The Israeli aggression on the Gaza Strip has cast a shadow on the region's economies, particularly those of Arab countries, which have been negatively affected. This is evident in national and local output indicators, as well as in metrics of poverty, unemployment, and the rising cost of living.

The following report examines the direct and indirect economic costs incurred by Arab countries due to the aggression on Gaza, identifies the nations most impacted by this aggression, and assesses the time frame expected for these countries to recover from these effects.

Numerous international and regional reports have recently addressed the economic repercussions of the geopolitical changes brought about by the aggression in the region, directly affecting seven fronts targeted by the occupying state’s escalation, namely: Gaza, the West Bank, Lebanon, Syria, Iraq, Yemen, and Iran.

Gaza bore the brunt of the devastation, losing 16% of its original population as martyrs, injured, missing, or detained. Lebanon followed, enduring a destructive war in its southern regions, with its capital, Beirut, suffering significant damage to its infrastructure and essential facilities. The West Bank ranked third in terms of impact, followed by Syria, Yemen, Iraq, and finally, Iran.

Lebanon

Two recent reports by the International Monetary Fund and the World Bank examined the economic toll of Israeli aggression in the Middle East. They concluded that, apart from the Palestinian territories, where the war is ongoing, Lebanon ranks as the most economically affected Arab country due to the attacks that began on October 8, 2023, and lasted until the truce was signed on November 27, 2024.

The reports revealed that Lebanon has entered its worst economic crisis in decades, requiring up to two decades for recovery. Key sectors such as travel and tourism, which contribute one-fifth of the GDP, have been paralyzed, alongside agriculture, industry, and operations. Direct costs include the destruction of 37 villages and towns within a 3-kilometer radius along Lebanon's side of the Blue Line, damage to 40,000 housing units, and the displacement of 1.5 million people.

Statistics from "Statistics Lebanon," managed by Rabih Haber, estimate the losses during the 13-month aggression as follows:

• Total destroyed housing units: Approximately 11,000.
• Estimated damage value: $3.4 billion.
• Total losses: About $5.1 billion.
• GDP decline: 5.7%, bringing it to $14.5 billion.
• Agricultural sector losses: $124 million, with damage exceeding $1.1 billion.
• Trade sector losses: $178 million, with damage amounting to $1.7 billion.
• Housing sector damages: $2.8 billion, with losses estimated at $389 million.
• Tourism sector damages: $18 million, with losses reaching $1.1 billion.
• Environmental sector damages: $221 million, with losses at $214 million.
• Healthcare sector damages: $74 million, with losses of $338 million, including the destruction of 8 healthcare centers, the closure of 250 others, and the deaths of approximately 220 medical staff, with 300 others injured.
• Educational sector losses: $215 million, resulting from families sheltering in schools and educational facilities.

Egypt

Although Egypt was not a direct military target of Israeli attacks, it was economically impacted by geopolitical developments in the Red Sea region, which negatively affected the performance of the Suez Canal, one of Egypt's key foreign currency sources.

A New York Times report highlighted that Egypt, the Arab world's most populous country, had barely recovered from the rising costs of wheat and fuel imports, declining tourism revenues, and reduced investments when the Middle East war exacerbated inflation. Rising debt payments further diminished purchasing power.

Reduced shipping traffic through the Suez Canal—from the Mediterranean to the Red Sea—was evident in financial records. Canal revenues in the first eight months of 2024 averaged $862 million monthly, a 30% decline compared to the same period in 2023.

Egyptian President Abdel Fattah El-Sisi acknowledged $7 billion in economic losses. GDP growth slowed to 2.4% in the past year, down from 3.8% the previous year, due to Middle East crises, including the Gaza war.

Jordan

Jordan’s tourism sector was adversely affected by the Israeli aggression on Gaza, with tourism revenues for the first ten months of 2024 declining by $6.1 billion, a 4.4% drop compared to the same period in 2023.

Retail sectors, including clothing, electronics, and furniture, saw reduced sales, with pharmacies reporting a 20% decline in sales as consumers prioritized essential goods, according to the National Consumer Protection Association.

