Israel’s ‘economic war’ chokes occupied West Bank

Palestinian livelihoods have been hurt by bans on laborers crossing into Israel and by a sharp downturn in tourism in the territory, including a quiet Christmas season in Bethlehem. (AFP)
Short Url
Updated 16 June 2024
Follow

Israel’s ‘economic war’ chokes occupied West Bank

  • Banking in the Palestinian territories is challenging, with the Palestinian Authority under scrutiny for potential terror financing
  • Palestinian businesses receive nearly $1.7 billion annually for exports, according to the Palestine Monetary Authority

RAMALLAH, Palestinian Territories: Palestinian teenagers bounced on trampolines and jumped through hoops inside a towering tent on the outskirts of Ramallah, the financial hub of the occupied West Bank.
But the circus students weren’t the only ones bending over backwards in the pavilion: the school’s director faced financial hurdles to buy the tent from Europe and trampolines from Asia.
“We are suffering with international payments,” said Mohamad Rabah, head of the Palestinian Circus School, describing a bureaucratic process that could delay equipment delivery by up to a month.
Banking in the Palestinian territories is challenging, with the Palestinian Authority (PA) under scrutiny for potential terror financing, hindering transactions.
Israel has occupied the West Bank since 1967, with strong economic ties allowing two Israeli lenders to serve as correspondent banks in the Palestinian territory.
But this may change if Israel’s far-right Finance Minister Bezalel Smotrich carries out threats to sever a vital banking route next month.
Since Hamas’s October 7 attack triggered the Gaza war, Israel has imposed economic curbs on the PA, withholding tax revenues it collects on its behalf.
Smotrich said this week he had redirected $35 million in PA tax revenues to families of “terrorism” victims, a move condemned by the United States.
After three European countries recognized Palestinian statehood in May, Smotrich told Prime Minister Benjamin Netanyahu he would not extend indemnity to banks that transfer the funds from the end of June.
Israel’s Bank Hapoalim and Israel Discount Bank need protection, expiring on July 1, to avoid sanctions for dealing with Palestinian lenders.
Israel’s central bank and finance ministry declined to comment when contacted by AFP.
The banking channel used to pay for West Bank imports — including essential goods like water, fuel and food — handles $8 billion yearly.
Palestinian businesses receive nearly $1.7 billion annually for exports, according to the Palestine Monetary Authority.
“For us, because our economy is dependent on the Israeli economy, because Israel is controlling the border, the impact will be high,” said PMA governor Feras Milhem.
The Palestinian economy is largely governed by the 1994 Paris Protocol, which granted sole control over the territories’ borders to Israel, including the right to collect import duties and value-added tax for the PA.
Palestinian livelihoods have also been hurt by bans on laborers crossing into Israel and by a sharp downturn in tourism in the territory, including a quiet Christmas season in Bethlehem.
The United States has urged Israel to improve conditions, warning that severing the banking route would have a dire impact on the West Bank economy.
“I believe it would create a humanitarian crisis in due course if Palestinian banks are cut off from Israeli correspondence,” US Treasury Secretary Janet Yellen said last month.
Western governments fear Israel’s economic policies could destabilize the West Bank.
“The banking system may collapse and therefore the PA may collapse as well,” a European diplomatic source in Jerusalem said on condition of anonymity.
“The PA is in a financial crisis and it could collapse before August.”
Palestinian businessmen say their bottom lines have been hit since October 7.
Imad Rabah, who owns a plastics company, said his net income had fallen 50 percent in one year.
Arak producer Nakhleh Jubran said his liquor business had fallen 30 percent over the same period.
“We have a traditional war in Gaza and we have an economic war in the West Bank,” said Jubran.
Musa Shamieh, who owns a womenswear company said the Israeli policies were designed to push Palestinians to leave the West Bank.
“They want us to leave our land and they know it will be hard for us to stay if we can’t do business,” Shamieh said.
Israel’s harsh economic policies could eventually drive Palestinian policymakers to pursue sweeping changes to the monetary system.
“We need to work on a plan B when it comes to the trade relations,” said Milhem, governor of the PMA, which uses an image of the former Palestinian pound as its logo.
Yousef Daoud, professor at the West Bank’s Birzeit University, said the territory could scrap the shekel as its de facto currency in favor of a digital alternative.
“We can make our e-currency, just collect all the shekels, issue an equivalent amount of Palestinian pounds, one-to-one fixed exchange rate, and have the Palestinians deal with e-currency,” he said.
“Somehow, eventually, we’ll get rid of the shekel.”


