Economy in Gaza Strip on brink of collapse

Date: 12 / 10 / 2007 Time: 16:13

(MaanImages) Gaza – Ma'an –

Truckloads of basic commodities, badly needed by half a million people in the Gaza Strip are still stranded at the crossings into the Strip, manned by Israeli forces. Warehouses are empty and the economy of the Gaza Strip is on the brink of collapse.

Maher At Tabba', head of public relations in the Chamber of Commerce said that there are more than 5,000 factories in Gaza but because of the current situation about 95% are not functioning.

He added that if the siege continues 750,000 workers will be unemployed within a month.

Mahmoud Abu Aluf owns a paper-making factory in Gaza City. He said that now Gaza is considered a 'hostile entity' the economic situation has steadily deteriorated. This is in marked contrast to the first years of the Palestinian Authority when Gaza witnessed an economic boom.

He added that the embargo has been devastating for the economic institutions in the Gaza Strip and has caused a recession, forcing many businesses to close.

Paper production at the factory is at a standstill as Abu Aluf is waiting for the parts to repair two broken machines in his factory. The parts are on the Israeli side of the crossing into the Gaza Strip. "During the coming weeks the factory will not be able to produce any kind of paper because of the closure of the crossing for such a long period," he said.

Munir Sobeh is a director of the import export company, Tel Ar-Rabi', that trades with European and Arab countries. He said that before the siege goods were able to get into Gaza in about three hours but now after days of delay the shipments may not be allowed to enter the Strip at all.

He added that drivers carrying Israeli goods are allowed to cross first, whereas Palestinian merchants are made to wait.

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