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The ‘Zombie’ Caliphate: While the World Celebrates the Muslim Brotherhood’s Demise, Its Billion-Dollar Empire Thrives in Plain Sight

Supporters of the Muslim Brotherhood in the Jordanian capital, Amman, chanting pro-Palestinian slogans in April 2018. Photo: Reuters / Muhammad Hamed.

In Washington and Arab capitals, a comforting narrative has taken hold: The Muslim Brotherhood is finished. We are told that the Sisi regime in Egypt has crushed them, that Jordan has shuttered their offices, and that the “Islamist Winter” is finally over. The recent executive order by President Trump to review the group for terror designation is seen as the final nail in the coffin.

But if you look away from the empty political offices and follow the money, you will find a terrifying reality. The Muslim Brotherhood hasn’t gone bankrupt; it has simply gone corporate.

While Western intelligence agencies applaud the closure of dusty headquarters in Amman, they are ignoring the €27 million mega-complexes rising in France, the €4 million real estate fortresses in Berlin, and the terror-linked holding companies trading openly on the Istanbul Stock Exchange. The Brotherhood has transformed from a mass movement into a transnational financial conglomerate — a “Zombie Caliphate” that is legally bulletproof and wealthier than ever.

The Egyptian “Catch-and-Release”

The myth of the Brotherhood’s destruction starts in Egypt. The regime’s “Inventory Committee” boasts of seizing assets worth a staggering 300 billion EGP (approx. $16.7 billion), and liquidating the schools, hospitals, and businesses that formed the movement’s spine.

But the crackdown is porous. In July 2023, an Egyptian court quietly ordered the unfreezing of assets for 146 alleged Brotherhood figures, ruling that the state failed to prove the funds were illicit. This legal “oops” likely allowed millions in liquid capital to flee the country, funneling straight into the offshore networks now appearing in Istanbul and London.

Then there is the case of Safwan Thabet, the tycoon behind Juhayna Food Industries. Arrested for refusing to hand over his empire to the state, he was released in 2023. His survival teaches a harsh lesson: the Brotherhood’s money is so deeply integrated into the legitimate economy that the state cannot tear it out without killing the patient. The “deep state” of Brotherhood finance remains alive, hiding behind the facade of legitimate dairy giants and retail chains.

Turkey: The NATO Safe Haven for Terror Finance

If Egypt is the extraction point, Turkey is the laundromat. Despite President Erdogan’s desperate diplomatic pivot toward Cairo, Istanbul remains the operational heartbeat of this financial insurgency.

Western policymakers need to look closely at the Borsa Istanbul. There, trading openly under the ticker TDGYO, is Trend GYO — a real estate investment trust designated by the US Treasury Department for being 75% owned by Hamas. In a rational world, a NATO member would not host a publicly traded company that funds a designated terror group. In Erdogan’s Turkey, however, Trend GYO continues to develop luxury apartments, such as the recent project in Istanbul’s Alibeyköy district, subcontracting construction to obscure local firms to wash the proceeds.

This is the new model: “Terrorism Inc.” Yemeni billionaire Hamid al-Ahmar, operating freely from Istanbul, chairs Investrade Portfoy, an investment firm that commingles legitimate business with funds allegedly destined for Hamas. Meanwhile, the Brotherhood’s elite send their children to Al-Nahda International Schools in Istanbul — private institutions run by exiled cadres that ensure the next generation is indoctrinated in the ideology of the “Group” while generating tuition revenue.

Europe: The “Concrete” Fortress

As the environment in the Middle East becomes hostile, the Brotherhood has executed a strategic pivot to Europe, replacing “liquid” assets (cash) with “fixed” assets (real estate) protected by Western property laws.

In Austria, the failure of “Operation Luxor” serves as a cautionary tale. In 2020, police raided 60 Brotherhood-linked sites. The result? Zero terrorism convictions. Courts declared the raids unlawful. The Brotherhood didn’t just survive; they lawyered up and won, proving that without a specific designation, European criminal law cannot work against them.

