Economy of Gaza
Encyclopedia
19th century
In the 19th century, Gaza was among six soap-producing cities in Palestine, overshadowed only by Nablus. Its factories purchased qilw from merchants from Nablus and SaltSalt, Jordan
Salt is an ancient agricultural town and administrative centre in west-central Jordan. It is on the old main highway leading from Amman to Jerusalem. Situated in the Balqa highland, about 790–1100 metres above sea level, the town is built in the crook of three hills, close to the Jordan River...
in Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...
. Gaza's port was eclipsed by the ports of Jaffa and Haifa
Haifa
Haifa is the largest city in northern Israel, and the third-largest city in the country, with a population of over 268,000. Another 300,000 people live in towns directly adjacent to the city including the cities of the Krayot, as well as, Tirat Carmel, Daliyat al-Karmel and Nesher...
, but it retained its fishing fleet. Although its port was inactive, land commerce thrived because of its strategic location. Most caravans and travelers coming from Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
stopped in Gaza for supplies, likewise Bedouins from Ma'an
Ma'an
Ma'an is a town in southern Jordan 218 km away from the capital Amman. It is the capital of Ma'an Governorate. Ma'an has a population of around 50,000. The city had a population of 22,989 in the 1992 census and is estimated as being about 50,000 as of 2007 according to the Ma'an Municipality...
, east of the Wadi Araba, bought various sorts of provisions from the city to sell to Muslim
Muslim
A Muslim, also spelled Moslem, is an adherent of Islam, a monotheistic, Abrahamic religion based on the Quran, which Muslims consider the verbatim word of God as revealed to prophet Muhammad. "Muslim" is the Arabic term for "submitter" .Muslims believe that God is one and incomparable...
pilgrims coming from Mecca
Mecca
Mecca is a city in the Hijaz and the capital of Makkah province in Saudi Arabia. The city is located inland from Jeddah in a narrow valley at a height of above sea level...
. The bazaar
Bazaar
A bazaar , Cypriot Greek: pantopoula) is a permanent merchandising area, marketplace, or street of shops where goods and services are exchanged or sold. The term is sometimes also used to refer to the "network of merchants, bankers and craftsmen" who work that area...
s of Gaza were well-supplied and were noted by Edward Robinson as "far better" than those of Jerusalem. Its principal commercial crop was cotton which was sold to the government and local Arab
Arab
Arab people, also known as Arabs , are a panethnicity primarily living in the Arab world, which is located in Western Asia and North Africa. They are identified as such on one or more of genealogical, linguistic, or cultural grounds, with tribal affiliations, and intra-tribal relationships playing...
tribes.
Modern era
Many Gazans worked in the Israeli service industry while the border was open, but in the wake of Israel's 2005 disengagement plan, Gazans could no longer do so. Gaza suffered from serious deficiencies in housing, educational facilities, health facilities, infrastructure, and an inadequate sewage system, contributing to serious hygiene and public health problems.Food prices rose during the blockade, with wheat flour going up 34% and rice up 21%. The number of poor Gazans increased sharply, with 80% relying on humanitarian aid in 2008 compared to 63% in 2006. In 2007, households spent an average of 62% of their total income on food, compared to 37% in 2004. In a decade, the number of families depending on UNRWA food aid increased ten-fold.
In August 2009, Hamas promised workers $100 each for Ramadan Increasing prosperity has led to the widespread replacement of donkey carts with tuk-tuks
Auto rickshaw
An auto rickshaw or three-wheeler is a usually three-wheeled cabin cycle for private use and as a vehicle for hire. It is a motorized version of the traditional pulled rickshaw or cycle rickshaw...
.
According to the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
, the unemployment rate has fallen as the economy of Gaza grew by 16% in the first half of 2010, almost twice as fast as the economy of the West Bank
West Bank
The West Bank ) of the Jordan River is the landlocked geographical eastern part of the Palestinian territories located in Western Asia. To the west, north, and south, the West Bank shares borders with the state of Israel. To the east, across the Jordan River, lies the Hashemite Kingdom of Jordan...
.
Foreign Aid
The European UnionEuropean Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
paid €420 million in aid to the Palestinian territories in 2001. This was in addition to contributions by individual member states. This included €55 million form Germany, €67 million from France, and £63.6 million (about €76 million) from Great Britain in 2007 alone. Donation levels have since increased, with the United States and the European Union giving $7.7 billion in 2008-2010.
Agriculture and industry
The major agricultural products are strawberries, citrusCitrus
Citrus is a common term and genus of flowering plants in the rue family, Rutaceae. Citrus is believed to have originated in the part of Southeast Asia bordered by Northeastern India, Myanmar and the Yunnan province of China...
, dates, olive
Olive
The olive , Olea europaea), is a species of a small tree in the family Oleaceae, native to the coastal areas of the eastern Mediterranean Basin as well as northern Iran at the south end of the Caspian Sea.Its fruit, also called the olive, is of major agricultural importance in the...
s, flowers, and various vegetables. Pollution and massive population pressure on water have reduced the productive capacity of the surrounding farms, however.
