Islamic State is generating as much as $80 million a month in revenues, according to new figures published by risk analysts IHS. As Ivor Bennett reports, the bulk of the group's funding comes from taxation and oil, depicting them as part-local government, part-corporate entity.
Part local government - part corporate entity. Perhaps not the look Islamic State is going for. but behind the slick propaganda, there is money and management in abundance, says Firas Abi Ali from IHS. SOUNDBITE (English) FIRAS ABI ALI, SENIOR MIDDLE EAST ANALYST, IHS COUNTRY RISKS, SAYING: "It is not enough to run a fully functioning state in those areas. But it is enough to make sure that in territories that they govern, they've got the capabilities to make sure their fighters live better than the population and have an advantage over the population. And to use that for recruitment." New analysis has revealed the group is generating revenues of around 80 million dollars a month. With as much as 50 percent coming from taxation. All economic activity like retail, industry, and agriculture is levied. While a rate of 20 percent is charged for basic services like electricity, internet access and mobile phone networks. Most of the rest - 43 percent - comes from oil. With just 7 percent from donations, drug smuggling and the sale of electricity. SOUNDBITE (English) FIRAS ABI ALI, SENIOR MIDDLE EAST ANALYST, IHS COUNTRY RISKS, SAYING: "Given that the Islamic State's reliance on foreign donations is quite small, this gives them a lot more independence and this makes them a much more, in a sense, mature organisation, capable of setting out and implementing its own policies and its own objectives." Airstrikes targeting its oil production could change that. Salary cuts and energy price hikes indications the group is struggling to balance its budget But there is also a plan B. The group is reportedly eyeing Libya for potential expansion - its oil and smuggling routes as its reward.