"Economy of Extermination".. How Israel Turned the Gaza War into a Global Profit Project?

SadaNews - In a shift that reflects the economic dimension of one of the bloodiest wars in modern times, Francesca Albanese, the UN Special Rapporteur on the situation of human rights in the occupied Palestinian territories, revealed the complicity of hundreds of major global companies in supporting what she described as "the Economy of Extermination" managed by the Israeli occupation in the occupied Palestinian territories.

This was stated in a 39-page report issued by Albanese, titled: "Transforming the Israeli Occupation's Economy into an Economy of Extermination," detailing with numbers and names how the economic structure of the occupation has turned into a profit-making system relying on displacement, destruction, and oppression, under the cover of international technical and financial support.

A database prepared by the UN employee, after receiving over 200 documented reports, shows that more than 1,000 companies from various sectors are directly involved in supporting the occupation and settlement, in addition to the ongoing genocide in the Gaza Strip.

Involvement of Tech Giants

Albanese's report revealed the pivotal role played by major technology companies in supporting the digital and military infrastructure of Israel, enhancing its capabilities in the war on Gaza.

The report noted that companies such as Google, Amazon, and Microsoft provided advanced tools for data management, targeting, and surveillance, despite accusations against Israel of committing serious violations of international law.

In 2021, Google and Amazon secured a "Nimbus" contract worth $1.2 billion to provide cloud infrastructure and machine learning for the Israeli government, with these technologies becoming a vital alternative after the military cloud was disrupted in October 2023.

Moreover, Microsoft, according to Albanese, operates its largest research center outside America in Israel, integrating its civilian technologies into the military since 2003 and acquiring Israeli companies in cybersecurity.

AI That Kills

The contribution of these companies does not stop at setting up the digital infrastructure; the UN Special Rapporteur accused international tech companies in her report of collaborating with the Israeli army in developing and using advanced AI systems to manage its military operations during the aggression on Gaza, including target selection.

The report indicated that the Israeli army has developed in recent years AI tools such as "Lavender," "Gospel," and "We're Daddy," used to analyze data and create automatic target lists, changing the nature of modern warfare, reflecting what Albanese described as "dual-use" of AI technologies in military contexts.

The report also highlighted the role of the American company "Palantir," which provided Israel with predictive policing tools and infrastructure to accelerate the development and deployment of military programs, along with platforms to integrate battlefield data and make automated real-time decisions.

Albanese noted that Palantir's collaboration with Israel has lasted for years, but escalated after October 2023, considering that its ongoing support despite evidence of potential violations amounts to complicity in international crimes.

Profits from the Ashes of Gaza

The massive destruction in Gaza was not merely a humanitarian tragedy; it created a profitable opportunity for Israeli and foreign arms companies, which benefited directly from the military escalation and ongoing genocide against Palestinians.

The report stated that "Elbit Systems" and Israeli Aerospace Industries (IAI) achieved notable jumps in their annual profits, propelled by a 65% increase in Israeli military spending between 2023 and 2024, reaching $46.5 billion, one of the highest rates globally.

The report clarified that the gains were not limited to Israeli companies but also included foreign arms manufacturers, particularly those producing munitions and military equipment, due to the increased demand because of military operations in Gaza.

Israel also benefited from its participation in the "F-35" fighter program, led by "Lockheed Martin" in partnership with 1,650 companies from 8 countries, including Italy's "Leonardo."

These international companies, according to the report, contribute to the production of components for the Israeli "F-35" aircraft, which are manufactured and maintained in collaboration with local defense companies, making them an international military product. The report noted that Israel was the first to use these aircraft in combat in 2018 and reused them in "Beast Mode" during its attack on Gaza in 2025.

After October 2023, the "F-35" became central to aerial operations, contributing to dropping around 85,000 tons of bombs, resulting in over 179,000 Palestinian casualties and extensive destruction.

The report also mentioned the involvement of companies like IBM, HP, and NSO in developing biometric surveillance and espionage systems, which contributed to the imposition of tight surveillance on Palestinians and reinforced the apartheid system.

From Wall Street to Tel Aviv

Technology and weapons were not the only elements at the heart of the extermination economy; money was a crucial factor, as despite the massacres caused by Israel, several banks and investment firms continued to support the Israeli economy.

According to Albanese's report, the investment volume of the Norwegian Sovereign Wealth Fund in Israeli companies increased by 32% after the "Al-Aqsa Flood" operation, reaching $1.9 billion, "despite its claim of adhering to ethical standards."

As Israel's military budget grew from 4.2% to 8.3% of GDP by the end of 2024, the budget deficit worsened to 6.8%, prompting the Israeli government to finance this massive budget through increased bond issuance.

This included issuing bonds worth $8 billion in March 2024 and $5 billion last February, with some of the world's largest banks such as "BNP Paribas" and Barclays intervening to boost market confidence by underwriting international treasury bonds, "which contained the interest rate premium despite the credit rating downgrade."

Major asset management companies also played a role, according to the report, which indicated that BlackRock, Vanguard, and Allianz bought those bonds worth ($68 million), ($546 million), and ($960 million) respectively.

This entire data has led, according to Albanese, to a record increase of 179% in the stock prices of companies listed on the Tel Aviv Stock Exchange since the start of the assault on Gaza, resulting in gains of $157.9 billion.

Extermination Bulldozers

On the ground, bulldozers were often used more than aircraft, as American company Caterpillar supplied Israel with military "D9" bulldozers used since 2000 in demolitions, storming hospitals, and even burying the wounded alive, as documented in the report, with the company securing a new multi-million dollar contract in 2025.

The report indicated that Swedish companies Volvo, Hyundai, and Korean Doosan continued to supply Israel with heavy equipment used in the destruction of the Gaza Strip, which saw more than 70% of its buildings and 95% of its agricultural land damaged after October 2023, according to FAO.

Control Over Resources

The essentials of life were not isolated from this economy, as Albanese's report stated that Israel forces Palestinians to buy water from two major sources of groundwater in their territories, at high prices and intermittent quantities, with the Israeli company "Mekorot" monopolizing water supplies, granting it direct leverage over this vital resource.

In Gaza, more than 97% of groundwater is unsuitable for human consumption, leading the residents to rely almost entirely on "Mekorot" lines.

After October 2023, the company operated these lines at only 22% of their capacity for six months, depriving the sector of water 95% of the time, which was considered a systematic use of water as a weapon within a policy of genocide.