How is Hamas financed, and who benefits from its terrorism?

FUNDING FROM IRAN

The historical ties between Iran and Hamas can be traced back to the latter’s creation in 1987[1]. Since then, Iran has been a significant supporter of the Palestinian terrorist group, providing financial aid, weapons, and political backing[2].

This relationship has been instrumental in strengthening Hamas and enabling it to carry out attacks against Israel[3].

The alliance between Iran and Hamas has evolved over time, adapting to the changing geopolitical landscape in the Middle East, but the financial and military support provided by Iran has remained a cornerstone of Hamas’ operations.

Iran’s financial assistance to Hamas has been particularly evident during periods of conflict with Israel. For instance, during the well-planned and multipronged attack by Hamas against Israel in a recent month, Iran’s support enabled the group to kill more than 1,400 people[2].

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on ten key Hamas figures, highlighting the connection between Iran’s funding and the group’s terrorist activities[4].

This financial support from Iran has allowed Hamas to continue its violent resistance against Israel[5], despite the group’s struggles to govern Gaza. Iran’s financial and military assistance to Hamas has had a profound impact on the group’s military capabilities. By funnelling support from charities and friendly nations through a global financing network, Iran has helped Hamas to develop a formidable arsenal and enhance its operational capabilities[6].

Some consequences of this support include:

• Increased military capacity, allowing Hamas to launch surprise attacks and target strategic locations[5]
• Greater access to advanced weaponry, such as rockets and missiles, which can be used to target Israeli civilians and military installations[7]
• The ability to maintain a strong presence in the Gaza Strip, despite the ongoing humanitarian crisis[8]
  This support from Iran has not only enabled Hamas to continue its violent resistance against Israel but has also played a significant role in shaping the broader geopolitical dynamics in the Middle East.

SUPPORT FROM OTHER COUNTRIES AND ORGANIZATIONS

Qatar

Qatar has played a significant role in financially supporting Hamas’ global financing network to secure funds from various charities and friendly nations[6].

In 2007, Qatar sided with Hamas and endorsed its takeover of Gaza, providing both political and financial assistance to the Islamist group[9].

As the Mossad chief, Yossi Cohen, managed the Qatari file for many years, he began to question Israel’s policy toward the Gaza money[10].

Since 2007, the Qatari government has been financing Hamas far from any international control, but this financing became coordinated with Israel in 2014[11].

Qatar was even prepared to provide funds to the Gaza Strip through Hamas during the 2014 Israel-Hamas war to alleviate the humanitarian crisis in the region[12].

Turkey

In addition to Qatar’s support, Turkey has also provided political and financial backing to Hamas.

Turkish President Recep Tayyip Erdogan has publicly defended the group, stating that “Hamas is not a terrorist organization” following a massacre of Israeli civilians in October 7[13].

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on ten key Hamas members, but this has not deterred Turkey from maintaining its support for the group[4].

Hamas has developed ties with various regional players and organizations in the Middle East since its inception in 1987[1].

Although most of Gaza’s population lives in poverty, Hamas receives financial support from countries such as Iran and Qatar, as well as other donors, allowing it to maintain its military and political activities in the region[14].

The group has faced financial difficulties due to late and reduced payments from Iran, but it continues to seek funding from other sources, such as choosing between Qatar and Jordan for establishing new financial networks[15].

DOMESTIC SOURCES OF INCOME

Taxation

One of the primary domestic sources of income for Hamas is taxation and revenue collection in Gaza [16].

Israel controls Palestinian tax revenue on behalf of the Palestinian Authority (PA), and this system allows Hamas to access a portion of these funds [17].

Additionally, Hamas imposes taxes on various goods and services within the Gaza Strip, such as utilities and imports, providing a steady flow of income to support their operations [14].

The funds generated through these taxation methods are crucial for Hamas to maintain its activities and exert influence within the region.

Smuggling

Another significant source of income for Hamas is smuggling through tunnels and borders [16].

These tunnels, often referred to as the “Philadelphia corner,” connect the Gaza Strip to Egypt, allowing for the smuggling of goods, weapons, and cash [18].

Hamas has been known to smuggle money from exiled leaders and other sources, further bolstering their financial capabilities [18].

Additionally, the group has been involved in drug, arms, and people trafficking, as well as money laundering operations, in connection with other organizations such as Hezbollah [14].

