Where Islamic State gets its money
IT WILL not be easy to defeat the brutal jihadists of Islamic State (IS), as the American-led coalition against the group aims to do. IS is one of the best-financed terrorist organisations in the world, except for state-backed ones.
.. Without this wealth, IS, the latest evolution of al-Qaeda in Iraq, could not have expanded so rapidly.
.. Although IS receives donations, especially from Gulf-based financiers, they are a relatively insignificant contributor to its coffers. Instead the bulk of its money comes from oil revenues from fields under its control in western Iraq and eastern Syria. American officials estimated that it was making $2m a day from oil before air strikes started (locals reckon it was more) but in December an official said the strikes, some of which have been against oil facilities in Syria, meant the group’s oil revenues had “significantly” dropped. Controlling so much land also helps IS make money from extortion and taxing people in the areas it controls.