Inside Hamas’ Booming Black Market Empire

In a revealing investigation, the BBC has uncovered how Hamas continues to fund its operations and maintain loyalty among its ranks despite Israel's blockade and ongoing military pressure in Gaza. The terror group is reportedly drawing from a pre-war cash stockpile of up to $700 million hidden in underground tunnels, while systematically diverting humanitarian aid to generate revenue and distribute perks to supporters, exacerbating living conditions for ordinary Palestinians.

Citing anonymous Hamas employees and Gaza sources, the BBC reported that the group has managed to pay partial salaries to around 30,000 "civil servants" throughout the 10-month war sparked by its October 7, 2023, attack on Israel. Three civil servants confirmed receiving about NIS 1,000 ($300) each in the past week, though payments represent at most 20% of pre-war wages, disbursed irregularly every 10 weeks. This lifeline, however meager, helps Hamas retain control amid economic collapse, where inflation has skyrocketed and basic goods are scarce.

Hamas's financial ingenuity includes covert distribution tactics to evade Israeli strikes. Operatives receive encrypted phone messages inviting them to "tea" at specific times and locations, where a contact discreetly hands over cash envelopes before vanishing. Israel has targeted these handlers, leading to risks for distributors, one source narrowly escaped a bombing. To supplement funds, Hamas taxes traders and sells smuggled cigarettes at up to 100 times their pre-war price, raking in additional revenue.

The report strengthens Israel's long-standing accusations of aid diversion. Significant quantities of humanitarian supplies, boosted during a January-March 2024 truce that freed hostages, were seized by Hamas and either sold on the black market at inflated prices or distributed to loyalists. This echoes findings from the Wall Street Journal in April, which detailed how aid sales help pay fighters. The United Nations, previously denying systemic looting, recently admitted that 88% of its aid trucks failed to reach destinations due to theft over recent months. Pre-war, Hamas's annual budget hovered around $350-500 million, funded by Iranian support ($15 million monthly from Qatar alone), taxes on Gaza's economy, and investments like a $500 million stockpile in Turkey.

Gazans interviewed expressed fury at the inequity. "When hunger worsened, my children cried not just from pain but from seeing our Hamas-affiliated neighbors get food parcels," said Nisreen Khaled, a single mother. Even Hamas employees gripe about paltry pay and worthless old bills amid inflation. A BBC source from within the group admitted they've lost control over most of Gaza, with a security officer noting chaos in aid distribution.

This financial resilience allows Hamas to sustain its 20,000-30,000 fighters and bureaucracy, despite Israel's efforts to dismantle tunnels and target money exchangers. Experts warn it prolongs the conflict, as Hamas uses aid as leverage, evident in stalled truce talks over hostage releases. With over 40,000 Palestinian deaths reported by Gaza's Hamas-run health ministry (unverified, including combatants), the report shows how the group's tactics deepen civilian suffering.

Hamas denies systematic aid theft, blaming Israel for shortages. The UN calls for better protection of convoys, but they don't bother to actually pick up the aid anyway, so their requests are laregly pointless.