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British Citizen Beheaded; David Cameron Vows To Destroy ISIS; ISIS Defector Speaks Out; ISIS and Oil; Business Perspective; Wine and War

Aired September 14, 2014 - 11:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

(BEGIN VIDEO CLIP)

DAVID CAMERON, BRITISH PRIME MINISTER: They are not Muslims. They are monsters.

(END VIDEO CLIP)

BECKY ANDERSON, HOST: Tonight, fury over the monstrous acts of ISIS as another westerner is beheaded. And now, reports countries in the Middle

East are willing to take a larger role in the battle against ISIS.

ANNOUNCER: Live from CNN Abu Dhabi, this is Connect the world with Becky Anderson.

ANDERSON: And it is 7:00 in the UAE. And we begin this hour with some breaking news on the battle against ISIS. U.S. Secretary of State John

Kerry told an American Sunday talk show that the countries in this region, the Middle East, are willing to conduct airstrikes against ISIS if that is

what it requires.

Well, news of an increased regional participation comes after a British aid worker was brutally beheaded by ISIS militants.

(BEGIN VIDEO CLIP)

CAMERON: We cannot just walk on by if we are to keep this country safe. We have to confront this menace. Step by step, we must drive back, dismantle

and ultimately destroy ISIL and what it stands for.

(END VIDEO CLIP)

ANDERSON: Well, Britain's David Haines, a third westerner to be murdered by ISIS. Two American journalist James Foley and Steven Sotloff were beheaded

only a few weeks ago. Mr. Cameron says he supports the building of a coalition that's pledged to fight ISIS, but he says that doesn't mean

British troops on the ground.

Well, right now, U.S. Secretary of State John Kerry is in Paris drumming up support for the campaign. We're going to get reaction from London in just a

few minutes.

First, let's bring in our Anna Coren who is in Irbil in Iraq.

And Anna, we are efforting more info about just who in this region is offering air support and/or actual strikes against ISIS. But that will, I

assume, be music to the ears of those in northern Iraq where you are.

Just how effective is the operation to contain ISIS as things stand?

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Yeah, certainly music to the ears of leaders here in Iraq, because we were getting reports that the Arab

nations were giving off a bit of a luke warm response to getting involved in this global coalition. But certainly the battle here in Iraq is ongoing.

160 U.S. airstrikes to date, according to U.S. Central Command, still very much focused around Mosul dam. Of course that is that critical piece of

infrastructure that was seized by the Peshmerga several weeks ago and even though it's still under their control, it's the surrounding towns and

villages where the fighting still rages.

There's fighting, too, not far from us here in Irbil. The Peshmerga taking the fight to the ISIS militants who once again taking these towns and

villages that are majority Sunni populated. And of course this is the population that has allowed ISIS to just drive in and take over these

towns, take full control.

But, Becky, you know, the Kurds and the Iraqis, they are not in a position to fight ISIS on their own. They need those U.S. airstrikes. And with those

U.S. airstrikes, Becky, they're really only containing ISIS. Yes, they haven't been able to make any further advances, but as far as pushing them

out, or back, you know, we're seeing pockets of this take place, but not any huge offensive. And this is why things need to escalate.

You mention, you know, this coalition pouring more resources into it. Well, Australia, they have now committed 600 military personnel. Many of those

will be Australian special forces on the ground helping to advise, to assist and to train, same with the Americans, 475 additional forces taking

that to a total of 1,700.

We're seeing Germany, we're seeing obviously the UK, France. France's president was here just a few days ago.

So, there definitely is momentum underway in this buildup to what will be a real war in Iraq and obviously onto Syria.

ANDERSON: Anna Coren is on the ground for you in Iraq. Let's get you to London. Senior international correspondent Nic Robertson outside 10 Downing

Street. And he joins me now.

What else did the British prime minister have to say when he addressed the UK public earlier today, Nic?

NIC ROBERTSON, CNN INTERNATIONAL CORRESPONDENT: It was very strong language. He said that David Haines was a British hero that the British

people and David Haines's family should be proud of what he had done for his humanitarian work.

But when you listen to David Cameron, he is really, it sounds like, trying to build a case for stronger British action against ISIS in Syria. He has

stopped short of actually saying that he would -- that he favors airstrikes here. He says he supports, or committing Britain to airstrikes. He says he

supports the fact that the United States is committed to airstrikes in Syria to take out ISIS targets there.

But the language that he uses here, really you get the sense that he's trying to convince the public here. He says the British people need to

understand that this is a fanatically organization who have targeted and continue to target Britain. He said that the people here cannot afford to

keep their heads down and ignore it. This is what he said.

(BEGIN VIDEO CLIP)

CAMERON: There is no option of keeping our heads down that would make us safe. The problem would merely get worse as it has done over recent months

not just for us, but for Europe and for the world.

