A Study of the Political Economy Structure of the Organization of the Islamic State (ISIS) in the Middle East with the Focus on Iraq and Syria

The purpose of this study is to examine the political structure of Islamic State (ISIS) in the Middle East with a focus on the two countries (Iraq and Syria).  The main question of Islamic State's (ISIS) structural research is to provide resources, costs and its impact on the economy of both Iraq and Syria.  The research methodology is an applied one in terms of descriptive / analytical method and in terms of qualitative content. This study shows that the political economy and financial structure of ISIS is a combination of traditional and modern financial techniques with a false trade. This has been done from ISIS establishment until their collapse of Mosul and then Raqqa in 2017-2018 through three means: 1. Natural resource, 2. Resources derived from Illegal Criminal Acts, 3. Relied on the Financial Network of its Sponsors. From 2017 to January 2020, and meanwhile preparing the present report, ISIS has almost lost a major part of its Political, financial and economic structure. In response to the second part of the main research question which is upon the effects and consequences of ISIS terrorist structure on Iraq and Syria economic structure; this study shows that ISIS actions have disrupted the economic structure and destroyed the infrastructure of the two countries. The limitations of this study also focus on the implications and validity of its sources because the research documentation is primarily based on Western media data, journalists, indirect witness statements, and few official reports. In view of the importance of the research, it is necessary to understand the structure of ISIS political economy as an important factor in the survival of this terrorist organization and its weaknesses.