GAZA ECONOMIC

IMPACT ASSESSMENT
SUMMARY REPORT FOLLOWING
THE MAY 2021 HOSTILITIES

The report covers the assessment of economic damages resulting from the May 2021 hostilities on the Gaza Strip
Images: © UNDP/PAPP - Shareef Sarhan, Mohammad Za’noun, Abed Zaqout

This report is available on https://www.ps.undp.org

Table of Contents
Background 5

Scope and Purpose 7

Methodology 9

Main Findings 11

Snapshot of field assessment results 11

Private sector survey findings 13

Snapshot of the hostilities’ impact on jobs across targeted sectors 14

Recommendations 17

Short-term priorities 17

Medium to long-term priorities 19

References 23

List of Figures
Figure ‎1 Overview of infrastructure damage and BFB costs per sector 5

Figure ‎2 Field Assessment Process 9

Surveyed economic facilities registered on MoNE platform, disaggregated by sector and severity
Figure ‎3 11
of damage
Figure ‎4 Surveyed private ICT facilities with MTIT, disaggregated by severity of damage 11

Figure ‎5 Damages and losses by category (in US$ and % of total value of damages and losses) 11

Figure ‎6 Damages and losses by economic sector (in US$ and % of total value of damages and losses) 12

Figure ‎7 Damages and losses by economic sector and category 12

Figure ‎8 Priority needs identified by surveyed businesses (as % of total survey respondents) 13

Figure ‎9 Estimated wage losses by sector (in US$ and % of total wage losses) 15

Figure ‎10 Priority needs identified by surveyed businesses (as % of total survey respondents) 17

Figure 11 Short and medium to long-term priority interventions 21

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Background
The Gaza Strip is among the most densely populated regions in the world, where almost 2.1 million Palestinians –
with the majority (66%) being refugeesi - live on only 365 square kilometres of land. The year 2021 marks not only
54 years of the Israeli occupation, but also 14 years of air, land, and sea blockade of the Gaza Strip. The multiple
rounds of hostilitiesii have caused significant casualties, disrupted the already fragile livelihoods and severely
worsened socio-economic conditions of the almost 2.1 million people living in Gaza.

Due to a recurrent cycle of escalations, as well as the enduring intra-Palestinian political divide, Gaza is caught
up in a trajectory of de-development, with deepening vulnerabilities affecting an overwhelming majority of the
population. Around 45.5% of households in the Gaza Strip are severely or moderately food insecureiii, 53% of
the population live below the poverty lineiv. The overall unemployment rate is around 48%v, with youth - which
represents a significant and growing demographic group - accounting for the highest unemployment rates (i.e.
71.6% among the 15 – 25 age group and 56.5% for the 25 - 34 age groupvi, while the long-term unemployment
ratevii for the 15 – 29 age group reaches a staggering 79.2% among young womenviii ). In 2021, about 2.45 million
Palestinians are in need of humanitarian assistance, with the majority of them – 1.6 million - being in the Gaza
Stripix. Out of those 1.6 million Gaza residents, an alarming 1.1 million were found to be suffering from severe
humanitarian needs.

The latest round of hostilities, which hit Gaza between 10-21 May 2021, was the gravest since 2014. It claimed
the lives of 261 Palestiniansx – including 67 children - and left over 2,200 injuredxi. In addition to the tragic
human losses, the escalation caused serious damage to vital civilian infrastructure, including housing, health
and education facilities, commercial establishments, and productive assets, as well as roads, electricity lines and
sewage networks. According to the Infrastructure Damage Assessment, commissioned by UNDP following the
May 2021 hostilities, the overall damage and reconstruction costs for critical infrastructure across different sectors
reach US$ 108,278,756, including the costs of Building Forward Better (BFB). These new reconstruction costs are
further deepening the funding gap for Gaza, adding up to the impact from previous bouts of hostilities.

Overall, the May 2021 escalation aggravated the Strip’s dire economic predicament, compounding the negative
impact of COVID-19 on the local economy, which contracted by 12% in 2020xii.