Syria's HTS leader says holding elections can take up to four years

Updated 5 sec ago
Follow

Syria's HTS leader says holding elections can take up to four years

Holding elections in Syria can take up to four years, said the military chief of Syria's Hayat Tahrir al-Sham Ahmed al-Sharaa, promising to dissolve the armed wing and integrate into Syrian armed forces.  

Al-Sharaa made the remarks during an exlcusive interview with Saudi broadcaster Al Arabiya to be aired on Sunday.


Qatar PM meets Hamas delegation for Gaza ceasefire talks

Updated 29 December 2024
Follow

Qatar PM meets Hamas delegation for Gaza ceasefire talks

  • It is unusual for Qatari PM to be publicly involved in mediation process deadlocked for months
  • Israel’s war in Gaza has killed over 44,000 people since October 2023, triggering calls for ceasefire

DOHA: Qatar’s prime minister met a Hamas delegation in Doha on Saturday to discuss a “clear and comprehensive” ceasefire deal to end the war in Gaza, a statement said.
Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani held talks with a Hamas team led by senior official Khalil Al-Hayya, the foreign ministry statement said.
It is unusual for Sheikh Mohammed, who is also Qatar’s foreign minister, to be publicly involved in the mediation process that has appeared deadlocked for months.
“During the meeting, the latest developments in the Gaza ceasefire negotiations were reviewed, and ways to advance the process were discussed to ensure a clear and comprehensive agreement that brings an end to the ongoing war in the region,” the statement said.
Earlier this month, the sheikh expressed optimism that “momentum” was returning to the talks following Donald Trump’s election victory in the United States.
“We have sensed, after the election, that the momentum is coming back,” he said at the Doha Forum political conference.
The incoming Trump administration had given “a lot of encouragement in order to achieve a deal, even before the president comes to the office,” the premier added.
The Gulf emirate, along with the United States and Egypt, has been involved in months of unsuccessful negotiations for a Gaza truce and hostage release.
In November, Doha announced it had put its mediation on hold, saying that it would resume when Hamas and Israel showed “willingness and seriousness.”
But Doha then hosted indirect negotiations this month, with Hamas and Israel both reporting progress before again accusing each other of throwing up roadblocks.


Syria’s new intel chief vows reforms to end abuses

Updated 29 December 2024
Follow

Syria’s new intel chief vows reforms to end abuses

  • Most of these installations are now guarded by fighters of Hayat Tahrir Al-Sham (HTS), the Islamist group that led the armed coalition that seized power in Damascus

DAMASCUS: The new head of Syria’s intelligence services announced on Saturday a plan to dissolve the institutions that were so feared under the rule of ousted dictator Bashar Assad.
“The security establishment will be reformed after dissolving all services and restructuring them in a way that honors our people,” Anas Khattab said, two days after being appointed to his post by the country’s new leadership that overthrew Assad in early December.
In a statement carried by the official Sana news agency, he stressed the suffering of Syrians “under the oppression and tyranny of the old regime, through its various security apparatuses that sowed corruption and inflicted torture on the people.”
Prisons were emptied after Assad’s fall as officials and agents of the deposed regime fled.
Most of these installations are now guarded by fighters of Hayat Tahrir Al-Sham (HTS), the Islamist group that led the armed coalition that seized power in Damascus.
Numerous Syrians have rushed to former detention centers in the hope of finding traces of relatives and friends who went missing during the 13 years of a devastating civil war that left more than a half million dead.
“The security services of the old regime were many and varied, with different names and affiliations, but all had in common that they had been imposed on the oppressed people for more than five decades,” Khattab continued.
According to the Syrian Observatory for Human Rights (SOHR), more than 100,000 people died in Syrian prisons and detention centers during the conflict.
On Thursday, a general who ran military justice under the former regime was arrested in the west of country, accused of being responsible for sentencing to death thousands of people held in the notorious Saydnaya prison.
And in Europe, several former senior Syrian intelligence officers accused of torture and other abuses have been convicted and jailed since 2022.


