Fifth foreign firm exits controversial East Jerusalem cable car project

A fifth foreign company has pulled out of a project to construct a cable car from West to East Jerusalem, according to the Guardian. Rights groups warn that the planned 1.4-kilometre route threatens to seize land and property rights from dozens of Palestinian families. Local authorities nevertheless insist that the development is proceeding as planned. [1]

The route ends at a compound managed by the far-right settler group Elad, the Guardian reported. Opponents argue the transport link will displace local Palestinians and alter the cultural landscape of the area. The scheme appeared to stall for four years until late September 2026, when local Jerusalem authorities pushed it forward shortly before Israel's 27 October elections. [1]

East Jerusalem comprises the portion of the city east of the 1948 Green Line. Israel extended its jurisdiction over roughly 70 square kilometres of the territory in 1967 and formalized the move through a 1980 law. The United Nations and international bodies consider East Jerusalem to be occupied territory and the capital of Palestine, and do not recognize the annexation by Israel. [2][5]

Diplomatic friction in the area has recently escalated. As FTMQ News reported earlier, Britain was forced to downscale its long-standing consulate in East Jerusalem to a mission after Israel ordered its closure following British sanctions on West Bank settlements. [6]