The automotive sector in Gaza has suffered catastrophic losses, with damages exceeding $100 million due to the ongoing war. Business owners in the sector have reported extensive destruction of vehicles and facilities, coupled with strict import restrictions that have paralysed commercial activity. These challenges have left many businesses struggling to survive, with little hope of recovery without substantial intervention.

Kamal Toman, a businessman affected by the conflict, disclosed that his company has incurred financial losses of over $700,000 due to the destruction of its vehicles and the disruption of import operations. His business, which once provided employment for six workers, has been forced to shut down, intensifying the hardship faced by his employees and their families. The closure of his company highlights the broader economic impact the war has had on small businesses in Gaza.

Another business owner, Hussam Shamiya, reported that his losses have surpassed $3 million, with additional losses expected as the full extent of the damages continues to be assessed. Shamiya pointed out that showrooms containing new vehicles, prepared for sale, were completely destroyed, exacerbating the already difficult local market conditions. He called for urgent compensation and support, warning that the automotive sector could collapse without immediate intervention.

Wael Al-Halees, deputy head of the Syndicate of Vehicle Importers in Gaza, revealed that the war has caused widespread destruction of vehicles. With approximately 120,000 licensed vehicles in Gaza, half of them have been either fully or partially destroyed. This massive loss has not only affected showroom owners but also the broader local economy, as the automotive sector plays a key role in Gaza’s economic structure. The sector has lost up to half of its inventory, further compounding the crisis.

The situation is made worse by long-standing import restrictions that have already strained the market. With limited vehicle supply and rising prices, Palestinians are facing diminishing purchasing power, which exacerbates their suffering. Al-Halees has warned that, without urgent solutions, the automotive market could completely collapse, deepening the ongoing economic crisis in Gaza. To address this, business owners are calling for immediate government and international intervention to provide compensation, credit facilities, and incentives to help revive the sector and prevent further economic collapse.