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OIC Economies
Gaza crisis: How Palestinians are braving the employment fallout

For many Palestinians, the prospect of securing stable work now feels more distant than ever. After more than two years of relentless war in the Gaza Strip, local job opportunities have all but vanished, while access to the global labour market remains limited to a small number of highly qualified professionals.

In the West Bank, nearly one-third of men and women were unemployed in early 2025, according to the International Labour Organization. In Gaza, the situation is far worse, with government data showing unemployment soaring to almost 68% by the end of 2024.

The war has wiped out most sources of income. Local organisations have shut down, and the commercial sector - shops, bakeries, and small businesses - has been nearly destroyed. The collapse has affected both seasoned professionals and a generation of young people graduating in devastation.

“Although Palestinians are incredibly skilled - they’re amongst the highest educated in the region with an almost 20-year tradition of monetising skills online - they face additional challenges,” Kathrine Nicolaisen, founder and CEO of Olives & Heather, a remote-first, Palestinian social-impact marketing agency, tells Salaam Gateway.

Those who completed their studies between 2023 and 2026 are entering a labour market that barely exists. 

“That is four graduating cohorts, each numbering in the thousands. Imagine all these young people entering a devastated job market,” Farah Alejil, humanitarian programs officer at Gaza-based NGO AlAnqaa Association for Community Development tells Salaam Gateway

Alejil graduated just months before the war began. “The public sector is non-operational, the private sector is barely functioning, and while the international job market remains active, it demands exceptionally high qualifications and at least five years of experience,” she adds. 

Battling the perception of instability

One of the most persistent obstacles is perception. Employers - particularly international ones - often hesitate to invest in Palestinian talent due to assumptions about instability, reliability, and infrastructure.

“Sure, during active war Palestinians and especially Gazans will not be working at 100% capacity, but they’re extremely flexible and motivated, and will find ways to make things work,” says Nicolaisen.

Alejil says this reluctance is widespread in remote hiring. “Foreign employers think twice before hiring people from Gaza because of concerns around financial transfers, productivity, and their ability to deliver work consistently - simply because they’re based in Gaza.” 

“That said, some employers are willing to take the risk, and when they do, the impact can be significant. Even if just 20 people are hired out of a thousand, those 20 often go on to train and employ others, creating a ripple effect that supports entire households.”

Infrastructure gap

Even when jobs are theoretically available, the basic conditions needed to work remotely are often missing. Many students completed their education entirely online during the war, yet lack access to stable electricity, Internet, or professional training in how to find and sustain remote work.

“Over the past two years, Internet access has been repeatedly cut off. Electricity is rarely available,” says Alejil. 

“I personally have an external power line, but many people don’t even have an electricity connection. How can remote workers function under these conditions?”

The disruption has stalled the careers of experienced professionals as well. Senior developers who once juggled multiple international clients now find themselves with one - or none. Long-standing contracts have been terminated, and entire outsourcing branches shut down.

“Some youth-led workspaces exist, supported by external funding, but there are thousands of graduates, and these spaces can only accommodate 20 to 30 people at a time,” adds Alejil.

“Even then, the Internet is not always stable. Internet access is beyond our control - the lines are largely supplied from the Israeli side and can be cut off from all of Gaza at any time.”

Nicolaisen points to the extraordinary measures many Palestinian remote workers take just to stay online - combining solar panels, car batteries, and eSims to generate power and secure Internet access.

Payment barriers 

Getting paid remains another formidable challenge. Financial restrictions and exclusion from international aid initiatives continue to isolate Palestinian workers from the global economy.

“Even initiatives launched to serve refugees and displaced communities exclude Palestine,” says Nicolaisen. “All of these factors combined makes it very hard for Palestinians to access the international job market.”

She adds that basic survival needs - housing, safety, and mental health - place an enormous burden on freelancers trying to maintain professional commitments amid ongoing trauma.

Alejil echoes this reality. “For entrepreneurs, private loans are nearly impossible to obtain, and even professionals working for international organisations struggle to receive their salaries. Western Union is blocked throughout Gaza, and wire transfers are extremely difficult.”

As a result of these challenges, a lot of digital employees have been let go by their employers over the past two years, according to Nicolaisen. 

“Rather than adjusting, they decided to cut ties and even close down whole outsourcing branches.”

Training, placement, and local solutions

Despite the scale of the crisis, some organisations are working to rebuild pathways into employment. 

Olives & Heather collaborates with local and international tech startups and ecosystem builders - including Gaza Sky Geeks, the Palestinian IT Association, and social enterprise BuildPalestine - to train and place Palestinian marketers and designers.

BuildPalestine has intensified its efforts, recently launching a $1.2 million fundraising campaign aimed at tripling the number of impact-driven businesses it supports - from 25 today to 65 enterprises by 2028 - signalling a longer-term commitment to economic resilience.

Complementing these initiatives, educational programmes such as Axsos Academy, a Palestinian coding bootcamp, equips talent with the skills needed for online work, while recruiters including Foras, MENA Alliances, and TAP play a critical role in connecting Palestinians to job opportunities.

