How Did ISIS Obtain Its Financing for Terrorism

Abu Bakr al-Baghdadi

Introduction

Abu Bakr al-Baghdadi, born as Ibrahim Awwad Ibrahim Ali Muhammad al-Badri al-Samarrai, was the leader of the extremist group, the Islamic State of Iraq and Syria (ISIS), also known as Daesh, from 2010 until his death in 2019. His leadership over this terrorist group led to the declaration of a caliphate in 2014, which lasted until 2017 when the caliphate\\\\\\\'s territory had been mostly recaptured.

Background and Training

Al-Baghdadi was born in 1971 in Samarra, Iraq. He earned a doctoral degree in Islamic studies and history from Saddam University in Baghdad in the late 1990s. His education would significantly shape his fundamentalist view of Islam and his interpretation of jihad, which played into his ideology and the radical worldview he would propagate as leader of ISIS (Cockburn, 2015).

In the early 2000s, during the American invasion of Iraq, al-Baghdadi became radicalized. He was captured by US Forces-Iraq in 2004 and detained in Camp Bucca, a facility known for its detained Sunni extremists. This experience played a key role in his transformation into a radical jihadist leader. He was released later in December 2004 as a \\\\\\\"low level prisoner\\\\\\\" (Cockburn, 2015).

Ideology and Motivation

Al-Baghdadi\\\\\\\'s ideology was grounded in a radical interpretation of Sunni Islam. He propagated a worldview of \\\\\\\"us versus them\\\\\\\", a binary division between the believers and non-believers. His motivation was rooted in the desire to establish a caliphate, an Islamic state under the leadership of a religious and political leader with authority over the entire Muslim community (BBC, 2014).

Furthermore, he saw Shia Muslims, whom he considered apostates, and the West, which he viewed as an infidel, as the main threats to his vision. This extremism had a significant impact on the region, especially considering the historical tension between Sunnis and Shias in Iraq and the broader Middle East (Cockburn, 2015).

Quotes

One of his most known quotes, delivered in a rare public speech at the Great Mosque in Mosul in July 2014, gives insight into his beliefs: \\\\\\\"O Muslims everywhere, whoever is capable of performing hijrah (emigration) to the Islamic State, then let him do so, because hijrah to the land of Islam is obligatory\\\\\\\" (BBC, 2014). This quote highlights his message for Muslims worldwide to join his cause in establishing and populating the so-called Islamic State. In the same speech, he also stated, \\\\\\\"There is no deed in this virtuous month or in any other month better than jihad in the path of Allah, so take advantage of this opportunity and walk the path of you righteous predecessors…By Allah, we will take revenge! Even if it takes a while, we will take revenge\\\\\\\" (BBC, 2014). Thus, it is clear that this man connected his Islamic beliefs and religion with the terror campaign that his group waged in the Middle East.

Backing

Abu Bakr al-Baghdadi\\\\\\\'s rise to power and the subsequent growth of ISIS cannot be detached from the larger socio-political context of Iraq and Syria, as well as the financial mechanisms that funded the group\\\\\\\'s operations.

Socio-Political Backing

In Iraq, the fall of Saddam Hussein in 2003 and the disbanding of the Iraqi army led to widespread Sunni disenfranchisement. The Shia-led government that came to power was seen by many Sunnis as discriminatory, exacerbating sectarian tensions. This disenfranchisement created a pool of disaffected Sunnis who were willing to support or join groups that opposed the Iraqi government. Al-Baghdadi, who was a Sunni extremist, was able to exploit these divisions and grievances for his gain (Cockburn, 2015).

In Syria, the civil war that started in 2011 created a power vacuum that allowed ISIS to gain a foothold. The Syrian government, led by Bashar al-Assad, was primarily fighting against various rebel groups, which allowed ISIS to expand relatively unopposed in the early years of the war. As the conflict wore on, ISIS was able to recruit fighters and supporters from both within Syria and abroad (Cockburn, 2015).

Financial Backing

ISIS under al-Baghdadi was able to accumulate substantial wealth, making it one of the richest terrorist organizations in history. The group utilized a combination of criminal activities, taxation, and control of oil fields to fund its operations. A 2014 report by The Guardian stated that ISIS controlled several oil and gas fields in Syria and Iraq, including Syria\\\\\\\'s largest oil field, Al-Omar (Chulov, 2014). The oil was sold on the black market, often back to the Syrian government, generating millions of dollars in revenue (Cockburn, 2015).

ISIS also imposed taxes on people living within its territory. This included taxes on businesses, bank withdrawals, and utilities. Extortion of the local population was also a significant source of income. On top of this were bank robberies, which added to the group’s funding (Chulov, 2014). The group is known to have kidnapped individuals, including foreigners, for ransom. These operations were consistent with what Al Qaeda had done before them (Callimachi, 2014).

There were also numerous reports about foreign donors, particularly from the Gulf countries, who allegedly financed ISIS, although this was often denied by the accused governments (Samuel-Azran et al., 2016). It is generally believed that while some funding may have come from these sources, especially in the early stages of ISIS, it was not a significant portion of the group\\\\\\\'s overall funding.

Impact and Counter-Terrorism in the Middle Eastern Context

Al-Baghdadi\\\\\\\'s leadership of ISIS significantly destabilized the Middle East region, leading to the deaths of thousands of people and the displacement of millions. His promotion of a violent and exclusionary ideology also led to an increase in sectarian tensions between Sunnis and Shias, particularly in Iraq and Syria.

Israel, though not directly targeted by ISIS under al-Baghdadi, was profoundly concerned by the group\\\\\\\'s emergence. The radicalization and the potential spread of extremism to its neighboring countries posed a significant security concern. Additionally, ISIS\\\\\\\'s presence in the Sinai Peninsula in Egypt, although a separate affiliate, was a direct threat to Israeli security.