We cannot just walk on by if we are to keep this country safe. We have to confront this menace. Step by step, we must drive back, dismantle and

ultimately destroy ISIL and what it stands for.

(END VIDEO CLIP)

ROBERTSON: No, he doesn't have the political support at the moment and the backing that he needs to commit Britain's air force to strikes inside

Syria. And indeed at the moment he doesn't seem to be wanting to call parliament back to an emergency session or anything like that to debate the

issue. He's got other pressing things going on here right now, not least of which the referendum in Scotland an the momentous potential here that

Scotland could break away from the rest of the United Kingdom. That is attracing his attention here a lot right now, Becky.

ANDERSON: Yeah, Nic, all right. Nic Robertson is outside Number 10. More on this as we more through the hour.

While ISIS is condemned for its latest abhorrent act, tributes are also being paid to the man at the center of this tragedy, David Haines himself.

Atika Shubert has his story.

(BEGIN VIDEO CLIP)

ATIKA SHUBERT, CNN CORRESPONDENT (voice-over): David Haines was a father and a husband. But he was also a hostage of ISIS, the Islamic State in Iraq

and Syria.

Captured in March 2013, working at a Syrian refugee camp for French aide group, ACTED. Haines had more than a decade of experience doing aide work,

providing logistics to Handicap International and working as an unarmed peacekeeper with nonviolence peace force.

He grew up in Scotland, proudly wearing a kilt for his wedding. His family has declined to comment, but their plight is clear online: his wife Dragana

waits for with their 4-year-old daughter in Croatia where they live.

His teenage daughter from his first marriage makes it clear online how much she misses her father by answering just three questions. What's missing in

your life that would make you very happy? "My dad being at home," she answers.

As his family waited, David Haines had become a pawn in the game of hostages now played by ISIS. ?

Atika Shubert, CNN, London.

(END VIDEOTAPE)

ANDERSON: Still to come tonight, as the British government is gearing up to battle ISIS, we talk with a former UK security minister Pauline Neville-

Jones.

And rare insight into the minds of fighters in the militant group, we sit down with an ISIS defector to learn what it means to be part of the group.

All that coming up after this.

(COMMERCIAL BREAK)

ANDERSON: You're with CNN. This is Connect the World with me Becky Anderson. Welcome back.

Now U.S. Secretary of State John Kerry says countries here in the Middle East and elsewhere are willing to conduct airstrikes against ISIS if that

is what is required.

Well, there's a new focus on the Islamist group after it beheaded a third westerner in the past 24 hours. The victim this time was David Haines of

Britain. He had been working at a camp for displaced Syrians when he was captured. But as Prime Minister David Cameron has promised the killers will

be caught and brought to justice.

Well, right now John Kerry is in Paris trying to build that coalition. For more, I want to bring in a former British security minister Pauline

Neville-Jones, currently the British prime minister's special representative on cyber security. She joins us live from our London studio.

You're also former UK security and counterterrorism minister. We thank you for joining us.

Just putting you on the spot, as it were, for the moment. It seems that some regional players here are beginning to show their hands, not least

those who say that they may be willing to conduct airstrikes.

Not something the UK government is considering as of yet, at least not in public. Given the abhorrent execution of a British citizen, though, does

David Cameron now have an argument to take to the British public and lawmakers that of getting more involved than just with what intelligence

and humanitarian support at this point?

PAULINE NEVILLE-JONES, FRM. BRITISH SECURITY MINISTER: Well, he -- I think he said in his statement earlier today that the UK will take whatever

further measures are necessary. Now, that's a fairly delicate (ph) phrase, but it indicates that he regards the possibility of further evolution of

policy as being something that he is going to contemplate.

I would expect that this must be on the agenda for possible action. It's key, I think, for the UK, as it is indeed, and I think for the U.S.

government, that there should be a local coalition of local -- local regional powers as backing for it. It's very, very important that

politically, this is not something that is western-led way out in front of local support. I think that's a key consideration also for the prime

minister. And will -- it will weigh, I think, with the House of Commons.

I doubt that he will wish to go to action in the air by the UK, accompanying the U.S. in the absence of having been able to consult

parliament. And I think the main focus at the moment will be to build a coalition that -- such that he will have a credible case should, you know,

be decided this is something that we need to do.

So, I think, you know, this is policy very much in the making and very active.

ANDERSON: I know that in the past weeks when you've been on CNN, you have talked about how disappointed you have been in the past with the sort of

intelligence gathering that not just the UK, but the States can effect on the ground in Syria and in Iraq. And I think you've said it was -- it was a

critical mistake, perhaps, as forces were pulled out of Iraq that those sort of intelligence assets weren't left on the ground.

