Palestine Economic Update
Palestine Economic Update July 2026
author: Palestine Economic Policy Research Institute - MAS
year: 2026
Key Messages:
- New Israeli legislation will transform withholding of Palestinian clearance revenues into broader and more permanent mechanisms for appropriation.
- Despite the establishment of several funding mechanisms for Gaza’s recovery and reconstruction, the financing landscape remains fragmented, most commitments are still undisbursed, and available funding is insufficient to meet early-recovery and humanitarian needs.
- The excess-shekel crisis is increasingly disrupting banking, trade, fuel supplies and daily economic activity, while the threatened termination of correspondent-banking relationships risks turning it into a broader systemic crisis affecting nearly every aspect of economic life.
- PEX dividends rebounded strongly in 2026, reflecting resilience among leading listed companies, although the extent of the recovery remained constrained by the severity of the economic and political conditions.