One year later: Hamas financing after October 7th
Hello Insight Monitor subscribers, and welcome to a special edition of our newsletter, released on the anniversary of the Hamas terrorist attack against Israel. Shortly after the attack last year we released our report describing Hamas financing methods and mechanisms. However, much has changed since then. This article summarizes how the group has adapted to the significant kinetic counterterrorism pressure it is under from Israel, what sources and methods have been affected, and what remains intact.
Pre-October 7th Fundraising
Hamas had several important sources of funds prior to October 7th. The group raised funds from:
State sponsorship from Iran
Transfer of funds from Qatar for salaries and social services
Dividends/profit from its investment portfolio (including a network of over forty companies directly and indirectly tied to the group)
Taxation in Gaza
Donations from supporters
Hamas used the money it raised from these sources to administer Gaza (paying salaries), administer its organization, and to plan and conduct one of the most expensive terrorist attacks in history.
Since October 7th, shockingly few of these sources of funds have been disrupted. For instance, state sponsorship from Iran continues, and many of the businesses that make up Hamas’s investment portfolio continue to operate. Some sources might have also increased. For instance, there has been an increase in public support for Hamas, which might have resulted in increased donations directly through formal and informal crowdfunding campaigns and potentially through charities and non-profits. While Hamas is suffering organizational challenges due to Israel’s kinetic counterterrorism activities, the group likely continues to be able to tax activities in its area of influence.