Spotlight on Jenin: Part Six: The Threat of Terrorism to Jenin’s Economy

Jenin, dubbed the Palestinian “terror capital” by observers, has been in the news for the past few months as Israel continues to carry out counter-terrorism operations in a bid to save Israeli lives and prevent the actions of those who seek to harm the Jewish state.

But while Jenin is constantly being mentioned in the media, how much do we really know about Jenin?

In this series, we will take a look at different Jenin-related topics and hopefully provide a multi-faceted understanding of the city at the center of the current rise in violence and terrorism.

This is ‘Spotlight on Jenin.’

In this piece, we will take a look at Jenin’s economy, its monumental growth in the 15-year period following the Second Intifada, and the threat that terrorism poses to its continued growth.

From Traditional Markets to Mass Investment: Jenin’s Economic Boom

Based in the northern West Bank, Jenin’s economy has traditionally been based on agriculture, due to the region’s fertile soil and access to natural springs.

However, the city underwent a period of unprecedented economic growth after the Second Intifada. During the terror wave, Jenin was the site of some of the most intense fighting between the Israeli army and Palestinian terror groups.

The economic growth was marked by increased Arab Israeli investment, the opening of the Arab American University (which strengthened businesses in the areas surrounding the university’s campus and dormitories), increased movement of people and goods between the region and pre-1967 Israel at the nearby Gilboa / Jalameh crossing (which opened in 2009), an increase in residents of Jenin working for Israeli businesses and a boom in the real estate sector.

Impressive visit today to the Jenin campus of @aaup_edu, an academic and scientific beacon in the Middle East, providing quality education for Palestinian and international students. Mabrouk on your achievements! pic.twitter.com/7XCaQZywXc

— Torunn Viste (@Tvistee) October 25, 2021

In addition, the Palestinian Authority launched the Jenin Pilot Project in 2008. This plan, which was supported by Israel, the United States, and other international investors, was focused on revitalizing Jenin. This included strengthening PA forces in the region, developing an industrial park, and updating vital infrastructure such as electricity and water.

Related Reading: Jenin: The Palestinian Terror Capital & Its Threat to the Region

While Jenin’s economy was undergoing 15 years of growth and prosperity, there also developed a black market of sorts, where disenfranchised youth and former members of terror organizations made a living by selling stolen car parts, dealing in arms, and extorting members of the general population.

The growth of this seedy underbelly in Jenin over the past few years, as well as an economic downturn due to the COVID-19 pandemic, helped contribute to the anarchic atmosphere which has allowed terror organizations such as Hamas, the Al Aqsa Martyrs’ Brigades and Palestinian Islamic Jihad to assert their dominance on the streets of Jenin and wrest control of the area from the security forces of the Palestinian Authority.

This, in turn, has led to the revival of Jenin as a hub of Palestinian terrorism.

Related Reading: Follow the Money: Media Absent as Palestinian Authority Fails to Meet ‘Minimum’ US Transparency Requirements

How Terrorism Hurts Jenin’s Economy

Since the resurgence of terrorism, Jenin’s economic situation has declined precipitously.

The main reason for this decline is that terrorist attacks that emanate from the Jenin region, coupled with Israeli counter-terrorism operations, have led to a reduction in the number of Arab Israelis willing to travel to the area for business and leisure. Since Jenin relies heavily on Arab Israeli business, this has had a deleterious effect on the economy.

As well, for those Arab Israelis who still wish to venture into Jenin, access is limited during times of heightened tensions. In April 2022, in response to threats emanating from the region, Israel closed off access to Jenin for Arab Israelis.

Similarly, in September 2022, the Gilboa / Jalama crossing was closed by Israel for a number of days after an IDF officer was killed in a shootout with Palestinian gunmen from the Jenin area. According to one estimate, every day that the crossing is closed, businesses in the Jenin region lose approximately $420,000.00.

Thus, for Jenin and its surrounding environs to experience a resurgence in economic growth and prosperity, the Palestinian Authority must reassert its control over the Jenin region, help diminish the influence of Palestinian terror organizations and return a sense of quiet and stability to the area. Only then will Jenin reap some of the benefits it worked hard to attain over the past 15 years.

For Part Seven: Jenin in the Israeli and Palestinian Psyche, click here

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