Navigating the socio-economic resilience journey in Jerusalem Old City

July 30, 2024

a group of people at a train station — UNDP/PAPP image bank

The socio-economic conditions in the West Bank and East Jerusalem are deteriorating rapidly. A recent UNDP-ESCWA assessment highlighted the impact of the Gaza war beyond Gaza – throughout the occupied Palestinian territory (oPt). If the Gaza war continues for nine months, the State of Palestine is expected to face a loss in human development equivalent to 16 years. The unemployment rate could rise to 47.8%, GDP losses could reach 29%, and the poverty rate could surge to 60.7%, affecting an additional 1.86 million people.

In East Jerusalem, the situation is dire. UNDP assessment of the socio-economic situation in East Jerusalem post 7 October has shown that90% of shop owners in the Old City rely on tourism, which has plummeted due to the ongoing conflict. The blockade and security concerns have led to a 90% closure of shops, significantly impacting at least 500 families. Just as businesses were struggling to recover from the COVID-19 outbreak, this crisis has further deepened their vulnerabilities. Once a bustling historical destination, it now stands almost empty.

Rinad Sharabaty's father is one of the owners of a shop in the Old City of Jerusalem that has been significantly impacted by the recent socio-economic downturn. “During the outbreak of COVID-19, everyone stopped working. I was working in journalism, and like everyone else, my job was paused for eight months. During this difficult time, I tried to help my father get his business moving by opening an online page that would help sell some of his products online,” says Rinad. This was an attempt to adapt to the challenging economic environment, but it came with its own set of hurdles.

“Unfortunately, things turned out to be harder than I thought. I had to close the page because there were a lot of things and skills I didn’t know about in marketing,” Rinad explains. The complexities of digital marketing and e-commerce were overwhelming without the necessary knowledge and expertise.

Determined to overcome these obstacles, Rinad sought out digital marketing courses to enhance her skills. “Now, through the digital marketing courses I’m taking, I’m learning a lot about new and important skills in photography, presentation, marketing, and everything related to e-commerce. We even learned about the processes of getting into global markets such as eBay.” These courses are equipping her with the knowledge and tools needed to navigate and succeed in the digital marketplace, providing hope for revitalizing her father's business amidst the current economic crisis.

Rinad's experience exemplifies the critical need for projects such as UNDP/PAPP’s ‘Socio-Economic Resilience in East Jerusalem’. Interventions focused on economic recovery and revitalization of the businesses in the Old City aims to provide market-based business development solutions to strengthen their resilience.

This involves training merchants and their young relatives in digital marketing to explore new markets. With the decline in tourism, engaging youth as key actors of change and using e-commerce platforms like eBay is essential for accessing local and global markets.

Montaser AlShawish from the Old City of Jerusalem, is also the owner of his -old family business. “The shop that I have has a long history. We opened it 75 years ago, and I insisted throughout all the hardships to keep it open and for it to be my source of income. I tried hard during the outbreak of COVID-19 and the current war to stay steadfast and not close like the majority of other shops,” Montaser said.

“I thought a lot about foreign markets and about marketing and selling my products online because most of my customers are foreign. With all the hardships we are facing, now is the right time to take the step,” said Montaser.

Montaser’s determination and the skills he has acquired through the training programme reflect the resilience and adaptability of the Old City’s business community. By embracing digital marketing and e-commerce, merchants like Montaser and Rinad are paving the way for a more sustainable future despite the challenges. This UNDP/PAPP project funded by the Government of Norway not only supports the economic recovery of these businesses but also empowers the younger generation to become agents of change within their community.