Qatar will give the Palestinians nearly $500 million in aid, including $30 million that was delayed a week ago, leading to this week's military escalation.
The Qatar news agency announced that Qatar would give the Palestinians $480 million in grants and loans. $300 million will reportedly go directly to the Palestinian Authority (PA) budget, which is short of cash, due to the PA's refusal to accept tax money collected by Israel on its behalf.
The announcement stated that the $300 million was earmarked for the PA's education and health budgets. $180 million more will be used for emergency aid to UN projects in the Gaza Strip, apparently intended mainly for food to needy families for the Ramadan period. Another use of the funds is diesel fuel for the power station in the Gaza Strip, in order to ensure a regular supply of electricity. Ramadan features a daytime fast followed by meals and family visits in the evening and at night, with much higher demand for electricity than at ordinary times.
The announcement did not specifically mention Hamas or the Gaza Strip, the $30 million delayed last week, or rumors about $40 million mentioned as a condition for stopping the rocket fire.
At the same time, at the request of the PA, and in order to avoid linking the grants to the recent round of violence, Qatar included its original aid for the Gaza Strip in an assistance program planned last month. The PA appealed to Arab countries for aid to ease its tax revenue crisis and received dubious promises from several countries. Only Qatar is actually fulfilling its promises. The $300 payment is equivalent to two months of tax transfers. The remaining $180 million is not itemized, except for diesel fuel and UN projects.
Informed sources said that this sum contained the regular transfer for buying diesel fuel for the Gaza Strip power station, so that it can produce electricity during Ramadan, plus payments to needy families provided in recent months, with the addition of holiday grants. The transfers to UN agencies are also mainly for holiday food packages and other basic needs. Some of them may be intended for the United Nations Relief Works Administration (UNRWA), which is in a financial crisis due to the termination of US aid. Qatar, however, did not state this in its announcement. Nor did it state whether the money was for salaries to government employees in the Gaza Strip, and it is not clear whether they will receive salaries from this grant.
Hamas quickly welcomed Qatar's announcement in order to link it to the recent conflict and show that it was getting more money than in the past. The organization was greatly criticized during and following the recent escalation. Among other things, articles, cartoons, and chat on social networks expressed resentment that Hamas was wasting millions on rockets instead of feeding hungry people in the Gaza Strip, who would be unable to celebrate Ramadan.
For Israel, a transfer by Qatar in this form is preferable, because it prevents a collapse of the PA for at least two months and "hides" the amount that will reach the Gaza Strip. Israel has said nothing so far about the details of the agreements that led to yesterday's ceasefire, but according to Hamas, they include a NIS 40 million transfer: NIS 30 million for two months of the regular payment and a NIS 10 million Ramadan grant. According to Hamas, the agreements also include a greater flow of goods to the Gaza Strip, opening of the border crossings to exports from the Gaza Strip, extension of the Gaza Strip fishing zone, and more. Hamas claims that it refused an Israeli demand for a ban on "civilian" demonstrations in front of the border fence. Israel has said nothing about the agreements, and requests for information were not answered.
Published by Globes, Israel business news - en.globes.co.il - on May 7, 2019
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