Figure 1. Overview of infrastructure damage and BFB costs per sector

0.8% 3.1% 2.0%

%
.3
32

HOUSING HEALTH EDUCATION WASH

$35.01 M $0.86 M $3.35 M $ .2 M

28
20.2% .2 4.2% 9.2%
%

ENERGY ROADS & MUNICIPAL MACHINERY PRIVATE SECTOR

& PUBLIC BUILDINGS (FACTORIES, ICT, ETC.)
TRANSPORTATION
$21.92 M $22.43 M $4.50 M $9.95 M

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Scope and Purpose

Against the backdrop of the May 2021 hostilities and the worsening socio-economic conditions, UNDP’s approach
in supporting the people of Gaza has been to assess and address urgent priority needs, immediately following the
ceasefire, while taking into consideration and building in measures for medium - to longer - term recovery.

In line with its long-standing engagement and expertise in fostering early recovery, as well as promoting the
Humanitarian-Development-Peace (HDP) Nexus approach, UNDP undertook an economic impact assessment, in
close collaboration with its key local stakeholders. The assessment focused on the latest hostilities’ impact on
the private sector across key sectors of Gaza’s economy, namely manufacturing, trade (wholesale and retail),
services, as well as on private ICT facilities. It covered the overall impact of the May 2021 hostilities, consisting of
damages in terms of buildings, infrastructure, machinery, and office equipment, as well as losses of raw materials,
goods, and finished products. In addition, the assessment estimated the impact of the latest hostilities in terms
of job losses across the four targeted sectors. The analysis of the impact is largely limited to the four key sectors
listed above, complementing similar analysis for the agricultural sector, prepared by FAO in cooperation with the
Ministry of Agriculturexiii.

Key findings from UNDP’s economic impact assessment shall feed into and inform the economic recovery plan and
economic stimulus package for the Gaza Strip, while providing options and recommendations towards fostering
inclusive and sustainable economic recovery and resilience.

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Methodology
UNDP’s economic impact assessment focused on damages and losses in the selected economic sectors and was
undertaken through a participatory and inclusive approach, actively engaging key stakeholders. The assessment
team included UNDP, the Ministry of National Economy (MoNE), the Ministry of Telecommunications & Information
Technology (MTIT), the Palestinian Federation of Industries (PFI), Gaza Chamber of Commerce and Industry (GCCI),
as well as other business service providers.

The assessment’s methodology included a combination of quantitative and qualitative data collection tools,
namely:

i. A desk review of available statistical data and research.

ii. A total of 23 semi-structured Key Informant Interviews (KIIs) with key stakeholders, including government
officials, private sector institutions, and business owners.

iii. Focus Group Discussions (FGDs) with relevant stakeholders, including line ministries’ representatives (MoNE,
MTIT, and MoL), executive managers of industry unions, and private sector associations (PFI, Paltrade, GCCI).
This includes a final FGD, held on 21 October 2021, to validate the results of the assessment and discuss
recommendations with all key stakeholders.

iv. A detailed field assessment of affected economic establishments (carried out between 22 May - 17 July 2021)
to assess damages and losses across infrastructure, physical assets, raw materials, goods, and labour. The field
assessment team visited 2,612 facilities registered with MoNE and found that 2,254 had been affected by the
latest hostilities. In addition, the field assessment team surveyed 164 damaged private ICT facilities.

v. A private sector businesses survey, rolled-out between 19 - 31 August 2021, targeting a representative sample
of affected enterprises. In total, 320 targeted businesses responded to the survey. Statistically, the collected
sample of data has a 5.07% margin of error. The survey allowed for a participatory identification of priorities
and key private sector needs, with a view towards the resumption and recovery of economic activities.

Figure 2. Field Assessment Process

The Appeals Review Committee

conducted a thorough review of
MoNE, MTIT and private sector Twelve assessment teams were
A technical committee - including appeals submitted by 462
associations invited affected established, with technical
UNDP, MoNE, PFI and Chambers business owners. As a result, the
businesses to register damages experts from MoNE, PFI, Chamber
of Commerce - was formed to assessment of 209 facilities was
and losses on an online portal. of Commerce, and UNDP.
evaluate the assessed values. modified.

Detailed assessment tools The assessment field teams

The preliminary results of the Based on the final assessment
were developed jointly by visited all 2,612 businesses
assessment were shared with the results, UNDP conducted a
MoNE, PFI, Paltrade, MTIT, registered on the online platform,
owners of the affected facilities thorough analysis of the values of
GCCI, incubators, and UNDP. as well as 164 affected private
through the online platform. damages and losses across the
ICT facilities.
targeted sectors.

