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The conduct of the Islamic State

Jan 21, 2015

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The ISIS economy

ISIS announced the gradual resumption of production at a number of plants in the provinces of Al-Anbar and Mosul in western and northern Iraq respectively (Al-Arabi al-Jadeed, January 11, 2015). Resumption of work in factories whose operation was terminated due to the fighting was part of ISIS’s efforts to revive the economy in areas that it has taken over, restore the daily routine and establish its control.

According to UPI, ISIS is expected to have a budget surplus of USD 250 million in 2014, out of its overall annual budget of USD 2 billion. ISIS plans to invest its budget surpluses in military activity in 2015. The budget includes assistance to the poor, the disabled and families of those killed in airstrikes (UPI, January 4, 2015).

Today, ISIS is an economically independent terrorist organization and does not rely on outside contributions. It owns assets whose value was estimated in mid-2014 at approximately USD 1.3-2 billion.

Its many assets and large revenues distinguish it from other terrorist organizations (including Al-Qaeda, from which it emerged) and allow it to grow rapidly and develop its capabilities and its infrastructure. Although ISIS’s revenues have suffered due to airstrikes by the US and the coalition on its oil facilities, its revenues still enable it to maintain its military buildup and the establishment of its administration.
Thwarting efforts and Sharia implementation

ISIS continues its thwarting efforts and brutal application of Sharia law. Following are a number of examples:

ISIS’s Islamic police forces executed five people in the Aleppo area accused of spying. Four of them were shot and a fifth (a lawyer) was beheaded with a sword (justpaste.it website, January 8, 2015).
The Islamic court in the city of Al-Raqqah ordered the beheading of a drug dealer and of another man who “abandoned his belief in Allah”. The sentence was carried out before a crowd that included many young people and children (Isdarat al-Dawla al-Islamiyya, January 8, 2015).
In the city of Manbaj, in the Aleppo province, a couple accused of adultery were beaten (Al-Platform Media, January 8, 2015).

Written by: The Meir Amit Intelligence and Terrorism Information Center