After Iran Cuts Off Funds, Palestinian Groups in Gaza Scramble for Resources
The Palestinian factions always succeed in finding alternatives and adapting to reality, whether political or financial, Gaza-based analyst says
[Gaza City] News that Iran has halted its financial support to a number of Palestinian groups in Gaza and abroad has grabbed media attention, as the situation of several of the Palestinian factions has reached a critical level.
The Palestinian daily newspaper Al-Quds quoted unnamed informed sources in Lebanon on Sunday saying that, because of the Iranian decision made three months ago, the factions are currently suffering from a severe financial crisis that could cause some of them to shut down due to their inability to pay their bills.
This is not a recent crisis, Gaza-based political analyst Mansour Abukrayyem claims.
The severe sanctions imposed on Iran have dramatically affected the country’s economy and social stability leading to a rise in protests and fueling internal accusations that most of the country’s economic capabilities go abroad toward regional allies, which drains the Iranian citizen and the economy in general
“Over the past few years, there has been a reduction and sometimes cessation of the Iranian funds for Palestinian factions raising the banner of armed resistance against the Israeli occupation, such as Hamas, Islamic Jihad and some groups of the Al-Aqsa Martyrs Brigades and the Popular Resistance who received many types of support including financial, logistic and military aid, in addition to providing military training,” he told The Media Line.
Iran has been providing support for its Palestinian allies in order to extend its influence in the region, Abukrayyem says.
“In politics, nothing is free. Iran has a Shiite expansionist regional project in the region through its arms that extend from Yemen to Beirut. Former Iranian President Mohammad Khatami once said that Iran is controlling the political decisions in five Arabian capitals. This proves that Iran wants to strengthen its powers and be an influencer, a regional player,” he said.
On many occasions, senior Hamas members have thanked Iran, in public, for its military, financial and political support, including Abu Obeida, spokesman for Hamas’ military wing and Ismail Haniyeh, the head of Hamas’ Political Bureau.
Abukrayyem attributes the cutback to multiple challenges to Iran on the domestic and international level.
“The US and the Gulf countries accuse Iran of having an expanding influence in many parts of the region, such as Syria, Lebanon, Palestine, Yemen and some Gulf countries, so they targeted it in an attempt to undermine its ability to support its allies,” he said.
“Therefore, during the administration of US President Donald Trump, maximum sanctions were imposed on the Iranian economy with regard to the possibility of obtaining and transferring funds, in addition to placing many large companies on the terrorism list,” he added.
The internal Iranian situation is another factor that contributed to the reduction of Iran’s financial support for Palestinian factions, according to Abukrayyem.
“Again, the severe sanctions imposed on Iran have dramatically affected the country’s economy and social stability leading to a rise in protests and fueling internal accusations that most of the country’s economic capabilities go abroad toward regional allies, which drains the Iranian citizen and the economy in general,” he said.
Such internal issues, Abukrayyem believes, have prompted Iran to focus more inside its borders in order to curb the popular pressure it is facing, which will reflect directly on its ability to provide external support.
Members of the Palestinian factions are the most affected by the Iranian move.
“This will negatively reflect on operatives and members of Palestinian groups who will probably receive only parts of their salaries. Some of the organizational activities might be suspended as well,” Abukrayyem said.
Yet the Palestinian factions will not stop because they always find alternatives and can easily adapt to the political and financial reality, he added.
This will negatively reflect on operatives and members of Palestinian groups who will probably receive only parts of their salaries. Some of the organizational activities might be suspended as well.
In addition to the factions, the residents of the Palestinian territories, mainly in Gaza, will feel the negative economic effect resulting from the cut off of funds.
Gaza-based economist Mohammed Abu Jayyab told The Media Line that “there are thousands of members affiliated with Palestinian members in Gaza. This number constitutes a significant share of the purchasing power and deducting it will certainly affect the general economic situation of the costal enclave.”
To face that challenge, Palestinian factions, like Hamas, have started to follow strategies including restructuring, money laundering and merging media institutions, Abu Jayyab concluded.
