Islamic State Financial Assessment

In 2016, Islamic State (IS) likely had revenue in the high hundreds of millions of dollars. IS probably made between $1 and $2 billion in 2015. Indeed, IS is one of the most-funded terrorist organizations of all time. IS derives substantial income from controlling land rather than from outside sources, making interdiction difficult without retaking territory. Its main funding sources have been oil and gas sales, taxes and extortion, and cash stolen from banks. IS has used money exchange houses and probably some Syrian banks to transfer its wealth. IS spends most of its revenue on fighters and administration, but has cut salaries and administrative costs as territorial losses have depleted oil, gas, and tax revenue. Going forward, IS is likely to shift its funding composition towards a more “traditional” model of terror financing, relying more on external donors and extortive practices such as kidnapping for ransom. IS’s ability to direct even a small proportion of its revenues to external operations will continue to make it a formidable threat outside Iraq and Syria.

Read the full assessment here.