Turkiye court jails three for life over death of 8-year-old girl

Updated 29 December 2024
Follow

Turkiye court jails three for life over death of 8-year-old girl

  • Narin disappeared on August 21, sparking a huge search effort in Turkiye, with a number of well-known figures joining a “Find Narin” social media campaign

DIYARBAKIR, Turkiye: A Turkish court on Saturday sentenced three suspects including family members to life in prison over the mysterious death of an eight-year-old girl in the southeastern province of Diyarbakir, an AFP journalist saw.
The body of Narin Guran, who had been missing for 19 days, was found in September in a bag in a river around one kilometer (0.6 miles) from the village where she lived with her family.
After a tense day-long hearing, the court in Diyarbakir handed Narin’s mother, elder brother and uncle an aggravated life sentence on charges of “deliberate murder in collaboration,” according to the journalist at the courthouse.
The judge sentenced another suspect Nevzat Bahtiyar, who had confessed to the murder, to four years and six months in prison.
Police heightened security measures inside and outside the tribunal as the judge read out the verdict.
The court said that Bahtiyar found the body at Narin’s home, adding that he carried and hid it.
Abdulkadir Gulec, head of the bar association in Diyarbakir, told reporters the court verdict was near what they had expected.
“Bahtiyar should have received the same penalty,” he said.
Lawyers Nait Eren said they would object to the court’s ruling on Bahtiyar.
No motive was given for Narin’s murder.
Narin disappeared on August 21, sparking a huge search effort in Turkiye, with a number of well-known figures joining a “Find Narin” social media campaign.
Soon after the body was found, President Recep Tayyip Erdogan expressed profound sadness and said he would “personally follow the judicial process” so that those who took Narin’s life received the harshest punishment.
Prosecutors said in the indictment that the murder was likely committed by those close to Narin. They also accused Narin’s uncle — who is the highest local administrator in the village — of misleading authorities during the initial manhunt.
Speaking to the court during the hearing, Narin’s mother Yuksel denied the charges, lamenting that she would never see her daughter get married.
“They didn’t let my daughter wear a wedding dress, they put her in a shroud,” she told the judge.
“I didn’t even see her shroud or her grave,” she said. “My daughter was brutally killed.”
Yuksel also denied claims that she killed her other daughter, saying that she was physically handicapped and died in hospital.


2024 Year in Review: When turmoil and divisions deepened in Libya

Updated 29 December 2024
Follow

2024 Year in Review: When turmoil and divisions deepened in Libya

  • Fractured governance blamed for cycles of conflict and foreign meddling among other problems in 2024
  • Local elections failed to provide a pathway to political reconciliation, stability and sovereignty

LONDON: When the Arab uprisings swept through the Middle East and North Africa in 2011, many in the West hoped the fall of these entrenched regimes would herald a new era of development and good governance. Instead, it marked the beginning of a period of unprecedented suffering for millions.

Nearly 14 years later, in the wake of a grinding civil war, there are now renewed hopes that Syria, after its brutally suppressed uprising, might finally be stepping into the light following the toppling of the Bashar Assad regime.

However, as a diverse array of victorious armed opposition groups struggle to impose order and unity on a fractured nation, many observers share a common fear — that Syria could become another Libya.

In this Nov. 3, 2008 file photo, Libyan leader Moammar Gadhafi attends a wreath laying ceremony in the Belarus capital Minsk. (AP)

Indeed, since the NATO-backed uprising that ousted Muammar Qaddafi, Libya has become a byword for state failure — divided between rival administrations, plagued by criminality, and used as a proxy battleground by foreign powers keen to exploit its oil and strategic location.

While 2024 offered glimpses of possible reconciliation between the North African nation’s competing factions, steps toward national elections, and perhaps even justice for its long-suffering citizens, the country remains deeply unstable as it enters the new year.

In April, Abdoulaye Bathily, the UN special envoy to Libya, resigned, citing the country’s entrenched political stalemate. His resignation followed 18 months of attempts to mediate between Libya’s divided factions, but a “lack of political will and good faith” thwarted progress.

“The selfish resolve of current leaders to maintain the status quo must stop,” Bathily told the Security Council. The delay of the national reconciliation conference, originally scheduled for April, highlighted the ongoing gridlock.

