Hamas, the governing authority in the Gaza Strip, is grappling with a severe financial crisis as the ongoing conflict with Israel disrupts its revenue streams and hampers its ability to remunerate fighters and civil servants. According to a report by the media, the group has managed to disburse only 900 shekels (approximately $240) over the past over four months, leading to widespread dissatisfaction among its ranks.
The financial turmoil is attributed to multiple factors, including Israel’s targeted operations against Hamas’s financial operatives and the blockade on humanitarian aid, which previously served as a significant income source for the organization. Israel’s military actions have eliminated key figures responsible for cash distribution, further crippling Hamas’s financial infrastructure.
Before the escalation of hostilities, Hamas relied on various funding sources, such as monthly cash transfers from Qatar, taxation of goods entering Gaza, and the resale of seized humanitarian aid. However, these avenues have been largely severed due to intensified Israeli restrictions and military interventions.
The scarcity of physical currency in Gaza has exacerbated the situation, with the enclave not receiving fresh currency supplies for over 18 months. This has led to the emergence of informal money repair shops, where residents attempt to prolong the usability of worn-out bills.
The financial strain has also impacted Hamas’s recruitment efforts and internal cohesion, as reduced salaries and delayed payments erode morale among fighters and employees. Additionally, the broader civilian population in Gaza faces heightened economic hardship, with limited access to essential goods and services amidst the ongoing blockade and conflict.
While some analysts previously considered Hamas’s financial network resilient, the current assessment done by the experts suggests a picture of significant weakening of its economic foundations. The group’s ability to sustain its operations and governance in Gaza remains uncertain as the conflict persists and financial pressures mount.