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Main Findings
Snapshot of field assessment results
The field assessment teams visited the facilities of all 2,612 businesses that had registered on the MoNE online
platform and found that 2,254 facilities were affected, while 209 establishments had incurred no damages. The
remaining 149 sites were not relevant to the economic sectors targeted by the assessment. Of the 2,254 damaged
facilities, 52% belong to the trade sector, 34% to the services sector and 14% to the manufacturing sector. In
addition, the field assessment teams visited 164 affected private ICT facilities.

Figure 3. Surveyed economic facilities registered on MoNE platform, disaggregated by sector and severity
of damage

Severity of Damage Number of affected

Sector
Complete Severe Partial establishments

Manufacturing 51 60 212 323

Trade 226 136 808 1170
Services 184 88 489 761
Total 461 284 1,509 2,254

Figure 4. Surveyed private ICT facilities with MTIT, disaggregated by severity of damage

Severity of Damage Number of affected

Sector
Complete Severe Partial establishments

Private ICT 53 29 82 164

According to the assessment results, the total value of impact across the manufacturing, trade and services sectors
reached US$ 32,353,951, which encompasses damages to infrastructure, machinery, equipment, and furniture,
as well as losses of raw materials and goods. The value of damages to infrastructure, equipment and furniture
amounts to US$ 19,179,132, corresponding to 59.3% of the total value of impact. Considering these findings, it
is important for any intervention aimed at enabling rapid private sector and economic recovery to prioritize the
provision and/or repairing of needed machinery and equipment, as well as rehabilitation and reconstruction of
damaged buildings and other infrastructure.

In addition, the assessment found that the total value of losses across the four targeted economic sectors amounts
to US$ 13,174,819, or 40.7% of the total value of impact. Most losses were incurred by goods and finished
products, which account for 77.7% of total losses, followed by losses in raw materials (22.3% of total losses).

Figure 5. Damages and losses by category (in US$ and % of total value of damages and losses)
Damages and losses by category

7,804,331
10,235,237
24%
32%

US$32,353,951

2,108,791
6%

2,939,582 9,266,010
9% 29%

Buildings & Infrastructure Furniture Machinery & Equipment Raw Materials Goods

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The costs incurred by trade sector enterprises account for 49% of the total value of impact across all assessed
sectors, which is due to significant losses in finished products (US$ 8.7 million).

Figure 6. Damages and losses by economic sector (in US$ and % of total value of damages and losses)
Damages and losses by category

5,324,806
16% 15,817,828
49%

11,211,317
35%

Trade Manufacturing Services

Figure 7. Damages and losses by economic sector and category

Damages (US$) Losses (US$) Grand Total

Sector Buildings & Equipment & Raw
Furniture Total Goods Total US$
Infrastructure Machinery Materials

Manufacturing 2,510,425 126,230 4,883,505 7,520,160 2,310,302 1,380,855 3,691,157 11,211,317

Trade 3,750,513 779,398 2,042,445 6,572,356 538,980 8,706,492 9,245,472 15,817,828
Services 1,543,393 1,203,163 2,340,060 5,086,616 90,300 147,890 238,190 5,324,806
Grand Total 7,804,331 2,108,791 9,266,010 19,179,132 2,939,582 10,235,237 13,174,819 32,353,951

With regards to the assessed value of impact, the overwhelming majority of affected enterprises (77%) incurred
lesser costs (up to US$ 7,000 per unit). At the same time, a smaller group of 51 enterprises – only 2% of the total
number of affected businesses - accounted for about 55% of the total value of impact across all targeted sectors,
as they incurred high damage costs and losses (between US$ 100,000 and US$ 2.250 million).

While damages to Paltel ICT infrastructure have been covered by the Infrastructure Damage Assessment,
commissioned by UNDP, this assessment evaluated the impact on 164 private ICT facilities – including media
companies, satellite channels, radios, internet providers and ICT start-ups. The related total value of damages and
losses amounts to US$ 8,878,805.

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Private sector survey findings

The private sector survey, undertaken by UNDP three months after the end of the May 2021 hostilities in
cooperation with PFI, Paltrade, and GCCI, targeted a representative sample of 320 affected businesses. The trade
sector accounted for 51% of survey respondents, followed by the services sector (35%) and manufacturing (14%).

The survey results highlighted that 33% of the employees lost their jobs as a result of the May 2021 hostilities,
while most enterprises (62%) are currently working with limited operational capacity. Only 7% of surveyed
respondents were able to re-establish their productivity. Damages to equipment, machinery, and infrastructure,
as well as limited cash availability, are key factors crippling the full resumption of economic activity.

