Demonstrators in Mosul chant support for ISIL. Photo: AP
Demonstrators in Mosul chant support for ISIL. Photo: AP

Don’t believe the hype, ISIL is still on the offensive



The numbers seem compelling. The Pentagon said this week that ISIL has lost 700 square kilometres of its territory since it seized parts of Syria and Iraq in early June.

According to Iraqi analyst Hisham Al Hashimi, ISIL has lost 10 per cent of its territory, 90 per cent of its sources of income, nine out of 11 of its weapons warehouses in Iraq and three out of 10 warehouses in Syria. More than 30 leaders of the organisation have also been killed, including high-ranking commanders and officials such as Abu Muslim Al Turkmani, Abu Bakr Al Baghdadi’s deputy, and Ridwan Taleb Al Hamdouni, the group’s leader in Mosul.

The numbers seem to indicate ISIL is being hit where it hurts. It has lost most of the resources that had made it the richest terror group on the planet, as well as several of its top leaders. Territorially, the group has lost the momentum to advance towards Baghdad, the Kurdish region and northern Syria. In terms of governance, ISIL has also lost the ability to lavishly spend on its “state-building” project that once seemingly made it a viable alternative to governments and established militias.

But these numbers do not indicate that ISIL is retreating. First, according to Al Hashimi, ISIL has compensated for its territorial losses in Iraq by gaining around four per cent more territory inside Syria. More than that, the group’s losses over the past six months should be seen in the wider context of ISIL’s military presence to avoid misplaced proclamations. The terror group still tightly controls large provinces and cities and towns in Syria and Iraq, while it is still diverting the resources of its enemies to battles outside its territories.

Despite the airstrikes, ISIL still took over towns and villages, such as Hit in Iraq and hamlets in Anbar and Aleppo. It still made advances despite being under aerial bombardment.

It is important to distinguish between ISIL’s territory and other military front lines where ISIL was on the offensive against Iraqi government troops and militias. While ISIL has been contained in areas where it previously benefited from the disorganisation of its foes, it still reigns supreme in most of the areas it has controlled since June.

A closer look at the reality on the ground reveals that ISIL is still receiving a large number of volunteers from the communities under its control, its model of governance is still working despite the targeting of its resources and there are no signs of threats to its rule. Doomsday scenarios suggesting the group is failing to appease the population living in its territory are not realistic.

In terms of governance, one should recognise that ISIL’s model is different from that of other groups: it is a manager more than a provider.

ISIL manages the resources it has regardless of whether they are sufficient to make the lives of people better. Before ISIL took control of areas in Syria, for example, Al Qaeda affiliate Jabhat Al Nusra, the FSA and factions within the Islamic Front provided services to the local communities. A powerful family near an oil well would just take it over and pocket the money. Armed groups would be unable or reluctant to force the family to contribute to social services. When ISIL emerged, oil resources would be distributed not only in the vicinity but to all communities under its command. ISIL would also compel former government employees to go to work.

Today, this system means ISIL can efficiently manage and distribute other resources among the local population. And people’s anger is diverted to those who are targeting these resources. In this sense, ISIL becomes a tyranny under sanctions, and there are enough examples of tyrannies in the region surviving tough sanctions.

As recent media reports suggest, the worst thing to do when dealing with ISIL seems to have already happened: distraction from the real issues that led to the rise of ISIL in favour of wishful thinking or cynical overstatements of achievement.

The problem is more ominous for the international forces that are participating in the anti-ISIL campaign.

For local forces, such as the Kurdish government and the Shia militias in Iraq, even the limited retreat of ISIL will be a relief and will also mean that they have made extra gains in the process. But for outsiders, the problem of ISIL persists. The appetite for local resistance is nowhere to be felt.

Before the air strikes, reports of local forces fighting or willing to fight ISIL were common, in northern and eastern Syria, as well as Iraq. Today, the political crises in these two countries make fighting ISIL low priority and high cost.

Despite what numbers say, ISIL is still in full control of its territory and sometimes on the offensive in enemy territory.

Hassan Hassan is an analyst at the Delma Institute

Follow on Twitter: hxhassan

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Zakat: an Arabic word meaning ‘to cleanse’ or ‘purification’.

Nisab: the minimum amount that a Muslim must have before being obliged to pay zakat. Traditionally, the nisab threshold was 87.48 grams of gold, or 612.36 grams of silver. The monetary value of the nisab therefore varies by current prices and currencies.

Zakat Al Mal: the ‘cleansing’ of wealth, as one of the five pillars of Islam; a spiritual duty for all Muslims meeting the ‘nisab’ wealth criteria in a lunar year, to pay 2.5 per cent of their wealth in alms to the deserving and needy.

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Maratha Arabians 138-2

C Lynn 91*, A Lyth 20, B Laughlin 1-15

Team Abu Dhabi 114-3

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Maratha Arabians won by 24 runs

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(All matches start at 2pm UAE)

1st Test Lord's, London from Thursday to Monday

2nd Test Nottingham from July 14-18

3rd Test The Oval, London from July 27-31

4th Test Manchester from August 4-8

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

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The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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