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GlobesEconomy

Israeli Communities Near Gaza Shift From Recovery to Growth

Translated & summarized from Globes by baba

BusinessNeutral tone

Hebrew · Sole source

Israeli communities near the Gaza border are moving from recovery to growth three years after the October 7th attacks. The 'Home' Forum has launched an economic corporation to develop projects like hotels and elder care facilities, aiming to generate revenue. While significant government funding has been allocated, the focus is on effective distribution and long-term sustainability, especially with the planned end of the 'Tekuma' administration's support in 2029. The initiative seeks to create economic opportunities to encourage residents to remain in the region.

The story in 5 lines · by baba

  • Israeli communities near Gaza are shifting from recovery to growth three years after the October 7th attacks.
  • The 'Home' Forum established an economic corporation to develop projects like hotels and elder care facilities.
  • The initiative aims to generate revenue for the communities beyond local taxes.
  • Concerns exist about the end of government support from the 'Tekuma' administration in 2029.
  • The forum's member communities already conduct over 2 billion shekels in annual business activities.

Three years after the October 7th attacks, communities in the Gaza border region are transitioning from immediate recovery efforts to long-term growth strategies. Ziv Matzliach, chairman of the 'Home' Forum, which represents 14 severely impacted communities, described the ongoing challenges, including attending funerals for victims buried temporarily after the attacks. The forum, initially focused on housing, compensation, and regulatory battles for evacuees, has now established the 'Home' Economic Corporation to drive large-scale projects.

This new corporation aims to leverage the business acumen of kibbutz managements and collaborate with four regional councils in the Gaza envelope. Their first projects include establishing a hotel and a retirement and elder care complex. The economic model involves the councils providing land and permits, with private developers, aiming for the communities to generate revenue beyond local taxes.

While government estimates place the damage in the Gaza envelope at over 5.3 billion shekels, Matzliach noted that the primary struggle is not a lack of resources, but ensuring their effective distribution. A significant concern is the planned cessation of the 'Tekuma' administration's services on January 1, 2029, which provides essential support built in response to the disaster.

Matzliach emphasized the need for proactive planning, stating, "We didn't wait to know if it would be good. We decided to be optimistic and make sure it happens." He acknowledged that not everyone can or wants to return, stressing the state's responsibility to support those who relocate. The forum's business activities among its 14 member communities already exceed 2 billion shekels annually.

GlobesOther · Rishon LeZion

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