The survey has also identified priority needs, critical for the recovery of economic activity from the impact of
the May 2021 hostilities. These factors – as prioritized by surveyed businesses - include access to finance and
availability of inputs, including raw materials.

Figure 8. Priority needs identified by surveyed businesses (as % of total survey respondents)
Priority needs for affected businesses
100% 97%

80%

60%
36% 45%

40% 33% 34%

31%
29%
26%

20% 16%
14%
9%
2%
2
Other

Removal of debris

Soft loans

Maintenance of
machinery

Provision of
paid labour

Supply of new
machines

Supply of furniture

Building
reconstruction

Supply of office
equipment

Infrastructure
reconstruction

Provisions of inputs

Cash assistance

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Snapshot of the hostilities’ impact on jobs across targeted sectors

The assessment revealed that a total of 12,749 workers across the trade, manufacturing and services sectors have
been negatively impacted by the hostilities, with a total loss in wages reaching at least US$ 42,661,650. The
value of the losses in wages was calculated considering MoL’s indicated minimum monthly wage (US$ 450 in the
trade and services sector, and US$ 550 in the manufacturing sector). In addition, calculations took into account
different recovery periods based on the severity of damages incurred by the affected facilities, ranging from 18
months (total damage), to six months (severe damage), to three months (partial damage).

In addition, for the affected private ICT facilities, the assessment found that the total loss in wages amounted to
US$ 429,394.

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Figure 9. Estimated wage losses by sector (in US$ and % of total wage losses)

Wage losses by economic sector

12,426,750

18,115,650

12,119,250

Trade Manufacturing Services

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Recommendations
The recommendations, developed as part of the economic impact assessment, are based on the field-
based evaluation of damages and losses, as well as on stakeholder consultations, focus group discussions
and interviews with key informants (line ministries, private sector institutions, and business owners). These
recommendations aim to respond to urgent needs and boost private sector recovery, while addressing systemic
issues and strengthening resilience. They outline short-term (18 to 24 months) and medium to long-term (2 to
5 years) priority interventions.

Figure 10. Guiding principles to recovery and resilience

Guiding Principles
Partnership Build Forward Leave No
Do No Harm Gender Equality
& Ownership Better One Behind

To foster national and To strengthen resilience All economic recovery Recovery interventions Economic recovery efforts
local ownership, and enhance efforts shall consider the shall be designed and shall duly consider
economic recovery efforts sustainability, economic needs of the most implemented in a way that structural barriers
shall be developed and recovery efforts shall be vulnerable communities ensures accountability perpetrating gender
implemented in aimed at building forward and households, and towards affected people inequalities in the socio-
partnership with key local better - rather than simply wherever possible and businesses, without economic spheres and aim
stakeholders, including re-establishing pre- address such needs to causing any harm to to promote the economic
MoNE, MoTIT, MoL, PFI, hostilities economic ensure inclusive socio- people, the environment empowerment and
Paltrade, GCCI. conditions. economic recovery. and the local economy. participation of women.

Short-term priorities – employment protection and private sector recovery

Against the backdrop of a local Gazan economy that has been crippled by a 14-year long blockade and multiple
rounds of hostilities, the proposed short-term priority interventions aim to provide an immediate stimulus to the
local economy, by supporting the recovery of affected economic establishments, supporting job retention for
affected businesses, and providing income generation opportunities to the people of Gaza.

To enable a rapid private sector recovery and resumption of activities of existing businesses at full operating
capacity, interventions shall address:

• Provision of financial support to affected MSMEs, allowing them to rebuild their infrastructure, as well as to
purchase critical equipment, raw materials and goods.

• Provision of critical equipment required for the recovery of the operating capacity, coupled with support in
terms of maintenance of production lines and re-stocking of inputs and merchandise necessary to resume
business activities.

• Support to MSMEs in pursuing an inclusive and equitable approach in rebuilding their workforce, accessing
the untapped potential of women’s participation in the private sector recovery.

• Provision of technical assistance and business development services, to support affected businesses in
adapting and improving their business models in light of the impact of the May 2021 hostilities and the
COVID-19 pandemic, strengthening their capacity to cope with future shocks and crises, and enhancing their
resilience and sustainability.

• Provision of financial and technical assistance adequately tailored to women-led MSMEs, which shall be
coupled with complementary support services aimed at reducing the gendered burden of unpaid care work
– which disproportionately affect women – and facilitating improved work-life balance.

