A new report published by 7amleh reveals that Palestinians' participation in the digital economy is systematically restricted through payment systems, e-commerce platforms, and remote work tools. The research highlights that those living in historic Palestinian territories do not have equal access to the global digital economy.
The report tested nearly 30 major digital services under real conditions during account opening, verification, and usage stages. The study also included semi-structured interviews and user testimonies from Palestinians who try to use these systems in their daily lives.
Inequality in Digital Payment Systems
According to the report, one of the most striking barriers is in the field of digital payments. Palestinians living in the occupied West Bank and Gaza have been unable to access PayPal despite years of requests. In contrast, the platform works seamlessly for Israeli citizens, including those living in illegal settlements in the West Bank.
This situation pushes Palestinian freelancers and businesses toward expensive intermediaries, informal money transfer methods, or unbalanced alternatives that consume a significant portion of their income. As a result, a designer or developer who finds online work struggles to receive their earnings securely and regularly.
Telecommunications Infrastructure Further Limits Access
The report also explains that Palestinians do not have control over their telecommunications sector and face severe restrictions in spectrum access, network development, and digital infrastructure. While Israelis benefit from advanced 4G and 5G connections, Palestinians in the West Bank had to rely on limited 3G access for a long time; Gaza has been largely confined to outdated 2G infrastructure for years.
The daily impact of this disparity includes unstable internet connections, disrupted business meetings, interrupted education, and weakened e-commerce. Remote work and customer relations frequently become unsustainable due to poor connectivity.
The Situation in Gaza Has Turned into Devastation
In Gaza, these structural restrictions have escalated into severe devastation. A previous assessment documented that since October 2023, damage to telecommunications and energy infrastructure has driven the digital economy toward collapse.
According to a rapid damage and needs assessment published by the EU and the United Nations in April 2026, 81% of Gaza's telecommunications network was completely destroyed, 12% partially damaged, and only 7% remained operational in a very limited capacity. During the same period, internet traffic in Gaza dropped by more than 80% in October 2023 and has not recovered.
In a field study conducted in July 2024 during ongoing shortages, over 180 digital workers across Gaza City and the Gaza Strip were interviewed. Testimonies showed that people exert extraordinary effort for a few hours of electricity, a laptop, or a weak internet signal.
It was reported that freelancers charged their devices in temporary co-working spaces powered by solar energy, while some walked long distances to catch a signal to deliver projects or respond to clients.
Digital Labor Became a Lifeline
The report also reminds that online work has long been a critical lifeline for Gaza's economy. Before October 2023, thousands of Palestinians worked through platforms like Upwork and Fiverr in software development, design, translation, and digital marketing.
The Palestinian information and communication technology sector employs about 9,000 people across approximately 700 companies and accounted for around 4% of Palestine's gross domestic product. Digital labor stood out as one of the few options, especially for young people facing movement restrictions and unemployment.
The report states that Palestinians are expected to compete in the global digital economy; however, they are deprived of equal infrastructure, equal access to payments, freedom of movement, and uninterrupted electricity. It emphasizes that the digital rights discussion is not limited to censorship and online freedom of expression but also includes the right to work, trade, receive payments, and earn a living.