Axsos Academy recently partnered with US-based NGO HEAL Palestine to launch 50 fully funded tech scholarships for youth from Gaza, offering a tangible pathway to skills development and employment amid the ongoing crisis.

Nicolaisen believes the tech sector offers the most immediate potential for job creation in Palestine.

“The tech sector is already contributing 4% to the Palestinian economy, and the potential is infinite,” she says.

“All Palestinians and Gazans need to start making an income and rebuild their lives is a laptop and an Internet connection.”

At the local level, organisations like AlAnqaa Association are often more effective than large international NGOs, according to Alejil.

“They hire from within the community - people with experience, though not necessarily elite qualifications - bringing in fresh graduates, supporting and training them, and gradually increasing their responsibilities.”

“Today, we have 72 employees, which is a significant achievement for a local organisation,” she says. “About 12 are permanent full-time staff, and the rest part-time.”

AlAnqaa recently launched a mobile physiotherapy outreach programme, employing newly graduated physiotherapists to provide care to injured citizens in their homes. The organisation is also preparing to establish a workspace to support both local employment and online work in Gaza.

A workforce in waiting 

The crisis facing Palestinian workers is not a shortage of talent, ambition, or work ethic - it is a crisis of access, infrastructure, and imagination. 

Palestinians have spent decades building skills for the digital economy, only to be locked out at a time they need it most.

Yet within this bleak landscape, small but significant interventions are proving that employment is possible when flexibility and trust are prioritised. 

From community-led NGOs to remote-first tech initiatives, these efforts offer a blueprint for how global employers, donors, and policymakers can move beyond sympathy toward meaningful inclusion.

OIC Economies
Qatar joins US-led initiative to secure tech supply chains

Qatar has joined a US-led initiative to secure global tech supply chains, to enhance bilateral relations and ensure the sustainability of global supply networks. 

Qatar will expand its international partnerships in semiconductors, advanced computing, cybersecurity, and digital technologies via the initiative, according to a news report published by Qatar News Agency. 

The Pax Silicia Declaration is a US-led economic security coalition to protect global tech supply chains, address AI supply chain opportunities and vulnerabilities, and explore joint investment. The initiative marks the first time countries are organizing around compute, silicon, minerals, and energy as shared strategic assets.

Dr. Ahmed bin Mohammed Al Sayed, Qatar’s minister of state for foreign trade affairs said the world is undergoing a profound transformation driven by AI, rising demand for energy and critical minerals, and rapid technological advancement.

“It supports Qatar's transition toward an innovation-driven economy, enhances the resilience of US supply chains, expands opportunities for joint research and technological development, strengthens public-private sector collaboration, and supports the growth of US companies operating in Qatar and across the region.”

US Under Secretary of State for Economic Affairs, Jacob Helberg welcomed Qatar's accession to the Declaration, describing the occasion as a pivotal moment for bilateral relations and for the global economy as a whole.

“If the 20th century ran on oil and steel, the 21st century runs on compute and the minerals that feed it,” said Helberg.

The United States and Qatar will work together on strategic investments, including critical minerals security initiatives and the modernization of global logistics infrastructure, he added. 

Qatar has launched several initiatives to fulfill its AI ambitions, including the Qatar AI Initiative as well as a national company, Qai, to develop and operate AI infrastructure within its borders and beyond. 

The PAX Silicia alliance is defined by capabilities rather than traditional alignments, said Helberg, bringing together countries with the resources and strategic vision to secure a shared technological future. 

Qatar becomes the eighth signatory, joining nations including Australia, Israel, Japan, Republic of Korea, Singapore, and the UK. The UAE is reportedly expected to join later this week.

OIC Economies
Middle East deal activity defies odds, outshines Southeast Asia 

The Middle East has emerged a hotspot for deal activity in 2025, surpassing Southeast Asia for the first time, and becoming the only emerging venture market to record an annual rise in deal count. 

The Middle East recorded a record 581 deals, up 13% annually, while narrowing the funding gap, with an all-time high of $3.4 billion, up 89% year-on-year. The performance was underpinned by stronger diplomacy ties, major events, and rising investor confidence according to data analytics firm Magnitt. 

The region saw a record $1 billion in deals worth $100 million or more, supported by the return of late-stage liquidity, diplomatic ties, key events, and rising investor confidence.

The GCC region stood out as a powerhouse, positioning itself as a destination of long-term capital, with five deals worth $100 million or more. Saudi Arabia was the most active country by funding, recording 257 deals worth $1.7 billion, with the UAE following at $1.58 billion up 67% year-on-year.   

“Throughout 2025, the region saw international investors from North America, Europe, and Asia continue to deepen their presence in the region across private capital, said Philip Bahoshy, CEO of Magnitt, in its latest report. 

“They were drawn by policy consistency, economic ambition and sustained investment in infrastructure. Global financial institutions and asset managers including Ray Dalio, Brevan Howard, KKR and Brookfield expanded their local footprint."

"Additionally, 9,800 millionaires were set to relocate to Dubai in 2025; 600 multinational companies have regional headquarters in Saudi Arabia and Dubai has passed a milestone of being home to over 100 global hedge funds,” Bahoshy added. 

