How Hamas’s financial empire, with an estimated annual income of over $1 billion, continues to thrive despite international efforts to dismantle it.
From a luxurious restaurant in Istanbul, overlooking the serene Bosporus, Hamas’s financiers discuss their various board seats and the accusations of funding the Islamist group. While Hamas wields physical force in Gaza and spreads its ideology, its financial power remains a crucial pillar. Israel seeks to destroy Hamas by targeting its financial base, which primarily resides in friendly countries overseas. With an intricate network of money-launderers, mining companies, and other entities, Hamas’s financial empire is estimated to generate over $1 billion annually, making it challenging for Israel and its allies to dismantle.
Strangling the Import Taxes: Israel’s Efforts to Cut Off Cash Flow
Hamas’s income relies on import taxes on goods entering Gaza from the West Bank or Egypt, amounting to approximately $360 million per year. Israel has imposed strict limitations on the movement of goods and people across the border since its withdrawal from the strip in 2005, effectively strangling this source of cash. Basic necessities struggle to make their way into Gaza, exacerbating the humanitarian crisis.
Foreign Funding: The Main Source of Hamas’s Financial Power
A significant portion of Hamas’s income, around $750 million per year, comes from abroad. Friendly governments, with Iran being the largest contributor, provide military aid and financial support to Palestinian Islamist groups. To avoid falling prey to American sanctions, Hamas’s financiers employ various strategies, including utilizing crypto markets. Istanbul’s run-down Fatih neighborhood is home to Redin, a currency exchange allegedly involved in smuggling over $20 million for Hamas.
Investments and Revenue Streams: Hamas’s Elusive Financial Web
Israeli officials estimate that Hamas’s investments contribute at least $500 million annually to its revenue. These investments include firms registered in countries across the Middle East, managed by Hamas’s investment office and employing its members. American officials claim that these firms donate to charities that, in turn, funnel funds to Hamas, while Turkish officials suggest that profits are sometimes taken directly. Untangling these revenue streams proves challenging for Western regulators, as these companies often deny any affiliation with Hamas.
The Role of Turkey: A Safe Haven for Hamas’s Financiers
Turkey has become a safe haven for Hamas’s financiers, with Istanbul serving as their base of operations. The Turkish government, led by President Recep Tayyip Erdogan, supports the Palestinian cause and offers shelter to Hamas. Turkey’s banking system facilitates complex transactions, helping Hamas evade American sanctions. The lightly regulated crypto market further aids in this endeavor. Some of Turkey’s major banks, including Kuveyt Turk, have faced accusations of knowingly storing Hamas’s funds. The Turkish government’s tacit approval of Hamas’s presence opens doors and smoothens business operations, benefiting Hamas’s businessmen.
Conclusion:
Despite Israel’s efforts to cripple Hamas’s financial base, the organization remains financially resilient. The majority of its income comes from abroad, making it difficult for Israel and its allies to choke off the funding. Turkey’s support, both politically and through its banking system, further shields Hamas from the impact of international sanctions. As the conflict intensifies, there is a risk that Hamas’s finances will improve, potentially leading to its resurgence in the aftermath of destruction. Meanwhile, the people of Gaza continue to suffer, while Hamas’s financiers dine in luxury, overlooking the Bosporus. The battle to dismantle Hamas’s financial empire is far from over, and its implications extend beyond the conflict in Gaza.
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