The War Profiteering in Gaza
Motaz Abu-Mweis
CFO-UNRWA. /Former Microfinance Regulator/Finance Leader /Microfinance Expert /IFRS & IPSAS Specialist /Risk Management /Data Analytics & Project Management .
By Motaz Abu-Mweis. November, 2,2024.
Introduction:
In the shadow of the catastrophic situation , another kind of atrocity takes place, one that doesn’t involve guns or missiles, but greed. In Gaza, there is no escape.
This article isn’t about the immediate horrors of war ; it’s about those who profit from it without ever stepping onto the battlefield. These are who turn human suffering into opportunity, treating desperate need as just another market to exploit. To them, selling essentials at ten or twenty times their worth is not extortion ,it’s savvy business. This is about the war profiteers, and sadly, they are many.
When Famine Becomes a Weapon:
10 independent UN experts, including the special rapporteur on the right to food and the special rapporteur on human rights ,said in a statement : "Israel’s intentional and targeted starvation campaign against the Palestinian people is a form of genocidal violence and has resulted in famine across all of Gaza". UNICEF In its report in September 2024, it was stated that nearly all residents of the Gaza Strip , or 96% of the population are experiencing food insecurity at a crisis level (Phase 3 or above)
On one typical day, Umm Muhammed prepared food for her family of eight (Saj bread) with cream cheese. That meal for the day was calculated to contain about 330 calories per person, significantly lower than the daily average recommended value of at least 1,000 calories for a toddler,1,400 calories per day for older child, and about 2,100 calories for adults. Some Gazans have been reduced to drinking sewage water and eating animal feed, according to Hanan Balkhy, the World Health Organization (WHO)’s Eastern Mediterranean regional director.
Before October 7th, Gaza was largely self-sufficient in terms of producing vegetables, dairy, poultry, and fruits. However, the ongoing war has turned the tables, leaving the food system in Gaza reliant on canned foods provided through humanitarian aid, if it manages to arrive.
Food Shortages and Black Market Exploitation:
While the people of Gaza struggle to afford even the most necessities, the prices soar from ten to twenty times their original cost. The price of a chicken has risen 600% , sugar cost increased by 900% .Some goods have skyrocketed to unimaginably high prices. In Gaza City, the price of a kilo of tomatoes has increased by more than 8,690 per cent, while the price for 2kg of eggs is up by 1,829 per cent, according to the WFP.
Wasam Shaath, a taxi driver, navigates a local market in Rafah, southern Gaza, in search of diapers for his twin sons, said that last summer, he paid $4 for a box of American-made Pampers. Now, he says traders at the market near Najma Square are asking between $55 and $60 for Egyptian-made diapers. Every link in the supply chain distances itself from responsibility. The Ministry of Economy under Hamas denies any involvement in the black market. Traders refuse to accept accountability. Egyptian authorities disclaim any role, and even Israel asserts it bears no responsibility.
According to an investigation by the Organized Crime and Corruption Reporting Project (OCCRP), an investigative platform partnering with Le Monde, war profiteers are exploiting malfunctions in the supply chain, from transport to sale, to get rich. The entry of commercial products is hampered by the security checks that have been imposed by Israel since the start of the war and the constraints of transport, such as multiple inspections, long queues at checkpoints. The share of traders of food supplies has increased, but they must pay huge payments to black market fees like Israeli-issued import permits, as well as significant sums for armed (security companies). then with high mark-ups, the goods are passed on to the destitute Palestinians, where hunger and food shortages are rife.
Haaretz, the Israeli newspaper, reported in November 2024 that the Israeli army permits armed clans to extort aid trucks, demanding protection fees. These trucks are regularly subjected to systematic armed looting. Several international organizations refuse to pay the demanded fees, resulting in their aid being held in Israeli army warehouses. The Israeli army, however, not only refuses to protect these trucks but also blocks them from taking alternative routes. Additionally, according to multiple media sources, the Israeli army bombed local police forces in the area when they attempted to safeguard the aid from looting.