Now the ongoing conflict in Syria complicating any alliance plans to attack ISIS elements there. And as I say, you know, the idea of not getting good

intelligence on the ground must be a problem. Earlier, I spoke with the Middle East security analyst Riad Kahwaji. He told me western forces

shouldn't expect much help from Syrian rebels who have already got their hands full battling the regime. I want you to just have a listen to what he

said.

(BEGIN VIDEO CLIP)

RIAD KAHWAJI, CEO, INEGMA: On the Syria side we have a big problem. How can we expect the Syrian opposition to mount a campaign against ISIL when they

are locked in a war daily with the Syrian regular army, the regime forces. So therefore, the alliance will have to either push for a quick settlement

inside Syria or deal militarily with the Syrian regime.

(END VIDEO CLIP)

ANDERSON: Or deal militarily with the Syrian regime.

Can you see that as something that is, you know, on the table at this point? I mean, not just a no-fly zone perhaps over Syria, which would allow

for airstrikes, but actually dealing with the Syrian regime, as opposed to bringing them in from the cold, as it were?

NEVILLE-JONES: Well, I think it is an aspect of policy, which hitherto has been ruled out, by I think both the U.S. and the UK. And personally I'm

agreement with that.

I mean, I think my own view is you're right to say I am concerned that we have got to rebuild our intelligence assets on the ground, but we can take

this in stages. And the place to start is Iraq. And I think, you know, if we can control the expansion of ISIL in Iraq and then begin to reduce it --

and I believe that if we decide -- and when the U.S. uses air power and if the UK joins it, we want to do that in a way, which is really effective.

So it's extremely worth building that intelligence assets enable you to be -- and have an effective and sustained campaign such that you actually have

military effect and don't just succeed in, you know, in delivering pinpricks from which they can then recover.

And then of course the issue of Syria will arise in a material way.

I mean, I think there is in law a self-defense case. It would be much easier, obviously, if one had some reasonable understanding that action

from the air by western powers was not going to be actively opposed by Syria.

And I think this has to be taken in stages. And I think if the Syrians begin to see that the west is being effective in Iraq, then I think they

will have to take that into account in their own attitude.

ANDERSON: Yeah.

Pauline Neville-Jones, I'm going to take you back to the gruesome story of this third westerner, a Scottish man being beheaded over the past 24 hours

by a member of ISIS. One point of interest in all of this is that that execution of David Haines speaks in an apparently British accent. He could

be seen same man seen in the previous two execution videos, it seems. And as we mentioned in this latest video he singled out Britain.

I just want our viewers to get a listen to that and then I want to chat.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Your evil alliance with America, which continues to strike the Muslims of Iraq and most recently bombed the Haditha Dam will

only accelerate your destruction and claim the role of the lap dog Cameron will only drag you and your people into another bloody and unwinnable war.

(END VIDEO CLIP)

ANDERSON: Pauline Nevllle-Jones, what does the British government know about this man?

NEVILLE-JONES: Well, I'm not privy to their -- you know, to all their information. The -- it certainly it is believe -- widely believed that he -

- that the intelligence agencies have got quite a long way in their identification of the individual and there's a particular part of London

with which he's now been associated, entire hamlets.

He certainly sounds like a Londoner to me. And we are appalled that a British citizen should, of course, be involved in doing this. I think it

will not be so difficult, actually, in the end. You know, once you've narrowed it down to be able to identify the individual, the task of course

is both insofar as one has any chance of doing this is locating the other hostages and seeking to get them out and of course getting hold of this

man.

So there is in amongst all of both the counterterrorist attention in this country, preventing people leaving and dealing with radicalization. There

is also of course a criminal investigation. We will get this man in the end. We will be absolutely determined to do so. And I'm quite certain that

we will.

ANDERSON: With that, we're going to leave it. We thank you very much indeed for your insight out of London today. Pauline Neville-Jones.

Live from Abu Dhabi, this is Connect the World with me Becky Anderson. Coming up, a militant defector speaks out. CNN gets a firsthand account of

life as a member of ISIS.

(COMMMERCIAL BREAK)

ANDERSON: The Muslim Council of Britain has condemned the killing of British aid worker David Haines, quote, unreservedly. The council says the

ideology of ISIS is warped and has nothing to do with Islam.

So, what inspires someone to be a part of the group. Well, CNN has the rare opportunity to get an insight into that thought process when CNN's Arwa

Damon sat down with an ISIS defector.

A warning, though, our report contains some disturbing images.

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN CORRESPONDENT: There is no sign here of the progressive city that Raqqa once was, now the seat of power for ISIS -- gruesome

crucifixions, public executions for anyone who insults god, lashings for women who are not fully covered in the niqab, beatings and imprisonment for

keeping a store open during prayer time or selling cigarettes.