While Libya’s oil-rich economy offers immense potential, it remains plagued by a fractured political landscape — with the Tripoli-based UN-recognized Government of National Unity headed by Abdul Hamid Dbeibeh opposing the eastern administration allied with General Khalifa Haftar, commander of the Tobruk-based Libyan National Army.

Bathily’s departure underscored the international community’s struggle to bring stability to a nation divided since the 2011 uprising. Despite his efforts, Libya’s entrenched rivalries and external meddling have kept progress elusive, prolonging the suffering of its population.

Libya’s fragile peace was repeatedly shattered in 2024, with violence escalating across major cities and border regions. In May, clashes in Zawiya between militias loyal to the GNU left one dead and six injured.

Violence escalated in Tripoli in July, where clashes between the Interior Ministry’s Special Deterrence Forces, also known as RADA, and Presidential Council units resulted in 13 fatalities, including civilians. August brought another tragedy in Tripoli, with nine killed in militia fighting.

Although political leaders have periodically called for ceasefires, the lack of cohesive state authority has allowed armed factions to exploit and perpetuate the chaos, leaving Libyans trapped in repeated cycles of violence.

Amid this summer of bloodshed, there was a glimmer of justice. In July, Libya’s Derna Criminal Court sentenced 12 officials to up to 27 years in prison for their roles in the catastrophic Sept. 10, 2023, dam collapse.

The disaster, triggered by Storm Daniel, unleashed torrents of water that obliterated entire neighborhoods in the coastal city of Derna, claiming thousands of lives.

Libyan military commander Khalifa Haftar gestures as he speaks during Independence Day celebrations in Benghazi, Libya December 24, 2020. (REUTERS)

Neglected infrastructure and corruption were deemed key factors in the disaster, as funds earmarked for dam maintenance were found to have been misappropriated. The court’s verdict represented a rare moment of accountability in a nation fraught with impunity.

While some saw this as a step toward justice, critics argue systemic reform is still absent.

Rebuilding efforts in Derna remain slow, hindered by political infighting. Meanwhile, the disaster’s survivors, grappling with trauma and displacement, want to see comprehensive infrastructure upgrades to prevent future tragedies.

September brought a breakthrough as Libya’s rival legislative bodies agreed to appoint Naji Mohamed Issa Belqasem as interim central bank governor, ending months of turmoil over financial leadership.

This crisis erupted when Tripoli’s Presidential Council moved to replace longstanding Governor Sadiq Al-Kabir, leading eastern factions to halt oil production in protest.

Members of the "Tripoli Brigade", a militia loyal to the UN-recognised Government of National Accord (GNA), sit in the back of a pickup truck as they parade through the Martyrs' Square at the centre of the GNA-held Libyan capital Tripoli on July 10, 2020. (AFP)

Libya’s oil-dependent economy suffered immensely, with crude exports plummeting from 1 million barrels per day in August to just 400,000 in September.

The UN facilitated the agreement, urging an end to unilateral decisions that deepen institutional divisions. While the resolution temporarily eased tensions, it highlighted the broader issue of competing power centers undermining Libya’s economic stability.

With the interim governor tasked to form a board of directors, the deal’s success hinges on sustained cooperation, a rare commodity in Libya’s fragmented political landscape.

The murder of Abdel-Rahman Milad, a notorious Libyan Coast Guard commander known as “Bija,” in September spotlighted Libya’s lawlessness and corruption.

Sanctioned by the UN in 2018 for human trafficking, Milad symbolized the overlap of state and criminal enterprise.

Abdoulaye Bathily, the UN special envoy to Libya. (X @Bathily_UNSMIL)

Speculation still abounds about the reason behind his killing — ranging from militia infighting to fears he might expose high-level corruption.

Milad’s killing also raised questions about the EU’s reliance on Libyan partners accused of human rights abuses to help control the flow of migration to Europe.

Observers see his death as a byproduct of power struggles between rival gangs and a reflection of Libya’s inability to reform its fractured governance and security apparatus.

While Milad’s death may serve as a test for Libya’s broken justice system, there has been some progress on addressing historic injustices.

October saw the International Criminal Court unseal arrest warrants for six Libyans implicated in war crimes during the Second Libyan Civil War of 2014-20. The suspects, linked to the Kaniyat militia, face charges including murder, torture and sexual violence.

