Disrupted futures: How war is crippling Palestinian youth and the tech industry

Prior to the current war on Gaza, Palestine’s tech sector was undergoing rapid growth. Particularly in Gaza, a vibrant hub of innovation had emerged, with startups excelling in areas like programming, design, and digital marketing. Young entrepreneurs were seizing global opportunities, utilising digital platforms to provide services to international clients. Entrepreneurs like Mohammed Qadada, founder of Planet for Digital Solutions, emphasised the significance of this progress: “Gaza’s tech sector was advancing, creating jobs and competing globally despite numerous obstacles.”

The shift towards remote work, accelerated by the COVID-19 pandemic, further supported Palestinian freelancers. This period of expansion was supported by international NGOs and tech incubators, which invested in skills development and resources to help Palestinian professionals thrive. The tech sector in Gaza, despite its fragile environment, was becoming a key driver of the local economy, providing opportunities for a young and digitally skilled population.?

The impact of war: Devastation of infrastructure and human capital

The war, however, has brought this progress to an abrupt and devastating halt. Gaza’s already fragile infrastructure has been decimated, with essential services like electricity, internet, and transportation severely disrupted. According to the United Nations Development Programme (UNDP), over 370,000 housing units have been damaged, with 79,000 completely destroyed as of April 2024. Essential services like electricity, internet, and transportation are severely disrupted, creating significant obstacles for the tech community, which relies on stable infrastructure to thrive.

The economic fallout has been equally catastrophic t. The World Bank estimates a contraction of the Palestinian economy by 6.5% to 9.4% in 2024. Gaza’s youth unemployment rate, which stood at 62.6% before the war, has soared even higher.. This has had a direct impact on the tech community, where freelancers and startups have seen their income streams dry up as a result of the war and the collapse of critical infrastructure.?

The daily income loss is staggering—estimated at 12.3 million Israeli shekels (ILS)—and continues to push more people into extreme poverty. Many tech professionals who had previously earned a living through international clients are now struggling to survive without the necessary tools and resources to maintain their businesses.

Some graduates from the technology sector in Gaza have the chance to access remote job opportunities, 2023.

The human impact: mental health crisis among tech workers?

Beyond the destruction of infrastructure and economic decline, the war has a significant psychological impact on Gaza’s workforce and general population. The World Health Organization (WHO) reports that over 485,000 people in Gaza are suffering from mental health disorders such as anxiety, and depression. For tech professionals, who rely heavily on focus, creativity, and problem-solving skills, these mental health challenges are particularly damaging.

Freelancers like Amjad Yahia, who worked with international clients before the war, describe the overwhelming strain: “Without reliable electricity and internet access, it’s nearly impossible to keep up with work. The constant stress and trauma also take a toll on mental health, making it difficult to focus and be productive.” The human toll of the war cannot be understated. The mental health crisis, if not addressed, threatens to erode the creative and technical capacities of Gaza’s tech community, making it difficult to rebuild the sector in the future.

West Bank struggles: a ripple effect of the war on Gaza?

While Gaza has faced the brunt of the destruction, the West Bank has also experienced significant setbacks. The Palestinian Authority’s revenue has sharply declined, primarily due to reduced clearance revenue transfers and increased Israeli restrictions on movement and access. The International Labour Organization (ILO) reports that 160,000 workers from the West Bank have lost their jobs or are at risk due to restrictions on accessing the Israeli labour market. This has exacerbated economic difficulties across the region.

The West Bank’s tech sector, though less physically affected than Gaza’s, is struggling to stay operational. Since October 2023, nearly half a million jobs have been lost across Palestine, including 144,000 in the West Bank. Tech companies face challenges such as reduced sales, loss of clients, and supply chain disruptions, as highlighted by a survey conducted in June 2024. The tech community in the West Bank is at risk of stagnation unless urgent recovery measures are implemented.

Abeer, a freelancer and advocate for local tech talent, says: “Many experienced professionals have lost their jobs due to financial crises and movement restrictions. While some tech companies adopted remote work years ago, those with on-site roles tried to manage remotely for six months but couldn’t sustain it, leading to layoffs. A friend of mine who ran a car parts business in the West Bank is now job hunting after five years of success, as movement restrictions and unpaid invoices forced him to close. The economic impact is devastating, leaving even established business owners struggling to find work in the current tough job market nowadays.”

Salah, the founder of Blue Filter, won seed funding in 2022 and has since become a leading force in sustainable water management and sanitation in Gaza.

The path forward: urgent actions for recovery?

Despite these overwhelming challenges, there is a clear path forward for Palestine’s tech ecosystem. The recovery of Palestine’s tech ecosystem must begin with an immediate ceasefire. Without a halt to the ongoing violence, no efforts to rebuild can take root. The constant destruction will continue to dismantle not only physical infrastructure but also the human capital necessary for the tech sector to survive. Once a ceasefire is in place, restoring Gaza’s infrastructure is paramount. Electricity, internet, and transportation must be repaired as quickly as possible to enable freelancers, startups, and tech companies to resume operations. The lack of stable infrastructure has paralysed the tech sector, and without urgent restoration, it will remain inoperative.

Financial support is equally essential. Grants, loans, and subsidies must be mobilised to help businesses replace lost equipment, restore operations, and re-engage with their international clients. International organisations and NGOs have a critical role in providing this financial assistance and in facilitating the recovery of the tech sector. Furthermore, expanding networking and market access is crucial for reconnecting Palestinian tech professionals with global markets. Organising networking events, creating digital platforms, and providing access to international clients and investors will help rebuild market presence and encourage new collaborations that are essential for growth.

Equally important is addressing the mental health crises that has gripped Gaza’s tech workforce. The trauma of war, compounded by the stress of economic instability, has severely impacted the mental well-being of professionals in the tech sector. Providing counselling services, mental health programmes, and workplace wellness initiatives will be essential in helping these individuals recover their capacity to work. This support will not only improve personal resilience but will also contribute to restoring the creativity and focus needed to drive innovation in the tech sector.?

Support for startups must be strengthened to ensure entrepreneurs have the tools and resources needed to navigate the challenges of rebuilding. Mentorship programmes and business development resources will be critical in helping these businesses regain momentum, pivot when necessary, and ultimately survive the post-war recovery period. Investment in skills development is another key area for long-term recovery. Ongoing training and education will ensure that Palestine’s tech professionals remain competitive in the global market. As the industry evolves, these workers must keep up with technological advancements and changing market demands, positioning themselves as capable, adaptable, and ready to meet international standards.

Finally, international collaboration will be indispensable for accelerating recovery. Partnerships with global tech firms, NGOs, and development agencies can bring expertise, resources, and investment to the region. These collaborations will provide opportunities for Palestinian tech professionals to tap into global expertise, giving them the support needed to rebuild the sector and contribute to Palestine’s broader economic recovery.

Abeer Mousa shares her thoughts on the tech sector in the West Bank and the role of women in technology.

A path forward for Palestine’s tech sector?

Palestine’s tech sector was constantly advancing before the war halted its progress. The destruction of infrastructure, economic collapse, and psychological toll on the workforce have presented enormous challenges. However, with a ceasefire, coordinated efforts to restore infrastructure, provide financial support, address mental health, and strengthen international collaboration, the sector can recover.

The future of Palestine’s tech ecosystem depends on immediate and sustained action. The road to recovery will not be easy, but the potential for revitalising the sector remains if these steps are taken. Ensuring that Palestinian tech professionals have the opportunity to rebuild their businesses will be a crucial part of the country’s broader recovery from the devastation of war.