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Gaza Pepsi Factory Shuts down, Owners Blame Israeli Restrictions

A Palestinian man walks past Gaza Pepsi factory for soft drinks in Gaza City June 21, 2021. (Reuters)
A Palestinian man walks past Gaza Pepsi factory for soft drinks in Gaza City June 21, 2021. (Reuters)
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Gaza Pepsi Factory Shuts down, Owners Blame Israeli Restrictions

A Palestinian man walks past Gaza Pepsi factory for soft drinks in Gaza City June 21, 2021. (Reuters)
A Palestinian man walks past Gaza Pepsi factory for soft drinks in Gaza City June 21, 2021. (Reuters)

Gaza's Pepsi bottling company was forced to halt operations this week due to Israeli import restrictions that were tightened during an 11-day conflict between Israel and Palestinian militants last month, the company's owners say.

With a truce between Israel and Gaza's Hamas largely holding, Israel on Monday allowed a limited resumption of exports from the enclave.

But it has kept in place tightened measures on raw material imports, including carbon dioxide gas and syrup that the bottling company's factory needs to produce Pepsi, 7UP and Mirinda soda, said Pepsi Gaza's Hamam al-Yazeji.

"Yesterday, we completely ran out of raw materials, and unfortunately we had to shut down the factory, sending home 250 workers," Yazeji said. Before the May fighting, he said, Pepsi Gaza was generally allowed to import needed materials.

Israeli officials did not immediately provide comment on the tightened restrictions.

Israel and neighboring Egypt keep tight control over Gaza's borders, and say the restrictions are necessary to stop weapons reaching Hamas and prevent them from being produced locally.

Egypt and the United Nations stepped up mediation last week after incendiary balloons launched from Gaza drew retaliatory Israeli air strikes on Hamas sites, challenging the fragile ceasefire.

Shutdowns could also occur in other Gaza factories if Israeli restrictions are kept up, analysts say. Manufacturing makes up around 10 percent of Gaza's service sector-dominated economy, according to UN data.

Pepsi Gaza's factory has operated continuously since 1961, when the Gaza-based Yazeji Soft Drinks Company acquired rights to produce 7UP and other types of soda in the enclave.

Worth about $15 million, the owners say, the factory's products are distributed locally. A separate branch operates in the occupied West Bank, worth about $30 million, which serves the territory as well as East Jerusalem.

Company officials had made plans to celebrate 60 years of operations before the shutdown on Sunday.

Yazeji had tears in his eyes as he walked through his empty factory on Monday. The shutdown was "catastrophic", he said.

"This year should have been exceptional, celebrating 60 years since we began production.

"We are deprived of marking this anniversary."

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Arab World

Hamas Postpones Election of Political Bureau Chief Indefinitely

(From left) Nizar Awadallah, Khalil al-Hayya and Mohammad Ismail Darwish during a meeting with Iran’s Supreme Leader Ali Khamenei last February 2025. (Khamenei's website/AFP)
(From left) Nizar Awadallah, Khalil al-Hayya and Mohammad Ismail Darwish during a meeting with Iran’s Supreme Leader Ali Khamenei last February 2025. (Khamenei's website/AFP)
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Hamas Postpones Election of Political Bureau Chief Indefinitely

(From left) Nizar Awadallah, Khalil al-Hayya and Mohammad Ismail Darwish during a meeting with Iran’s Supreme Leader Ali Khamenei last February 2025. (Khamenei's website/AFP)
(From left) Nizar Awadallah, Khalil al-Hayya and Mohammad Ismail Darwish during a meeting with Iran’s Supreme Leader Ali Khamenei last February 2025. (Khamenei's website/AFP)

Senior sources within Hamas said the movement has decided to postpone the election of the head of its political bureau, which had been scheduled to take place within the first ten days of January.

The sources told Asharq Al-Awsat that the decision to delay the vote was taken “until further notice,” noting that no new date has been set, although elections “could be held at any moment.”

One source attributed the postponement to “security and political conditions,” as well as Hamas’ current preoccupation with negotiations aimed at moving to the second phase of the ceasefire, amid intensified mediation efforts involving regional brokers and the United States.

Other sources pointed to additional factors, including internal disagreements over organizational arrangements within the Gaza Strip, which have deepened in recent days and are now the subject of efforts to resolve them.

Hamas is facing what sources described as its most severe crisis since its founding in 1987. Israeli strikes launched after the Oct. 7, 2023 attack have targeted various levels and wings of the movement, triggering significant organizational and financial challenges.

Sources said the accelerating momentum surrounding a possible transition to the second phase of the ceasefire has become the main concern for Hamas’s leadership. While electing a new head of the political bureau is seen as a key step in reorganizing the movement’s internal affairs, the process may take longer than initially expected, they added.

Only days ago, sources had told Asharq Al-Awsat that the elections were expected to be held within the first ten days of the new year, with the aim of reinforcing internal stability and reassuring the outside world that the movement remains cohesive.

Those sources said at the time that electing a political bureau chief would not end the role of the current leadership council formed after the assassinations of Ismail Haniyeh and Yahya al-Sinwar. The council would instead continue as an advisory body overseeing Hamas’ internal and external affairs.

Asked whether internal divisions exist over who should lead Hamas, one source said only that “the electoral process is conducted according to established rules and regulations, and there are no disputes over the individual who will lead the movement.”

However, there have been suggestions that Khaled Meshaal, head of Hamas’s political bureau abroad, and Khalil al-Hayya, head of the political bureau in Gaza, are the top contenders for the post.

