Qatar’s Generous $360 Million Grant to the Gaza Strip: At What Cost?

Opinion Policy Analysis by Tala Majzoub, Staff Writer

February 9th, 2021

Qatar’s Emir Sheikh Tamim bin Hamad Al Thani meets Palestinian Authority President Mahmoud Abbas in Doha, Qatar [Palestinian President Office /Handout via Reuters]

During a ceremony held by the Qatar Committee for the Reconstruction of Gaza at the opening of its headquarters there, the Chairman of Qatar’s Gaza Reconstruction Committee, Ambassador Mohammed El Emadi, praised the engineering, technical, and administrative teams, as well as the Palestinians who did tremendous work in following through the Qatari projects in the Gaza strip. His Excellency commended the consistent support that the committee has maintained since the beginning of its work, back in 2012. As well, he recalled the beginning of the work which started with the $407 million grant given by His Highness the Father Amir Sheikh Hamad bin Khalifa Al Thani, which gradually developed into more concrete reconstruction and development efforts. The Ambassador also touched upon the hundreds of humanitarian projects the committee continues to supervise to meet the needs of the people of Gaza in multiple fields. 

El Emadi thanked the Palestinian President His Excellency Mahmoud Abbas for allocating a 3-donum piece of land in Ramallah governorate for the establishment of the permanent headquarters of the Qatari embassy, stressing that this ensures that their work will potentially cover Jerusalem and the West Bank, whilst supporting the resilience of the Palestinian people. He highlighted the critical role of this leadership’s supervision and its wise policy that reflects the committee’s distinct model in the fields of architecture and construction. His Excellency El Emadi concluded his speech by affirming the State of Qatar’s continuous support for Palestine. 

Within the framework of the State of Qatar supporting Palestine and its people besieged in Gaza, His Highness the Amir Sheikh Tamim bin Hamad Al Thani allocated a $360 million financial grant to the Gaza Strip to be used for one whole year, starting January 2021. This aid plan is meant to facilitate the salary payments, assist families in dire need, and pay for a power station amidst Gaza’s ongoing electricity crisis imposed by the israeli occupation. The financial grant is not the first of its kind, as Qatar has been providing monthly $20 million grants to help citizens living in the Strip since 2018. Additional funds have also been assigned for infrastructural development projects such as new roads and hospitals. With Doha’s steadfast support of Gaza, Hamas has become increasingly reliant on Qatar’s charitable hand to offer humanitarian support, and to guarantee its stronghold on his people. 

This aid package was announced as neighboring Arab countries were normalizing their relations with israel. Despite enduring rumors, the State of Qatar has maintained that it will not establish relations with israel until the inherent rights of Palestinians are upheld: “Qatar believes that if israel is committed to peace, to end the occupation, the two-state solution, and the state of Palestine with East Jerusalem as its capital, and if there is Arab approval, we accept that,” reiterates the Qatar’s Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman Al Thani. Sheikh Mohammed said Doha maintains some relations with israel, though only on matters concerning the Palestinians such as humanitarian needs or development projects.

At What Cost?

Relations between Qatar and israel date back to the 1990s and were friendlier than Tel Aviv’s ties with the UAE and Saudi Arabia at that time. Since then, the equation has significantly shifted for different reasons, notably Qatar’s military alliance with Turkey and its seemingly unwavering support for Hamas. When the Gulf Cooperation Council lifted its blockade on Qatar that was imposed in 2017 over accusations that Doha was supporting terrorism across the country, a number of israeli interpretations of the event emerged. On the one hand, Tel Aviv considers Qatar to be a key player in moderating the severed relations with Turkey and realizes its potential in establishing a truce in Gaza. On the other hand, Tel Aviv was wary of the Gulf reconciliation that did not put pressure on Qatar’s close ties with Iran and Turkey nor its support for Hamas and Hezbollah. Qatar rejected the demands to retreat its relations with the actors, accusing the blockading countries of undermining its sovereignty. israel’s attention has been focused on Hamas’ congratulatory message to the Gulf Cooperation Council (GCC) for its reconciliation efforts, expressing its hope that the end of the Gulf crisis will restore unity and solidarity in the region. The promotion of Palestinian reconciliation and the subsequent formation of a unity government between President Abbas’s Fatah and Hamas has been in the making for the past decade. israel considers that a settlement between the two is a precondition needed for ‘returning to the negotiation table’. Thus, as a country that seems to be heatedly against normalization yet maintains under-the-table ‘humanitarian’ communication with israel, Qatar recognizes its indispensable role when relationships among the different sides need to be brokered by someone else. This is exactly the kind of foreign-policy win Qatar needs. 

The Palestinian Authority has been swarming for regional allies upon the UAE and Bahrain’s perceived betrayal against the Palestinian Cause. According to a statement released by his office, President Mahmoud Abbas “praised Qatar’s position in support of the Palestinian people’s right to regain their undiminished and full rights”. Yet, despite Qatar’s generous grants, most funding has been going to the Muslim Brotherhood-affiliated Hamas’ coastal enclave. The PA may envision Qatar’s charitable hand extending beyond Hamas in the post-blockade reality, expecting that Qatar’s relationship and support for radical actors in the region will be revisited. Qatar’s financial aid might shift to the West Bank, that is currently in dire need of economic backing – which is exactly what President Abbas needs to sustain the West Bank’s economy, and what Qatar needs for better international standing. The establishment of the permanent headquarters of the Qatari Embassy in Ramallah signals Qatar’s willingness to rethink its funding strategies in Palestine.

With the widely anticipated 2022 FIFA World Cup right around the corner, Qatar seems to be negotiating its way out of multiple regional crises by affirming its effective role as a regional mediator: basically, rebranding itself as more than an Islamist supporter. Qatar seems to acknowledge that the best way for it to reassert its power as a regional actor is through the Palestinian-israeli conflict. The mutually beneficial Palestinian-Qatari relations will grant diplomatic wins for Doha and Ramallah, rendering Qatar a key player that can help moderate the severity of the dispute with Turkey and become a more vigorous actor in establishing a truce with Hamas in Gaza. For now, Qatar benefits from an upper hand in regional relations, with countries being cautious yet subtly reliant on its diplomatic standing and relations with both ends of the ever-widening political polarization in the region.