New West Bank cement factory poses major security risk, expert warns

ByDANIELLE GREYMAN-KENNARDNOVEMBER 3, 2026 18:30

The inauguration of the first Palestinian cement factory in Area A could pave the way for major industrial growth, but it may also carry security implications for Israel, a security expert warned The Jerusalem Post on Tuesday.

Palestinian Authority President Mahmoud Abbas inaugurated the facility in Jericho on Monday. The factory was established through a partnership between the Palestinian Investment Fund and the Issa Khoury Group for Mining and Construction Industries.

The 1994 Paris Economic Protocol (PEP) has placed strict quotas on cement imports from neighboring Arab countries, including Jordan and Egypt, capping them at 400,000 metric tons. This has left Palestinian buyers largely reliant on private Israeli companies for their cement supplies. Under the PEP agreement, cement was classified as a List A1 commodity, subjecting its importation to specific restrictions.

The Jericho Cement Industry Company (JCIC), a joint venture between the Palestinian Sanad Company and Jordanian Unifive Company, has boasted that it has a production capacity of 1.3 million tons annually and will employ 100 workers to start.

While the project has been presented as an opportunity to create jobs, reduce reliance on imports and strengthen the Palestinian construction industry, Lt. Col. (res.) Maurice Hirsch, the director of the Initiative for Palestinian Authority Accountability and Reform at the Jerusalem Center for Public Affairs and a senior legal analyst at Human Rights Voices, warned that unchecked and unmonitored cement production could pose a significant security risk to Israel.

Factory raises concerns over cement being used for tunnel network

The main security concern is that the cement could be used to construct underground infrastructure similar to the extensive tunnel network built by Hamas in Gaza. The network posed significant challenges for the IDF during the recent wars, enabling the movement and concealment of hostages, terrorists, and weapons. Such tunnels can also be difficult to locate, particularly when relying on aerial intelligence to identify underground infrastructure.

However, the factory's location in Area A also raises questions about the extent of Israeli oversight. Prof. Arie Reich, a professor at Bar-Ilan University's Faculty of Law and the university's vice-rector, told the Post that under the Oslo II Accord, civil jurisdiction over the area falls to the PA.

Given that the PA has issued the factory's relevant permits, Reich said that "Israel has no say here as long as the cement does not pose a security risk." He noted, however, that the situation would be different if the cement were destined for Gaza, where it is classified as a dual-use material and only limited quantities are permitted, or if there was evidence it could be used for terror. 

“If Israel thinks, and has evidence, that even in Judea and Samaria the cement is used or going to be used for military purposes, by terrorists, aimed at harming Israel, the story is different. Because Oslo II Annex I, Article II requires both sides to cooperate in exchanging information and coordinating their activities against terrorism and violence,” Reich said. “It also requires each side to respond immediately and effectively to actual or anticipated acts and take preventive measures. If Israel had credible evidence linking particular Jericho cement shipments to an attack tunnel, for instance, it could invoke that duty to seek a Palestinian investigation, identification of the buyers and end users, and action to stop further diversion. The clause gives Israel a basis to demand effective cooperation. In the absence of such, Israeli is likely to take unilateral measures to prevent the security risk.”

Despite the obligation to engage, a spokesperson from the Joint Economic Committee (JEC). a bilateral body established under Article 3 of the PEP to govern economic relations between Israel and the PA, confirmed to the Post that there had been no coordination.

PA fails to meet previous obligations to Israel

Hirsch explained that the PA has regularly failed to meet its obligations in past agreements with Israel, referencing an article he published in July on its build-up of military forces and the substantial threat posed to Israel should the PA carry out an October 7-style attack.

"We have a limited amount of intelligence coverage and almost no supervisory jurisdiction. Palestinians can essentially do whatever they want. Whether that constitutes a breach of the Oslo Accords is an entirely different question, because the Palestinians do not see themselves as bound by those agreements,” he warned. “We are the ones who continue to play that game, predominantly among ourselves. They don't care, and Israel won't do anything about it."

"I do believe that the PA poses a constant threat to Israel. I don't think it has any peaceful intentions whatsoever, and I see very little chance of any positive change there. Anything that can improve its capabilities is therefore a source of concern,” he said, adding that there were also concerns over who would stand to benefit from such an industry given corruption in the PA.

“The cement factory is one of these industries that fall under the category of dual-use: an ostensibly innocent industry that could be very profitable, but can also be used for very nefarious purposes. That always has to be the assumption with the PA,” he continued.

Hirsch also expressed concern as to whether there were plans to export the cement, given that the large majority of West Bank exports are to Israel, arguing that Israeli purchases would not dissuade the PA from continuing to push the international community to sanction Israel.

Follow us on Google

---