Islamic State Consolidates its Operations in Iraq and Syria

As the Islamic State (IS) militant group has expanded and consolidated its control over territory in Iraq and Syria over the past year, this has been accompanied by wide-ranging kidnapping operations and extortion activities by the group. The most publicised incidents involve the kidnap and execution of foreign nationals, depicted in high-resolution in the group’s many propaganda videos. However, while previous kidnap operations by IS placed an emphasis on the targeting of foreigners (specifically Westerners) for both financial and propaganda purposes, as the number of foreign nationals in IS-held territory has dropped since 2014, the group shifted its targeting patterns accordingly in 2015.

By far the highest proportion of IS’s kidnap victims in 2015 comprised local ethnic minorities in areas under its control, such as Assyrians and Yazidis. Evidence indicates that the group not only conducted mass kidnappings of ethnic minorities but that a high number of those targeted were ransomed off to family members. For instance, in February 2015, IS kidnapped over 200 Assyrian civilians from the town of Tel Temir in northern Syria, subsequently demanding a ransom of about USD 100,000 for each hostage. Indeed, in light of international military operations against IS, which have reduced the ability of the group to raise funds via control of oil assets, it has become evident that internal kidnap and ransom operations of locals have increasingly become a valuable source of revenue for the group.

Apart from these operations, as IS’s revenues from illicit oil sales have dwindled over 2015 the group has become increasingly adept at generating revenues via extortion and taxation. IS collects a percentage of the salaries of all residents of territory it controls, reportedly up to 20 percent in some cases. IS also imposes taxes on all organised economic activity, including the overland transport of goods by long-haul truckers. In addition, IS has implemented a protection tax, or ‘Jizya’, to be paid by non-Muslims living in the group’s territory.

By exploiting the population in areas under its control, IS has managed to consolidate its hold over territory by ensuring a steady stream of income independent of any external support. Reports released early in 2015 indicated that up to 60 percent of IS’s daily revenue was being accrued via extortion, kidnap and ransom, and taxation. This has contributed to the group’s proven resilience in the face of considerable military pressure from the anti-IS alliance.