In a significant move aimed at addressing the ongoing challenges faced by the Palestinian Authority (PA), Saudi Arabia announced the formation of an emergency international coalition on Thursday, September 25, 2025, to provide direct financial support to the PA. The announcement was made by Saudi Foreign Minister Prince Faisal bin Farhan during a press conference held on the sidelines of the 80th session of the United Nations General Assembly in New York. This initiative marks a pivotal step in mobilizing global support to stabilize the Palestinian Authority’s financial and governance structures, which have been under increasing strain due to political, economic, and regional challenges. Saudi Arabia has pledged an initial contribution of $90 million to kickstart the coalition’s efforts, signaling its commitment to fostering stability and development in the Palestinian territories.
A Strategic Response to Palestinian Challenges
The Palestinian Authority, established under the Oslo Accords in the 1990s, has long served as the governing body for Palestinians in the West Bank and, until 2007, the Gaza Strip. However, the PA has faced mounting difficulties in recent years, including chronic financial deficits, limited control over territory, and political fragmentation. The economic situation in the Palestinian territories has been exacerbated by restrictions on movement, trade, and access to resources, as well as the withholding of tax revenues by Israel, which collects these funds on behalf of the PA under international agreements. These revenues, which constitute a significant portion of the PA’s budget, have often been delayed or withheld due to political disputes, plunging the authority into recurrent fiscal crises.
The newly announced coalition seeks to address these systemic issues by providing direct financial support to the PA, bypassing some of the bureaucratic and political hurdles that have previously hampered aid delivery. Prince Faisal emphasized that the coalition would work with “a number of important partners” to ensure the funds are used effectively to strengthen the PA’s institutional capacity, support public services, and promote economic development in the Palestinian territories. While the names of the coalition’s partners were not disclosed during the press conference, the initiative is expected to draw participation from other Gulf states, European nations, and international organizations with a vested interest in Middle East stability.
Saudi Arabia’s $90 Million Pledge: A Catalyst for Change
Saudi Arabia’s decision to contribute $90 million to the coalition underscores its growing role as a regional leader in humanitarian and diplomatic efforts. The kingdom has historically been a major donor to Palestinian causes, providing billions of dollars in aid over the decades to support infrastructure, education, and healthcare in the Palestinian territories. However, this latest pledge is notable for its focus on direct financial support to the PA’s operational budget, which is intended to address immediate needs such as paying public sector salaries, maintaining essential services, and stabilizing the economy.
The $90 million contribution is expected to serve as a catalyst for encouraging other nations and organizations to join the coalition and commit additional resources. Prince Faisal highlighted that the funds would be disbursed transparently and in coordination with international partners to ensure accountability and maximize impact. This approach reflects Saudi Arabia’s broader strategy of aligning its foreign aid with global governance standards, particularly in light of its Vision 2030 reforms, which aim to enhance the kingdom’s global standing and influence.
Context: The Palestinian Authority’s Financial Crisis
To fully appreciate the significance of Saudi Arabia’s initiative, it is essential to understand the dire financial situation facing the Palestinian Authority. The PA’s budget has been under immense pressure due to a combination of factors, including declining international aid, restrictions on economic activity, and the high costs of maintaining security coordination with Israel. The authority employs tens of thousands of civil servants, including teachers, healthcare workers, and security personnel, whose salaries are often delayed due to insufficient funds. This has led to widespread protests and strikes in the West Bank, further undermining the PA’s legitimacy among Palestinians.
Moreover, the PA’s ability to govern effectively has been hampered by political divisions, particularly the ongoing rift between Fatah, which controls the PA in the West Bank, and Hamas, which governs the Gaza Strip. These divisions have complicated efforts to unify Palestinian governance and present a cohesive strategy for addressing the economic and humanitarian challenges in the territories. The international community’s reluctance to engage directly with the PA in recent years, due to concerns over corruption and governance inefficiencies, has further reduced the flow of aid, leaving the authority increasingly isolated.
Saudi Arabia’s coalition aims to break this cycle by rallying international support and channeling funds directly to the PA. By doing so, the initiative seeks to bolster the authority’s ability to deliver services, maintain stability, and demonstrate its relevance to the Palestinian people. This is particularly critical at a time when the PA faces growing competition from other political factions and grassroots movements that question its effectiveness.
Regional and Global Implications
The formation of the emergency coalition comes at a time of heightened geopolitical tensions in the Middle East. Saudi Arabia’s leadership in this initiative reflects its broader ambition to play a central role in shaping the region’s future, particularly in the context of the Israeli-Palestinian conflict. While the kingdom has maintained a cautious approach to direct involvement in the peace process, its financial support for the PA signals a willingness to engage more actively in stabilizing the Palestinian territories, which could have ripple effects on regional dynamics.
