US Study: Syrian Regime Turns Humanitarian Aid into Profit Center

US ambassador to the United Nations Linda Thomas-Greenfield talks to a rescue worker as she visits the Cilvegozu border gate, located opposite the Syrian commercial crossing point Bab al-Hawa, in Reyhanli, Hatay province, Turkey, June 3, 2021. REUTERS/Tuvan Gumrukcu
US ambassador to the United Nations Linda Thomas-Greenfield talks to a rescue worker as she visits the Cilvegozu border gate, located opposite the Syrian commercial crossing point Bab al-Hawa, in Reyhanli, Hatay province, Turkey, June 3, 2021. REUTERS/Tuvan Gumrukcu
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US Study: Syrian Regime Turns Humanitarian Aid into Profit Center

US ambassador to the United Nations Linda Thomas-Greenfield talks to a rescue worker as she visits the Cilvegozu border gate, located opposite the Syrian commercial crossing point Bab al-Hawa, in Reyhanli, Hatay province, Turkey, June 3, 2021. REUTERS/Tuvan Gumrukcu
US ambassador to the United Nations Linda Thomas-Greenfield talks to a rescue worker as she visits the Cilvegozu border gate, located opposite the Syrian commercial crossing point Bab al-Hawa, in Reyhanli, Hatay province, Turkey, June 3, 2021. REUTERS/Tuvan Gumrukcu

Humanitarian and relief aid for the Syrian people has often been the subject of official and international attention, but the lengthy Syrian crisis provided the regime in Damascus with “skills and tools” to exploit the aid and prolong the crisis, according to a recent US report.

It stated that the international aid to Syria is at an "inflection point" with the number of needy Syrians on the rise, and Damascus continuing to use aid to reward its allies and punish its adversaries.

The recent study issued by the Center for Strategic International Studies (CSIS) in Washington, and prepared by a senior fellow in the Middle Eastern Program Natasha Hall, stated that the Syrian government has grown increasingly skilled at turning humanitarian assistance into a political instrument.

Consequently, global efforts to support the Syrian people increasingly have the effect of politically and financially strengthening the Syrian government, the same government that is responsible for the suffering of millions of Syrians and the exile of millions more.

The study considered that adding billions of dollars in aid to the current system will not save Syria; instead, it will entrench the government and “nefarious actors,” ensuring millions of Syrians, desperately in need of assistance, continue to suffer.

The Syrian government has succeeded in turning international concern for the “misery of its people” into a profit center. It skims, diverts, and redirects assistance to its own purposes, both in areas it controls and by shaping international access to areas it does not.

“As international donors increasingly seek to support Syria’s recovery, they do so without addressing the myriad evaluations and reports noting the systematic manipulation of the aid system. Humanitarian assistance has never been able to address problems that are essentially political. However, the limits of humanitarian assistance do not absolve aid agencies or donor governments from the need to understand the ways in which humanitarian aid influences the political environment and vice versa,” read the report.

The study advised that in order to have any leverage to operationalize humanitarian principles and maximize the gains of assistance for Syrians, donor governments must incorporate aid into a larger strategy for Syria and the region.

Donors have a responsibility to come together to shape a step-for-step process to ensure that aid gets to all those in need and not fall into the “hands of warlords.”

The research study warned that failing to do so will perpetuate instability, adding that the international response to Syria’s crisis needs to focus on four principle axes.

First, it said donors must make it a greater priority to understand where aid is going and to whom, and they need to conduct a rigorous and contextual evaluation of the challenges to assistance from the community to the country level.

Second, it advised donor governments with a stake in Syria should engage in more consistent and conscientious diplomacy and negotiations. They need to negotiate on behalf of the aid sector in northwestern and northeastern Syria, and they need to negotiate collectively with the Syrian government and outside powers to prevent interference in the aid response and secure ceasefires.

