Despite the fact that ISIS lost 98 percent of its controlled territory, it is aiming for a reforming and coming back in the Sunni populated areas in Syria and Iraq. Due to the current war situation and its developed financial resource. ISIS used to relay on the territory under its control to collect billions of dollars through criminal activities such as taxation, extortion, robbery and the illegal sale of the curd oil. Now the group has shown its ability to collect money regardless of controlling large areas.
After the rise of ISIS in 2015 and the takeover of vast areas in Syria and Iraq, its budget estimation reached $6 billion, as a result, the Islamic State is considered as the wealthiest terrorist entity in the history. The question posed is how such a terrorist group budget could become equivalent to a state-nation budget? In 2015 the Islamic State main financial resources were; oil and gaze which gathered about 500$ million in 2015; taxation that generated approximately $360 million in the same year and finally; about $500 million robbed from bank vaults in Mosul.
Today the situation is different, the Islamic State has lost the majority of its territory. The global coalition had destroyed ISIS infrastructures in the Middle East as well as its communication routes and had killed the idea of the hegemonic Islamic caliphate in the region. Meanwhile, the Islamic State is struggling to control the last 2 percent of its territory. Therefore, its revenue stream from the main resources has been rapidly shrinking out.
As a result, ISIS no longer relies on the controlled territory for its financial survival. For example, ISIS leadership may have smuggled around $400 million out of Syria and Iraq. Laundering this money through fake entity is likely to occur especially in Turkey. Some other cash could be converted into valuable items and stockpiled to be used in the future.
The stockpile cash will provide the group with more than enough fund to continue as a clandestine terrorist movement with the ability to conduct campaigns of guerrilla warfare in the region. On the other hand, ISIS has supported its financial situation with a variety of funding portfolio. It has developed a range of criminal activities that do not require controlling territories such as kidnapping for ransom, drug smuggling and trafficking in antiquities.
Over the next years, the international community seeks to provide help for Syria and Iraq to recover. The reconstruction aid could provide an attractive target for the Islamic State and a possible financial boost to its comeback. It is possible that the Islamic State begins skimming off reconstruction contracts, the only way is to establish connections with the local officials which is not difficult for a terrorist entity with a huge amount of cash. Finally, the rise of the Iranian threats in the region reflects in many stakeholder’s fears from an Iranian’s control through Hezbollah over ISIS past territories. Therefore, a continuing support from regional states to the terrorist group is possible if ISIS adopts a suitable strategy to the supporters interests in the region.
The combination of the criminal activities, the reconstruction plan and the regional states financial support in the future will encourage the Islamic State to regroup and reorganize. For instance, in Kirkuk, the militants created a fake checkpoint to attack security forces earlier this year. Moreover, in Diyala and Saladin, sleeper cells activity began to hit back. The U.S. policy in the Middle East tends to view the war on terror as separate phases while jihadis consider it as one long war. Until the West recognize this, ISIS is likely to come over to repeat its strategy and to reviving the Islamic caliphate project in the future.