Their inhumane brutality is felt daily, not just here but across swaths of Syria and Iraq, now the so-called Islamic State. There is a commission for

the prohibition of vice, tasked with punishing anyone who violates regulations.

This man, a Syrian in his 20s, defected from ISIS less than two weeks ago and still agrees with the ideology of ISIS.

UNIDENTFIED MALE (via translator): The main and principal goal of the Islamic state that they tell their new members is to establish an Islamic

state that will encompass the Arab world. And after that, we go to the other countries.

DAMON: Raqqa is ISIS central command, easily taken over by the organization after other fighting groups had already kicked the Syrian army out of

military bases in the area.ISIS has now opened a logistic supply line that extends into Iraq.

UNIDENTFIED MALE (via translator): Iraqi is close to the border of Iraq. We saw that weapons were going back and forth from Iraq.

DAMON: Already drawing foreign fighters with estimates of several thousand from Western countries.

UNIDENTFIED MALE: We are coming, and we will destroy you.

DAMON: ..,heightening concerns across Europe with the U.K. recently raising its threat level from substantial to severe.The defector claims these

foreigners could carry out attacks when they go home, but the security measures in those countries make it difficult for now.

UNIDENTFIED MALE (via translator): Since Western fighters joined ISIS, they consider their home country as infidels. If they have a chance, they will

carry out attacks because they think of it as an infidel country and it should be fought.

DAMON: It is also perhaps why a Westerner was chosen to front the horrific beheading of journalist James Foley.

UNIDENTFIED MALE (via translator): It is possible that the goal was to project the image that a European or a Western person executed an American

so that they can showcase their Western members and appeal to others outside Syria and make them feel that they belong to the same cause and

that they, too, can do anything in support of ISIS in their respective countries.

DAMON: And there is also the internal indoctrination of innocentminds, establishing more and more Islamic schools and altering education.

UNIDENTFIED MALE (via translator): Philosophy is prohibited. They canceled it as a kind of blasphemy.

Many subjects have been canceled like music and even sometimes sports. All of them have been canceled from the school curriculum.

DAMON: There is fear among the people, he admits, among those who don't subscribe to ISIS's ideology, but leaving is not a choice ISIS offers them.

Arwa Damon, CNN, Beirut.

(END VIDEOTAPE)?

ANDERSON: Well, the world news headlines are just ahead. Plus, targeting ISIS, what can Washington do next? We are live in the U.S. capital as

America looks to build what is this international coalition. More on that after this.

(COMMERCIAL BREAK)

ANDERSON: You're watching Connect the World. I'm Becky Anderson. Welcome back.

Your headlines: An American being held in North Korea has been sentenced to six years of hard labor for what the court describes as "hostile acts."

North Korean media reporting Matthew Miller ripped up his tourist visa and demanded asylum after he arrived.

The death toll in the collapses of a guest house in Nigeria is rising. Emergency officials say at least 41 people were killed in the headquarters

of a popular Christian evangelical pastor in Lagos collapsed on Friday. Workers still trying to clear up the site.

German chancellor Angela Merkel has joined thousands of people in Berlin to rally against antisemitism. The latest conflict between Israel and

Palestinians in Gaza had sparked an increase in anti-Jewish sentiment in her country.

The US secretary of state says countries in the Middle East and beyond are willing to use their militaries to combat ISIS as part of an international

campaign. John Kerry made those comments on the American talk show "Face the Nation." Kerry's remarks come after ISIS released the video showing the

beheading of a British aid worker.

Erin McPike is in Washington. And Erin, who is Kerry talking about here? Which regional players have shown their hands and offered their air power?

ERIN MCPIKE, CNN CORRESPONDENT: Becky, he didn't give any specifics on which countries have said this. However, he did indicate that Arab

countries are willing to get into the military campaign and airstrikes, if that's what it comes to.

Now, he said -- he again reiterated no US troops will be on the ground in Syria. There are US troops, of course, in Iraq in security roles and in

training rolls. But no US ground troops in Syria. He says no combat troops. He says there are Syrians who -- the Free Syrian Army, the moderate group

who is there.

But I would also point out this, Becky: Secretary Kerry also said in that interview that the United States will not be coordinating with Syria, and

that is a new development. We haven't really heard the US government specifically state that yet.

But we've been talking about this over the last couple of weeks and specifically last weekend, and Secretary Kerry did say specifically the US

will not coordinate with Syria as it begins to take on airstrikes in the coming days and weeks.

ANDERSON: Yes, I'm just reading as well while you were speaking, there, and listening to you, what he said or certainly what we are getting not off the

record, but I haven't got this confirmed as of yet.

But there is talk and reports, at least, that the US are saying there have been offers to CENTCOM from Arab countries willing to take more, and I

quote, "kinetic actions." When you talk about "kinetic actions," just explain to our viewers exactly what we mean.