Third the report said humanitarian community must put a greater emphasis on resilience, which would improve communities’ abilities to withstand shocks to the emergency aid response. Such support is particularly important in the northwest and northeast, where millions of war-weary and displaced persons face bleak futures without this assistance.

Finally: Donors must work much harder on the facilitation of aid. While sanctions and counterterrorism measures serve an important purpose, not only can they hamstring the provision of assistance, but they often increase the power of sanctioned actors.

The report concluded by stating that “the Syrian government’s continued manipulation of humanitarian aid will entrench the deprivation and oppression that started the war, prolonging instability and displacement far into the future. While aid alone cannot fix Syria, conscientious investments in human security through the steps suggested here can alleviate suffering and give a traumatized population hope.”



Ongoing Strikes in Iraq Expose Political, Security Divisions

Mourners attend the funeral of members of Iraq's PMF, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
Mourners attend the funeral of members of Iraq's PMF, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
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Ongoing Strikes in Iraq Expose Political, Security Divisions

Mourners attend the funeral of members of Iraq's PMF, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
Mourners attend the funeral of members of Iraq's PMF, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer

Strikes targeting armed groups in Iraq are continuing amid the US-Israel war on Iran, piling pressure on decision-makers in Baghdad to maintain a unified stance even as factions declare their participation in the fighting alongside Tehran.

Over the past two weeks, the Iraqi government has repeatedly called for “distinguishing targets” and avoiding “mixing up the cards,” a reference to the need not to target Iraqi state institutions or official forces. The stance clashes with announcements by prominent armed factions declaring their involvement in military operations supporting Iran.

Those factions include Kataib Hezbollah, Harakat al-Nujaba and Ansar Allah al-Awfiya. In statements, they said “collaborators” were providing coordinates to what they described as the “enemy.”

Akram al-Kaabi, leader of Harakat al-Nujaba, said in a statement that recent strikes resulted from information provided by “informants,” without identifying them.

A leader in one of the factions fighting alongside Iran, however, claimed the person in question could be linked to a security agency.

Popular Mobilization sites

According to faction statements, some recent strikes targeted sites linked to the Popular Mobilization Forces (PMF), a security institution that includes several brigades affiliated with armed factions.

Observers say strikes on PMF-linked sites, alongside locations belonging to other factions, have created confusion in the political discourse over the nature of the targets and whether the strikes are aimed at specific factions or at an official security structure.

The Iraqi presidency and the prime minister’s office issued statements in recent days stressing the need to avoid dragging Iraq into the regional conflict, while reaffirming their rejection of using Iraqi territory as an arena for settling scores.

Political divisions

At the same time, divisions are widening among the armed factions themselves and between some factions and the government. Analysts say the rifts appear on two levels: military, over the extent of involvement in the war, and political, over the future of power in Baghdad.

Some factions have announced direct participation in military operations. Others have limited themselves to statements of support for Iran, while a third group has remained silent, awaiting developments in the confrontation.

The divisions are also visible within the Coordination Framework alliance, which includes the main Shiite political forces, particularly over the selection of the next prime minister.

Government formation

Iraqi politicians say the regional military escalation is further complicating an already deadlocked political scene, with parties still unable to agree on a new prime minister.

Former Prime Minister Nouri al-Maliki is the declared candidate of the Coordination Framework alliance. But sources say international objections, including from the United States, are hindering his nomination to form a government.

According to those sources, Maliki has stipulated that if he withdraws from the race, neither the current Prime Minister, Mohammed Shia al-Sudani, nor the former Prime Minister, Haider al-Abadi, should be tasked with forming the government.

Analysts say rising regional tensions could push some political forces to exploit the war to strengthen their negotiating positions inside Iraq, particularly as pressure on Tehran grows, and prospects for regional understandings that previously influenced power arrangements in Baghdad diminish.

Additional complications

The picture is further complicated by ongoing disagreements among Kurdish parties over who should be named the presidential candidate. Under the constitution, the president appoints the nominee of the largest parliamentary bloc to form the government.

