Twelve nations have established a new fund to bolster the financial independence of the Palestinian Authority, responding to a severe economic crisis in the region. This initiative aims to ensure the continuity of essential services and maintain security.
The coalition includes France, the United States, Japan, Saudi Arabia, and Spain, among other global players. This concerted effort seeks to stabilize the Palestinian Authority's financial standing, which has been severely impacted by the ongoing conflict in Gaza and previous Israeli sanctions. A report by the UN Trade and Development (UNCTAD) highlighted the dire economic consequences, noting an 81% plunge in Gaza's GDP and escalating poverty and unemployment across the Occupied Palestinian Territory.
Saudi Arabia has pledged $90 million to the fund, as announced by its Minister of Foreign Affairs, Faisal bin Farhan. This contribution is part of a larger pattern of Saudi support, which has amounted to approximately $5.3 billion in recent years for humanitarian, relief, and development assistance. Overall, donors have pledged around $170 million to support the Palestinian Authority's budget.
The establishment of this fund is crucial to prevent the collapse of the Palestinian Authority and preserve its governance capacity. The participating countries have also urged Israel to release the tax revenues it collects on behalf of the PA, which constitute a significant portion of the PA's budget and whose withholding has pushed the Authority to the brink of collapse. The Palestinian Prime Minister's office stated that the pledged funds are intended to sustain government services, which have been severely impacted, leading to delayed salary payments for public employees and disruptions in education and healthcare.
The Jordanian Minister of Foreign Affairs, Ayman Al-Safadi, emphasized the importance of adhering to international law and UN resolutions, advocating for a just and comprehensive resolution to the Palestinian cause and stressing the critical role of supporting UNRWA in providing essential services to Palestinian refugees. This international move aligns with broader diplomatic efforts, including recent recognitions of the State of Palestine by several nations during the UN General Assembly.
This collective action by the twelve nations represents a vital step in empowering the Palestinian Authority to navigate its current economic challenges. It reflects a shared understanding that supporting Palestinian financial independence is an investment in the stability and future well-being of the entire region. The initiative focuses on fostering a sustainable and predictable approach, working with international financial institutions to mobilize resources and ensure transparency, thereby building a more resilient future for the Palestinian people.