MAY 4th, 2025 – Palestinian-American billionaire Bashar Masri, renowned for his ambitious urban development projects and efforts to promote economic growth in Palestinian territories, is now at the center of a significant legal controversy. A lawsuit filed in the U.S. District Court for Washington, D.C., by nearly 200 American plaintiffs – including survivors and relatives of victims of the October 7, 2023, Hamas attacks in Israel – accuses Masri and his companies of facilitating Hamas operations by allowing the construction and concealment of tunnels under properties he owned in Gaza.
Allegations of Aiding Hamas Infrastructure
The plaintiffs allege that Masri’s properties, including the Gaza Industrial Estate (GIE) and two luxury hotels – the Blue Beach Resort and the Al Mashtal Hotel (now known as the Ayan Hotel) – were used by Hamas to construct and conceal tunnels utilized in attacks against Israel, and facilitate the movement of manpower and munitions for rocket sites used to launch attacks against Israeli citizens. These tunnels were reportedly powered by solar installations provided through these developments, and were also used by Hamas as training facilities.
According to the lawsuit, Masri’s companies not only allowed the construction of these tunnels but also provided essential services that legitimized Hamas and offered its operations greater protection from Israeli and U.S. action. The complaint details that these properties, developed with support from international institutions such as the World Bank, USAID, and the UN, were used covertly for terrorist infrastructure.
Masri’s Response and Denial of Allegations
Masri has denied the allegations, asserting his longstanding opposition to violence and emphasizing his humanitarian and economic development work. In a statement, his office described the lawsuit as “baseless” and stated that neither he nor his associated entities have ever engaged in unlawful activity or provided support for violence and militancy.
Despite his denial, Masri resigned from his position on the Dean’s Council at Harvard University’s Kennedy School of Government following the filing of the lawsuit. The school acknowledged the civil complaint “raises serious allegations” that should be addressed through the legal process.
Background on Bashar Masri
Masri, a naturalized U.S. citizen born in Nablus, has been a prominent figure in Palestinian economic development. He is best known for spearheading Rawabi, the first planned city in the West Bank, and for launching the Siraj Fund, a $90 million equity fund for Palestinian startups and small businesses. His efforts have earned him international recognition, including being ranked number 38 on Fortune magazine’s list of “The World’s 50 Greatest Leaders” in 2018.
In addition to his development work, Masri has been involved in diplomatic efforts, reportedly advising U.S. officials on postwar plans for Gaza. However, the recent lawsuit may put his potential involvement in jeopardy, considering the allegations that his properties were integral to Hamas’s terrorist infrastructure.
Legal Proceedings and Implications
The lawsuit marks the first known legal action accusing a U.S. citizen of materially supporting the October 7 Hamas attack, which resulted in the deaths of approximately 1,200 men, women, seniors, and children, including over 40 Americans. The plaintiffs argue that Masri misused funds from international entities, including the World Bank and U.S. foreign aid, originally intended for regional economic development. The outcome of this lawsuit could have significant implications for international aid and development initiatives in regions affected by terrorism and conflict.
