Listen to the article
Hezbollah faces severe trials in these times of war. Along with the heavy blows to its military and logistical capabilities from Israeli strikes—particularly in Dahyeh, the Beqaa Valley and the south—its financial resources appear to be on the verge of exhaustion. Myth or reality?
As the Hezbollah-Israel conflict intensifies, with shifting war objectives, the Hebrew State has adopted a strategy aimed at dismantling Hezbollah by crippling, or even destroying, all its components. For Israeli Prime Minister Benjamin Netanyahu, the top priority is to ensure the return of the 60,000 displaced residents from northern Israel. To this end, Israel has set the ultimate goal of eliminating any threat to its security.
Hezbollah’s logistical and financial challenges are immense in this war-torn context. Its infrastructure is under relentless strain, and the need to finance both military operations and civilian support in its areas of control is growing increasingly urgent. Despite rising speculation and rumors, Hezbollah remained officially silent about the state of its finances. “That being said, it still possesses significant financial reserves built over the years and continues to benefit from its global support network,” reveals a well-informed source to This is Beirut.
Is Hezbollah’s Survival Feasible With Diminished Financial Resources?
The war in Syria has severely impacted Hezbollah, and now, in addition to international sanctions imposed on the party, the interception of Iranian aid by Israel has further strained its finances. Iran, burdened by economic sanctions imposed by the United States and other nations, has seen its ability to financially support its allies, including Hezbollah, significantly diminished.
In this context, it is essential to recognize that Tehran remains Hezbollah’s primary financial backer. According to US sources, Iran previously transferred between $700 million and $1 billion annually to Hezbollah before the recent sanctions and international pressures. These funds have been crucial for financing military operations, social networks, infrastructure and Hezbollah’s political influence in Lebanon.
“The reliance on Iran is vital for sustaining large-scale military operations. Without this funding, Hezbollah may be forced to reduce its influence or reconfigure its operational priorities,” indicate the sources. However, “Hezbollah has shown its ability to adapt to challenging economic conditions. Its global network and diverse economic activities enable it to maintain a minimal flow of funding for its essential operations,” they add.
Are Hezbollah’s External Networks Safe From Israeli Threats?
Over the years, Hezbollah has developed sophisticated mechanisms to conceal and transfer its funds internationally, protecting itself from internal threats that could jeopardize its finances. The group employs front companies and a network of anonymous firms operating across various sectors, including construction, real estate and telecommunications. These companies may be based in Lebanon (such as the telecommunications firm Jihad al-Bina) as well as in other countries, particularly in Africa and Latin America.
Additionally, in response to increased international scrutiny and financial sanctions, the Iran-aligned group has diversified its money transfer methods, utilizing informal remittance networks like the “Hawala” system, which can be more easily infiltrated.
According to an expert interviewed by This is Beirut, Hezbollah has also ventured into cryptocurrency “to circumvent sanctions and facilitate global fund transfers.” However, Israel, leveraging its technological capabilities, could potentially expose Hezbollah’s cryptocurrency transactions, flagging and freezing suspicious activities.
What Remains of al-Qard al-Hassan?
The recent Israeli attacks on several al-Qard al-Hassan (AQAH) buildings in Dahieh—a Hezbollah stronghold—as well as in Beqaa and southern Lebanon, have raised significant concerns about the security of the funds held by AQAH. Speculation has intensified following reports of the presumed disappearance of substantial amounts (cash or digital assets) alongside considerable quantities of gold, according to unverified reports.
It is important to note that AQAH operates 31 branches, distributed as follows: 15 branches in Beirut, including (Bir al-Abed, Haret Hreik, Noueiri, Hay el-Selloum, Bourj al-Barajneh, Tahwitat al-Ghadir, Chiah, Roueiss, Zoukak al-Blat, Choueifat, Msharafieh, Hadath and along the airport road). In the south, AQAH has 10 branches, including two in Tyre and two in Nabatieh, as well as branches in Saida, Aqabieh, Bint Jbeil, Chehabiyeh, Houmine al-Fawqa and Kfar Kila. Additionally, there are 6 branches in Beqaa (two in Baalbeck, along with one each in Bednayel, Hermel, Mashghara and Ali al-Nahri). All these regions have been targeted by Israeli strikes since the outbreak of war in October 2023. Attempts by This is Beirut to contact these branches, as well as AQAH’s Director General. Adel Mansour, and his assistant, were unsuccessful.
Often described as Hezbollah’s financial arm, AQAH plays a crucial role in providing economic and social support to the Shia community in Lebanon. While it presents itself as a nonprofit organization focused on offering microloans to low-income families and managing solidarity funds, it has been accused by various international actors of functioning as a front for financing Hezbollah’s military activities.
The organization’s opacity and the complexity of its financial structures have fueled speculation about the disappearance of AQAH’s funds. Some experts suggest that these funds may have been relocated shortly before the Israeli strikes, either within Lebanon or to accounts abroad, particularly through informal remittance networks like the “Hawala” system, which is commonly used in the Shia community for its discretion and speed. “To dismantle the operations of this system, the Israelis will need to infiltrate the network if they haven’t already,” notes a security source.
Other observers suggest that millions of dollars in cash may have been lost or destroyed in the explosions. “If AQAH holds a portion of its assets in cash, the destruction of its physical infrastructure could have led to a significant loss of these funds,” they assert.
Additionally, there are allegations that some internal elements may have exploited the chaos caused by the bombings to embezzle funds. “It’s challenging to verify these claims, but the loss of physical control over certain financial facilities in a war context increases the risk of misconduct,” adds the same source.
“Al-Qard al-Hassan is one of those major institutions—important, robust, envied and threatened,” declared former Hezbollah Secretary General Hassan Nasrallah on September 22, 2023. He was killed a year later, on September 27, in an Israeli attack on the organization’s headquarters. “Hezbollah has always been aware of the dangers facing the association. Do you really think it would hide its money?” remarks a reliable source. Therefore, it is likely that the organization has taken measures to protect its financial assets in anticipation of Israeli attacks, as it has in previous wartime contexts.
If Hezbollah’s resources were to dry up or disappear, the impact would be profound, not only for the organization itself, but also for the Lebanese people who rely on these institutions.
