The war’s toll on Israel’s northern regions has become a staggering economic burden. With damages exceeding 5 billion shekels ($1.35 billion), the Israeli Tax Authority warns that the figure will only climb without a ceasefire agreement with Lebanon. Direct damage to homes, factories, and infrastructure totals 1.5 billion shekels, while indirect losses—shuttered businesses, halted agriculture, and declining incomes—reach 4 billion shekels, with agriculture and tourism hardest hit.

Factories near the border are closed, and major shipping disruptions have choked supply chains, crippling production. Even in areas farther from the frontlines, workforces have dwindled, operating at barely 50% capacity as missile strikes and sirens disrupt daily life. Over 27 settlements have ceased operations entirely, following Hezbollah’s evacuation warnings three weeks ago.

In a blow to Israel’s defense industry, precision strikes by Hezbollah drones forced the closure of key military factories, including facilities belonging to “B.A.T” and “Rafael”. These attacks have led to layoffs, factory relocations, and the evacuation of sensitive military sites. The once-bustling real estate market has collapsed, with plummeting demand and over 12,000 families displaced, many now facing up to 18 months in temporary housing. 

Interviews with Israeli business owners impacted in the northern regions under occupation emphasized their recognition of the “need for joint cooperation with the Arab community” in these areas. These regions are home to over two million people, including approximately 850,000 Arabs who form a vital part of the business and production sectors and a significant consumer base.

The war’s shadow continues to freeze reconstruction, deepen unemployment, and strain resources, threatening to lock the northern economy in paralysis for the foreseeable future.

Full report in Arabic: https://www.al-akhbar.com/Lebanon/387873