accepted in court as a lawyer."

Dr. Hadi added that while such knowledge can empower individuals to ask better and more informed questions, it does not replace professional expertise. "AI can help people engage more effectively with professionals and may even push experts to become more transparent and ethical, reducing the space for fraud, middlemen, and bad practices," he said.

Quoting the Arabic proverb "give your bread to the baker, even if he eats half of it", Dr. Hadi stressed that while the "do-it-yourself" mindset has always existed and can be useful, real work must still be done by qualified experts. "Artificial intelligence will likely make professionals better, as general knowledge continues to expand," he said, "but professional training, experience, and licensing cannot and should not be granted to laypeople, even if they are well-read or AI-assisted."

He warned that partial or incomplete knowledge can be more harmful than helpful when applied in practice, concluding that, ultimately, "the evidence is in the results."

A final attempt

Al-Shaker, living in crisis-hit Lebanon without a private sector pension system, believed her regional company job was secure. After losing it, she tried to catch up, creating a LinkedIn account, registering on job platforms, taking free online courses, and sending dozens of resumes, often receiving automated or no responses.

Her story reflects the dilemma of an entire generation pushed out of the market, not due to lack of competence, but because the rules changed abruptly.

She ended with a bitter question: Nearly two centuries after the Industrial Revolution sparked the call, “Workers of the world, unite,” will there now be a call saying, “Employees of the world, unite?”



Bleak Future for West Bank Pupils as Budget Cuts Bite

Private tutoring makes up some, but not all of the teaching shortfall for the Hajj twins. Jaafar ASHTIYEH / AFP
Private tutoring makes up some, but not all of the teaching shortfall for the Hajj twins. Jaafar ASHTIYEH / AFP
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Bleak Future for West Bank Pupils as Budget Cuts Bite

Private tutoring makes up some, but not all of the teaching shortfall for the Hajj twins. Jaafar ASHTIYEH / AFP
Private tutoring makes up some, but not all of the teaching shortfall for the Hajj twins. Jaafar ASHTIYEH / AFP

At an hour when Ahmad and Mohammed should have been in the classroom, the two brothers sat idle at home in the northern West Bank city of Nablus.

The 10-year-old twins are part of a generation abruptly cut adrift by a fiscal crisis that has slashed public schooling from five days a week to three across the Israeli-occupied Palestinian territory.

The Ramallah-based Palestinian Authority's deepening budget shortfall is cutting through every layer of society across the West Bank.

But nowhere are the consequences more stark than in its schools, where reduced salaries for teachers, shortened weeks and mounting uncertainty are reshaping the future of around 630,000 pupils.

Unable to meet its wage bill in full, the Palestinian Authority has cut teachers' pay to 60 percent, with public schools now operating at less than two-thirds capacity.

"Without proper education, there is no university. That means their future could be lost," Ibrahim al-Hajj, father of the twins, told AFP.

The budget shortfall stems in part from Israel's decision to withhold customs tax revenues it collects on the Palestinian Authority's behalf, a measure taken after the war in Gaza erupted in October 2023.

The West Bank's economy has also been hammered by a halt to permits for Palestinians seeking work in Israel and the proliferation of checkpoints and other movement controls.

- 'No foundation' for learning -

"Educational opportunities we had were much better than what this generation has today," said Aisha Khatib, 57, headmistress of the brothers' school in Nablus.

"Salaries are cut, working days are reduced, and students are not receiving enough education to become properly educated adults," she said, adding that many teachers had left for other work, while some students had begun working to help support their families during prolonged school closures.

Hajj said he worried about the time his sons were losing.

When classes are cancelled, he and his wife must leave the boys alone at home, where they spend much of the day on their phones or watching television.

Part of the time, the brothers attend private tutoring.

"We go downstairs to the teacher and she teaches us. Then we go back home," said Mohammad, who enjoys English lessons and hopes to become a carpenter.

But the extra lessons are costly, and Hajj, a farmer, said he cannot indefinitely compensate for what he sees as a steady academic decline.

