Israel Must Incentivize Industry for Gaza Border Region's Revival
Following the October 7th attacks, Israel is focused on rebuilding communities in the Gaza border region, known as the "Otef." However, true revival requires more than just new homes and roads; it necessitates economic vitality, including jobs, investments, and businesses. History shows that people return to a life, not just a house, and that life depends on a strong economy.
The decision by Nirlat to rebuild its factory in Nir Oz, destroyed on October 7th, exemplifies this point. The company's leadership felt a moral obligation not to surrender to terrorism, viewing relocation as a defeat. While inspiring, such decisions should not solely rely on the goodwill of individual corporations. The government must take a leading role, establishing a national strategy rather than depending on voluntary corporate actions.
To encourage businesses to invest in the Otef, Israel needs a dedicated national plan offering substantial investment grants and tax benefits, exceeding those for regular development zones. Crucially, this plan must provide long-term certainty, as incentives dependent on fleeting political moods are unreliable. The goal should be to attract new industries, not just retain existing ones, transforming the region into a hub for advanced Israeli industry, quality employment, and growth.
Revival is measured not only by rebuilt homes and returning residents but also by new factories, investment volume, and quality job creation. Addressing the workforce challenge is critical. Incentives for businesses alone are insufficient; they must be complemented by incentives for employees, including improved transportation, financial benefits, housing solutions, and conditions that attract skilled workers, managers, and engineers to live and work in the area.
The success of Kiryat Gat, which transformed from an economically distressed city to a thriving one centered around Intel, offers a model. The Otef could achieve similar success with the right tools. A new factory creates an ecosystem of suppliers, contractors, services, and indirect employment, making strong industry the engine for a complete revival.
Economically, every factory not established in the Otef due to uncertainty represents a small victory for the enemy. The government must assure businesses that investing in the region means they will not be alone. Demonstrating support for existing businesses, especially those already affected, is crucial for convincing others to invest. The business sector is ready to partner in revival, but this partnership requires more than just patriotism; it demands reciprocal commitment from the state.
