Palestinians in Lebanon face deepening economic hardship amid soaring inflation and energy costs

What happened

Al Jazeera Lebanon reports that Palestinians living in Lebanon’s refugee camps are facing escalating hardships as inflation and high energy prices deepen their economic struggles. Osama Najjar, a Palestinian refugee in the Beddawi camp near Tripoli, describes the situation as tragic, having been forced to close his aluminium shop in early 2024 due to business struggles compounded by rising electricity costs.

Palestinians in Lebanon are subject to entrenched legal restrictions barring them from many professions, including medicine, law, engineering, and pharmacy. Owning small businesses remains a vital economic lifeline but is increasingly unsustainable amid the ongoing economic crisis in Lebanon. The state provides only limited electricity, so many rely on costly private generators. Lebanon’s inflation is predicted by the World Bank to reach 17.5 percent in 2026, further eroding purchasing power.

The Palestinian presence in Lebanon dates back to their displacement during the 1948 Nakba. Their situation remains marked by systemic exclusion: they cannot own land, have no political representation, and face societal discrimination in a sectarian system that does not formally include them. Despite some regulatory easing made by the Lebanese government over the past decade, many Palestinians remain effectively blocked from integrating into the official labour market.

Known from the source

• Palestinians in Lebanon face legal restrictions barring them from many professions.
• Economic hardship in Lebanon has worsened due to inflation and high energy prices, hitting Palestinians particularly hard.
• Electricity supply in Lebanon is limited; many depend on private generators.
• UNRWA recognizes 12 Palestinian refugee camps in Lebanon with approximately 222,000 residents as of February 2025.
• Funding cuts to UNRWA followed Israeli allegations against the agency for militant involvement in 2023 attacks, which UNRWA denies.

What remains unclear

Financial support for Palestinians through UNRWA has also been under pressure. Following unsubstantiated Israeli allegations related to the 2023 conflict, many donor countries cut funding in 2024, though some have since resumed support. UNRWA is warning of a significant funding deficit of $200 million heading into 2027. With limited local options, many Palestinians have resorted to dangerous sea journeys to Europe, evidenced by deadly shipwrecks involving refugees departing Lebanese shores.

What remains unclear: Current UNRWA financial status and donor contributions post-July 2026 warnings. Updated Lebanese government measures affecting Palestinian labor rights or employment. Recent figures or reports on Palestinian displacement patterns and sea migration incidents from Lebanon. Clarity on distinctions between confirmed facts and attributed claims within the piece.

Evidence note

Outside Brief has treated the source material as confirmed within the supplied source context, while retaining attribution to the original publisher.

Original source: Al Jazeera Lebanon. Open the source.