MCPIKE: Well, part of that is airstrikes as well. Now, over the last couple of days, we've also heard that Saudi Arabia is willing to begin to train

Iraqi forces on the ground, commit troops in order to do that as well. But really, what we're seeing is, we're moving away from a purely humanitarian

effort into a broader military campaign.

Also, we heard from British prime minister David Cameron this morning, and he said specifically, the US is undertaking airstrikes which the UK

supports. He did not specifically say that the UK will get involved in airstrikes. But there is potential. He also said this is not about British

ground troops.

So, we're seeing that the UK and the United States are on the same page. They're really together in concert in leading this coalition. And we're

seeing a lot more movement from the UK as well right now, Becky.

ANDERSON: Yes, it's absolutely fascinating, Erin. Thank you for that. We've also heard today from the Australians, Tony Abbott the prime minister

announcing that some 600 personnel will be deployed here to the UAE with eight aircraft with the intent, one assumes, that these could be deployed

to the theater -- and I'm not going to say "of war," because that isn't being talked about, the theater of counter-terrorism, let's call it, over

the area that ISIS controls at present.

So, clearly some moves afoot. ISIS may be known for brutality, but it is also remarkably organized. Its leadership puts out reports that run

hundreds of pages detailing the group's actions. And experts say a sophisticated public relations machine has helped ISIS expand at the

expense of other jihadi organizations.

My colleague, Stephanie Elam, taking a look for you, now, at what could be called ISIS, incorporated, or ISIS, Inc.

(BEGIN VIDEOTAPE)

STEPHANIE ELAM, CNN CORRESPONDENT (voice-over): This is what we are up against: ISIS, the terrorist group.

(EXPLOSION)

ELAM: That's run like a well-oiled business.

AHMED ALI, INSTITUTE FOR THE STUDY OF WAR: The way ISIS documents its operations shows that it is a different kind of terrorist organization.

ANDY LIEPMAN, SENIOR POLICY ANALYST, RAND CORP: They're not just savvy. They're sophisticated and they learn.

ELAM: Watching this latest ISIS propaganda video is akin to taking in a Hollywood action movie. But the action here is all too real, and the ISIS

PR machine is constantly making sure the world is aware. The imagery of brutal attacks and beheadings serving as beacons.

ALI: It certainly raises the profile of the organization and as a result, brings more money to the organization, brings more members to the

organization, and brings more prestige to the organization.

ELAM: Making the goal of all the publicity clear: ISIS wants to show its dominance and recruit.

ALI: ISIS is competing with other jihadist organizations and by documenting its actions, it wants to show the superiority that it has on the

battlefield.

LIEPMAN: ISIS wants to give the impression that it's winning.

ELAM: Besides videos, ISIS also produces massive company reports. This one is 410 pages, all in Arabic, and all in an effort to bolster its power.

LIEPMAN: The amount of information that they put out on the number of battles that they've won and the territory they control and sort of their

strategic vision of the caliphate. That's new, and pretty clever.

ELAM: Other slick graphic digital magazines are in English. Posted on social media sites, the publications are designed to lull disenchanted

young Westerners to become jihadist. ISIS has been known to use these foreign fighters as suicide bombers.

ALI: Those youths, when they go to Syria and Iraq, they hone their fighting skills, and they will likely bring those fighting skills back to their home

countries after they're finished fighting. ISIS wants to market itself as the cool organization that is waging jihad at the moment, and it is using

English and social media to propagate its message very effectively.

ELAM: While the dollar amount is unclear, ISIS has money, some of which comes from the oil fields it controls and from private donors.

ALI: ISIS is a rich organization, and it gets its money from extortion. Also, it gets its money by kidnapping and receiving ransom

ELAM: While ISIS has a cabinet that runs the organization, with Abu Bakr al-Baghdadi acting as CEO and president, it also acts like a government,

declaring itself a state.

LIEPMAN: It has not only the responsibility to hold the territory that it's gained, and it's gained a ton of territory, and it's fighting on four

different fronts right now at least. And that takes a lot of energy, a lot of resources, a lot of manpower, and a lot of money.

ELAM: Power, money, and PR.

Stephanie Elam, CNN, Los Angeles.

(END VIDEOTAPE)

ANDERSON: I'm not telling you anything new here when I say a key part of the success of any international effort against this group will be the

active participation of regional countries in the Middle East. I'm broadcasting from Abu Dhabi, the capital of the UAE, if you want to call it

that.

Earlier this hour, we brought you some breaking news about the US secretary of state saying that some regional states have offered to carry out

airstrikes against ISIS.

Well, joining us once again to discuss the issue, former special assistant to five US ambassadors in Baghdad as well as three heads of US CENTCOM, or

Central Command, including General John Allen, the most senior official heading the fight against ISIS, Ali Khedery is with me. Who is in a

position to carry out airstrikes regionally here?

