Explained: Hamas funding-How the Gaza-based terror group raises money?

Hamas, the militant group in Palestine, on October 7 attacked a music festival in Israel, killing around 268 people. Besides the attack on the rave party, the Hamas fighters also fired rockets into Israeli territory, resulting in the deaths of at least 1,300 people. The Hamas attack prompted an immediate response from the Benjamin Netanyahu-led government in Israel. According to a statement by the Palestinian Ministry of Health in Gaza, at least 2,670 people have been killed in Israeli airstrikes and scores of others have been wounded. As the Israel-Hamas war rages on, let’s try to understand where Hamas gets its funding from.

In 2014, at a joint hearing before the Subcommittee on the Middle East and North Africa, the US Congress described Qatar as "perhaps the largest financial patron of Hamas". The hearing was further informed that Qatar funds Hamas’ strikes in Gaza, as well as its project, "building terror tunnels from which to attack Israel rather than building up Gaza for the Palestinian people."

Qatar has repeatedly denied financially backing Hamas. On Sunday after France 24 published a piece on Qatar's alleged ties with Hamas, the country dismissed such insinuations and said it is not a financial backer of of the militant group. "It provides aid to Gaza, and the destination of the money is crystal clear,” the country said. "Qatari aid to the Gaza Strip is fully coordinated with Israel, the United Nations and the United States, and provided in coordination with Israel and the United Nations."

According to a Reuters report, the State Department in February this year said that Hamas raises funds in other Gulf countries and gets donations from Palestinians, other expatriates and its own charities.

Since 2014, Qatar has paid millions of dollars to Gaza. The Reuters report said that at one point Qatar was spending $30 million per month to help operate Gaza’s sole power plant and support families and public servants in the Hamas-run government.

"Qatari aid provides 100 dollars to the poorest Palestinian families and extends the period of electricity during a day in Gaza," a Qatari official said in response. The official added that Qatar had helped "maintain stability and quality of life for ... Palestinian families".

CIA says Iran has provided funds to The al-Aqsa Martyrs' Brigades, the armed wing of the Fatah through Hezbollah facilitators. The CIA adds that Iran has cooperated with other terrorist groups like Hamas in the region.

Hamas is reportedly also tapping into cryptocurrency with support from online donors around the world. Israel recently confiscated cryptocurrency addresses believed to be linked to Hamas and other Palestinian militant groups. These digital assets have been estimated to be collectively worth tens of millions of dollars, as reported by private analysts who shared their insights with CNN.

Hamas' utilisation of digital currency is part of its diversified approach to raising funds and bypassing sanctions. This approach is one among several methods employed by the group, which has been designated a terrorist organisation by both the United States and the European Union, to secure financial resources.

“There’s not one financing method for Hamas or other terrorist organisations. They’re opportunistic and adaptive,” said former CIA analyst Yaya Fanusie, as per CNN.

According to counterterrorism expert Matthew Levitt, a significant portion of Hamas' budget, over $300 million, comes from business taxes and support from countries like Iran and Qatar, as well as charitable contributions. The State Department also noted Hamas' fundraising efforts in Gulf countries and donations from Palestinians and expatriates, as reported by Reuters.