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At the same time, complementary interventions are required to ensure employment protection and to restore
and improve access to decent jobs, while prioritizing workers who lost their jobs following the May 2021
hostilities, as well as those who have been unemployed since before the hostilities.

• Subsidize wages for workers who lost their jobs as a result of damages and losses incurred by economic
establishments affected by the May 2021 hostilities. For instance, subsidizing wages for the almost 12,800
workers affected in the establishments covered by this assessment would require a total estimated budget of
US$ 23 million (assuming a duration of four months, with a wage subsidy of US$ 450 per month per worker).

• Deploy additional workers across key economic sectors to secure their access to decent jobs, while further
supporting private sector recovery and reducing operational costs. For example, subsidizing wages for 20,000
additional workers across different economic sectors would require an estimated budget of US$ 36 million
(assuming a duration of four months, with a wage subsidy of US$ 450 per month per worker).

• Provide technical and financial support to emerging entrepreneurs, start-ups, and social enterprises,
prioritizing those that have been affected by the hostilities and whose business viability is significantly at risk.

• Roll-out training and apprenticeship placement programmes that address the issue of skills deficit in the
private sector, enabling youth to access on-the-job skills development opportunities. Such programmes
shall prioritize sectors playing a crucial role in the post-hostilities’ rehabilitation and reconstruction process
(e.g., construction) and shall encourage the adoption of relevant approaches to enhance a gender-sensitive
perspective, enhancing employability of women, as well as sustainability and resource efficiency (e.g. rubble
re-use in construction).

• Support capacity development of TVET institutions through rapid interventions, including provision of
modern equipment and resources, as well as ToTs in line with market demand. In the short-term, such
interventions shall prioritize those TVET streams that are most relevant for the post-hostilities’ rehabilitation
and reconstruction process, with a view to facilitate TVET graduates’ rapid transition into the labour market.

In line with the Leave No One Behind principle and with a view to reduce inequalities, all priority interventions
should include tailored strategies and actions to ensure the inclusion of vulnerable groups, including persons
with disabilities (PWDs), youth and women, and support them in accessing safe, decent, and productive jobs. This
cross-cutting principle also applies to interventions geared towards boosting rapid private sector recovery, where
affected businesses led by women, PWDs and/or youth shall be prioritized.

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Medium to long-term priorities – private sector development and sustainable

employment
Several policy and programmatic interventions shall be prioritized in the medium to long-term, with a view to
promote an enabling environment for private sector development and market integration in the Gaza Strip,
supporting businesses’ sustainable growth, improved market access and increased competitiveness.

While the need for these interventions is not directly stemming from the most recent hostilities, these
recommendations are critical if Gaza’s economy is to recover from a downward spiral of systemic de-development,
generated by a relentless cycle of blockade and escalations.

They are aimed at fostering inclusive and sustainable private sector development and employment, in line with
the Build Forward Better approach. These longer-term initiatives are geared towards improving the enabling
business environment despite structural challenges posed by the protracted blockade and the intra-Palestinian
divide, as well as towards sustainable solutions for the chronic high rates of unemployment – and particularly
youth unemployment - in the Gaza Strip.

• Support capacity development of MSMEs, focusing on the following key elements:

1. Technical assistance: support and scale-up the National MSMEs Helpdesk and facilitate coordination
and complementarity with other existing programmes providing business development services and
technical assistance to MSMEs. Technical assistance and business development services shall also include
a focus on supporting MSMEs in increasingly adopting green and environmentally sustainable business
models, to support a gradual transition towards a green economy.

2. Access to Finance: support and expand the coverage and outreach of existing programmes providing
grants and/or soft loans to MSMEs, such as the PMA’s Istidama Fund.

3. Access to Markets: support MSMEs access to local, national, regional, and international markets, including
through e-commerce.

4. Technology and Digitalization: support MSMEs access to relevant technology and digital tools to improve
their operational capacity, support business development, and facilitate improved market access and
competitiveness.

5. Access to skilled workers: support MSMEs’ access to skilled workers – including through wage subsidies
and consultancy programmes – to cover the growing demand for skilled labour and new competencies,
improving MSMEs’ operational capacities, know-how and competitiveness.

• Support capacity development of MoNE, including through:

1. Digitalization and automation of MoNE services and operations through ICT solutions and web platforms,
ensuring efficient institutional operations and support to private sector stakeholders.