Syria

Since October 7, 2023, Syria has endured hundreds of Israeli attacks on military and civilian facilities under the pretext of targeting Iranian supply lines to Hezbollah.

Assessing the economic impact of the Gaza war on Syria is challenging due to internal developments, including the fall of Bashar Al-Assad’s regime and the establishment of a temporary governing body. However, Israel’s breach of the 1974 disengagement agreement and its subsequent occupation of several border villages in the Syrian Golan indicate ongoing repercussions.

Yemen

Yemen faced intense airstrikes by Israeli forces, alongside attacks by British and American naval forces. On January 10, airstrikes targeted oil storage facilities near Ras Isa Port in Hodeidah and the Haziz power station in Sana’a. Earlier raids primarily struck civilian facilities and infrastructure.

As Yemen remains a key supporter of Gaza in resisting Israeli aggression, the precise economic toll is difficult to quantify. However, Israel’s focus on oil, energy, ports, and fisheries—critical components of Yemen’s economy—has led to significant disruptions, including the shutdown of several airports.

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Read this Article in Arabic

At a time when Palestinian blood is flowing abundantly, and the cities of Gaza and its refugee camps are turning into a scene of devastating war, Arab silence remains loud and astonishing. It seems that many Arab countries have chosen to remain neutral, despite the fact that Arab streets and hearts are boiling with anger and sorrow. This silence, which envelops the Arab world amid the worst humanitarian crimes committed against the Palestinian people, leads us to wonder: Is it a shift in the balance of Arab power? Or have political and economic factors imposed themselves on the positions of these countries? Despite verbal solidarity and condemnatory statements, the most important question remains: Will the Arabs move beyond their words, or will silence remain the only voice in the face of the Zionist war machine?

A State of Terrible Silence

As missiles rain down on the heads of men, women, and children among the Palestinian people, as humans are killed and buildings are destroyed, the Arab world remains in a state of terrible silence, as if this silence envelops their souls before their ears. A silence that can only be matched by the scale of the humanitarian tragedy that is becoming increasingly complicated in Gaza. While the state of Zionist occupation raises banners of violence and destruction, many Arab rulers choose to remain silent, leaving the people of Gaza to face their fate alone.

Silence Strategic Dimensions!

However, this silence is not an innocent one; it is filled with political, economic, and even strategic dimensions. While Palestinian land is being violated, some Arab states maintain relations with international powers that have their own interests in the region, which renders them unable to take decisive or even supportive stances on the Palestinian issue and its resistance that go beyond media statements.

Moreover, this Arab silence comes at an extremely sensitive time, as the Arab world suffers from internal divisions and economic and security challenges, which directly affect the ability to take unified positions. Have the Arabs become hostages to regional and international balances that they cannot escape? Or are there other motives behind this frightening hesitation to stand by Palestine and its just cause? Will silence remain the option? Or will the greatest challenge be to take tangible steps to support the Palestinian people in every possible way?

Conditional Silence

This Arab silence regarding the crimes of occupation may result from several complex and intertwined factors, including political, economic, and social aspects, which can be summarized as follows:

1. Internal Challenges: Many Arab countries face political and economic crises and internal conflicts that may keep them preoccupied with their own issues and maintaining internal stability instead of intervening in external issues.
2. Political Balances: Some Arab governments may believe that taking strong stances against the Zionist occupation could affect their relations with other countries, whether they have economic or political interests in the region, such as their relationship with Western countries or even with some regional powers.

3- Geopolitical Transformations and Normalization: In light of the transformations in the Middle East, such as the normalization agreements between some Arab countries and the occupying state, some governments may see interaction with the occupation or criticism as endangering those agreements or obstructing the alleged path to peace.

4- Arab Division: There are varying Arab stances regarding the Palestinian cause, as not all countries agree on how to deal with this issue. Some strongly support Palestinian rights, while others still follow policies that are close to the occupying state.

5- Media and Control of the Narrative: In some Arab countries, there is control or censorship of the media that may limit discussions on certain issues directly and explicitly, especially when it comes to sensitive topics related to the occupation or the war on Gaza.

