Gaza Envelope's First Post-Oct 7 Industrial Park Opens at 100% Occupancy
Shibolet Group and Kibbutz Mefalsim inaugurated the Gaza Envelope's first post-October 7 private industrial park. Backed by Bank Leumi financing and reaching 100% occupancy, the 13,500-square-meter project marks a major Zionist and economic milestone.
The Shibolet Group and Kibbutz Mefalsim inaugurated the new industrial park at the kibbutz in a moving ceremony, located just one kilometer from the Gaza Strip border. This is the first private project in the Gaza Envelope region to be fully completed since the events of October 7, 2023, as well as the first project in the area to receive an official Form 4 occupancy permit and begin actual tenant intake.
The project, which includes two buildings with a total area of approximately 13,500 square meters, was scheduled to launch immediately after the Simchat Torah holiday in 2023. Following the outbreak of the Swords of Iron war and the evacuation of the kibbutz for nearly a year, construction was delayed and actually began about 12 months later.
Despite a severe shortage of workers, days of combat, and unprecedented logistical complexity, the companies met their targets. High demand led to the signing of full lease agreements and the achievement of 100% occupancy already during 2025—more than half a year before the official completion of construction and receipt of approvals.
Some 200 guests attended the festive launch event, including members and residents of Kibbutz Mefalsim, alongside business partners who accompanied the project: Bank Leumi CEO Hanan Friedman, Sha'ar HaNegev Regional Council Deputy Head Adam Azran, Kibbutz Movement Secretary-General Lior Simcha, senior officials from the Israel Land Authority (ILA), contractors, planners, and consultants.
Supporting the Local Economy
In line with a vision of mutual guarantee and strengthening the local economy, all suppliers who took part in producing the event—from catering, sound, lighting, and photography to production and gifts—were exclusively businesses and residents from the Gaza Envelope region.
"The completion of the project, the receipt of Form 4, and the start of occupancy in Kibbutz Mefalsim are not only a real estate and business achievement, but a Zionist and national statement of the highest order," said Eran Markovitz, owner and CEO of the Shibolet Group.
"When we started the work during the fighting, when the echoes of battle were still heard around us and the kibbutz itself was evacuated, we knew we did not have the privilege to stop. The 100% occupancy we reached half a year before the end of construction proves the strength of the Western Negev and the trust of Israeli industry in the area. This project is dedicated first and foremost to the residents of Mefalsim and the Envelope—we are here to build, grow, and stay."
Bank Leumi's Commitment
Bank Leumi CEO Hanan Friedman also addressed the gathering:
"The park was planned before October 7, but then came the difficult days of October 7 that stopped everything. Exactly in this reality, just a few months after the outbreak of the war, we made the decision to approve the financing of this project."
"When I was asked at conferences abroad if I believe in the strength of the Israeli economy, I gave this project as an example—how entrepreneurs continue to invest in the Gaza Envelope precisely at this time—and that convinced them. We made the decision to invest in this project both for business considerations and long-term considerations, because our role as Bank Leumi is to ensure the long-term growth of the Israeli economy and its resilience."