ALI KHEDERY, DRAGOMAN PARTNERS: I'd prefer not to speculate on who may have offered to --

(CROSSTALK)

ANDERSON: Nor does John Kerry want to talk about it. Go on.

KHEDERY: -- bomb Iraq or Syria. But clearly, we have sold, for example, Block 60 F-16s to the United Arab Emirates, which are more advanced than

American F-16s. The Israelis have F-16s and F-15s. The Saudis as well. Turkey has some 300 F-16s, along with other -- it's the second-largest

member of NATO by military hardware after the United States. So there are - - and also Egypt.

So, there are many with the capabilities to do so. But again, we have to be very careful, because both Syria and Iraq are experiencing regional proxy

wars, as we discussed earlier.

So, if you're not direct intervention by some of Iraq's neighbors, from the GCC side, which you can see is the precipitation of even more aggressive

Iranian intervention in Iraq and a full-blown regional war. We have to be very careful about that.

ANDERSON: Let's just get some numbers for our viewers. US intelligence claims that the number of people fighting for the self-described Islamic

State more than three times previous estimates. A CIA spokesman telling us here at CNN that ISIS now has between 20,000 to 31,000 fighters across Iraq

and Syria.

It's estimated that nearly a third of the ISIS fighters are from outside Iraq and Syria, from 80 -- 8-0 -- different countries, and 2,000 of those

ISIS fighters are believed to be Westerners from countries including the US, Canada, and the UK.

Any airstrikes, air power, air support will be in support of ground offensives. Now, we've heard from the US, from the UK, from Tony Abbott

from Australia saying no ground troops from any of us. It's going to be air support if anything, with humanitarian support as well.

So you're going to have -- it's going to be left to the Peshmerga, to the Iraqi government forces and, indeed, to the Syrian moderates on the ground,

isn't it, to do the hard work?

KHEDERY: Well, the thing that's been troubling, I think, to myself and other former officials is the president has telegraphed what he will not

do. And that's something very dangerous to do when you're beginning a war, and this is a war. Let's not kid ourselves, let's kid the American people -

-

(CROSSTALK)

ANDERSON: They're calling it counter-terrorism, they don't want to use the word "war."

KHEDERY: It is a war. It's a fact. When you are sending men and women abroad to kill others, to defend the nation, that is a war. So, by

telegraphing the fact that he does not intend to send boots on the ground, the president is sending a message to our enemies that we are not all in.

And in fact, frankly, it also disrespects and dishonors the 1500 American special operators that we have across Iraq and the thousands of diplomats

and contractors in other personnel that we have in the country.

ANDERSON: When I talk to experts in this region, I have been sensing this growing exasperation with the United States, this sense that, look, you may

want us involved, but you criticize what we do.

For example, the US briefing "The New York Times," for example, about their criticism of the reports that the UAE and Egypt were flying over Libya of

late. Now, those still rumors and unconfirmed reports, and certainly they've been shot down by the Egyptians and the UAE here.

But if anybody was flying their jets over Libya of late, wouldn't that have, to a certain extent, legitimized any action that the region might

have or be prepared to take over Syria and Iraq going forward?

KHEDERY: Absolutely. And I've spoken to -- I speak frequently to regional leaders across various countries and at all levels.

And something that's been building constantly since President Obama took office in 2009, but it also dates back to the Bush administration, is

regional leaders feeling that, frankly, that the United States doesn't have a coherent regional strategy, that it doesn't stick by its allies.

That when times are good, Washington ignores regional leaders. When times are bad, they come out with cup saying hey, can you donate to this

coalition, or can you assist us in this country or that country.

As you know, GCC countries for years now have warned Washington about, for example, Nouri al-Maliki's government in Baghdad, they said it was aligned

with Iran, that it was contributing to a policy of sectarianism, that it was disillusioning and disenfranchising Iraq's Sunni Arabs.

And Washington instead said that Nouri al-Maliki is a moderate, that he's a nationalist, not a sectarian, as all of these events were occurring. And

now that Maliki is out of the way, the United States is saying give Baghdad another chance.

I think regional leaders are willing to do so, as King Abdullah of Saudi Arabia and others have said publicly, but it's very important for us to

have a long-term strategy, a coherent, cohesive strategy.

ANDERSON: Soldiers are Elastoplast, politicians make decisions for the future. It's always a pleasure. Ali, thank you very much, indeed, for

joining us. It remains to be seen who it is as of yet that John Kerry is speaking about when he says that regional leaders here are beginning to

stump up and say that they will get involved in airstrikes.

Watch this space, CNN will be reporting on this story extensively as we move through the next hours, days, and weeks. I'm Becky Anderson, that was

CONNECT THE WORLD. Thank you for watching. MARKETPLACE MIDDLE EAST forthcoming, and then your headlines at the top of the hour.