Observers say delays by Kurdish parties in agreeing on a presidential candidate are effectively obstructing the formation of a new government, while some political forces are using the delay to justify postponing a decision on the premiership.

Tensions have also risen after reports that areas in the Kurdistan region were struck in connection with the escalation between armed factions and their opponents, potentially adding a new dimension to political disputes between Baghdad and Erbil.


Hezbollah-linked Financial Institution Faces Systematic Israeli Military Campaign

Part of the building struck by an Israeli air strike in the Bashoura area, where the Israeli military said Hezbollah stores money beneath it (Asharq Al-Awsat)
Part of the building struck by an Israeli air strike in the Bashoura area, where the Israeli military said Hezbollah stores money beneath it (Asharq Al-Awsat)
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Hezbollah-linked Financial Institution Faces Systematic Israeli Military Campaign

Part of the building struck by an Israeli air strike in the Bashoura area, where the Israeli military said Hezbollah stores money beneath it (Asharq Al-Awsat)
Part of the building struck by an Israeli air strike in the Bashoura area, where the Israeli military said Hezbollah stores money beneath it (Asharq Al-Awsat)

The Al-Qard Al-Hasan Association, a financial institution linked to Hezbollah, is facing a systematic military campaign as part of what appears to be a renewed Israeli strategy aimed at undermining the group’s economic infrastructure and cutting off its funding sources.

After the association’s branches were targeted during the 2024 war between Israel and Hezbollah, the institution has once again become a primary target in the current conflict.

The renewed campaign appears aimed at eliminating its role entirely, after it resumed operations following the previous war.

Ongoing campaign

In addition to years of political pressure and sanctions, the Israeli army targeted several of the association’s branches in Beirut, the Bekaa Valley and southern Lebanon during the 2024 war, making the institution part of a broader multi-level confrontation involving military strikes, financial sanctions and political pressure.

During the 66-day war, most of the association’s branches were hit by Israeli air strikes. Despite this, the institution was able to resume operations after the ceasefire and continued to provide financial services.

Hezbollah also used the association to distribute aid and compensation to people affected by the war through checks issued in the group’s name. The group attempted to circumvent sanctions through an entity it called the Joud Foundation, intended to serve similar financial purposes.

But in February, the United States imposed sanctions on it, saying it was being used to ensure the flow of funds from Iran to Hezbollah.

Attempt to eliminate it completely

In the current war, Israel has intensified its strikes against the association in a systematic manner. The Israeli military has clearly stated that all Al-Qard Al-Hasan branches are considered targets, a pledge it has carried out through strikes on most buildings housing its offices.

This has become a source of concern for residents, particularly because many of the association’s offices are located in residential buildings. Residents have therefore demanded that the offices be closed.

Lebanese security authorities have attempted to limit losses resulting from attacks on the association’s branches.

In this context, a decision was taken to close its branch in Sidon, southern Lebanon, and remove its sign on Thursday, following demands from business owners and institutions on the street and in neighboring buildings.

Authorities also evacuated the association’s branch building in Beirut’s Noueiri district on Friday following a decision by the interior minister.

It is also clear that the Israeli army is no longer only pursuing the association’s branches but also money storage facilities. Israeli military spokesman Avichay Adraee said on Thursday, after a strike on a building in the Bashoura area near central Beirut, that Hezbollah had hidden millions of dollars beneath the civilian building to fund its “terrorist activities.”

He added that the site was guarded by armed men and that access to the storage facility was through the building’s parking lot.

While Israeli strikes in 2024 failed to destroy what is often described as “Hezbollah’s central bank,” Israel, which views the association as a central element in financing Hezbollah’s activities and harmful to the Lebanese economy in the service of Iranian interests, now appears intent on weakening it fundamentally.

The goal appears to be depriving the group of one of its most important sources of economic and social influence in Lebanon.

