The Gaza economy operates almost entirely in cash, with an estimated $2.5 billion circulating in the Strip.
By Anna Epshtein and Pesach Benson, TPS
Despite a suspension of humanitarian aid and fuel deliveries, Hamas continues to enrich itself through a system of vouchers provided to Gaza residents.
“Being both the police and the biggest organized crime organization, Hamas effectively uses its power to control the flow of money,” Eyal Ofer, an expert on Gaza’s economy and former government adviser, told The Press Service of Israel.
“There is no financial transaction in Gaza that does not, in some way, benefit Hamas.”
One of the primary ways Hamas profits is through international aid vouchers. Various humanitarian organizations provide Gaza’s families with monthly vouchers worth NIS 1,000-1,500 ($272-$$409) meant to help them buy essentials.
However, Hamas-controlled exchange services demand a 22% fee for converting these vouchers into cash.
“People have no choice but to pay this fee,” Ofer explained to TPS-IL. “It’s not an open market. Hamas dictates the rates. With hundreds of thousands of families relying on these vouchers, Hamas rakes in hundreds of millions of dollars every month from this system alone.”
Fuel is another major source of revenue. During the two-month ceasefire, 978 fuel tanks carrying 50 million liters of fuel entered Gaza. Hamas, which controls large storage facilities in Nuseirat, stockpiled a significant portion of the fuel.
When the ceasefire ended, gas prices skyrocketed from NIS 16-26 ($4.37-$7.10) per liter to as high as NIS 50 ($13.65) in some areas.
“Hamas controls at least half of the fuel, and that means they decide how much people will pay,” Ofer explained. “They could easily be making up to $300 million from this alone.”
The Gaza economy operates almost entirely in cash, with an estimated $2.5 billion circulating in the Strip. Even before the war, Hamas imposed heavy taxes on humanitarian aid.
Since October 7, the terror group has tightened its grip on deliveries of food, water, fuel, tents, blankets, and other essential items, charging approximately $7,000 per truck entering Gaza.
As a result, Hamas has reportedly amassed at least $1 billion since the outbreak of war.
“Every truck, every package that enters Gaza, Hamas finds a way to profit from it,” Ofer told TPS-IL. “This is not new, but the war has made it worse.”
Israel suspended aid deliveries at the beginning of March after Hamas rejected a proposal by U.S. envoy Steve Witkoff to extend the ceasefire through the Islamic holy month of Ramadan and the upcoming Jewish Passover holiday.
Israel estimates that enough food, water, fuel and medicine entered Gaza during the temporary ceasefire to last for five months.
As long as aid continues to flow, so too will Hamas’s profits, Neomi Neumann, told TPS-IL. Neumann is the former head of the research unit at the Israel Security Agency (Shin Bet) and now a visiting fellow at the Washington Institute for Near East Policy.
She explained that international organizations recognize the problem but are powerless to intervene. “They want to feed the population of Gaza, but Hamas is in charge,” Neumann said.
“And all the alternatives are bad. It’s either Hamas, or the Palestinian Authority, or Israel — which means Israel will be risking their soldiers’ lives to deliver food to Gazans.”
Since mid-November, Hamas and criminal gangs associated with the terror group have stepped up their stealing of deliveries of food, water, medicine and other humanitarian supplies. At one point, 85% of all trucks entering the Strip were hijacked.
TPS-IL previously reported that Hamas granted distribution lines to these groups to ensure that humanitarian aid exclusively reaches Hamas. In return, these gangs receive money, food, and vouchers.
TPS-IL also learned that Hamas paid these gangs $10,000 a month to maintain checkpoints.
In September, Palestinian sources told TPS-IL that Hamas was charging $800 for donated tents while sacks of flour and rice donated by the West were being sold for $700 and $500 respectively.
“Even humanitarian aid is just another commodity for Hamas,” Neumann told TPS-IL. “They take what they want and sell the rest.”
A government spokesperson told TPS-IL that Hamas’s theft and profiteering from humanitarian aid underlines the necessity of eradicating the terror group.
“This highlights the urgent need to remove Hamas from any governing role in Gaza’s future,” said David Mencer, a spokesperson for the National Public Diplomacy Directorate in the Prime Minister’s Office. “The government’s ultimate goal remains clear: freeing Gaza from Hamas.”
At least 1,180 people were killed, and 252 Israelis and foreigners were taken hostage in Hamas’s attacks on Israeli communities near the Gaza border on October 7. Of the 59 remaining hostages, 36 are believed to be dead.