A Palestinian-American businessman is fighting back against federal terrorism allegations, asking a Miami judge to dismiss claims that his Gaza development projects inadvertently supported Hamas operations.
Bashar Masri, known for constructing upscale hotels in Gaza and developing the Palestinians’ inaugural planned city in the West Bank, faces a civil lawsuit filed by families affected by Hamas’ October 7, 2023 assault on Israel. The legal action claims his waterfront properties concealed underground passages that the militant organization utilized during their attack.
Prior to Israel’s current military campaign in Gaza, Hamas had constructed an extensive underground tunnel system spanning most of the territory. Companies faced difficult decisions about investing in an area controlled by an organization classified as terrorist by the United States, where major development required the group’s implicit consent.
The federal case, representing approximately 200 American claimants, contends that Masri was aware of Hamas tunnels beneath his two coastal hotels, alleging the organization accessed these passages through guest accommodations. The suit further claims the group drew electrical power for underground installations from solar equipment at an industrial complex he managed.
The claimants are pursuing financial compensation from Masri and four associated businesses through the Anti-Terrorism Act, which permits American terrorism victims to pursue damages in federal courts.
In their dismissal request submitted to Miami federal court, Masri’s legal team argued he bears no responsibility for the October 2023 Israeli attacks, characterizing them as “barbaric acts of terrorism.”
The defense team stated the defendants “unequivocally condemn Hamas’ violence and the suffering it inflicted upon innocent civilians,” while asserting the claimants failed to demonstrate Masri understood his activities could facilitate Hamas attacks.
The legal action represents mere “speculation” that Masri and his businesses “engaged in international terrorism merely by participating in economic development projects” in Gaza, his attorneys argued.
Masri refused additional commentary. Legal representatives for the claimants did not respond immediately to requests for statements.
Among the claimants is Israeli technology executive Eyal Waldman, a peace advocate and Masri’s former business associate whose youngest daughter died during the October 7 militant assault at the Nova music festival.
Masri has maintained prominence as a developer and received federal aid funding. His primary venture is Rawabi, a $1.4 billion West Bank development representing the first master-planned community created by and for Palestinians.
His Gaza enterprises featured two Mediterranean luxury destinations – the Ayan Hotel and Blue Beach Resort – plus the Gaza Industrial Estate near the Israeli border. All sustained significant damage during the conflict, as Israeli strikes devastated large portions of Gaza.
Waldman’s company previously hired over 100 Palestinian engineers in Rawabi and Gaza through a technology firm supported by Masri, an arrangement both leaders promoted as demonstrating how business collaboration could advance peace.
Waldman has not yet responded to requests for comment.
