Crime in Arab Society Causes Economic Damages of Billions of Shekels Annually

SadaNews - The rampant crime witnessed in Arab society, which continues to escalate year after year without genuine efforts to combat it by the Israeli authorities, results in losses and damages amounting to billions of shekels annually.

The current government's failure to combat crime within Arab society incurs a hefty economic price, estimated between 10 and 20 billion shekels per year, equivalent to 0.5% to 1% of the gross domestic product (GDP), according to estimates from the Chief Economist's Office at the Ministry of Finance, in a report published on Monday.

These damages are manifested, for example, in a decline in business activity and a fall in investments, which, according to economic studies, may be attributed to serious crimes.

During the current government's term, crime rates in Arab society have sharply risen; while the murder rate was 4.9 per 1,000 people in 2020, this figure is expected to jump to 11 by 2025, compared to 0.6 among Jews in Israel.

This murder rate approaches the figures recorded in Sudan and Iraq, and it appears that by 2026, even previous records will be broken.

The Chief Economist's Office attempted to provide a "rough estimate" as described by the report's authors of the economic losses inflicted on business activity due to crime in Arab society, based on the OECD's assumption that a rise in crime reduces GDP by approximately 1-2%.

Based on this assumption and calculating the GDP of Arab society, the additional losses resulting from the heightened crime levels in Arab society reach around 10 billion shekels.

The Chief Economist's Office estimates that this figure may be on the low side, as crime in Arab society could have a broader impact on all business activities in Israel.

In a broader estimate, the losses could total 19 billion shekels annually.