Inside the Empire of Terror | Full Documentary

The Islamic State (Daesh) is presented as a multinational terrorist corporation that uses sophisticated propaganda films, comparable to Hollywood productions, to spread its message. Unlike previous terrorist organizations, Daesh has successfully built its own state, controlling a territory the size of Italy across Syria and Iraq with a population of ten million. This territory is rich in resources, particularly oil, making the conflict both territorial and economic. The leader, Abu Bakr al-Baghdadi, proclaims himself the caliph and enforces barbaric methods, including slavery and executions. Daesh directly threatens Western nations, as seen in the January 2015 Paris attacks, and recruits French fighters through online propaganda in French. The documentary aims to understand how Daesh became such a powerful and wealthy organization, investigating its funding sources.

Oil constitutes a significant portion of Daesh's income, generating nearly 600 million euros annually. Despite international pressure and embargos, jihadists engage in intensive oil smuggling. The documentary visits former Daesh-controlled oil sites in Syria, showing the rudimentary yet effective methods used to extract and market crude oil. A former Daesh fighter, Abu Hassan, reveals that approximately 3,000 barrels of oil were exported daily to the Turkish border, sold at significantly lower prices (€20 per barrel) than official market rates. At its peak, this traffic earned Daesh up to 2.5 million euros per day. Countries like Turkey are implicated in allowing this trade, with Daesh's oil mixing with legal imports, making it untraceable. European countries unknowingly purchased this oil, leading to an EU ambassador's revelation about the scandal. Coalition strikes aim to reduce these oil revenues, cutting them by half.

Daesh has diversified its income beyond oil, focusing on other valuable resources and agricultural products. Syria, a major cotton producer before the war, now sees 90% of its cotton fields controlled by Daesh. This cotton is heavily taxed by the organization, with farmers paying 10% of their sales to terrorists. Turkish textile traders, like Anouar, import large quantities of this cheaper Syrian cotton, which is 20-30% less expensive than American cotton, even if it is of lower quality. This cotton is used in low-cost clothing sold in France and elsewhere in Europe. Manufacturers prioritize price over origin, indirectly funding Daesh. The border between Daesh-controlled areas and Turkey remains porous, facilitating this trade.

Despite international attempts to isolate Daesh, some trade activities remain legal or operate through underground channels. Ten million people live under Daesh control, creating a need for goods. In Kilis, Turkey, trucks carrying food and other products regularly cross into Syria, reaching Daesh-controlled areas like Raqqa and Mosul. Daesh prohibits frozen products, insisting on live chickens for ritual slaughter, which are openly declared at Turkish customs. This trade directly funds Daesh through taxation. Additionally, private donors send goods to Daesh, which then sells them to generate income for weapons and salaries. Money transfers are facilitated by an opaque financial system called 'Hawala,' which circumvents international banking blockades. This system, previously used by Al-Qaeda, allows large sums of money to be transferred without physical movement, with Daesh taxing these transactions in its controlled territories.

Daesh extracts revenue by imposing transit fees on goods passing through its territory. Trucks carrying products to Baghdad from Syria and Jordan must pay a €250 transit fee per truck for crossing Daesh-controlled areas. Refusal to pay can result in severe penalties, including threats of beheading. Daesh formalizes these taxes, issuing official receipts with its flag and stamps. The organization strives to present itself as a state, with a government structure, including a Minister of Finance (Abu Salah) and provincial financial managers, all focused on funding the war effort. They impose a lucrative tax policy on the ten million citizens under their control, generating millions of euros monthly. Taxes include 'Zakat' (charity), which Daesh has converted into a mandatory income tax, and taxes on merchant turnover (5-10%). Daesh also profits from essential services, selling generators and gasoline to residents due to unreliable electricity. Paradoxically, the Iraqi government continues to pay salaries to 50,000 civil servants in Mosul, even though they operate under Daesh rule, contributing an estimated 220 million euros monthly. Daesh then taxes these salaries, sometimes up to 50%, generating hundreds of millions of dollars annually.

Daesh's large-scale racket has led to the flight of millions of civilians, particularly religious minorities like Christians. They are forced to choose between converting to Islam, paying 'jizya' (a tax on non-Muslims), or dying. In Mosul, the jizya was exorbitant, pushing families like Annan's to flee and lose their homes and possessions. Beyond persecution, Daesh engages in extensive trafficking of relics and antiquities. The organization plunders ancient sites in Syria and Iraq, including over 6,000 sites, and sells these items on the black market to wealthy collectors in Europe. Middlemen facilitate these transactions, with Daesh operating with strict rules and aggressive tactics. All these revenue streams contribute to Daesh's annual budget, estimated at over two billion euros, funding its military expansion and its fighters, who receive salaries and bonuses. Daesh uses its wealth for a sophisticated marketing plan, producing high-definition propaganda films and magazines in multiple languages to recruit young Westerners and terrorize enemies. This propaganda and economic model have fueled its military and economic rise, leading to expansion through 'franchises' in Yemen, Algeria, Tunisia, and Nigeria (Boko Haram becoming 'Islamic State's West African Province'). This expansion is driven by an economic necessity to find new resources to sustain its burgeoning caliphate, as current resources in Iraq and Syria are insufficient for its long-term goals.