Subscribe 

ISIS’s New Plans to Get Rich and Wreak Havoc

Although the Islamic State has lost nearly 98 percent of the territory it once controlled, the group is ripe for a comeback in Sunni-majority areas of Iraq and Syria. The main reason is its existing war chest, coupled with its skill at developing new streams of revenue. The Islamic State used to mostly rely on the territory […]

Colin P. Clarke writes for Foreign Policy:

Although the Islamic State has lost nearly 98 percent of the territory it once controlled, the group is ripe for a comeback in Sunni-majority areas of Iraq and Syria. The main reason is its existing war chest, coupled with its skill at developing new streams of revenue. The Islamic State used to mostly rely on the territory it controlled, including cities and urban strongholds, to amass billions of dollars through extortion, taxation, robbery, and the sale of pilfered oil. But the group has proven that it is capable of making money even without controlling large population centers.

The Islamic State has also buttressed financial holdings with a diversified funding portfolio. It has developed a knack for raising money through a range of new criminal activities, including but not limited to extortion, kidnapping for ransom, robbery and theft, drug smuggling, and trafficking in antiquities. These activities do not require holding territory, but there are risks involved for individual insurgents, who could, at least in theory, be caught. However, the chances of being arrested are minimal, as even at this late date, there are still no security services or police forces in Iraq or Syria capable of conducting the type of policing activities that would deter widespread criminality. In the near future, the group can also reinvigorate revenue streams that have become dormant by extorting populations living on the periphery of where government control extends. During the years they were in control, Islamic State members meticulously collected personal data from the population that includes detailed information on assets and income, as well as the addresses of extended family members. This critical intelligence on the population provides the group with more leverage in intimidating and extorting civilians, allowing it to replenish cash reserves in the process.