For one, the coalition could pave the way for renewed dialogue between the PA and other regional actors, including Israel. By strengthening the PA’s financial and institutional capacity, Saudi Arabia and its partners may hope to create a more viable partner for future negotiations. This is particularly relevant in light of recent discussions around the normalization of ties between Saudi Arabia and Israel, which have been contingent on progress toward a two-state solution. The coalition’s efforts could provide a framework for addressing some of the economic and governance challenges that have historically undermined peace talks.
On a global level, the initiative aligns with broader international efforts to support the Palestinian people and advance the cause of Palestinian statehood. The United Nations, through agencies like UNRWA (the United Nations Relief and Works Agency for Palestine Refugees), has long played a central role in providing humanitarian aid to Palestinians. However, UNRWA itself has faced funding shortages in recent years, prompting calls for alternative mechanisms to support the Palestinian population. Saudi Arabia’s coalition could complement these efforts by focusing on strengthening the PA’s governance structures, which are critical to the long-term sustainability of any Palestinian state.
Challenges and Opportunities
While the announcement of the coalition has been met with optimism in some quarters, it also faces significant challenges. One of the primary hurdles will be ensuring that the funds are used effectively and transparently. The PA has faced criticism in the past for mismanagement and corruption, which has eroded public trust and deterred some donors from providing aid. To address these concerns, the coalition will need to establish robust oversight mechanisms and work closely with the PA to implement reforms that enhance accountability and governance.
Another challenge will be navigating the complex political landscape of the region. The PA’s strained relationship with Israel, coupled with the ongoing rivalry with Hamas, could complicate efforts to deliver aid and achieve tangible results. The coalition will need to engage with a wide range of stakeholders, including Palestinian civil society, to ensure that its efforts are inclusive and address the needs of the broader population.
Despite these challenges, the coalition presents a unique opportunity to reinvigorate international support for the Palestinian Authority at a critical juncture. By rallying a diverse group of partners, Saudi Arabia has the potential to create a new model for international cooperation that prioritizes direct, results-oriented aid. The initiative could also serve as a platform for broader discussions on Palestinian statehood, economic development, and regional stability.
Saudi Arabia’s Broader Role in the Middle East
The launch of the coalition is consistent with Saudi Arabia’s evolving role as a regional powerhouse. Under the leadership of Crown Prince Mohammed bin Salman, the kingdom has pursued an ambitious agenda to diversify its economy, enhance its global influence, and position itself as a leader in addressing regional challenges. The Vision 2030 plan, which emphasizes economic reform and social modernization, has also included a strong focus on foreign policy and humanitarian initiatives.
In recent years, Saudi Arabia has increased its engagement in conflict resolution and humanitarian aid, from providing support to Yemen and Syria to mediating regional disputes. The coalition for the PA is a natural extension of these efforts, reflecting the kingdom’s recognition that stability in the Palestinian territories is integral to the broader security and prosperity of the Middle East.
Moreover, Saudi Arabia’s leadership in this initiative could help counterbalance the influence of other regional actors, such as Iran, which has historically supported Hamas and other groups opposed to the PA. By strengthening the PA, Saudi Arabia may seek to promote a more moderate and stable Palestinian leadership that aligns with its vision for the region.
The Road Ahead
As the coalition takes shape, several key questions remain. Who will join Saudi Arabia as partners in this initiative, and how much additional funding will they commit? How will the coalition coordinate with existing international frameworks, such as the Quartet on the Middle East or the Arab League? And perhaps most importantly, how will the PA utilize these funds to address its immediate challenges while laying the groundwork for long-term development?
The success of the coalition will depend on its ability to deliver measurable results quickly. For the Palestinian people, who have endured decades of hardship and uncertainty, the initiative offers a glimmer of hope that international support can translate into tangible improvements in their daily lives. For Saudi Arabia and its partners, it represents an opportunity to demonstrate leadership and foster stability in one of the world’s most intractable conflicts.
In his remarks, Prince Faisal reiterated Saudi Arabia’s unwavering commitment to the Palestinian cause, stating, “The Kingdom of Saudi Arabia has always stood by the Palestinian people, and we will continue to do so through this coalition and beyond.” With $90 million already pledged and the promise of broader international cooperation, the emergency coalition has the potential to mark a turning point in the Palestinian Authority’s struggle for stability and legitimacy.
As the world watches, the coalition’s ability to deliver on its promises will be closely scrutinized. For now, Saudi Arabia’s bold move has set the stage for a renewed global effort to support the Palestinian people and advance the prospects for peace and prosperity in the region.