2. Re-activation of the Palestinian Standards Institute (PSI) to ensure compliance with quality standards,
conduct testing for imported goods, and provide quality certifications for locally manufactured goods.

3. Support MoNE and other relevant governmental institutions in developing, adopting and rolling-out
policy and regulatory mechanisms that provide incentives for businesses towards ensuring greater
women inclusion in the private sector.

• Support capacity building of private sector associations, namely the Palestinian Federation of Industries, Gaza
Chambers of Commerce and Industry, and The Palestine Trade Center (PALTRADE):

1. Strengthen the capacity of private sector associations to ensure quality service delivery to Gazan
businesses, as well as support their capacity to effectively represent and advocate for private sector needs
and priorities vis-à-vis relevant institutions and actors.

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2. Assist private sector associations in linking Gaza-based private sector leaders and business professionals
with their counterparts in the West Bank, as well as in the MENA region and internationally. This should
include facilitating businesses’ participation in relevant trade fairs and exhibitions, high-level workshops
and conferences, as well as visits to regional and global businesses and business-related councils and
chambers.

• Enhance economic and market integration by supporting trade facilitation with the West Bank, as well as
with regional and international markets, through several complementary interventions. The successful
implementation and scaling-up of trade-oriented interventions is contingent on a gradual ease of restrictions
on the movement of goods and people into and from the Gaza Strip.

1. Increase the capacity of Kerem Shalom and Rafah commercial crossings to facilitate smooth flow of
goods and materials, pending an ease of restrictions by Israel and potential positive developments on
the Egyptian side.

2. Support and facilitate export of local products and goods, focusing on economic sectors with significant
exporting potential (garments, agriculture, furniture, and food industries). Export promotion interventions
shall include developing and enhancing the quality of local products, enabling local export to have
international certificates (e.g., ISO, HACCP), improving packaging and labelling, organizing exhibitions
and trade missions overseas, and support market intelligence to identify strategic entry points for market
penetration.

3. Develop Industrial Zones, as export-oriented industrial production, to create sustainable employment

and stimulate overall economic growth. The industrial zones would serve as hubs for the local industry by
providing the needed infrastructure for businesses to operate. More resources are to develop additional
industrial estates outside Gaza City, as well as to improve existing ones and ensure they are affected by
the May 2021 hostilities operational (e.g., Rafah industrial estate).

• Support the development of the ICT sector (e.g. equipment), prioritizing broadband internet connect relevant
streams, development of infrastructure (including the ongoing efforts of building an ICT tower/IT development
zone in the Gaza strip), as well as promoting Gazan IT enterprises’ access to the global IT markets.

In parallel with these interventions focused on private sector development and market integration, complementary
efforts and interventions shall be channelled towards tackling the chronically high rates of unemployment in the
Gaza Strip and fostering sustainable employment, with a key focus on youth.

• Improve the capacities of relevant education institutions – including higher education and TVET institutions –
to provide quality and market-driven education and skilling, with an end view to enhance youth employability
and facilitate smooth transition into the labour market. Interventions in this area shall include, but not limited
to, the following:

1. Support rapid interventions for TVET institutions to provide market-driven and quality skilling, including
through curriculum development and improvement of existing TVET streams, development of new
market-relevant TVET streams, and training of trainers.

2. Support capacity development of higher education institutions to provide market-relevant and quality
education, and complementary skilling opportunities to enhance youth employability upon graduation,
including activities focused on life and skills development.

3. Support and incentivize traineeships and on-the-job training programmes for skilled graduates (including
TVET and university graduates).

4. Support and scale-up existing programmes that facilitate skilled youth’s access to e-jobs and freelancing
opportunities

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• Encourage and facilitate entrepreneurship and innovation, through several complementary policy and
programmatic interventions aimed at improving the overall start-up and innovation ecosystem, including:

1. Support and scale-up the technical and financial capacities of existing business incubators, enabling
them to provide quality and effective incubation assistance (including pre-seed/seed funding, prototype
development and market testing and validation of MVPs) to start-ups (including social enterprises).

2. Support connectivity and knowledge exchange between Gaza-based emerging entrepreneurs and start-
ups and those based in the West Bank and East Jerusalem, as well as those in the MENA region and globally.

3. Develop and advocate for the adoption of policies and regulations aimed to improve the enabling
environment for entrepreneurship and innovation (including fiscal incentives for entrepreneurs and start-
ups) and provide technical and financial support to relevant institutions in the implementation phase.