In Germany, the UK-based Europe Trust purchased a massive property in Berlin’s Wedding district for €4 million. This isn’t just a building; it is a command center for the Deutsche Muslimische Gemeinschaft (DMG), insulated from German intelligence by British corporate deeds.

In France, the situation is even more brazen. The Al-Noor Center in Mulhouse — a massive complex featuring a mosque, school, and swimming pool — was built at a cost of €27 million. Intelligence links it to Qatar Charity’s “Ghaith Initiative,” which has poured over €120 million into 140 such projects across Europe. These are not community centers; they are forward operating bases for a parallel society, subsidized by Doha and protected by European property rights.

The West is fighting a 21st-century financial empire with 20th-century police tactics. We raid homes in Vienna while they move crypto in Istanbul. We seize crumbling offices in Jordan while they buy prime real estate in Berlin.

The Muslim Brotherhood is not dead. It is alive, well, and trading on the Istanbul Stock Exchange. Until the US and its allies target the enablers — the Turkish banks clearing Trend GYO transactions, the Qatari transfers to Mulhouse, and the shell companies in London — we are merely cutting the grass while the roots grow deeper.

Amine Ayoub, a fellow at the Middle East Forum, is a policy analyst and writer based in Morocco. Follow him on X: @amineayoubx

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Hezbollah Pays Steep Price in Battle to Reverse Its Fortunes

Workers remove a coffin with a body from temporary graves and prepare for transport for a funeral ceremony of four Hezbollah fighters and two civilians, amid a temporary ceasefire between Lebanon and Israel, in Tyre, southern Lebanon, April 26, 2026. Photo: REUTERS/Marko Djurica/File Photo

Hezbollah has paid a heavy price for going to war with Israel on March 2: Israel has occupied a chunk of southern Lebanon, displaced hundreds of thousands of its Shi’ite Muslim constituents and killed as many as several thousand of its fighters, according to previously unreported casualty estimates from within the group.

The move has brought severe political consequences, too. In Beirut, opposition has hardened to its status as an armed group, which domestic rivals see as exposing Lebanon to repeated wars with Israel.

In April, Lebanon’s government held face-to-face talks with Israel for the first time in decades, a decision Hezbollah firmly opposed.

However, more than a dozen Hezbollah officials told Reuters they see a chance to reverse deteriorating fortunes by aligning with Tehran in its war with Israel and the United States. The group, founded by Iran’s Islamic Revolutionary Guard Corps in 1982, opened fire two days into the conflict, which began with U.S. and Israeli strikes on Iran on February 28.

The group’s calculations are based on the assessment that its participation would force Lebanon onto the agenda of U.S.-Iranian negotiations, and that Iranian pressure can secure a more robust ceasefire than one that took effect in November 2024 following a conflict sparked by the war in Gaza, the officials said.

Hezbollah was mauled in the last war, which killed its leader, Hassan Nasrallah, along with some 5,000 fighters, and weakened its long-dominant hold over the Lebanese state.

Rearmed with Iranian help, it has used new tactics and drones, surprising many with its capabilities after a fragile 15-month truce during which Hezbollah held fire, even as Israel continued to kill its members.

Hezbollah lawmaker Ibrahim al-Moussawi denied the group was acting on Iran’s behalf when it resumed hostilities, as alleged by opponents. He told Reuters Hezbollah saw a window to “break this vicious cycle … where the Israelis can target, assassinate, bombard, kill, without any revenge.”

He acknowledged losses and damage in southern Lebanon but said “you don’t go into making calculations of how many are going to be killed” when “pride and sovereignty and independence” are at stake.

Hezbollah’s media office said the figure of several thousand fighters killed in the present war was false.