These crimes occurred in Tarhuna, a town notorious for mass graves uncovered in 2020 after the militia’s retreat.

A picture taken on September 24, 2020 shows the Brega oil port some 270kms west of Libya's eastern city of Benghazi. (AFP)

The ICC warrants mark a significant step toward accountability and highlight ongoing international scrutiny of Libya’s human rights record. However, Libya’s weak judicial system and fragmented governance pose challenges to enforcing these warrants.

As families of victims seek closure, the outcome may set a precedent for addressing atrocities committed during Libya’s protracted conflict.

In November, the GNU’s Interior Minister Emad Al-Trabelsi sparked widespread condemnation from human rights groups when he announced plans to establish a morality police force.

The new force would enforce conservative social norms, including mandatory veiling for girls over the age of nine and restrictions on women’s mobility without a male guardian.

Al-Trabelsi justified the move as preserving “Islamic social values,” dismissing personal freedom as incompatible with Libyan society.

Fighters of Wagner private mercenary group pose for a picture as they get deployed near the headquarters of the Southern Military District in the city of Rostov-on-Don, Russia, June 24, 2023. (REUTERS)

However, the measures appear to have been slapped down by the GNU. There are also doubts that the government even has the means to enforce such rules.

“Al-Trabelsi’s sweeping moral measures were never likely to materialize,” Jalel Harchaoui, a Libya expert and senior fellow at the Royal United Services Institute, told Arab News. “Enforcing such rules requires broad territorial control, religious credibility, and a clear moral gap to address.

“Much of Libya’s population is already conservative, the Interior Ministry lacks religious backing, and no armed actor — Al-Trabelsi included — can truly project power citywide, let alone nationwide.

“Unsurprisingly, nothing substantial has followed the initial announcement, which had drawn so much international attention.”

While national elections intended to reunify the country have been repeatedly postponed, November’s municipal polls marked a rare democratic exercise, with voting held simultaneously in Libya’s east and west for the first time since 2014.

Despite logistical challenges and political tensions, voter turnout hit 77 percent, signaling public demand for stability. The elections even included areas previously under military control, where mayors had been replaced with appointees.

Libyans vote in the country's local elections in Misrata, Libya's third-largest city, on November 16, 2024. (AFP)

International observers, including the G7, praised the process as a step toward national reconciliation. However, skepticism remains about whether these local elections can pave the way for overdue presidential and parliamentary votes.

Libya has become one of the busiest and most deadly routes used by migrants and refugees attempting to reach Europe — something that armed groups have long facilitated for a profit or have sought to curtail, often brutally, in exchange for EU funding.

Tragedy struck Libya’s migrant routes repeatedly in 2024, with multiple fatal incidents highlighting the perils faced by those seeking refuge.

In September, a boat capsized near Tobruk, leaving 22 missing. October brought another disaster, with only one survivor from a vessel carrying 13 passengers. Then in November, 28 people disappeared off Libya’s coast when their rubber boat got into difficulty.

Rights groups criticized both Libyan and European policies that push migrants into perilous crossings. The Mediterranean remains a graveyard for those fleeing violence and poverty, with international efforts to address the crisis falling short.

The Kremlin’s strategic ambitions in Libya are likely to keep growing in the new year as it seeks to offset losses in Syria following the overthrow earlier this month of Assad, a key ally who had permitted Russian use of air and naval bases.

Handout picture taken and released on July 5, 2019 by German migrant rescue NGO Sea-Eye, shows an overloaded rubber boat spotted by Sea-Eye in international waters off the Libyan coast. (AFP)

Moscow has deepened ties with General Haftar’s Libyan National Army in recent years, using Libya as a launchpad for expanding its influence in North Africa and the Sahel.

The Wagner Group, a Russian private military contractor recently rebranded as the Africa Corps, has established bases in southern Libya, supporting resource extraction and military operations across the continent.

Russia’s efforts to consolidate its presence in Libya align with broader objectives to counter NATO and secure Mediterranean access for its ships.

As Libya’s rival factions vie for power, analysts believe this kind of foreign influence could further complicate efforts to achieve peace and sovereignty.

While Syria embarks on its own delicate transition out of war and dictatorship, Libya stands as a cautionary tale for what can happen when factionalism, greed, and foreign interests are allowed to trump the needs and aspirations of a long-suffering people.