The Financial Future of the Islamic State
Abstract: The fall of the Islamic State’s caliphate in Iraq and Syria significantly impacted the group’s ability to fundraise through territorial control. Despite this loss, the group retained substantial financial reserves, estimated between $10 million to $30 million, some of which were stored outside its immediate area of operations. These funds have enabled the Islamic State to sustain and expand its global network of provinces and sub-groups, primarily in Africa and Asia, through the General Directorate of Provinces and by providing start-up and sustenance funds to its various sub-groups. This article provides an in-depth analysis of the Islamic State’s financial strategies post-caliphate, illustrated through case studies of various Islamic State provinces and sub-groups and their financing mechanisms. The Islamic State’s evolving global strategy and financial strength is a challenge for international efforts to combat the group’s persistent and adaptive financial network. The article concludes with a discussion of the implications for global security.