Tamara Shtayyeh, a teacher in Nablus, said she had seen the impact firsthand in her own household.

Her 16-year-old daughter Zeena, who is due to sit the Palestinian high school exam, Tawjihi, next year, has seen her average grades drop by six percentage points since classroom hours were reduced, Shtayyeh said.

Younger pupils, however, may face the gravest consequences.

"In the basic stage, there is no proper foundation," she said. "Especially from first to fourth grade, there is no solid grounding in writing or reading."

Irregular attendance, with pupils out of school more often than in, has eroded attention spans and discipline, she added.

"There is a clear decline in students' levels -- lower grades, tension, laziness," Shtayyeh said.

- 'Systemic emergency' -

For UN-run schools teaching around 48,000 students in refugee camps across the West Bank, the picture is equally bleak.

The territory has shifted from "a learning poverty crisis to a full-scale systemic emergency," said Jonathan Fowler, spokesman for the UN agency for Palestinian refugees, UNRWA.

UNRWA schools are widely regarded as offering comparatively high educational standards.

But Fowler said proficiency in Arabic and mathematics had plummeted in recent years, driven not only by the budget crisis but also by Israeli military incursions and the lingering effects of the Covid-19 pandemic.

"The combination of hybrid schooling, trauma and over 2,000 documented incidents of military or settler interference in 2024-25 has resulted in a landscape of lost learning for thousands of Palestinian refugee students," he said.

UNRWA itself is weighing a shorter school week as it grapples with its own funding shortfall, after key donor countries - including the United States under President Donald Trump - halted contributions to the agency, the main provider of health and education services in West Bank refugee camps.

In the northern West Bank, where Israeli military operations in refugee camps displaced around 35,000 people in 2025, some pupils have lost up to 45 percent of learning days, Fowler said.

Elsewhere, schools face demolition orders from Israeli authorities or outright closure, including six UNRWA schools in annexed east Jerusalem.

Teachers say the cumulative toll is profound.

"We are supposed to look toward a bright and successful future," Shtayyeh said. "But what we are seeing is things getting worse and worse."


Security Issues Complicate Tasks of ‘Technocratic Committee’ in Gaza Strip

Fighters from the Izz ad-Din al-Qassam Brigades, the armed wing of Hamas, in Khan Younis, Gaza Strip, Feb. 20, 2025. (dpa)
Fighters from the Izz ad-Din al-Qassam Brigades, the armed wing of Hamas, in Khan Younis, Gaza Strip, Feb. 20, 2025. (dpa)
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Security Issues Complicate Tasks of ‘Technocratic Committee’ in Gaza Strip

Fighters from the Izz ad-Din al-Qassam Brigades, the armed wing of Hamas, in Khan Younis, Gaza Strip, Feb. 20, 2025. (dpa)
Fighters from the Izz ad-Din al-Qassam Brigades, the armed wing of Hamas, in Khan Younis, Gaza Strip, Feb. 20, 2025. (dpa)

The Palestinian National Committee tasked with administering the Gaza Strip is facing a number of challenges that go beyond Israel’s continued veto on its entry into the enclave via the Rafah crossing. These challenges extend to several issues related to the handover of authority from Hamas, foremost among them the security file.

Nasman and the Interior Ministry File

During talks held to form the committee, and even after its members were selected, Hamas repeatedly sought to exclude retired Palestinian intelligence officer Sami Nasman from the interior portfolio, which would be responsible for security conditions inside the Gaza Strip. Those efforts failed amid insistence by mediators and the United States that Nasman remain in his post, after Rami Hilles, who had been assigned the religious endowments and religious affairs portfolio, was removed in response to Hamas’s demands, as well as those of other Palestinian factions.

A kite flies over a camp for displaced people in Khan Younis, in the Gaza Strip, on Saturday. (AFP)

Sources close to the committee told Asharq Al-Awsat that Hamas continues to insist that its security personnel remain in service within the agencies that will operate under the committee’s supervision. This position is rejected not only by the committee’s leadership, but also by the executive body of the Peace Council, as well as other parties including the United States and Israel.