While a US-mediated ceasefire that took effect on April 16 has led to a significant reduction in hostilities, Israel and Hezbollah have continued to trade blows in the south, where Israel maintains troops in a self-declared “buffer zone.”

Yezid Sayigh, a senior fellow at the Carnegie Middle East Center in Beirut, said Hezbollah had “shown more resilience than many thought possible, but that was not a strategic gain in itself.”

“The only thing that will contain Israel is a comprehensive US-Iran deal,” he said. “Without a deal, there’s going to be a lot of pain for everyone. At best, a hurting stalemate.”

GRAVES FRESHLY DUG, AND QUICKLY FILLED

More than 2,600 people have been killed since March 2, around a fifth of them women, children and medics, Lebanon’s health ministry has reported. Its toll does not distinguish between civilians and combatants.

Three sources, two of them Hezbollah officials, said the ministry’s figures do not include many of the group’s casualties. They said several thousand Hezbollah fighters have been killed, though the group does not have the full picture yet.

In a statement to Reuters, Hezbollah’s media office denied the figures cited by the sources, and that the numbers published by Lebanon’s health ministry included its members killed in Israeli strikes.

One source, a Hezbollah commander, said scores of fighters had gone to the frontline towns of Bint Jbeil and Khiyam intending to fight to the death. Their bodies have yet to be recovered.

In the Hezbollah-controlled southern suburbs of Beirut, more than two dozen freshly dug graves were quickly filled with fighters’ bodies in the days after the ceasefire took hold. Simple marble tombstones identify some as commanders, others as fighters.

In one southern village alone, Yater, the council recorded the deaths of 34 Hezbollah fighters.

Lebanon’s Shi’ite Muslim community has borne the brunt of Israel’s attacks, forced to flee into Christian, Druze and other areas, where many blame Hezbollah for starting the war.

Israel has been entrenching its hold over a security zone stretching as far as 10 km (6 miles) into Lebanon and demolishing villages, saying it aims to shield northern Israel from attacks by Hezbollah militants embedded in civilian areas.

An Israeli government official said Hezbollah had abrogated the November 2024 ceasefire by firing on Israeli citizens on March 2. The threat to northern Israel would be eradicated, the official said, adding thousands of Hezbollah militants had been killed, and Israel was steadily destroying the group’s infrastructure.

The Israeli military says Hezbollah has fired hundreds of rockets and drones at Israel since March 2. Israel has announced 17 soldiers killed in southern Lebanon, along with two civilians in northern Israel.

Citing ongoing Israeli strikes, Hezbollah has called the April ceasefire meaningless and continued to attack.

IRAN ‘WILL NOT SELL’ THEIR FRIENDS

A diplomat who has contact with Hezbollah described its decision to enter the war as a big gamble and a survival strategy, saying it felt it needed to be part of the problem so it could be part of an eventual regional solution.

It has yet to be seen if the gamble will pay off.

Tehran has demanded that Israel’s campaign against Hezbollah be included in any deal on the wider war. But US President Donald Trump said last month that any deal Washington reaches with Tehran “is in no way subject to Lebanon.”

A spokesperson for Pakistan’s Foreign Ministry, Tahir Andrabi, referred Reuters to an April 16 statement in which he said peace in Lebanon was essential to the talks it is mediating between the U.S. and Iran.

A Western official said they saw a possibility the US and Iran might eventually reach a settlement that does not address the war in Lebanon.

Asked about this, the US State Department, Iran’s mission to the United Nations in Geneva and Lebanon’s government did not immediately comment.

Hezbollah’s Moussawi said a ceasefire in Lebanon continues to be a top priority for Iran, adding Tehran shares Lebanon’s objectives, including that Israel halt attacks and withdraw from Lebanon. Hezbollah has “full trust in Iran – that the Iranians will not sell their own friends”, he said.

The State Department referred Reuters to an April 27 interview Secretary of State Marco Rubio did with Fox News, in which he said Israel had a right to defend itself against Hezbollah’s attacks, and that he didn’t think Israel wanted to maintain its buffer zone in Lebanon indefinitely.

