In a candid interview with The Media Line’s Felice Friedson, one of the most prominent Palestinian figures discusses the war’s economic impact on Palestinian society and the newly formed government, the lack of donor country funding, and the wait-and-see approach outsiders are taking as they seek transparency.
Azzam Shawwa, former governor of the Palestine Monetary Authority and energy minister, told The Media Line he is deeply concerned about the Palestinian Authority’s ability to function as the economy continues to dip and said that around half the salaries of government officials have not been paid in over 10 months.
According to Shawwa, the 150,000 Palestinians who had been employed in Israel before October 7 had received “zero income.” He stressed, “The economy in Palestine relies on several sources of income, one of it the local revenues and taxation, the other one is the customs that comes through the Israeli Palestinian clearinghouse,” emphasizing the distress caused by the Israeli government’s withholding of these funding sources.
In better times, an umbrella organization acts as a conduit and supplier of basic needs for the Palestinian people, including payroll, maybe covering hospitals, and buying medical supplies.
“It’s the AHLC [Ad Hoc Liaison Committee], but they changed the name this year because Israel wasn’t there,” Shawwa said. “So far, we haven’t heard a real thing that the money came in. Even several Arab countries promised they would pay. Algeria is the only one that really paid whatever they promised, but the rest of the countries, no, they haven’t paid what they promised.”
The current complex political situation, Shawwa said, is preventing countries from aiding the authority. “They want to wait and see what’s happening. Some countries are waiting to see the governance of the new government and how it’s going to play the role of transparency.”
Shawwa spoke of the challenges the officials face regarding the West Bank and the disaster unfolding in Gaza.
Concerns about the future
“Everybody wants to know what’s tomorrow, and tomorrow it’s just—it’s very vague, and it’s gray and it’s dark. I don’t know. It’s really—this is the first time, maybe, at least for the last 34 years, that nobody knows what to do.”
A few months ago, on the sidelines of the World Economic Forum in Riyad, UAE Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan questioned PLO Executive Committee Secretary-General Hussein al-Sheikh about trust in the Palestinian leadership. Sheikh Abdullah reportedly told al-Sheikh that he had not seen significant reforms and accused the Palestinian leadership of being “Ali Baba and the 40 thieves” and “useless.”
He went on to tell the security minister that replacing them with each other would only lead to the same result.
Shawwa, for his part, said he wasn’t sure why the Emirati foreign minister was so tough on al-Sheikh but felt a wait-and-see attitude was best at the moment. He told The Media Line, “Let’s not prejudge the action of the new government. I think they’ve been there for almost two months. For me, it’s not clear.”
He added that, in the past, the Emirates supported the Palestinians through associations and NGOs and hoped they, as well as Americans and Europeans, would help them. Shawwa noted, “I don’t think any responsible leader wants to see the collapse of the government in Palestine. And that’s our concern because if the economy really 100% collapses, then what?”
According to Shawwa, the streets of Ramallah are relatively quiet these days, even as Eid al-Adha approaches. He says you can travel the length of the city—which usually takes 30 minutes or more—in 10 minutes.
“You don’t see many people going to the market to buy. Traditionally, people buy new clothes for the kids and give some cash in hand. That kind of business is completely off. The only thing left is the private sectors, like maybe the communications companies, the banks, the insurance, the financials.”
Shawwa, who was born in Kuwait and lived in Gaza for my years, spoke of his personal loss. He told The Media Line: “Personally, I have lost 95 [family members] so far. That’s elderly women and children, and, of course, from the younger generation.”
He also described the homes and businesses lost and the historic sites, which he claims were thousands of years old: “I don’t think even a tunnel under those places was a reason.”
Shawwa said he felt that everyone in Gaza was targeted during the war. But, he said, “I hope that really we can get together as soon as we can and stop this war, and everybody just start worrying about his own people in Gaza, in Palestine, even in Israel.”
When asked how Fatah can dissociate itself from the years of building tunnels all over Gaza, under mosques and schools, and the indoctrination of children in those schools, he responded: “There is no answer. It’s the responsibility of everybody that took us here to be in this square. The support of the Netanyahu government also took us here over the years. There was never a reconciliation between Fatah and Hamas. Where was everybody when all these tunnels were built?”
“If you want to carry responsibility now, it’s the blaming on Gaza, the Gazans who are blamed. I’m trying to choose my words, but really, it’s a lot of responsibility on whoever was in charge over the last 20 years.”
Shawwa noted that a “brain drain” has seen many Gazans and Palestinians holding dual citizenship, in particular, leave for Egypt or the Americas. He said, “Now, the challenge is how to convince these people to come back.”
“A lot of them, morally, yes, they’re all saying, yes, we will come back. But I think they will be coming back on very solid ground, and this is not going to happen anymore—no more war.”
“Peace is the word. That’s the only thing I believe that will convince everybody to come back, even will convince donors to invest in Palestine, in particular in Gaza, because now it’s the part that’s really suffering and dying day by day.
Shawwa felt compelled to share his perspective on the future: “Maybe it’s tough to say some things, but at least I tried to tell you exactly how somebody who was brought up to think differently, to think openly, always to think and look for tomorrow, and always see the positive side or the full side of the glass cup.”
A video of the full interview is available here.
Azzam Shawwa served as the governor and chairman of the Board of Directors of the Palestine Monetary Authority from November 20, 2015, to January 3, 2021. During his tenure, he also chaired the National Palestinian Anti-Money Laundering Committee, the Palestine Deposit Insurance Corporation, and the Banking Institute. Shawwa was instrumental in maintaining the stability of the Palestinian banking system and advancing regulations to ensure its soundness. He prepared the Palestine Monetary Authority for its transition to the Palestine Central Bank, completing the final draft of the Central Bank Law.
On April 29, 2018, Shawwa received the Golden Union Medal of Achievement from the Union of Arab Banks, becoming the first monetary authority governor to earn this recognition. His career in banking is marked by pioneering reforms and leadership roles, including positions at the Bank of Palestine, Arab Bank (Palestine), Al-Quds Bank, and Palestine Commercial Bank.
Shawwa has been active in the Palestine Investment Fund, the Palestine Avenir for Childhood Foundation, and various local and international boards. Born in Kuwait in 1963, he moved to Gaza and later graduated from Lemoyne-Owen College in Memphis, Tennessee, with a degree in mathematics. Shawwa is married to Amal Bseiso, with whom he has three children: Tamer, Nadim, and Aida.
