Economic Struggles Persist in Gaza Despite Cease-Fire

An Economy Strangled by Restrictions

Months after a cease-fire, Gaza’s economic challenges remain severe. Families like Saleh’s face difficulties largely due to Israeli restrictions. Early in the conflict, Israel heavily restricted trade into Gaza, allowing very few Palestinian businesses to import goods. This decision drastically reduced competition. Merchants now pay high fees to these businesses for every truck entering Gaza, leading to inflated costs for goods.

The fees’ purposes and beneficiaries are often unclear. As Ruwa Jabr of PalTrade, a Palestinian nonprofit, states, “A shipment that should cost 100 shekels ends up costing 20,000 shekels or more.” Israel’s extensive list of banned imports, covering basics like poultry and batteries, has fueled a black market with exorbitant prices.

A COGAT spokesman argues these restrictions prevent Hamas from benefiting from goods or trade.

The Intricacies of Trade and Smuggling

Merchants face layers of brokers and fees alongside a thriving black market. Alleged smuggling operations involve individuals with ties to Israeli intelligence. Interviews with traders and an Israeli indictment detail a complex network running banned goods worth tens of millions through multiple crossings.

An example is Abu Basel, allegedly tied to Israeli intelligence, who oversaw contraband shipments like concrete and beef. This wartime economy creates dire economic conditions. Basic goods see skyrocketing costs, with flour reaching $27 from 50 cents.

A Family’s Struggle

Saleh, living in London, supports his family in Gaza amid spiraling costs. With savings depleted and borrowing exhausted, his debt exceeds $125,000. Saleh balances monitoring news, seeking donations, and communicating with embassies and aid groups in a bid to support his family.

Each morning, Saleh communicates with his brother Rashad in Gaza. Rashad shares updates on their parents’ health and the family’s financial situation. Together, they work on plans to navigate the economic crisis.

Historical Context and Personal Loss

Saleh’s memories trace back to childhood in Rafah. His family struggled through historical conflicts, including the Second Intifada. Shaimaa, Saleh’s sister, was killed near their home during the conflict, a loss that profoundly affected the family.

Political shifts in 2007 saw Hamas taking control of Gaza, and Saleh engaged in protests. In 2021, on securing a visa, Saleh leaves a conflict-stricken Gaza for Britain. In London, Saleh faces challenges, including language barriers and a sense of isolation.

Despite these struggles, Saleh adjusts, gaining asylum in the UK. News of conflict back home shakes him again, prompting renewed support efforts for his family.

The Struggle for Resources

Gaza’s blockade severely impacts trade and living conditions. Trade restrictions led to a drastic drop in truckloads entering Gaza and heightened dependency on chosen Gazan merchants, who charge excessive fees for goods.

Efforts to work around these limitations see merchants paying exorbitant amounts just to transport essentials within Gaza. Many merchants describe the substantial costs involved in dealing with intermediaries and brokers.

Navigating Financial and Humanitarian Challenges

Throughout the conflict, Saleh’s main concern is finding funds and methods to support his family through financial transactions and secure their safety. Despite high transfer fees, Saleh sends aid to his family, burning through his savings.

Efforts to evacuate Saleh’s family via Egyptian middlemen and organizations like Hala met with delays and difficulty, a tale common for many in Gaza.

Impact of Health and Medicines

The health crisis in Gaza exacerbates economic pressures. Saleh’s father suffers from a stroke amid scarce medical supplies. Finding essential medicines becomes a struggle with few resources and inflated prices.

Humanitarian aid often faces prolonged delays at Israeli-controlled borders, compounding the crisis.

Returning to Normalcy

Following a fragile cease-fire, economic constraints lighten somewhat. More aid enters, and commercial trade sees a slight loosening. Even so, the cost of living remains steep, and profit-driven exploitation by those close to Israeli intelligence comes to light.

For Saleh, daily life involves navigating logistical challenges to support his family, balancing debts, and maintaining hope for a better future.

Change remains complex and slow-moving, demanding coordinated efforts to alleviate the ongoing humanitarian and economic challenges facing Gaza.