The sources said this issue further complicates the committee’s ability to assume its duties in an orderly manner, explaining that Hamas, by insisting on certain demands related to its security employees and police forces, seeks to impose its presence in one way or another within the committee’s work.

The sources added that there is a prevailing sense within the committee and among other parties that Hamas is determined, by all means, to keep its members within the new administrative framework overseeing the Gaza Strip. They noted that Hamas has continued to make new appointments within the leadership ranks of its security services, describing this as part of attempts to undermine plans prepared by Sami Nasman for managing security.

The new logo of the National Committee for the Administration of Gaza, published on its page on X.

Hamas Denies the Allegations

Sources within Hamas denied those accusations. They told Asharq Al-Awsat that Sami Nasman, “as we understand from multiple parties, does not plan to come to Gaza at this time, which raises serious questions about his commitment to managing the Interior portfolio. Without his presence inside the enclave, he cannot exercise his authority, and that would amount to failure.”

The sources said the movement had many reservations about Nasman, who had previously been convicted by Hamas-run courts over what it described as “sabotage” plots. However, given the current reality, Hamas has no objection to his assumption of those responsibilities.

The sources said government institutions in Gaza are ready to hand over authority, noting that each ministry has detailed procedures and a complete framework in place to ensure a smooth transfer without obstacles. They stressed that Hamas is keen on ensuring the success of the National Committee for the Administration of Gaza.

The sources did not rule out the possibility that overarching policies could be imposed on the committee, which would affect its work and responsibilities inside the Gaza Strip, reducing it to merely an instrument for implementing those policies.

Hamas has repeatedly welcomed the committee’s work in public statements, saying it will fully facilitate its mission.

A meeting of the Gaza Administration Committee in Cairo. (File Photo – Egyptian State Information Service)

The Committee’s Position

In a statement issued on Saturday, the National Committee for the Administration of Gaza said that statements and declarations from inside the enclave regarding readiness to transfer the management of all institutions and public facilities represent a step in the interest of citizens and pave the way for the committee to fully assume its responsibilities during the transitional phase.

The committee said that the announcement of readiness for an orderly transition constitutes a pivotal moment for the start of its work as the interim administration of the Gaza Strip, and a real opportunity to halt the humanitarian deterioration and preserve the resilience of residents who have endured severe suffering over the past period, according to the text of the statement.

“Our current priority is to ensure the unimpeded flow of aid, launch the reconstruction process, and create the conditions necessary to strengthen the unity of our people,” the committee said. “This path must be based on clear and defined understandings characterized by transparency and implementability, and aligned with the 20-point plan and UN Security Council Resolution 2803.”

Fighters from Hamas ahead of a prisoner exchange, Feb. 1, 2025. (EPA)

The committee stressed that it cannot effectively assume its responsibilities unless it is granted full administrative and civilian authority necessary to carry out its duties, in addition to policing responsibilities.

“Responsibility requires genuine empowerment that enables it to operate efficiently and independently. This would open the door to serious international support for reconstruction efforts, pave the way for a full Israeli withdrawal, and help restore daily life to normal,” it said.

The committee affirmed its commitment to carrying out this task with a sense of responsibility and professional discipline, and with the highest standards of transparency and accountability, calling on mediators and all relevant parties to expedite the resolution of outstanding issues without delay.

Armed Men in Hospitals

In a related development, the Hamas-run Ministry of Interior and National Security said in a statement on Saturday that it is making continuous and intensive efforts to ensure there are no armed presences within hospitals, particularly involving members of certain families who enter them. The ministry said this is aimed at preserving the sanctity of medical facilities and protecting them as purely humanitarian zones that must remain free of any tensions or armed displays.