M&A activity rose 41% year on year across the MENA region, while AI become an active investment theme, with related company funding increasing 204% annually to $817 million. 

Despite an 11% year-on-year decline, Singapore remained the most funded emerging venture market, with $3.08 billion. The Southeast Asia region experienced a 29% year-on-year decline in funding and deal count, with M&A activity falling to 24 deals from 35, its lowest level in seven years.

 

Islamic Finance
Oman establishes financial centre, following GCC peers 

Oman has approved the establishment of a financial centre, following its GCC peers in launching a global hub as the petrostate steps up economic diversification. 

The International Financial Centre of Oman (IFC Oman) will be headquartered in Madinat Al Irfan and will seek to attract financial investments and support sectors through incentives and tax exemptions for a period of up to 50 years.

Three independent entities, including the International Financial Centre of Oman Authority, International Financial Centre of Oman Regulator, and International Financial Centre of Oman Dispute Resolution Authority – will operate on their respective mandates. 

The centre will aim to establish operational frameworks to commence full operations in 2026. 

The establishment of International Financial Centre of Oman represents the ongoing efforts to achieve financial stability and economic diversification, said Abdulsalam Mohammed Al Murshidi, president of Oman Investment Authority.

“The centre will feature an innovative and advanced financial services infrastructure and will provide a secure and transparent environment for financial institutions and investors.”

Oman has followed the lead of several GCC peers, such as Dubai and Qatar in establishing a premier destination for companies and investors. The UAE’s Dubai International Financial Centre and Abu Dhabi Global Market have emerged as magnets for global capital, driven by regulatory environments and strong economies. 

The neighbouring Qatar Financial Centre is also an onshore global business and financial centre, offering legal and regulatory services to local and international companies. 

Islamic Finance
Saudi Arabia to open capital market to all foreign investors

Saudi Arabia will open its capital market to foreign investors starting next month, marking the latest push in a series of initiatives to drive investment inflows and enhance market liquidity. 

Starting February 1, access to the kingdom’s capital market will be accorded to all categories of foreign investors, enabling them to invest directly into Tadawul’s main market, according to Saudi’s financial market regulator. 

The amendments will eliminate the concept of qualified foreign investors in the main market. Prior to the approved regulations, only a qualified foreign investor with assets worth 1,875,000,000 Saudi riyals, equivalent or more was permitted to open an investment account. 

The amendment will also abolish swap agreements, which were previously used as an option to allow non-resident foreign investors to merely gain economic benefits of listed securities. Instead, it will grant them the ability to directly invest in listed shares on the main market. 

Ownership of foreign investors in the capital market exceeded 590 billion Saudi riyals by the end of Q3 2025, while overseas investments in the main market reached approximately 519 billion Saudi riyals during the same period.

The latest amendment builds on previous measures such as the initiative to simplify investment accounts for foreign investors announced this July. Individual foreign investors residing in any GCC country were permitted to open an account and invest in listed shares. 

In a first, investors who had moved to their home country but had previously resided in Saudi Arabia or other GCC country were allowed to continue investing in listed shares on the main market.  

"These approved amendments align with the CMA's gradual approach to opening the market, building on previous phases and paving the way for complementary steps aimed at further opening the capital market," the regulator said.

The Saudi Tadawul market, which opened up to foreign investors in 2015, operates two primary equity market segments - the main market and the Nomu - parallel market.

Earlier this year, the capital market authority allowed foreigners to invest in listed companies owning real estate in the twin holy cities of Makkah and Madinah.  
 

Islamic Lifestyle
Malaysia and Saudi Arabia joint luxury Umrah cruise launch faces delays

Malaysia's IslamiCruise, which was being launched as Asia’s first luxury Umrah cruise programme, in partnership with Saudi Arabia’s Aroya Cruises, is facing scheduling problems. The inaugural January–February 2026 voyage has been rescheduled as organisers revise routes and packages.

The 15-day, fully halal-certified cruise was officially introduced as part of Malaysia’s halal tourism push and recognised as a Visit Malaysia 2026 product. Departing from Port Klang, the one-way journey is designed to take pilgrims to Jeddah via Banda Aceh, Oman and the Maldives, before passengers complete their Umrah pilgrimage in Saudi Arabia.

IslamiCruise International announced on November 19, 2025, that sales had been temporarily suspended due to internal assessments indicating a need to better align sailing schedules with market demand and school holiday periods. The company said it remains in discussions with Aroya Cruises’ owners to finalise a revised and commercially viable launch date.

The cruise vessel can accommodate more than 3,500 passengers and offers four accommodation categories, ranging from standard cabins to suites and villas. Onboard facilities include swimming pools, water slides, sports amenities and halal dining, alongside religious programming and lectures led by Malaysian preacher Ustaz Wadi Anuar and Indonesian scholar Ustaz Abdul Somad.

While the programme is designed primarily for Muslim travellers performing Umrah, non-Muslim passengers are also permitted to join the cruise, with tailored packages that exclude pilgrimage activities.

Organisers estimate the initiative could attract between 6,000 and 8,000 visitors annually once fully operational, supporting Malaysia’s broader ambitions to strengthen its position in the global halal and Islamic tourism market.


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