Less than three years ago, Wassif Frahat made a significant investment of $3 million to establish the luxurious Ali Baba restaurant in Jenin. The restaurant boasts a grand two-story structure with a grand entrance, polished stone floors, dazzling chandeliers, and intricate frescoes adorning the high ceilings, embodying his hope for a brighter future.
Situated just a short drive from the Jalameh checkpoint, which typically facilitates the entry of Israeli Arab citizens into the West Bank, the Ali Baba exudes a distinctly Palestinian ambiance. The local businesses offer more affordable prices compared to those in Israel, attracting visitors and locals alike. However, the recent closure of the checkpoint following Hamas’ incursion into Israel from Gaza has disrupted this economic ecosystem.
The aftermath of the conflict has not only ravaged Gaza but has also plunged the West Bank into economic turmoil, turning it into an additional battleground in Israel’s struggle against Palestinian militancy. The Palestinian Authority, responsible for governing parts of the West Bank, has been unable to fulfill its financial obligations, resulting in a drastic cut in salaries for its approximately 140,000 employees.
- In the entire West Bank, comprising around three million residents, 144,000 jobs have vanished since the incursion, with an additional 148,000 Palestinians losing their employment opportunities in Israel, as reported by the World Bank.
- Before the events of October 7, the West Bank’s unemployment rate stood at around 13%, significantly lower than Gaza’s staggering 45%.
Mr. Frahat, aged 51, formerly employed 53 staff members across both his new establishment and an older restaurant in the city center. However, due to a sharp decline in business by as much as 90%, he has been forced to downsize his workforce to just 18 employees.
