Palestinian Authority withdraws from Qatar funding scheme for Gaza – Qatari envoy – Reuters

Palestinian Authority withdraws from Qatar funding scheme for Gaza – Qatari envoy – Reuters

GAZA, Sept 10 (Reuters) - The Western-backed Palestinian Authority has pulled out of an agreement to provide funding from Qatar to the Gaza Strip over concerns its involvement could expose it to legal issues, the Gulf state's aid envoy said on Friday.

Doha has underwritten Gaza rebuilding and infrastructure projects since the 2014 war between the Palestinian enclave's Islamist Hamas rulers and Israel, but another round of fighting in May prompted Israeli and U.S. demands to revise the payouts. They have since been on hold.

Israel and Egypt hold Gaza under a blockade, citing threats from Hamas. The World Bank has said that the restrictions have contributed to soaring unemployment and poverty in the enclave, home to 2 million Palestinians.