(COMMERCIAL BREAK)

JOHN DEFTERIOS, HOST: This week on MARKETPLACE MIDDLE EAST, ISIS took control of a pool of energy resources swiftly, but can they sustain their

business model?

And we speak to the head of Abu Dhabi's Islamic Bank on how companies and investors are adapting to a region that seems under constant threat.

Welcome to MARKETPLACE MIDDLE EAST. Iraq is still reeling from Islamic militants who have captured land mass equivalent to the size of Jordan in

less than a year. ISIS is a well-funded organization, making its money through both extortion and oil sales. But the last month has not been a

good one in terms of energy expansion plans.

(BEGIN VIDEOTAPE)

DEFTERIOS (voice-over): ISIS videos are part of today's new reality. The viewer hears the reciting of Koranic verses describing a jihad or battle

for Syria's al-Omar Field. It is Syria's largest oil field and one of a handful of facilities now under the firm grip of the terrorist

organization.

ISIS may not operate a polished pipeline network one finds in the south around Basra, but Iraqi oil ministry officials say an old-fashioned truck

network for this crude is active.

HUSSEIN ALLAWI, SENIOR CONSULTANT, IRAQI OIL MINISTRY (through translator): They use oil tank trucks instead of oil pipes. There about 210 oil tank

trucks smuggling oil to Turkey and other places every day.

DEFTERIOS (on camera): According to the Iraq Energy Institute, ISIS is producing 30,000 barrels a day in Iraq, and another 50,000 barrels a day in

Syria using a median black market price for oil of $40 a barrel, that means it's bringing in $1.2 million day from Iraq and another $2 million a day in

Syria. Energy traders say this oil is being absorbed regionally in Jordan, Syria, and especially Turkey.

DEFTERIOS (voice-over): The network of black market traders stretches back to the days of Saddam Hussein, when Iraq was under UN sanctions in the

1990s.

KATE DOURIAN, SENIOR EDITOR, MIDDLE EAST ECONOMIC SURVEY: You're talking certain markets to oriented people who have organizations that trade in

illegal oil.

DEFTERIOS: And ISIS has taken a page from Saddam's war playbook when he left Kuwait and burning fields behind him. These are still pictures of

fields torched by the group in Ain Zala and Batma outside of Mosul when it was pushed out by Iraqi forces.

August was not a good month for ISIS and its energy expansion plans. It lost the battle for a giant field in Kirkuk with 600,000 barrels of day of

production and could not keep control of Iraq's largest refinery near Mosul.

(END VIDEOTAPE)

DEFTERIOS: ISIS, of course, is not an oil major, but it's making about $3 million a day from its black market sales, or about $1 billion a year. And

that's a figure that worries businessmen, because the organization is well- funded.

I spoke to the CEO of Abu Dhabi Islamic Bank, Tirad al Mahmoud, and asked him, how does a businessperson deal with this threat?

(BEGIN VIDEOTAPE)

TIRAD AL MAHMOUD, CEO, ABU DHABI ISLAMIC BANK: There are opportunities, and we invest where the opportunities are and we grow with the opportunities.

And I believe that areas that are going through stress right now also have opportunities in the future.

So, if you look at a country like Iraq, we're not pulling out. As a matter of fact, we're growing in Iraq as we speak. We continue to recruit new

people and we're introducing new products. We're going to launch a retail banking business in the north of Iraq. And if we're successful there, we

will spread out throughout the country.

So, we're quite optimistic on Iraq. Yes, if you focus on the challenges today, you say, God, what are you doing? And I'm saying, hey, challenge is

a part of the business, and bankers should not shy away from that.

DEFTERIOS: It's interesting, you bring up northern Iraq. Erbil was the new boom town after the Arab Spring, and then it had this shock from ISIS. But

you think it still has a great deal of potential in the --

MAHMOUD: We are in that region. We have a presence in Erbil. We have a business in Erbil. And what TV talks about and what we talk about are two

different things. Throughout the period, we continue to have business meetings and we continue to engage ourselves in transactions.

And Basra, on the other hand, is a big boom town. Basra is full of oil companies, and that's where we're going to be also building a business.

DEFTERIOS: Going into Basra, 2.5 million barrels a day of exports. It's a pretty sizable business in its own, but you can shut out the political

chaos that's taking place?

MAHMOUD: I think we don't see chaos. But I would say, don't let chaos scare you away. Be very focused on your business, be very focused on your

clients, and have plans that can adjust and be re-calibrated periodically based on the circumstances.

DEFTERIOS: You've mentioned potential opportunities. Let's cover Iran with the P5+1 discussions taking place. This is a very large economy

potentially. You have not moved in, but the historical trade links between the UAE and Iran must make this a tempting opportunity in the future.

