Nearly $50 million a month: According to the AP, that’s what the Islamic State (ISIS) earns in monthly oil revenues. Yet while some analysts say ISIS’s oil earnings are lower, the group raises revenue from other sources as well. Although the United States coalition has waged war on ISIS for more than a year now, the group’s financial stability proves that it remains strong.
Still, as happened last December — before ISIS captured Ramadi, and before the Islamic State metastasized across the planet — an increasing chorus of voices are claiming that the Islamic State has lost its strategic initiative. This is untrue.
Take Syria’s eastern Deir ez-Zor governorate, which is ISIS-controlled territory that is crucial for the group’s domination of Syria’s Sunni tribes, oil production, and supply lines into Iraq. ISIS expert Aymenn Jawad al-Tamimi recently researched ISIS documents related to the governorate’s revenue streams and found that oil and gas account for 27.7 percent of IS revenue; taxes, 23.7 percent; electricity, 3.9 percent; and a massive 44.7 percent comes from “confiscations.” As al-Tamimi notes, these confiscations are highly variable and include traffic fines, asset seizures, and an array of fees. Joined to the ISIS energy industry, these revenues make for a strong financial foundation. Al-Tamimi’s research also tells us where ISIS spends its revenue:19.8 percent goes to base expenditures; 2.8 percent to media operations; 10.4 percent to Islamic policing; 17.7 percent to public services; 5.7 percent to discretionary aid; and 43.6 percent to fighter salaries.