While all recommendations have a clear potential to effectively mitigate the impact of the May 2021 hostilities on
businesses and livelihoods in the short-term, and to foster socio-economic recovery and resilience in the medium
to long-term, they cannot be decoupled from the political and structural challenges hindering the path towards
sustainable development for the people of Gaza. Complementary advocacy efforts must be sustained and scaled-
up to revive meaningful peace negotiations between Israeli and Palestinian political leadership, as well as to foster
real progress towards bridging the intra-Palestinian political divide.

Figure 11. Short and medium to long-term priority interventions

SHORT-TERM PRIORITIES MEDIUM TO LONG-TERM PRIORITIES

PRIVATE SECTOR EMPLOYMENT PRIVATE SECTOR SUSTAINABLE

RECOVERY PROTECTION DEVELOPMENT EMPLOYMENT

Subsidize wages for workers who lost their jobs as a result of damages and losses Support capacity development of Strengthen the capacities of
incurred by affected economic establishments affected by the May 2021 hostilities MSMEs, incl. business development relevant education institutions -
services and market access support incl. universities and TVET schools -
Provide financial support to Support rapid interventions for to provide market-driven education
affected MSMEs TVET institutions (e.g. equipment), Support capacity development of and skilling, to foster youth
prioritizing recovery and MoNE and other relevant transition into the labor market
Provide critical equipment to reconstruction relevant streams governmental institutions
recover operating capacity
Encourage and facilitate
Support capacity building of private entrepreneurship, through
Deploy additional workers across key economic sectors to secure their sector associations
to decent jobs access complementary policy and
programmatic interventions aimed
Support trade facilitation and export- at improving the overall start-up
Provide of technical assistance and innovation ecosystem
& business development services oriented production, incl. through
development of industrial zones
Provide financial and technical support to emerging entrepreneurs, start-ups,
Support the development of the ICT
and social enterprises
sector
Support MSMEs in pursuing an inclusive and equitable approach in
rebuilding their workforce especially women

Provide financial and Roll-out apprenticeship

technical assistance tailored to programmes that address
women-led MSMEs skills deficit - especially for youth

CROSS-CUTTING PRINCIPLES

PARTNERSHIP & BUILD FORWARD LEAVE NO ONE GENDER

DO NO HARM
OWNERSHIP BETTER BEHIND EQUALITY

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GAZA ECONOMIC IMPACT ASSESSMENT SUMMARY REPORT FOLLOWING THE MAY 2021 HOSTILITIES

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References
i PCBS: Statistical Yearbook of Palestine, December 2020
ii These hostilities and military escalations include Operation Summer Rains and Operation Autumn Cloud (2006); Operation
Hot Winter (2008); Operation Cast Lead (2008-9); Operation Returning Echo and Operation Pillar of Defense (2012);
Operation Protective Edge (2014) and Operation Wall Guardian (May 2021).
iii PCBS, 2019, Socio-Economic & Food Security Survey 2018
https://fscluster.org/sites/default/files/documents/socioeconomic_food_security_survey_sefsec_2018_full_
repor_02.09t.pdf
iv PCBS, 2017,
https://www.pcbs.gov.ps/site/881/default.aspx
v PCBS, January – March 2021, Press Release on The Results of The Labour Force Survey First Quarter
https://www.pcbs.gov.ps/post.aspx?lang=en&ItemID=3987
vi PCBS (2021). Palestinian Labor Force Survey 2020 – Annual Report. Retrieved from:
https://www.pcbs.gov.ps/Downloads/book2562.pdf
vii Youth long-term unemployment rate refers to young people (aged 15 – 29) being unemployed for at least 12 months or
more.
viii Ibid.
ix OCHA. Humanitarian Needs Overview 2021. Retrieved from:
https://www.ochaopt.org/sites/default/files/hno_2021.pdf
x Death toll in Gaza includes those who died due to indirect consequences of the hostilities, such as cardiac arrest or falling
while running during an attack.
xi OCHA (2021). Humanitarian Bulletin – Gaza after the May escalation. November 2021. Retrieved from:
https://www.ochaopt.org/content/overview-november-2021#ftn1
xii World Bank (2021). Economic Monitoring Report to the AHLC, 17 November 2021
xiii FAO (2021). Impact of the May conflict escalation on the agricultural area in the Gaza Strip. Retrieved from:
https://www.fao.org/3/cb7167en/cb7167en.pdf
www.ps.undp.org