II.

Economy

The city serves as the main transport junction of the Gaza Strip, and it contains some small industry such as crafts and food processing. The city also has a small port, primarily used for a local fishing fleet. Economic development in Gaza languished under Egyptian (1948-1967) and Israeli (1967-1994) occupation. The city has serious deficiencies in housing, infrastructure, and commercial development. Residents of Gaza, Muslim Palestinian Arabs, are divided between the indigenous residents of the city and those who came as refugees during the Israeli War of Independence in 1948. There is a class distinction in Gaza, with those living in refugee camps having the lowest social status.