The ministry said it has deployed a dedicated police force for field monitoring and enforcement, and to take legal action against violators. It acknowledged facing on-the-ground challenges, particularly in light of repeated Israeli strikes on its personnel while carrying out their duties, which it said has affected the speed of addressing some cases. It said it will continue to carry out its responsibilities with firmness.

Local Palestinian media reported late Friday that Doctors Without Borders decided to suspend all non-urgent medical procedures at Nasser Hospital in Khan Younis starting Jan. 20, 2026, due to concerns related to the management of the facility and the preservation of its neutrality, as well as security breaches inside the hospital complex.

US President Donald Trump holds a document establishing the Peace Council for Gaza in Davos, Switzerland, Jan. 27, 2026. (Reuters)

The organization said in a statement attributed to it, not published on its official platforms or website, that its staff and patients had, in recent months, observed the presence of armed men, some masked, in various areas of the complex, along with incidents of intimidation, arbitrary arrests of patients, and suspected weapons transfers. It said this posed a direct threat to the safety of staff and patients.

Asharq Al-Awsat attempted to obtain confirmation from the organization regarding the authenticity of the statement but received no response.

Field Developments

On the ground, Israeli violations in the Gaza Strip continued. Gunfire from military vehicles and drones, along with artillery shelling, caused injuries in Khan Younis in the south and north of Nuseirat in central Gaza.

Daily demolition operations targeting infrastructure and homes also continued in areas along both sides of the so-called yellow line, across various parts of the enclave.

 


What is the Two-state Solution to the Israel-Palestinian Conflict?

FILE PHOTO: Smoke rises following an explosion, within the "yellow line" zone, which is controlled by Israel, in Khan Younis in the southern Gaza Strip, February 10, 2026. Picture taken with a phone. REUTERS/Haseeb Alwazeer/File Photo
FILE PHOTO: Smoke rises following an explosion, within the "yellow line" zone, which is controlled by Israel, in Khan Younis in the southern Gaza Strip, February 10, 2026. Picture taken with a phone. REUTERS/Haseeb Alwazeer/File Photo
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What is the Two-state Solution to the Israel-Palestinian Conflict?

FILE PHOTO: Smoke rises following an explosion, within the "yellow line" zone, which is controlled by Israel, in Khan Younis in the southern Gaza Strip, February 10, 2026. Picture taken with a phone. REUTERS/Haseeb Alwazeer/File Photo
FILE PHOTO: Smoke rises following an explosion, within the "yellow line" zone, which is controlled by Israel, in Khan Younis in the southern Gaza Strip, February 10, 2026. Picture taken with a phone. REUTERS/Haseeb Alwazeer/File Photo

Israel has taken steps ‌to help settlers acquire land in the occupied West Bank and widen its powers in parts of the territory where Palestinians have some self-rule - measures they said aimed to undermine the two-state solution.

It marks the latest blow to the idea of establishing a Palestinian state co-existing peacefully alongside Israel in territory Israel captured in the 1967 Middle East war. Long backed by world powers, this vision formed the bedrock of the US-backed peace process ushered in by the 1993 Oslo Accords.

But the obstacles have only grown with time. They include accelerating Jewish settlement on occupied land and uncompromising positions on core issues including borders, the fate of Palestinian refugees and the status of Jerusalem.

WHAT ARE ISRAEL'S NEW DECISIONS?

They would expedite settler land purchases by making public previously confidential West Bank land registries, and also repeal a Jordanian law governing land purchases in the West Bank, which was controlled by Jordan from 1948 until 1967.

Further, Israel would expand "monitoring and enforcement actions" to parts of the West Bank known as areas A and B, specifically "regarding water offences, damage to archaeological sites and environmental hazards that pollute the entire region", a statement by the finance and defense ministers said.

The West Bank was split into Areas A, B and C under the Oslo Accords. The Palestinian Authority has full administrative and security control in Area A - 18% of the territory. In Area B, around 22%, ‌the PA runs civil ‌affairs with security in Israeli hands. Most Palestinians in the West Bank live in areas A and B.

Israel ‌has ⁠full control over ⁠the remaining 60% - Area C, including the border with Jordan.