Small-scale industries in the city include the production of plastics, construction materials, textiles, furniture, pottery
Palestinian pottery
Pottery in Palestine refers to pottery produced in Palestine throughout the ages, and pottery produced by modern-day Palestinians.-Continuity through the ages:...
, tiles, copperware, and carpets. Following the Oslo Accords
Oslo Accords
The Oslo Accords, officially called the Declaration of Principles on Interim Self-Government Arrangements or Declaration of Principles , was an attempt to resolve the ongoing Palestinian-Israeli conflict...
, thousands of residents were employed in the various government ministries and security services, while others were employed by the UNRWA and other international organizations that support development of the city. Gaza City contains some minor industries, including textile production and food processing. A variety of wares are sold in Gaza's street bazaars, including carpets, pottery, wicker furniture, and cotton clothing; commercial development in the city is minimal.
Recreation industry
In 2010 Gaza experienced an boom in the construction of for-profit recreational facilities aimed not at tourists but at residents, including the many employees of international aid organizations. Some of the new amusement parks and restaurants are Hamas business ventures. The many new leisure facilities include the Crazy Water ParkCrazy Water Park
The Crazy Water Aqua Fun Park was a water park in the Gaza Strip, Palestinian territories, that served the territory's small wealthy class. The park opened in May 2010 and was burned down by masked men in September 2010, after being closed by the Palestinian Hamas de facto government for allowing...
, the Al-Bustan resort (Gaza), and the Bisan City tourist village
Bisan City tourist village
The Bisan City tourist village is a pleasure garden located in the northern part of Gaza.The 270 dunam leisure park includes a new wedding hall, gardens, soccer fields, an Olympic-size swimming pool a 19-hectare zoo, playgrounds, soccer fields, and restaurants. 6,000 people are said to visit...
. Among the many new restaurants are the Roots Club
Roots Club
Roots Club is an upscale restaurant and catering hall in Gaza. Restaurant reviewers expect the restaurant to bring "a new era of hospitality and dining experience" to Gazans.The club is located on Cairo Street in the Gaza district of Rimal...
, the Faisal Equestrian Club
Faisal Equestrian Club
The Faisal Equestrian Club is an equestrian club and upscale restaurant in Gaza.The track is the site of horse races, a "popular sport" in Gaza according a 1994 article in the Rocky Mountain News. As of July 2010, the club was the sole equestrian club in the Gaza strip...
and the new restaurant at the Gaza Museum of Archaeology
Gaza Museum of Archaeology
The Gaza Museum of Archaeology called in English the AlMath'af, Recreational Cultural House opened to the public in fall 2008 in Gaza. The Museum is a privately owned restaurant, hotel, and conference center, with a privately owned museum that houses antiquities discovered in the Gaza Strip from...
.
Tourism
There are several hotels in Gaza including the hotel at the Gaza Museum of ArchaeologyGaza Museum of Archaeology
The Gaza Museum of Archaeology called in English the AlMath'af, Recreational Cultural House opened to the public in fall 2008 in Gaza. The Museum is a privately owned restaurant, hotel, and conference center, with a privately owned museum that houses antiquities discovered in the Gaza Strip from...
and the Palestine, Adam, al-Amal, al-Quds, Cliff, and Marna House hotels. All, except the Palestine Hotel, are located along the coast. The United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
(UN) has a beach club on the same street. Gaza is not a frequent destination of tourists, and most foreigners who stay in hotels are journalists, aid workers, UN and Red Cross personnel. Al-Quds Hotel is known as the "poshest" hotel in the city. The upscale Roots Club
Roots Club
Roots Club is an upscale restaurant and catering hall in Gaza. Restaurant reviewers expect the restaurant to bring "a new era of hospitality and dining experience" to Gazans.The club is located on Cairo Street in the Gaza district of Rimal...
is among the nicest of several new restaurants in Gaza.
Unemployment
In 2007, unemployment in the Gaza StripGaza Strip
thumb|Gaza city skylineThe Gaza Strip lies on the Eastern coast of the Mediterranean Sea. The Strip borders Egypt on the southwest and Israel on the south, east and north. It is about long, and between 6 and 12 kilometres wide, with a total area of...
reached 40%. According to Oxfam
Oxfam
Oxfam is an international confederation of 15 organizations working in 98 countries worldwide to find lasting solutions to poverty and related injustice around the world. In all Oxfam’s actions, the ultimate goal is to enable people to exercise their rights and manage their own lives...
, the private sector which employs 53% of all working Gazans was devastated and many businesses went bankrupt. Of the 110,000 workers in this sector, approximately 75,000 lost their jobs. 95% of the city's industrial operations were suspended due to the inaccessibility to inputs for production and the inability to export products.
In June 2005, there were 3,900 factories in the city employing 35,000 people, and in December 2007, there were 195 factories remaining, employing 1,700 people. The construction industry was also affected, with tens of thousands of labourers out of work. The blockade damaged the agriculture sector and 40,000 workers dependent on cash crops were left without income. Unemployment was compounded when Israel ended its reliance on cheap labor from the Gaza Strip in 2005. In September 2000, 24,000 Palestinians crossed out of Gaza daily to work in Israel.