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Gaza... What does it mean economically for Israel?

Tuesday 05/Aug/2025 - Time: 8:39 PM

Arabian Sea Newspaper - Special

((Arab Sea)) Translations: Israeli estimates revealed on Tuesday that the costs of Israel's occupation of the Gaza Strip and imposing control over it would cost it an amount of nearly $6 billion, while trying to prepare the Strip for housing would cost nearly $27 billion. According to what was published by the "Israel Hayom" newspaper, quoting Ram Aminach, who previously held the position of de facto financial advisor to the Israeli army and is a military economics expert, said: "The Chief of Staff does not demand clear orders, how the military mission is defined is crucial, because each mission significantly affects the budget and costs." According to the newspaper, initial estimates indicate that the army's rush to control all areas of Gaza that it does not currently control will cost between 10 and 20 billion shekels ($2.9 to $5.8 billion). Aminach said: "We are talking about unimaginable costs, look at the international pressure Israel is facing today, and multiply it by at least five, to alleviate this pressure, we will have to take care of the population in Gaza, no international party will help pay for that, as long as Israel's current image remains as it is." He also explains that the practical assumption is that complete control of the Gaza Strip, even without complete reconstruction but with Israel bearing responsibility for the population, will require a one-time cost of 100 billion shekels ($29 billion), which includes waste removal, building basic housing, sanitation, water and electricity infrastructure, and establishing health care centers. In addition to the initial spending, the annual cost of maintaining full control of Gaza is estimated at between 60 and 130 billion shekels ($17.4 to $37.6 billion), which includes assuming partial responsibility for the education system, enough to satisfy international scrutiny, providing food completely, and stationing Israeli army units with periodic rotation of reserve forces. The Israeli expert continues: "In essence, the biggest financial burden will be in keeping the Israeli army inside the Strip, to maintain order and ensure the safety of the forces." Aminach also highlighted the Rehabilitation and Families Affairs Department in the Ministry of Defense, which is responsible for paying compensation to the families of fallen soldiers, medical rehabilitation for the injured, and lifetime pensions for disabled veterans, a figure that is constantly increasing. The budget of this financial department is currently close to 120 billion shekels (about $34 billion), an amount that will increase if Israel enters Gaza with full force. Aminach confirms that the crucial element in these figures is the definition of the mission. For example, for Finance Minister Bezalel Smotrich and National Security Minister Itamar Ben Gvir, "full sovereignty" means rebuilding Israeli settlements in Gaza, which would add the costs of building housing, providing security, and ongoing maintenance for civilian residents, all of which are not included in the current estimates.

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