Drying up resources a long and complex process

However, financial and economic affairs researcher Professor Maroun Khater said it is unlikely that Al-Qard Al-Hasan could be completely eliminated.

“Experience shows that such networks are often capable of adapting and finding alternative channels, which makes the process of cutting off resources long and complex,” Khater told Asharq Al-Awsat.

“For this reason, it is difficult to conclude that the blows suffered by Al-Qard Al-Hasan have led to the complete collapse of Hezbollah’s financial system, due both to the nature of the association itself and the diversity of funding sources that international reports say the group relies on.”

Khater added that despite the pressure, the association relies on a broad social network of depositors and borrowers who have used its services as an alternative to the traditional banking system, even before Lebanon’s banking sector effectively collapsed in 2019.

“This social base, along with political and security protection, has given it a certain capacity to endure, albeit within a limited scope, and has so far allowed it room to reorganize its activities whenever it is hit,” he said.

Fate of funds unclear

Khater also stressed that it would be simplistic to view the association as Hezbollah’s only source of funding.

Research centers and international institutions estimate that the group’s financing relies on a mix of sources, including foreign support, local economic networks, and donations, as well as various financial and commercial activities.

Some resources are also believed to move through individuals or private institutions that may remain outside full regulatory oversight, whether inside Lebanon or abroad.

For this reason, Khater said, it remains difficult to determine the true scale of the wealth accumulated by Hezbollah over past decades or to know what has happened to portions of its funds, gold reserves or other assets.

A parallel banking system under pressure

The Al-Qard Al-Hasan Association was founded in 1983 and operates more than 30 branches across Lebanon, including in Beirut, southern Lebanon and the Bekaa Valley. A broad segment of the public relies on it to obtain small loans or cash liquidity in exchange for gold or other assets pledged as collateral.

As Lebanon’s financial crisis worsened after 2019, the association’s role expanded, functioning in many ways as Hezbollah’s “parallel banking system.”

While banks suspended lending, Al-Qard Al-Hasan said it had issued 212,000 loans totaling $553 million in 2020 and 2021.

The US Treasury froze the association’s assets in 2007 and imposed additional sanctions in 2021 on several individuals linked to it, accusing the organization of collecting foreign currency to help Hezbollah build a support base.

The Treasury says that although the association claims to serve the Lebanese public, it actually transfers funds illegally through fictitious accounts and intermediaries, exposing Lebanese financial institutions to potential sanctions.

Lebanese authorities have also tightened restrictions. In 2025, Lebanon’s central bank instructed banks and financial institutions not to deal with unlicensed entities subject to sanctions, including Al-Qard Al-Hasan.


Iraq PM Vows to Prevent Attacks After French Soldier Killed

Iraqi Prime Minister Mohammed Shia al-Sudani attends an event in Baghdad, Iraq, Jan. 9, 2024. (Reuters)
Iraqi Prime Minister Mohammed Shia al-Sudani attends an event in Baghdad, Iraq, Jan. 9, 2024. (Reuters)
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Iraq PM Vows to Prevent Attacks After French Soldier Killed

Iraqi Prime Minister Mohammed Shia al-Sudani attends an event in Baghdad, Iraq, Jan. 9, 2024. (Reuters)
Iraqi Prime Minister Mohammed Shia al-Sudani attends an event in Baghdad, Iraq, Jan. 9, 2024. (Reuters)

Iraq's Prime Minister Mohammed Shia al-Sudani vowed on Friday to prevent attacks after the killing of a French soldier in an attack in the autonomous Kurdistan region.

Sudani expressed his "solidarity" with France in a phone call with French President Emmanuel Macron.

He said that "the necessary measures will be taken to prevent the recurrence of such incidents", and an investigation will be conducted into the attack.

The president of Iraq's Kurdistan region Nechirvan Barzani, in a call with Macron, also expressed his condolences and called for the Iraqi government to "set limits on outlaw groups".