Some sources said there is strong support within Hamas’ external leadership and in the West Bank for Meshaal to assume the role, while a majority in Gaza favors al-Hayya.

The sources did not rule out the emergence of a third, currently unidentified figure. “Nothing can be predicted at this stage,” one source said. “What is happening should not be seen as rivalry driven by internal disputes over leadership, but rather as a healthy competitive process.”

Arab World

Syrian Army on Alert after SDF Armed Groups Detected East of Aleppo

People walk down a street as a car drives by following a ceasefire which ended days of fighting between Syrian security forces and Kurdish fighters in the Kurdish-majority Sheikh Maqsoud neighborhood, of the northern city of Aleppo on January 11, 2026. (AFP)
People walk down a street as a car drives by following a ceasefire which ended days of fighting between Syrian security forces and Kurdish fighters in the Kurdish-majority Sheikh Maqsoud neighborhood, of the northern city of Aleppo on January 11, 2026. (AFP)
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Syrian Army on Alert after SDF Armed Groups Detected East of Aleppo

People walk down a street as a car drives by following a ceasefire which ended days of fighting between Syrian security forces and Kurdish fighters in the Kurdish-majority Sheikh Maqsoud neighborhood, of the northern city of Aleppo on January 11, 2026. (AFP)
People walk down a street as a car drives by following a ceasefire which ended days of fighting between Syrian security forces and Kurdish fighters in the Kurdish-majority Sheikh Maqsoud neighborhood, of the northern city of Aleppo on January 11, 2026. (AFP)

The Syrian army went on alert on Sunday after detecting armed groups aligned with the Syrian Democratic Forces (SDF) east of Aleppo city.

In statements to the SANA state news agency, the Operations Command said that the nature and objectives of these military reinforcements and troop concentrations brought by the SDF to eastern Aleppo have not yet been identified.

The Command added that Syrian army forces have been placed on full alert, deployment lines east of Aleppo have been reinforced, and all necessary measures have been taken to be ready for all possible scenarios.

First responders on Sunday entered a contested neighborhood in the northern city of Aleppo after days of deadly clashes between government forces and Kurdish-led forces. Syrian state media said the military was deployed in large numbers.

The clashes broke out Tuesday in the predominantly Kurdish neighborhoods of Sheikh Maqsoud, Achrafieh and Bani Zaid after the government and the SDF, the main Kurdish-led force in the country, failed to make progress on how to merge the SDF into the national army. Security forces captured Achrafieh and Bani Zaid.

The fighting between the two sides was the most intense since the fall of then-President Bashar Assad to opposition groups in December 2024. At least 23 people were killed in five days of clashes and more than 140,000 were displaced amid shelling and drone strikes.

The Kurdish fighters have now evacuated from the Sheikh Maqsoud neighborhood to northeastern Syria, which is under the control of the SDF.

However, they said in a statement they will continue to fight now that the wounded and civilians have been evacuated, in what they called a “partial ceasefire.”

Arab World

Hadhramaut Governor to Asharq Al-Awsat: Saudi Stance Was Decisive, Situation Is Calm

Governor of Yemen's Hadhramaut governorate Salem al-Khanbashi. (Asharq Al-Awsat)
Governor of Yemen's Hadhramaut governorate Salem al-Khanbashi. (Asharq Al-Awsat)
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Hadhramaut Governor to Asharq Al-Awsat: Saudi Stance Was Decisive, Situation Is Calm

Governor of Yemen's Hadhramaut governorate Salem al-Khanbashi. (Asharq Al-Awsat)
Governor of Yemen's Hadhramaut governorate Salem al-Khanbashi. (Asharq Al-Awsat)

Governor of Yemen's Hadhramaut Salem al-Khanbashi stressed that the situation in the governorate was returning to normal in wake of the recent developments and withdrawal of the Southern Transitional Council (STC) forces.

In remarks to Asharq Al-Awsat from his office in Mukalla, he said: "The general situation is calm and stable. Work is underway to resume operations at various public administrations."

"Security measures have also been intensified, especially over the possession of weapons," he added.

He revealed that several suspects involved in looting and the possession of heavy weapons have been arrested.

"Life is gradually returning back to normal and the situation will improve," he stressed.

On Saudi Arabia's role, Khanbashi credited the Kingdom with helping move forward the issue of the STC withdrawal from Hadhramaut in record time.

Coordination with the Kingdom continues, he added.

He also noted that a meeting was held with senior Hadhramaut officials with leaders of the "Hadhramaut elite brigades" to discuss returning the forces to their former military positions.

Coordination with Saudi Arabia is at a "very high level", he revealed. Hadhramaut has received pledges from senior Saudi officials that major projects will be implemented in the governorate to develop infrastructure.

On restructuring the local authority, Khanbashi stressed: "Measures have been taken against officials who had openly expressed their support to the STC or who had taken contentious political positions."

Commenting on the conference Riyadh will be hosting on the southern issue, he said the Hadhramaut leadership has met with several members of the Hadhramaut National Council to discuss the issue.

The details of the talks and mechanism to choose representatives have not taken shape yet, he told Asharq Al-Awsat.

Expanded meetings with various political and social figures will be held in the governorate in the coming days with the aim of coming up with a unified vision that represents Hadhramaut at the conference, he added.

He noted the historic differences that exist between Hadhramaut and other southern governorates that should be taken into consideration and discussed.

On the issue of the Hadhramaut airports, he said the Riyan Airport is ready and expected to resume operations in the next two days.