The United States has urged Israel “to make sure their responses are proportional and targeted,” he said.

When the April 16 ceasefire was announced, Israeli Prime Minister Benjamin Netanyahu said Hezbollah’s disarmament would be a fundamental demand in peace talks with Lebanon.

Hezbollah has ruled out disarmament, saying the matter of its weapons is a topic for a national dialogue. Any move by Lebanon to disarm the group by force would risk igniting conflict in a country shattered by civil war from 1975 to 1990.

Lebanon’s President Joseph Aoun and Prime Minister Nawaf Salam have sought Hezbollah’s peaceful disarmament since last year. On March 2, the government banned the group’s military activities.

Hezbollah has demanded the government cancel that decision and end its direct talks with Israel.

Lebanese officials have told Reuters they believe direct talks with Israel under the auspices of the US are the best way to secure a lasting ceasefire and the withdrawal of Israeli troops, as only Washington has enough leverage with Israel to achieve those aims.

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US President Trump Tells Israeli Media: ‘I Studied Iran’s New Proposal, It Is Not Acceptable to Me’

US President Donald Trump arrives to award the medal of honor to Master Sgt. Roderick ‘Roddie’ W. Edmonds, Staff Sgt. Michael H. Ollis, and retired Command Sgt. Maj. Terry P. Richardson during a ceremony in the East Room of the White House in Washington, DC, USA, 02 March 2026.

US President Donald Trump said he has reviewed Iran’s latest proposal and described it as “unacceptable” in an interview with Israeli broadcaster Kan News on Sunday. Trump added that ongoing efforts related to the conflict are “progressing very well,” without providing further details. He also renewed his call for clemency for Israeli Prime Minister Benjamin Netanyahu, arguing that Israel needs a leader focused on wartime priorities rather than legal matters.

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Israel Court Extends Detention of Gaza Flotilla Activists

Activist Saif Abu Keshek, a member of the Global Sumud Flotilla detained by Israel, sits at a magistrate’s court for a detention extension hearing in Ashkelon, southern Israel, May 3, 2026. REUTERS/Amir Cohen

An Israeli court has extended by two days the detention of two activists arrested aboard a Gaza-bound flotilla that was intercepted by Israeli forces in international waters near Greece, their lawyer said on Sunday.

Saif Abu Keshek, a Spanish national, and Brazilian Thiago Avila were detained by Israeli authorities late on Wednesday and brought to Israel, while more than 100 other pro-Palestinian activists aboard the boats were taken to the Greek island of Crete.

A court spokesperson confirmed that their remand had been extended until May 5.

The governments of Spain and Brazil issued a joint statement on Friday calling their detention illegal.

The activists were part of a second Global Sumud flotilla, launched in an attempt to break Israel’s blockade of Gaza by delivering humanitarian assistance. The ships had set sail from Barcelona on April 12.

Israeli authorities requested a four-day extension of their arrest on suspicion of offenses that include assisting the enemy during wartime, contact with a foreign agent, membership in and providing services to a terrorist organization, and the transfer of property for a terrorist organization, said rights group Adalah, which is assisting in the activists’ defense.

Hadeel Abu Salih, the men’s attorney, said that the two deny the allegations. Their arrest was unlawful due to a lack of jurisdiction, she told Reuters at the Ashkelon Magistrate’s Court after the hearing, adding that the mission was meant to provide aid to civilians in Gaza, not to any militant group.

Abu Salih said that Abu Keshek and Avila were subjected to violence en route to Israel and kept handcuffed and blindfolded until Thursday morning.

Asked for comment, the Israeli military referred Reuters to the Israeli foreign ministry, which said that staff were compelled to act to stop what it described as violent physical obstruction by Abu Keshek and Avila. All measures taken were lawful, it said.

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