Funding Hamas: The Global Cash Flow Powering Gaza's Rulers and Its Dangerous Implications"

Despite being designated a terrorist organization by the U.S. and European Union, Hamas remains deeply entrenched in Gaza, functioning not only as a militant entity but also as a de facto government. This situation is enabled by a web of international financial support, often routed through humanitarian channels or state proxies. The implications are staggering: foreign aid, public service funds, and even tax revenue within Gaza may indirectly empower Hamas, fueling cycles of violence, repression, and instability in the region.

Key Financial Streams Supporting Hamas

1. Qatar: $10 Million Monthly in Direct Support

Qatar has long served as a primary benefactor of Hamas, providing an estimated $10 million per month. These funds are officially framed as humanitarian relief and civil servant salaries. Yet, because Hamas runs the civil apparatus of Gaza, these funds inevitably bolster the group’s control and legitimacy.

Implication: Even when designated for civilian use, money flowing into a Hamas-controlled territory enhances the group’s grip on Gaza, freeing up its other resources for military operations and propaganda.

2. Palestinian Authority: Pays for Electricity and Salaries

Although Hamas and the Palestinian Authority (PA) are rivals, the PA still pays for Gaza’s electricity, partly via Israeli intermediaries. In addition, the PA provides salaries to former civil servants in Gaza, some of whom may be working under Hamas jurisdiction.

Implication: The PA, in an effort to maintain influence and prevent humanitarian collapse, unintentionally sustains Hamas’s infrastructure, despite their political conflict.

3. United Nations Agencies: Education and Health Funding

UNRWA (United Nations Relief and Works Agency) and other UN bodies fund education and healthcare in Gaza. These services are essential, yet administered within a system controlled by Hamas. UN staff have been accused in the past of allowing Hamas to co-opt resources, from using UN schools for weapons storage to manipulating food distribution.

Implication: UN funding contributes to critical services—but in a context where Hamas siphons off control, taxes aid, and leverages services for political loyalty.

Hamas’s Internal Revenue: A Brutal Tax Regime

• 16.5% tax on aid and food entering Gaza

• Taxes on fishing hauls

• Income tax on residents

Implication: Hamas capitalizes on humanitarian need. Every dollar of aid entering Gaza is taxed, redirected, or manipulated, transforming international relief into a revenue stream for a terrorist regime.

Iranian Oil and Sanctions Evasion: Indirect Financial Lifeline

Despite U.S. sanctions, Iran has continued to export oil, particularly to China. The lack of enforcement under the Biden administration has allowed billions in oil revenue to flow back to Tehran, which supports Hamas and other proxy militias.

Implication: By not enforcing sanctions or triggering the JCPOA “snapback” mechanism, the U.S. has allowed Iran to finance terrorism indirectly, including Hamas operations in Gaza.

$6 Billion in Qatar: Frozen but Controversial

A separate $6 billion Iranian fund in a Qatari bank, tied to a prisoner exchange and U.S. policy shift, remains the subject of debate. While officials claim strict controls prevent its misuse, skeptics question Qatar’s loyalty, given its past support of Hamas and alignment with Iran.

Implication: The potential fungibility of funds—even if tightly controlled—raises serious concerns about how indirect financial flows can free up other assets for Hamas and Iran’s regional proxies.

Conclusion: A Web of Complicity and Unintended Consequences

The financial ecosystem that props up Hamas is complex and morally ambiguous. Governments, international organizations, and even rival Palestinian factions inadvertently sustain Hamas’s rule, either to avoid humanitarian catastrophe or to preserve fragile political balances.

But these efforts come at a cost:

• Hamas remains deeply entrenched, its power insulated by international funds and internal revenue

• Aid meant for civilians is co-opted and taxed by terrorists

• Global efforts to promote peace are undermined by the very structures meant to prevent collapse

Recommendations

1. Audit and restructure foreign aid to Gaza to ensure direct control over disbursement by neutral entities.

2. Enforce sanctions on Iranian oil to cut off key revenue streams enabling regional terrorism.

3. Hold Qatar and other intermediaries accountable for where funds go and how they are used.

4. Support alternative governance structures in Gaza that allow for humanitarian assistance without empowering Hamas.

References

• Levitt, M. (2023). Hamas’s Global Financing Networks. Washington Institute.

• U.S. Department of State. (2024). Country Reports on Terrorism.

• United Nations Relief and Works Agency (UNRWA). (2023). Annual Report.

• Congressional Research Service. (2024). U.S. Foreign Aid to the Palestinians.

• BBC. (2023). Qatar's Role in Gaza: Humanitarian or Political?

• Wall Street Journal. (2024). Iran's Oil Revenue Soars Amid Lax Sanctions Enforcement.

• Treasury Department. (2024). Sanctions and Illicit Financial Flows to Terrorist Entities.