These smuggling activities provide a substantial and consistent source of revenue for Hamas, enabling them to continue their militant activities and maintain control within the Gaza Strip.

CHARITABLE DONATIONS

Charitable donations from individuals and groups also contribute to Hamas’ financial support [6].

The organization leverages a global financing network to funnel support from charities and friendly nations, often passing cash through multiple intermediaries to obscure its origin and destination [6].

Some of these funds are transferred from countries such as Turkey and Iran, with estimates suggesting that Iran alone provides between $70 million and $100 million per year to Hamas [19][2].

Furthermore, Gaza-based financial institutions like Samir Herzallah and Brothers For Money Exchange and Remittances (Samir Exchange) have worked with Hamas to facilitate money transfers, helping to maintain their financial resources [20].

These charitable donations and financial networks play a vital role in sustaining Hamas’ operations and presence in the region.

In conclusion, Hamas’ economic support comes from a variety of sources. Iran has been a significant contributor, providing financial assistance during conflicts and impacting Hamas’ military capabilities. Additionally, countries like Qatar and Turkey have played a role in funding Hamas through political and financial support. Hamas also relies on domestic sources of income, such as taxation and revenue collection in Gaza, smuggling through tunnels and borders, and charitable donations from individuals and groups.

See also Inside Hamas’s sprawling financial empire in The Economist, where it can be read:

“But the lion’s share of Hamas’s money—at least $500m a year, say Israeli officials—comes from its investments, some of which are firms registered in countries across the Middle East. These are run by Hamas’s investment office and employ its members. American officials say the firms donate to charities, which in turn funnel funds to Hamas; Turkish officials say profits are sometimes taken directly.

Untangling these revenue streams is tricky for Western regulators. One such firm built the Afra Mall, Sudan’s first shopping mall, while another has mines near Khartoum, its capital. A third built skyscrapers in Sharjah, in the United Arab Emirates (UAE). Many of these companies boast of their business deals, but deny any affiliation with Hamas.”

1. Qatar, Iran, Turkey and beyond: Hamas’s network of allies. (n.d.) 1. Qatar, Iran, Turkey and beyond: Hamas’s network of allies. (n.d.), from http://www.france24.com
2. A primer on Hamas funding sources, Iranian support …. (n.d.), from http://www.acfcs.org
3. Iran, Hamas, and Islamic Jihad: A marriage of convenience. (n.d.), from ecfr.eu
4. Following Terrorist Attack on Israel, Treasury Sanctions …. (n.d.), from home.treasury.gov/news/press-releases/jy1816
5. What Is Hamas?. (n.d.), from http://www.cfr.org/backgrounder/what-hamas
6. Who funds Hamas? A global network of crypto, cash and …. (n.d.), from http://www.reuters.com
7. Israel and Hamas October 2023 Conflict – CRS Reports. (n.d.), from crsreports.congress.gov/product/pdf/R/R47754
8. Humanitarian Assistance and West Bank/Gaza. (n.d.), from http://www.wilsoncenter.org
9. 10 Things to Know About Hamas and Qatar. (n.d.), from http://www.fdd.org
10. How Israel Secretly Propped Up Hamas. (n.d.), from http://www.nytimes.com
11. Cash flow: 16 years of Qatari money to Hamas has created …. (n.d.), from http://www.calcalistech.com/ctechnews/article/lretnzx9l
12. Qatar sent millions to Gaza for years – with Israel’s backing. …. (n.d.), from http://www.cnn.com
13. 10 Things to Know About Hamas and Turkey. (n.d.), from http://www.fdd.org
14. Gaza is plagued by poverty, but Hamas has no shortage …. (n.d.), from http://www.nbcnews.com
15. Turkey May Provide Hamas With $300 Million in Annual Aid. (n.d.), from http://www.haaretz.com
16. Who’s funding Hamas?. (n.d.), from http://www.businessinsider.com
17. How Israel controls $188 million of Palestinian money …. (n.d.), from http://www.aljazeera.com
18. Gaza’s Tunnels, Now Used to Attack Israel, Began as …. (n.d.), from http://www.nationalgeographic.com
19. U.S. And UK Target Additional Hamas Finance Officials …. (n.d.), from home.treasury.gov/news/press-releases/jy1981
20. U.S., UK, and Australia Target Additional Hamas Financial …. (n.d.), from home.treasury.gov/news/press-releases/jy2036, from http://www.france24.com