The IS' new money-making scheme: auctioning off stolen houses

Published October 12th, 2014 - 03:55 GMT
Al Bawaba
Al Bawaba
The Sunni Muslim extremist group that has taken over the northern city of Mosul has a new source of income: real estate. The Islamic State has confiscated the properties of all those who fled or taken them off those they consider enemies. Locals say the plan is to auction the real estate off and make more money.

After taking control of the northern Iraqi city of Mosul in early June, the Sunni Muslim extremist group known as the Islamic State (IS) have been busy “coming into some property”. They have “inherited” houses, industrial real estate and agricultural land around the areas they control in the province of Ninawa, mostly due to the fact that the rightful owners have fled or been forced out by IS. 

All of this real estate is considered to be under the control of IS' so-called treasury system, or Bayt al-Mal. Historically this was a kind of public fund, that was supposed to help pay for social development in Muslim kingdoms. 

On the ground in Mosul, the IS group has been collecting rents and taxes for their own version of the historical treasury, acting just like the Mosul municipal authorities used to do, with a lot of rent coming from the two big commercial areas on either side of the city. It’s estimated that there are more than 5,000 businesses in these areas. IS is also collecting rent from other parts of town – including industrial projects elsewhere and even tourist facilities in Mosul’s greener areas.

Most of the property belongs to locals who have fled and had their property confiscated by the IS group as a result or those who have been forced out. This includes houses of Christian locals in the neighbourhoods of Al Arab, Shurta, Nour, Muhandiseen, Majmouah, Thaqafiyah, Faisaliah and Zohour on one side of the city and houses in the neighbourhoods of Dawas, Jawsaq and Dandan on the other side of the city. Shops and other commercial or industrial properties owned by Christians have been seized by IS.

Property belonging to Shiite Muslims and Shabaks, some of whom are Sunni Muslims, has also been confiscated by the group. This real estate is mainly in the Atshanah, Karamah, Quds, Nour, Bab Shams and Nour neighbourhoods. 

Property owned by individuals that IS considered their enemies – such as Iraqi army and police, government officials, politicians, judges and public prosecutors – has been seized too. And recently the group decided they should also own the property belonging to specialists in certain fields, such as doctors.

It is well known that IS has seized any revenue coming to the Sunni Muslim endowment in Ninawa. This is the body tasked with running local Sunni Muslim mosques and shrines and any property belonging to them. The local endowment is thought to own hundreds of individual homes and buildings as well as commercial property in different parts of the city and on its outskirts.

The result of all this property: another huge source of funding for the extremist group, possibly amounting to more than the money it makes from selling oil and oil derivatives on the black market here.

Sources, who must remain anonymous for security reasons, inside the city say that the IS group is now planning to auction off some of the real estate. In fact, those same sources inside the city said that members of IS have already inventoried all the properties and matched them against official records.

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