The Gaza Strip may not be quite so squalid and impoverished as one would guess from its portrayal in the media, yet there is no doubt that the territory is quite poor. Nonetheless, its rulers live in luxury, often with fortunes totaling millions or billions of dollars. Deborah Danan explains:

According to Moshe Elad, a Middle East expert from the Western Galilee Academic College, most of the founders of Hamas were refugees or direct descendants of refugees. . . . The money, Elad told the Israeli financial newspaper Globes, came from several directions. “Donations by the families of people who died, charity money, called zakala in Arabic, and donations from various countries. [These donations first came from the governments of] Syria and Saudi Arabia; then Iran, one of the main sponsors; and ended with Qatar, which has today taken Iran’s place.”

There were also campaigns to raise money in the U.S. “Mousa Abu Marzook,” [currently the group’s deputy chairman], Elad says, “started raising funds among the rich Muslims in America and also established several bank funds.” Over time he built a conglomerate of ten financial operations “that give loans and conduct investments. He’s an amazing financier.”

Today, Abu Marzook is one of the major billionaires in Hamas. “Arab estimates peg his fortune at 2 to 3 billion dollars,” Elad says. Another senior-official-turned-terror-tycoon is Khaled Mashal, head of Hamas’s political wing. “Global estimates say Mashal is worth $2.6 billion,” but Arab commentators, with other sources, say he is worth between 2 and 5 billion, “invested in Egyptian banks and Gulf countries, some in real-estate projects.” Next on the list is Ismail Haniyeh, [the organization’s current chairman].

Most of their money comes from misused donations to the Gaza Strip, since every dollar passes through Hamas’s pipeline. Elad assesses that smuggling of goods through tunnels generates hundreds of millions a year and those who control the siphon became wealthy along the way. There are several hundred millionaires in Gaza and there would be hundreds more if smuggling would continue unabated.

Hamas also apparently published fictitious names of employees to sponsors abroad and then scooped up their salaries and distributed them among a few senior members.

If there’s one lesson to be learned from the history of the Israel-Arab conflict, it’s never to be confident that an end is in sight. Ehud Yaari nevertheless—and with all due caution—points to some noteworthy developments:

The absolute primacy of “armed struggle” in Palestinian discourse has discouraged any serious attempt to discuss or plan for a future Palestinian state. Palestinian political literature is devoid of any substantial debate over what kind of a state they aspire to create. What would be its economic, foreign, and social policies?

One significant exception was a seminar held by Hamas in Gaza—under the auspices of the late Yahya Sinwar—prior to October 7, 2023. The main focus of what was described as a brainstorming session was the question of how to deal with the Jews in the land to be liberated. A broad consensus between the participants was reached that most Israeli Jews should be eradicated or expelled while those contributing to Israel’s success in high tech and other critical domains would be forced to serve the new Palestinian authorities.

Yet, the ongoing aftershocks from the ongoing war in Gaza are posing questions among Palestinians concerning the viability of armed struggle. So far this trend is reflected mainly in stormy exchanges on social-media platforms and internal controversies within Hamas. There is mounting criticism leveled at the late Mohammad Deif and Yahya Sinwar for embarking upon an uncoordinated offensive that is resulting in a “Second Nakba”—a repeat of the defeat and mass displacement caused by launching the war in 1948.

To be sure, “armed struggle” is still being preached daily to the Palestinian communities by Iran and Iranian proxies, and at least half the Palestinian public—according to various polls—believe it remains indispensable. But doubts are being heard. We may be reaching a point where the Palestinians will feel compelled to make a choice between the road which led to past failures and an attempt to chart a new route. It will certainly require time and is bound to cause fractures and divisions, perhaps even a violent split, among the Palestinians.