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)
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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.



AirAsia X Unveils Kuala Lumpur-Bahrain-London Route

FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo
FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo
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AirAsia X Unveils Kuala Lumpur-Bahrain-London Route

FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo
FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo

Malaysian budget carrier AirAsia X on Wednesday unveiled plans to resume flights from Kuala Lumpur to London via a new hub in Bahrain, using the extended range of narrow-body jets to stitch fresh routes alongside established carriers.

The service, due to start in June, would make Bahrain AirAsia X's first hub outside Asia, placing it within reach of busy markets in Southeast Asia, the Middle East and Europe.

It also marks a ‌return to ‌the British capital more than a decade after the airline suspended ‌non-stop ⁠flights from Kuala Lumpur ⁠and retired its Airbus A340 jets.

Co-founder Tony Fernandes said Bahrain could become a regional gateway for underserved secondary cities across Asia, Africa and Europe.

"While ... of course London is a very emotional destination for many people in Southeast Asia, the real aim is to have a bunch of A321s flying maybe 15 times a day to Bahrain," he told Reuters in an interview.

"From Bahrain, you connect to Africa and Europe with a big emphasis ⁠on creating connectivity that doesn't exist."

The move follows Asia's ‌largest low-cost carrier completing its acquisition of the short-haul ‌aviation business from parent Capital A, bringing the group's seven airlines under one umbrella.

Fernandes, also CEO ‌of Capital A, stressed the importance of the Airbus A321XLR, an extra-long-range narrow-body aircraft ‌he said would let the airline replicate its Asian low-cost model on intercontinental routes.

"That aircraft enables me to start thinking we can do what we did in Asia to Europe and Africa," he said, citing potential secondary routes such as Penang to Cologne or Prague.

AirAsia plans to ‌redeploy its larger A330s to longer routes while building up the Bahrain hub, with possible African destinations including the Maghreb region, Egypt, ⁠Morocco, Tanzania and Kenya. ⁠A Bangkok-to-Europe route is also under consideration.

Fernandes played down direct competition with Gulf carriers such as Emirates and Qatar Airways, positioning AirAsia X as a budget option aimed at a different market.

"I'm all about stimulating a new market," he said. "We've got into our little playground (of) 3 billion people, most of them have not been to Europe."


Von der Leyen: EU Must 'Tear Down Barriers' to Become 'Global Giant'

(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)
(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)
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Von der Leyen: EU Must 'Tear Down Barriers' to Become 'Global Giant'

(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)
(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)

The EU must "tear down the barriers" that prevent it from becoming a truly global economic giant, European Commission chief Ursula von der Leyen said Wednesday, ahead of leaders' talks on making the 27-nation bloc more competitive.

"Our companies need capital right now. So let's get it done this year," the commission president told EU lawmakers as she outlined key steps to bridging the gap with China and the United States.

"We have to make progress one way or the other to tear down the barriers that prevent us from being a true global giant," she said, calling the current system "fragmentation on steroids."

Reviving the moribund EU economy has taken on greater urgency in the face of geopolitical shocks, from US President Donald Trump's threats and tariffs upending the global trading to his push to seize Greenland from Denmark.

AFP said that Von der Leyen delivered her message before heading with EU leaders including France's Emmanuel Macron and Germany's Friedrich Merz to a gathering of industry executives in Antwerp, held on the eve of a summit on bolstering the bloc's economy.

A key issue identified by the EU is the fact that European companies face difficulties accessing capital to scale up, unlike their American counterparts.

To tackle this, Plan A would be to advance together as 27 states, von der Leyen said, but if they cannot reach agreement, the EU should consider "enhanced cooperation" between those countries that want to.

Von der Leyen said Europe should ramp up its competitiveness by "stepping up production" on the continent and "by expanding our network of reliable partners", pointing to the importance of signing trade agreements.

After recent deals with South American bloc Mercosur and India, she said more were on their way -- with Australia, Thailand, the Philippines and the United Arab Emirates.

One of the biggest -- and most debated -- proposals for boosting the EU's economy is to favor European firms over foreign rivals in "strategic" fields, which von der Leyen supports.

"In strategic sectors, European preference is a necessary instrument... that will contribute to strengthen Europe's own production base," she said -- while cautioning against a "one-size-fits-all" approach.

