By: Ahmed Dabba.... GAZA, July 8, 2004, (WAFA) - 30 years ago, Israel founded the northern Gaza Strip "Erez" industrial zone to benefit from the low-priced labors in the Gaza strip. The project proved gigantic progress and success as a kind of economical co-operation. But, unfortunately, this progress had been doomed to failure.... Israeli Minister of Industry, Trade and Labor, Ehud Olmert recently declared that the Erez industrial zone will be shut down as part of Israel's plan to withdraw from the Gaza Strip.... Olmert has not set a date of closure, but he affirmed that the Erez industrial zone would be moved to industrial zones in Ashkelon, Sderot and Netivot. As Israel claims, the industrial zone will shut down for security purposes and to make room for the coming economical separation between the economics which, for sure, will leave the impoverished strip a badlands.... By shutting down the industrial zone, thousands of Palestinian will negatively be affected as they will suffer cruel poverty because of sever lack of income.... Palestinian Institution for Media and Investment said, in its latest statistics, that unemployment stands at 40 to 60 per cent in Gaza, adding that after the implementation of the pullout plan and the closure of the industrial zone, unemployment will increase to 70 per cent.... Hearing of the industrial zone closure, Palestinian workers, investors and factories owners in Erez were shocked for the news. The closure of Erez means that workers have become jobless, and investors have lost their factories and investments.... Abdullah al-Dabba 37, a granite factory owner said "I built my factory in Erez 6 years ago after having permits for building from the concerned Israeli authorities" al-Dabba stopped talking for a while and then added, "I heard of the closure announcement in the news. I was shocked on hearing it, but in fact I was expecting it years ago".... On the other hand, head of the Palestine General Federation of Trade Unions in Gaza Strip, Rasem al-Bayary, said that all parties concerned should find possible ways to ease the suffering of the Palestinian laborers and solve their economic problems, urging the neighboring Arab countries to open their labor market for Palestinian workers.... "Palestinian workers must be provided with jobs, therefore we ask our Arab brothers to start unemployment generation projects for the 120, 000 Palestinian workers, who, for sure, will soon increase after Israel closes the Erez industrial zone", al-Bayary stated.... Ironically, Israel said that it is totally aware of the damage it would cause to Palestinian workers and their families, but it has no other choice to protect soldiers who are deployed at the Erez occupying junction.... Ghazi Moushtaha 45, a Palestinian investor who has a factory of frozen food in the industrial zone, and exports 90 per cent of his production to Israel, said that the Israeli decision to close the Erez zone is unfair as It ignored the Palestinian workers and investors and gave the priority for the Israelis.... "Israeli merchants and investors can freely move wherever they want, but we cannot because the restrictions imposed on us by Israel, I'm so sorry to know that Israel ignored us and cared for the Israelis", Moushtaha bitterly revealed.... Not only Palestinians who have businesses in the Erez industrial zone are suffering, but also those who have in Gaza are too.... "It is the first sign of a much bigger divide between the two economies." said Hamdi al-Nu'ezi 38, who has jeans, wears business with Israel, "I was told that products I export are to be reduced, and I think they will then be stopped".... As the news of closing the industrial zone has been circulated, many solutions were put forward to come out with a moderate solution about Erez.... Palestinian institution for media and investment proposed that a plan of investment to be done. This plan is that the PA or Palestinian investors buy the Israeli factories and institutions in the Erez zone. thus, there would be no Israeli existence and economic co-operation continues as before, with no staggering poverty rate in Gaza as expected.... Other Palestinian official bodies said that the most convenient solution is turning the Erez industrial zone into a free industrial one, open for investors of all nationalities. The industrial zone then would operate according to special work mechanisms, with a joint co-ordination, that ensure security and an opening to the Palestinian market with the Israel's.... All hopes of reopening the Erez industrial zone have faded away, and what Palestinians now do is how to avoid more economical deterioration and sinking more into poverty. After the economical split between the two economies, eyes are looking forward to the Arab labor markets, others seek nothing but satiating their children's hunger, and who knows what could happen.... A.D(11:15P)-(08:15GMT)