Even before the ongoing conflict there, you might have raised your eyebrows if I told you that Palestine had a tech sector worth watching. But up until the events of October 7, Palestine’s tech ecosystem was becoming recognised internationally in the global tech landscape for its large pool of freelancers, specialist outsourcing companies and early-stage startups.
Palestine's young, educated population, including many who are fluent in English, has brought significant talent and energy to the global tech workforce. Despite severe restrictions and high unemployment rates, the information and communications technology sector contributed approximately 4 per cent ($641 million) to Palestine's GDP. And an emergent start-up scene in Gaza was a part of that.
Now, nine months into the war, all that progress and dynamism – along with Palestine’s economy – has been destroyed.
The economic toll of the war has been immense. According to the International Labour Organisation, GDP has shrunk by 32.8 per cent during the first eight months of the conflict, with Gaza experiencing a drastic 83.5 per cent contraction and the occupied West Bank experiencing a 22.7 per cent decline. The unemployment rate across Palestine has surged to 50.8 per cent, with alarming figures in Gaza at 79.1 per cent. Meanwhile, in the West Bank, the unemployment rate is estimated to be nearly 32 per cent.
Revitalising Palestine's tech sector will be critical to both short and long-term economic recovery. With targeted support and investment, the tech sector can quickly bounce back, providing significant opportunities for young Palestinians and fostering long-term growth and stability.
Since the blockade of Gaza began in 2007, online work has been one of the enclaves few promising avenues for economic development and earning potential. With unemployment hovering around 50 per cent – 70 per cent for young people – remote work opportunities allowed individuals and companies to overcome severe restrictions on the movement of people and goods that stifle other sectors, like manufacturing.
In 2011, Mercy Corps, with support from Google, founded Gaza Sky Geeks (GSG) to help nurture the local tech sector, providing training and support to freelancers, startups and tech companies. It was going very well; in 2022 alone, GSG graduated 4,500 participants – 50 per cent of whom were young women – and helped eight startups through its acceleration programme.
After 12 months, these graduates earned an average of $700 a month, with specialist coders earning an average of $1,500 each month, five times the local minimum wage, and bringing in more than $20 million into the Palestinian economy. Before the war, this income, earned online from international customers, significantly boosted the local economy and transformed the lives of tens of thousands of young Palestinians, local tech companies and the national economy.
Then the latest round of conflict began. Now, as GSG highlighted in a recent report, the tech sector has virtually collapsed. In addition to the horrific human toll and significant infrastructural damage across Gaza, the nearly year-long war has wreaked havoc on a sector that has been one of the few economic lifelines for Palestinians. In Gaza, thousands of tech talents are unable to work while focusing on survival – trying to secure shelter, food, water and other necessities for themselves and their families. About 85 per cent of tech sector workers have been displaced multiple times, and nearly 70 per cent of office spaces have suffered damage.
The destruction has made workplaces inaccessible, with some office spaces now serving as shelters for displaced people. Our own GSG office and co-working spaces in Gaza City were destroyed. The telecommunications network's frequent outages further complicate communication. In the West Bank, the economy has plummeted and most outsourcing contracts from Israel to the Palestinian tech sector were terminated immediately after October 7.
Many members of our tech community have lost relatives, businesses have lost staff and 25 per cent of tech ecosystem enablers report the death of at least one startup founder or business owner. These include Abu Shawish, the founder of delivery startup Torood, and Mai Ubeid, a software engineer who didn’t let her muscular dystrophy stand in the way of pursuing her tech dreams.
But we in the Gaza tech community have witnessed incredible resilience, too. Afnan is a talented voice-over freelancer from Gaza who was separated from her family. Despite the ongoing violence, Afnan has continued her work, and commitment to her clients from overseas, creating a makeshift studio in her current location using an empty eggplant carton.
This spirit will be critical to reviving the tech sector – which, with the right investment, could be one of the fastest to recover after the war and will be vital to jumpstarting Palestine’s economic recovery. I say revive, and not rebuild, because the talent, capabilities, and determination are already there. All that is needed is support in key areas: financial recovery for businesses and individuals, job creation and market access for businesses, and rebuilding business capacity, infrastructure and operational capabilities.
There are several strategies available for revitalising the tech sector when conditions on the ground allow for it. Online work is even more critical than before the war. Services delivered online from Palestine to overseas markets will continue to be one of the few viable opportunities to build a sustainable economy and provide high incomes for many young adults in Palestine. Training young people in specialist skills will enable Palestinian individuals and companies to successfully compete against the global supply of lower-cost, lower-quality tech skills.
Online workers need only a laptop, a safe workspace, reliable internet and electricity. Throughout the crisis, co-working spaces made from large tents or semi-damaged buildings equipped with solar panels and internet have enabled many in Gaza to continue working online. Palestine, especially Gaza, already has tens of thousands of qualified tech talents eager to return to online work. Other sectors, such as manufacturing and agriculture, are essential but require many years and considerable investment to rebuild core infrastructure.
With widespread damage and economic instability, there is an urgent need to support individuals with physical disabilities who will depend on tech-enabled opportunities to rebuild their lives. Single mothers and fathers, now increasingly sole providers for their families, need enhanced support to achieve financial and economic independence. Gazans displaced to Egypt seek employment opportunities abroad, highlighting the need for international outreach and support. Furthermore, addressing the mental health concerns affecting both the general population and tech sector employees is crucial for fostering resilience and recovery.
Gaza's tech talent remains resilient and eager to resume work. Their priority to return to work in semi-permanent housing, even over securing new homes, if given the choice, underscores the need for immediate and concerted action to support the sector's revival. But Palestinian tech ecosystem players urgently need assistance from the global tech community. Gaza Sky Geeks is actively seeking international business and technical experts who can offer their experience as advisers to Palestinian tech company leaders. We need connections to overseas companies that can provide remote internships, giving Palestinian youth the opportunity to gain valuable experience and secure work contracts to earn income.
A forward-looking world that cares for the plight of Gazans should harness the power of technology to rebuild their future. The stakes are high, but the potential for positive impact is even higher.