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The Cash Shortage Worsens Misery:
The lack of cash in Gaza only deepens the crisis, threatening people’s livelihoods and food security. Israel has entirely blocked cash entry into Gaza since October 2023.Meanwhile, cash continues to leave Gaza through exit fees paid by those departing via Rafah Crossing, often amounting to tens of thousands of dollars per person. With thousands leaving, dollars are now almost nonexistent in Gaza. Dollars also exit through payments for commercial goods permitted for the private sector. The third reason for the cash shortage is wear and tear. Before the war, damaged bills were replaced through Palestinian-Israeli coordination, but since the war began, this has stopped, leaving worn bills that traders now refuse, rendering them worthless.
There are days I can't buy a loaf of bread for my children, even though bread is available and I have money in my bank account," says Mohammad Klub. The money in his account is worthless if he can’t withdraw it in cash to pay the vendor, who doesn’t accept electronic payments. “We have reached the point of complete lack of liquidity now. It can't get worse," a banker in Gaza said. Gaza's financial system is almost completely dependent on Israel, which must approve major transfers and the movement of cash into the strip.
As of May 2024, only 5 branches and 7 ATMs remain operational in the strip, primarily in Rafah, according to the Palestine Economic Policy Research Institute. Before the war, Gaza had 56 bank branches and 91 ATMs. Most banks have been damaged or destroyed during the war, after more than a year of the war, just a handful of ATMs remain operational in the strip, most if not all of them in the southern city of Rafah.
The war profiteers and gangs consider this situation as an opportunity. Hundreds, sometimes thousands, of desperate people crowd outside ATMs, often waiting days for access. Armed gangs sometimes demand a fee to provide priority access, exploiting the absence of Palestinian police. Abu Ahmed, 45, a resident of Rafah, said he had waited for as long as seven days and became so frustrated that he turned for help to gang members, who are sometimes armed with knives and guns :"I paid 300 shekels ($80) of my salary to one of them for accessing the ATM and getting my cash," said Abu Ahmed, who earns 3,500 shekels per month as a public servant.
In Gaza, even accessing money has become a costly ordeal. Some money exchangers and even certain pharmacists with credit card machines are charging steep commissions on Western Union transfers and other cash transactions. Azmi Radwan, an employee with UNRWA, reports that some merchants are taking as much as 20% to 30% in fees just to cash out salaries for UN staff. In some cases, money changers deduct a hefty fee only to claim they have no shekels available, forcing people to accept dollars at a poor exchange rate.
A senior local staff member of a UN agency reported that current cash withdrawal commissions on salaries could reach up to 32% and more . They further noted a growing scarcity of banknotes, contributing to escalating commission rates.
Furthermore, these war profiteers and criminals are not only selling cash at a 30% discount; they also resell their bank balances to facilitate transfers outside Gaza, imposing an additional 20-25% commission on each transaction. Khalil, a UNRWA employee, shared his ordeal, saying he lost 38% of his September 2024 salary just to withdraw a portion in cash and to transfer another sum to his son studying at a university in Egypt. "I am being murdered by my own people," he added, his voice weighted with frustration and despair.
In an effort to alleviate financial strain, the Palestinian Monetary Authority has introduced an instant payment system to streamline electronic transactions between banks and payment providers, aiming to assist residents in Gaza in meeting their daily needs. However, this solution faces significant challenges: frequent power outages and internet disruptions hinder the system's reliability. Consequently, money exchangers and currency dealers continue to play an increasingly dominant role in shaping the financial landscape. In response, some Gazans are turning to social media, calling for a return to bartering as a way to push back against exploitation.
Meanwhile, hundreds of millions of Israeli shekels sit trapped in bank vaults in northern Gaza, inaccessible due to the lack of secure transport and the constant threat of looting, according to U.N. and banking sources.
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