Drastic Decline in Arab Aid to the Palestinian Authority

Arab regimes tell Palestinian leadership to fix its relationship with Israel before it gets any more money

By Baruch Yadid/TPS | | Topics: palestinians
Photo: Abed Rahim Khatib/Flash90

In the past year, there has been a drastic 82% decline in the financial aid provided to the Palestinian Authority (PA) by Arab countries. The financial support now stands at only NIS 132 million, compared to NIS 716 million last year, according to data in the PA’s budget reports.

Arab sources claim that the sharp decline in Arab aid is due to American pressure on Arab countries, as part of the campaign of pressure on the PA.

Funds from Saudi Arabia to the PA has been reduced by about 80%.

Various data show that in total, the amount of Arab aid to the Palestinian Authority has decreased by more than 55% in the last five years.

It should be noted in this context that repeated requests from the Palestinian Authority for an economic safety net from Arab countries, amounting to $100 million a month, have not been answered for a long time.

The Palestinian Authority has been in contact with Qatar and European countries to obtain a loan at the expense of the tax funds it refuses to receive from Israel, and sources in the PA told TPS that the Qataris have replied that the PA should contact Israel and renew coordination with it first.

An EU spokesman also said recently that the European Union would not provide additional financial assistance to the PA if the channels of coordination with Israel are not reopened.

Since its establishment, the Palestinian Authority has received a total of $36 billion from countries around the world.

Since PA head Mahmoud Abbas decided to sever ties with Israel last May, more than $750 million in tax funds have been collected by Israel on behalf of the Palestinian Authority.

The Palestinian Authority has announced it will not receive funds from Israel following its decision to deduct a total of NIS 502 million from the PA’s tax funds each year, the equivalent sum the PA pays to terrorists and their families. However, Israel has not actualized this deduction since the beginning of 2020.

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