MAHMOUD: Iran has been a partner for the GCC for hundreds of years. It's a very old country. The GCC is a $1.6 trillion economy, Iran is less than

$250 billion. It's got 70 million people. It has promising potential.

We look at Iran, but we're waiting for the right time to be able to go into Iran. The environment of openness for foreign banks to come in and be able

to do business is something we're still analyzing. There are also opportunities in Asia, like Indonesia and Malaysia. We can't discount

those.

DEFTERIOS: Egypt has gone through incredible turmoil after the Arab Spring and more stability, at least perceived by the business community, with Mr.

el-Sisi as president there. With the backing that the UAE has given as a government financially, does that give you a green light to say this will

be a more stable environment for us as a bank to go in?

MAHMOUD: I can tell you that when we got into Egypt at the end of 2007, we had absolutely no prediction of the future at all.

DEFTERIOS: You were in some rough times.

MAHMOUD: We were very optimistic about the Egyptian domestic economy. And during the change that took place in Egypt, and we looked at our business

very closely, we have 70 branches, we have about 3,000 employees there. We had one ATM machine damaged.

And we continue to grow the business throughout the change. Egypt has gone through changes, not one, since Mr. Mubarak was resigned his post. So, I

believe Egypt will not change in terms of opportunity, and I believe that Egypt is a very important country for the Middle East. And we will continue

to see opportunity in Egypt.

(END VIDEOTAPE)

DEFTERIOS: A chief executive's perspective in face time and how to adapt to a region facing so many challenges.

Up next on Marketplace Middle East, making wine in the shadow of war. We take a look at how a multi-million-dollar winery in the Golan Heights is

still operating despite being hit by the war in neighboring Syria.

(COMMERCIAL BREAK)

DEFTERIOS: Welcome back to MARKETPLACE MIDDLE EAST. Of course, the region is dealing with intense insecurity right now, but businesses are still

trying to turn a profit. In the raged specter of Syria's civil war, the Israeli-controlled Golan Heights are still producing grapes for wine. Ian

Lee, now, on trying to make wine during war.

(BEGIN VIDEOTAPE)

IAN LEE, CNN INTERNATIONAL CORRESPONDENT (voice-over): The sun rises over the Golan Heights, burning off the cold morning mist. The perfect time to

pick wine grapes. Jews and Arabs from nearby villages harvest the ripe fruit.

Israel occupied this strategic plateau from Syria in the 1967 war and turned it into a major wine-producing region. These grapes are bound for

the Pelter Winery. A conveyor belt delivers them to a sorter, fruits from stems, the grapes then slither toward a slow press. Old techniques give way

to modern. No feet-stomping here to create their more than 100,000 bottles of win a year.

Co-owner Tal Pelter runs the multi-million-dollar winery. We find him testing wine in a room full of oak barrels, or what he calls "expensive tea

bags."

TAL PELTER, CEO, PELTER WINERY: When you go taste barrels, usually you know where you started, and you want to see the progress in development of

flavor.

LEE: The wineries attract tourists, people wanting to taste directly from the source, like Rachel Spigelman.

RACHEL SPIGELMAN, WINE TASTER: The wine lovers. I don't understand a think about wines, I just enjoy it. My husband is the wine connoisseur. He knows

the years and the blends and everything else. I just -- I go along with him, and this is how we stay married for 32 years.

(AIR RAID SIREN)

LEE: Suddenly, a siren blares. Workers and tourists take cover, exposing the surreal reality of the Golan -- wine-tasting next to a deadly civil

war.

(EXPLOSIONS)

LEE: A few fields over, Syrian rebels and government troops exchange fire. The Golan hasn't been left unscathed.

LEE (on camera): When the strike came in and exploded once it hit the roof, leaving divots on the ground, shrapnel like this peppered the walls and

injured one person. The tanks, too, holding the wine were hit, spilling tens of thousands of bottles-worth of wine all over the ground.

PELTER: It took our very calm, let's say, lifestyle and shook it up a bit. But I'm -- it's not something to be afraid of.

LEE (voice-over): Tal sympathizes with his neighbors across the border, but he's not allowing it to affect his life. As proof, the company is

expanding, keeping their wine exclusive by diversifying into other markets: Kosher wine and cognac. So, the harvest and wine process continues in the

shadow of a war.

Ian Lee, CNN, the Golan Heights.

(END VIDEOTAPE)

DEFTERIOS: Expansion plans there despite all the insecurity. For more about the program or to see our reports or interviews again, visit our website,

cnn.com/MME. You can reach out and send us a message on Facebook and follow what I write on my Twitter handle.

And that's all for this edition of CNN MARKETPLACE MIDDLE EAST. I'm John Defterios, thanks for watching. We'll see you next week.

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END