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Learning from Abu Bakr al-Baghdad’s mistakes: How HTS is making its own money

by: Sami Moubayed
It seems that Hayat Tahrir al-Sham (HTS) has learned its lessons well by simply watching the rise and fall of the Islamic State (ISIS). Its leader, Abu Mohammad al-Golani, has taken careful note of every single mistake committed by Abu Bakr al-Baghdadi, vowing never to repeat them.
For starters, Golani refuses to rely on foreign fighters, who had formed the backbone of ISIS, insisting on recruiting nothing but Syrian nationalist into his organization. Those Syrians know the terrain in which they are located and are deeply attached to their towns and villages. That guarantees that they will not pack up and leave like the hundreds of foreign fighters who fled the battlefield the collapse of ISIS rule al-Raqqa back in 2017.
Golani also refuses to stretch himself thin by sending arms and fighters to affiliate groups across the world. That is what Abu Bakr al-Baghdadi did when he extended support to ISIS-affiliates in Nigeria, Egypt, Gaza, and Libya. Golani has no desire to establish emirates loyal to him, focusing exclusively on the territory that he controls within Syria. He has no desire to expand, whether vertically or horizontally, and no desire to declare himself caliph of the Islamic world, as Baghdadi did from Mosul in 2014.
But the real lesson learnt from ISIS is how to make money to self-finance HTS’ military activities. The mother group from which both groups were founded, al-Qaeda, had relied almost exclusively on donations from members and sympathizers. Those donations started to dry up after 9-11 and 2011 killing of Osama Bin Laden. ISIS earned its own money through theft, kidnapping, arms procurement, the smuggling of historical artefacts, and extracting, then selling Syrian and Iraqi oil to whoever was willing to buy.
This is where HTS has gone a step further. Unlike ISIS it controls none of the oilfields that provided steady income for Baghdadi during the years 2014-2017. That forced Golani to buy oil from the Syrian Democratic Forces (SDF), the US-backed Kurdish militia controlling entire swaths of territory east of the Euphrates River. At first glance this may seem puzzling, how Turkish-backed rebels buy oil from Kurdish militias fighting their Turkish patrons. But in the complex web of the Syrian battlefield, anything can happen. No less than 30-35 trucks of crude oil were sold daily by SDF to HTS. Golani bought the oil for $175 USD/ton. He would then resel it with profit to end-users in Idlib, for $300 USD/ton. The Kurds are capable of extracting the crude oil, but not refining it, explaining why they had high hopes that the Delaware-based US firm, Delta, would build refineries for them—an ambitious project devised by the former Trump Administration. The Turkish-backed armed opposition has a refinery in the countryside of Turkish-occupied Jarablus, but it is no match for the modern refineries that the Americans promised the Kurds, nor to the government refineries in Homs and Banias. In addition to being rather primitive, the Jarablus refinery was bombed and severely damaged last January.
Three companies linked to HTS.
Abu Mohammad al-Golani realized that relying on the Kurds for oil was simply too costly and insecure, prompting him to think of alternate methods to make money and provide heating fuel to his own constituency. In 2018 HTS established its first oil company, called Watad, tasked primarily with buying oil from Ukraine, via Turkey. That oil enters Syria through the Bab al-Hawa crossing, at a reduced tariff of $3 USD/ton. Watad was founded by Mohammad Qadid (aka Abu Abdul Rahman Zarbeh), a close confident of Abu Mohammad al-Goalni. His protégé and relative, Naser al-Shawwa, currently serves as its director. Overnight it became a giant in the field (compared to the size of opposition held territory). It now has four departments displayed proudly on its website: one for oil importation, one for the refining of oil, and for its distribution, and one for market study and research.
So successful was the project that HTS has since supplemented it with two other oil companies called Kaf and al-Shahba, the latter established as recently as December 2020. A fourth is firm also present but it is small and incomparable with the rest, called Embdad, run by the Syrian National Army (SNA) in the Euphrates Shield Area. All of these oil firms are licensed by the Idlib government and pay taxes directly to it. There is a fine thread linking the three oil companies, Watad, Kaf, and al-Shahba, although Idlib authorities insist that they are unrelated and owned by different entities. At least two figures have proven a connection to all three firms, however, being Mohammad Khalifa and Sabir Amaya. Khalifa is HTS’ fixer with the Kurds while Amaya is a businessman with shares in all three companies, officially registered as one of the founders of Kaf. The three companies operate under different names to show both diversity and competition. They were created by HTS to absorb rising anger within the opposition street after Idlib authorities raised the price of heating fuel (twice over the past year) and were accused of making high profit from sale to end-users in opposition held areas.
Abu Mohammad al-Golani is no economist, however, and certainly lacks the brains to come up with such lucrative ideas. The three projects have been a big success, and if they continue to grow, will give HTS a lifeline to survive much longer than Abu Bakr al-Baghdadi and ISIS.
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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