After two years of war, Gaza’s once-bustling economy lies in ruins. Streets that used to echo with the hum of factories and chatter of markets now stand silent. But amid the rubble, Palestinian entrepreneurs have one eye on the future.
With fighting much reduced in the enclave by a ceasefire struck last month, hundreds of thousands of Palestinians have been returning to their homes. Though much of Gaza lies devastated, industrialists and small traders vow that reconstruction is possible, if the world allows it to happen.
“The spirit of Gaza is unbreakable,” said Aed Abu Ramadan, head of the Chamber of Commerce and Industry in Gaza city. “Our factories can rise again. Our people can work again. But we cannot do it alone.”
Gaza's economic calamity is stark – infrastructure has been wiped out, entire sectors paralysed, factories flattened, while tens of thousands of workers are jobless.
Mr Abu Ramadan told The National that more than 85 per cent of the workforce is unemployed, and poverty exceeds 90 per cent. Most families are unable to meet even their basic needs.
“The war has led to the complete collapse of Gaza’s economic system,” he added. “At one point, prices rose by as much as 527 per cent. Imports and exports came to a standstill, supply chains collapsed, and prices for basic goods reached levels we’ve never seen.”
According to Ismail Al Thawabta, director of Gaza's government media office, economic losses across the enclave exceed $13 billion. This includes $4 billion in the industrial sector, $4.3 billion in the trade and services sector, $2.8 billion in agriculture and $2 billion in tourism.
“The industrial sector was hit first,” he said. “Factories were targeted and production completely stopped, leading to severe shortages of goods in the market.”
More than 92 per cent of Gaza’s farmland and more than 1,200 agricultural wells have been destroyed, crippling the local food supply. “Israel also demolished 665 livestock farms,” Mr Al Thawabta said. “This has worsened hunger and malnutrition among our people.”
For many of Gaza’s entrepreneurs, the destruction has been deeply personal.
“I live today in a tent with my four children,” Ihab Abu Taimeh, 54, from Khan Younis, told The National. “Just days before the war began in October 2023, I owned a large vehicle and heavy machinery workshop, along with a metalworking factory in northern Gaza.”
The plant, inherited from his father, was a thriving business employing more than 20 workers. “We were comfortable, we had homes, jobs and security,” he said. “Now we have nothing. Everything is gone – the factory, the houses, even hope.” He estimated his losses at about $1 million.
Mr Abu Taimeh said the war has drained business owners “financially, physically and mentally”. Even with the ceasefire, he believes “bigger wars still await us, wars of rebuilding and survival”.
For Moaz Hameed, 35, from Gaza city, the conflict has been equally dire. “The fighting didn’t just destroy our homes, it destroyed our businesses, our trade, and everything we built for years,” he said.
Before the war, Mr Hameed’s family ran a chain of grocery stores in the Sheikh Radwan and Beach Camp markets, importing food and coffee to supply retailers across the enclave. “All of it was wiped out,” he said. “Our warehouses in western Gaza were burnt down. Years of work turned into ashes.”
He estimates his family’s losses at more than $1 million.
But while the setbacks to Gaza's economy have been catastrophic, many forward-thinking businesspeople already have designs on reconstruction.
Mr Hameed said any real recovery must begin with the entry of raw materials, industrial supplies, solar energy systems and construction equipment. “Without reopening crossings and restoring production lines, there can be no life in Gaza’s economy,” he warned.
“The market is now completely different – new prices, new taxes, new challenges,” he added. “But we’re determined to rebuild. We just need political clarity and access to goods again.”
Saber Hanouneh, 49, said he clings to a dream of rebuilding his shampoo and cleaning materials factory that was destroyed twice during the war. He estimates his losses exceed half a million dollars, while his 10 employees are now out of work.
“But I won’t stop,” said Mr Hanouneh. “I founded the factory 25 years ago. It was my life’s work. If we return home, I’ll rebuild, stronger than before. All we need is support, open crossings, and a real reconstruction process.
“We have the determination to keep working until our last breath.”
