This publication may be downloaded for personal use only and may not be reproduced for commercial purposes.
Policy Roundtables

Economic Impacts of Israeli Industrial Zones in the West Bank: Palestinian Labor, Environmental Pollution, and the Disruption of Palestinian Logisticss

author: Waleed Habas
year: 2026

This paper presents an analysis of the economic impacts of Israeli industrial zones in the West Bank as part of an expansionist settlement structure that undermines the territorial contiguity of the West Bank and harms the Palestinian economy on multiple levels. The importance of the paper is duly reflected in uncovering the complex nature of these Israeli industrial zones, which goes beyond their productive role to serve as tools of economic control and dispossession of Palestinian resources. This puts direct strain on the opportunities for Palestinian development and calls for urgent attention. 

The paper identifies five main effects on the Palestinian economy. First, industrial zones increase Palestinian labor dependency through an unequal labor market characterized by low wages and legal vulnerability. The second effect is evident in the fact that such zones attract some Palestinian investments, reflecting a lack of serious oversight and imbalances in the Palestinian accountability system. The third effect is reflected in the disruption of trade logistics due to geographic  fragmentation and higher transportation and trade costs. The fourth effect is that such zones contribute to high levels of environmental pollution, as polluting industries are relocated to them amid weak regulatory control. The fifth effect lies in the confiscation of agricultural land and the degradation of natural resources, weakening agricultural production and impacting food security.

attachments
Background Paper - Economic Impacts of Israeli Industrial Zones in the West Bank: Palestinian Labor, Environmental Pollution, and the Disruption of Palestinian Logisticss