40 Years of Industry Destroyed: The Impact of War on Gaza’s Economy
How the Israeli War Devastated Gaza's Manufacturing Sector and Left Thousands Without Livelihoods.
Watan-The Palestinian businessman Ahmed Shomer looks with deep sorrow at the remnants of his factory, which was destroyed by the Israeli army during the war that Israel waged on the Gaza Strip for over 15 months.
The “Shomer” factory for sweets and biscuits no longer thrives as it once did, having suffered total destruction that affected all aspects of production, leaving a profound impact on the industrial sector in Gaza.
The land that once produced thousands of tons of sweets and biscuits has turned into a scene of devastation, and the four floors that housed the most modern production lines are now reduced to piles of rubble and debris.
Over 40 years of continuous operation, the “Shomer” factory was one of the most prominent symbols of local production in Gaza and among the largest facilities providing essential food products to citizens while supporting thousands of Palestinian families.
The “Shomer” factory was not the only facility destroyed; the Israeli war machine targeted numerous other factories that formed the backbone of the local economy, contributing to the collapse of the manufacturing sector, which is a vital pillar of Gaza’s economy.
Located in central Gaza, “Shomer” was an important hub providing jobs for thousands of workers who depended on this essential source of income. Meanwhile, the United Nations confirmed that more than two million Palestinians in Gaza are in urgent need of aid to meet their basic needs.
At a press conference held last week, UN spokesperson Farhan Haq stated that the organization has increased its humanitarian assistance to the area after the ceasefire agreement came into effect on January 19.
40 Years of Work
The owner of the “Shomer” factory, Palestinian businessman Ahmed Shomer, said, “We began in this sector 40 years ago in Gaza when our factory was small, and over time it grew.”
He added, “The factory spans over three dunams with four floors in the central region. Over the years, it developed, and we now have nine production lines, including chips, biscuits, snacks, candies of all kinds, and rahat lokum (Turkish delight).”
He noted that the destruction in Gaza completely obliterated the factory, with production lines buried under rubble, leaving the fate of 200 families, whose breadwinners worked at the factory, unknown. He estimated the losses at $15 million.
He called on Arab and Islamic nations to pay attention to Gaza, which used to represent a significant part of its economic strength in the industrial sector.
Destruction of Economic Infrastructure
Palestinian economic expert and analyst Maher Al-Tabbaa said, “The Israeli war on the Gaza Strip resulted in significant destruction to the local economic infrastructure.”
Al-Tabbaa predicted that more than 80% of economic establishments suffered partial or total destruction due to the war’s adverse effects.
According to the Palestinian Ministry of National Economy, 50,000 industrial and commercial establishments were spread across the Gaza Strip by the end of 2022.
The World Bank reported that approximately half a million jobs were lost in the Palestinian market since October 2023, including an estimated 200,000 jobs in Gaza, 144,000 in the West Bank, and 148,000 across the border in the West Bank’s labor market in Israel.
On January 19, the ceasefire between Hamas and Israel took effect, entering its first phase lasting 42 days, during which negotiations will be held to begin a second and third phase, mediated by Egypt, Qatar, and the United States.
Between October 7, 2023, and January 19, 2025, Israel waged a war on Gaza that left over 158,000 Palestinian martyrs and wounded, most of them children and women, along with more than 14,000 missing persons.