France has been spearheading the push, but some EU nations like Sweden are wary of veering into protectionism and warn Brussels against going too far.

The EU executive will also next month propose the 28th regime, also known as "EU Inc", a voluntary set of rules for businesses that would apply across the European Union and would not be linked to any particular country.

Brussels argues this would make it easier for companies to work across the EU, since the fragmented market is often blamed for why the economy is not better.

The commission is also engaged in a massive effort to cut red tape for firms, which complain EU rules make it harder to do business -- drawing accusations from critics that Brussels is watering down key legislation on climate in particular.


Saco: Saudi Retail Market Remains Promising, Digital Transformation Key to Expanding Market Share

A Saco branch in Riyadh. Asharq Al-Awsat
A Saco branch in Riyadh. Asharq Al-Awsat
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Saco: Saudi Retail Market Remains Promising, Digital Transformation Key to Expanding Market Share

A Saco branch in Riyadh. Asharq Al-Awsat
A Saco branch in Riyadh. Asharq Al-Awsat

Saudi Arabia’s retail sector is undergoing deep structural changes driven by the rapid global expansion of e-commerce, prompting local companies to reassess their operational and financial strategies to remain competitive, according to Abdel-Salam Bdeir, chief executive of Saco.

Speaking to Asharq Al-Awsat on the sidelines of the RLC Global Forum 2026, Bdeir said the Saudi retail market reached an estimated SAR385 billion ($102.7 billion) in 2025. Of this total, SAR35 billion ($9.3 billion) came from domestic e-commerce, while traditional physical stores accounted for about SAR350 billion ($93.4 billion). By comparison, the market stood at roughly SAR400 billion ($106.7 billion) in 2018.

Bdeir said competition from global e-commerce platforms and intensifying price pressures are not challenges facing Saco alone, but rather the retail sector, wholesale trade, and the Saudi economy more broadly. He noted that international platforms have captured most of the sector’s growth in recent years, eroding local market share and affecting sales and employment.

Employment in the retail sector declined from more than 2 million jobs in 2016 to around 1.7 million in 2025, he stated. Purchases from global platforms exceeded SAR65 billion ($17.3 billion) in 2025, representing more than 16 percent of the Saudi retail market.

Bdeir added that the absence of customs duties on most such orders costs the state between SAR6 billion and SAR10 billion annually in lost customs revenues alone, in addition to the impact on zakat, employment, and broader economic returns.

 

Abdel-Salam Bdeir, chief executive of Saco (Asharq Al-Awsat)

New Strategy

In response to these challenges, Bdeir said Saco completed the repayment of all its loans in 2025, leaving the company debt-free and better positioned to manage interest-rate volatility.

He added that the company has secured financing of SAR150 million ($40 million) that has yet to be drawn, providing additional flexibility to support future investments.

Saco returned to profitability in the fourth quarter of 2024 with a margin of 16.8 percent and has remained profitable for five consecutive quarters. Bdeir attributed this performance to a successful operational restructuring that included closing underperforming branches.

Digital transformation has also gained momentum, with online sales rising from 4 percent of total revenue in 2023 to 10 percent in 2025. The Saco CEO said digital channels are recording annual growth rates exceeding 50 to 60 percent.

Cost Control and Compliance

Bdeir noted that higher logistics, diesel, and service costs have weighed on profit margins, prompting the company to renegotiate terms with delivery providers. He also stressed the importance of compliance with local quality and safety standards, noting that some global platforms do not adhere to these regulations, creating potential risks for consumers.

Founded in 1984, Saco is the Kingdom’s largest home improvement solutions provider, operating 35 stores across 19 cities, including five megastores, and offering more than 45,000 products. The company has been publicly listed since 2015 and has acquired a logistics services provider to enhance operational efficiency, while focusing on developing young Saudi talent in line with Vision 2030.

Saco’s shares were trading at around SAR 26.5 ($7.1) by the close of trading on Tuesday.

Global Forum

The RLC Global Forum serves as a key platform for senior executives and decision-makers to discuss major shifts in consumer behavior, digital innovation strategies, the future of smart retail, and pathways to sustainable growth.

The 2026 edition, held under the theme “Growth Crossroads,” took place over two days in Riyadh, reflecting Saudi Arabia’s growing role as a regional hub for retail and commercial investment.