Palestinian President Mahmoud Abbas said the measures violate international law and aim to undermine Palestinian institutions and a future two-state solution.

Ultranationalist Israeli Finance Minister Bezalel Smotrich called the decision a "real revolution" and said, "We will continue to kill the idea of a Palestinian state."

WHAT ARE TWO-STATE SOLUTION'S ORIGINS?

Conflict ignited in British-ruled Palestine between Arabs and Jews who had migrated there, seeking a national home as they fled antisemitic persecution in Europe and citing biblical ties to the land throughout centuries in exile.

In 1947, the United Nations agreed on a plan partitioning Palestine into Arab and Jewish states with international rule over Jerusalem. Jewish leaders accepted the plan, which gave them 56% of the land. The Arab League rejected it.

The state of Israel was declared on May 14, 1948. A day later, five Arab states attacked. The war ended with ⁠Israel controlling 77% of the territory.

Some 700,000 Palestinians fled or were driven from their homes, ending up in Jordan, Lebanon ‌and Syria as well as in the Gaza Strip, the West Bank and East Jerusalem.

In the 1967 ‌war, Israel captured the West Bank, including East Jerusalem, from Jordan and Gaza from Egypt.

Although 157 of the 193 UN member states already recognize Palestine as a state, it is ‌not itself a UN member, meaning most Palestinians are not recognized by the world body as citizens of any state. About nine million live as ‌refugees in Syria, Lebanon, Jordan and territories captured by Israel in 1967. Another 2 million live in Israel as Israeli citizens.

HAS A DEAL EVER BEEN CLOSE?

The Oslo Accords, signed by Israeli Prime Minister Yizhak Rabin and Palestine Liberation Organization Chairman Yasser Arafat, led the PLO to recognize Israel's right to exist and renounce violence. Palestinians hoped this would be a step towards independence, with East Jerusalem as their capital.

The process suffered multiple reverses on both sides.

Hamas killed more than 330 Israelis in suicide attacks from 1994 to 2005, according ‌to Israel's government. In 2007, the group seized Gaza from the PA in a brief civil war. Hamas' 1988 charter advocates Israel's demise, though in recent years it has said it would accept a Palestinian state along 1967 borders. ⁠Israel says that stance is a ⁠ruse.

In 1995, Rabin was assassinated by an ultranationalist Jew seeking to derail any land-for-peace deal.

In 2000, US President Bill Clinton brought Arafat and Israeli Prime Minister Ehud Barak to Camp David to clinch a deal, but it failed, with the future of Jerusalem, deemed by Israel as its "eternal and indivisible" capital, the main obstacle.

The conflict escalated with a second Palestinian intifada (uprising) in 2000 to 2005. US administrations sought to revive peacemaking, to no avail, with the last bid collapsing in 2014.

HOW BIG ARE THE OBSTACLES TODAY?

While Israel withdrew settlers and soldiers from Gaza in 2005, settlements expanded in the West Bank and East Jerusalem, their population rising from 250,000 in 1993 to 700,000 three decades later, according to Israeli organization Peace Now. Palestinians say this undermines the basis of a viable state.

Jewish settlement in the West Bank accelerated sharply after the 2023 start of the Gaza war.

During the Second Intifada two decades ago, Israel also constructed a barrier in the West Bank it said was intended to stop Palestinian suicide bombers from entering its cities. Palestinians call the move a land grab.

The PA led by President Mahmoud Abbas administers islands of West Bank land surrounded by a zone of Israeli control comprising 60% of the territory, including the Jordanian border and the settlements, arrangements set out in the Oslo Accords.

Prime Minister Benjamin Netanyahu's government is the most right-wing in Israeli history and includes religious nationalists who draw support from settlers. Smotrich has said there is no such thing as a Palestinian people.

Hamas and Israel have fought repeated wars over the past two decades, culminating in the attacks on communities in southern Israel on October 7, 2023, that ignited the Gaza war.