6- International Pressures: Some Arab countries face pressure from major powers, such as the United States and Europe, which may push them to remain silent or avoid taking strong stances against the occupation.

Serious Dangers

The serious repercussions of the silence of Arab regimes and governments regarding the Gaza war and the Zionist crimes against the Palestinians cannot be overlooked, both in terms of the Palestinian cause and the regional and international levels:

1- Weakening the Palestinian Position: Arab silence and the abandonment of political support for the Palestinians and their cause and rights reinforce feelings of isolation and helplessness among the Palestinians, making them feel that they are facing the occupation alone, and that they have lost the support of Arab regimes, which is a vital part of strengthening their struggle; this leads to a decline in their hope of achieving justice and freedom.

2- Harm to the Future of the Palestinian Cause: Arab silence and the lack of Arab support, as well as the absence of political escalation or effective diplomatic intervention, make the Palestinian cause vulnerable to obsolescence or marginalization on the international stage, amidst growing regional and international preoccupations with other issues.

3- Undermining the Traditional Arab Position: Through silence or cautious Arab statements, some Arab governments have contributed to undermining the traditional Arab consensus on supporting Palestinian rights and rejecting the Zionist occupation. Moreover, the absence of Arab pressure may reduce the chances of achieving a just solution to the Palestinian issue, especially in light of ongoing Zionist attempts to impose facts on the ground through settlement expansion and judaization.

4- Weakening Arab Unity: Due to the silence or indecisive stances of Arab regimes and governments, the effectiveness of Arab institutions, such as the Arab League and the Organization of Islamic Cooperation, in exerting pressure on the Zionist occupying state or taking active and firm supportive positions for the Palestinian cause is diminished.

5- Erosion of Trust Between Arab Governments and Their People: Arab governments that ignore Palestinian issues through their silence, the latest being the genocide faced by Palestinians in Gaza at the hands of the Zionist occupation army and its fascist government, weaken the trust of their people, especially in countries that have a long history of supporting the Palestinian cause. This may lead to a decline in the legitimacy of these regimes internally and increase popular protests against them.

6- Continuation of the normalization path: The normalization agreements have constrained Arab positions and weakened their ability to confront the practices of occupation regarding the Palestinian cause. They have also weakened Arab governments and forced them to align with Zionist positions out of fear of American anger. Additionally, these agreements have reduced Arab commitment to the Palestine issue and bolstered economic and political relations with the occupying state at the expense of Palestinian rights; this has contributed to the fragmentation of Arab unity regarding the Palestinian cause.

7- Spread of regional chaos and increased public discontent: Most Arab peoples feel dissatisfaction and anger towards their governments' silence regarding what is happening in Gaza; this contributes to increased political tensions and popular protests in many Arab countries. It also increases polarization and division within the Arab world between governments supportive of the occupying state and some countries that support Palestinian resistance, which, in turn, exacerbates chaos in the region and weakens the Arab capacity to face common challenges.

8- Strengthening of the Zionist occupation: The Arab silence regarding the ongoing aggression, crimes, and genocide against innocent civilians in Gaza enhances the position of the occupying state and gives it a green light to continue its policy of killing and destruction against Palestinian civilians. At a time when the occupying state does not face a strong or effective response from the Arabs, it will continue its military policy as long as it is not genuinely threatened militarily or politically.

9- Weakening of international pressure on the occupying state: When the Arab position is weak or absent, the pressures on the occupying state in the international arena diminish; this makes it less accountable legally and internationally. The silence of Arab governments regarding Zionist crimes in Gaza cannot be justified by any reasons or motives, and this silence would not persist if there were a unified and strong Arab stance, coupled with factors of pressure that the occupying entity and, behind it, the international community would consider seriously, instead of succumbing to and yielding to the West. Furthermore, this silence, with all its ramifications that go beyond political boundaries, affects the Palestinian and Arab reality in general, contributes to the strengthening of the Zionist occupation, erodes the legitimacy of Arab regimes, and drives the people towards further frustration and anger.