Saudi Arabia designates Hezbollah financial backers as terrorists

Saudi Arabia declared the Lebanon-based Al-Qard Al-Hassan Association a terrorist entity, due to its activities supporting Hezbollah. 

“The association works on managing funds for the terrorist organisation (Hezbollah) and its financing, including support for military purposes,” the state news agency stated on Wednesday, quoting a security statement, according to Al Jazeera. 

“The Kingdom of Saudi Arabia will continue to work to combat the terrorist activities of the terrorist organization (Hezbollah), and will coordinate with international partners to target the sources of financial support for the organization, whether they are individuals or entities,” the statement added.

Riyadh, the capital of Saudi Arabia, said it would be freezing all of Al-Qard Al-Hassan's assets, and prohibiting any entity from conducting dealings with it. Saudi officials warned of "strict measures" against those connected with Hezbollah. 

Al Qard Al-Hassan means "the benevolent loan" in Arabic, and it offers interest-free loans up to $5,000. One of Lebanon's largest non-banking financial institutions, it is registered as a non-profit charity.

Hezbollah is labeled a terrorist group by the United States, Israel and the Arab League, with Saudi Arabia previously imposing sanctions on the group.

Saudi Arabia has shunned Lebanon for years because of Hezbollah's strong influence in Lebanese state affairs. Riyadh accuses the organization of sending fighters to Yemen, where a Saudi-led coalition fights another Iran-aligned group, the Houthi movement.