Syria to be relinked to SWIFT payment system
Syria will be fully reconnected to the SWIFT international payment system 'in a matter of weeks' after more than a decade of sanctions, central bank governor Abdelkader Husrieh told the Financial Times in an interview published on Monday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
44 minutes ago
- Arab News
Syria's central bank plans currency unification and return to global payment system SWIFT
RIYADH: Syria will adopt a unified exchange rate before transitioning to a managed float system as it seeks to stabilize a currency that has lost nearly all its value against the US dollar. In an interview with the Financial Times, Central Bank of Syria's Governor Abdulkader Husrieh confirmed the reforms, emphasizing efforts to eliminate the role of unauthorized money changers in the country's foreign exchange market as part of broader financial reconstruction. Syria is also set to be fully reintegrated into the SWIFT international money transfer system within weeks, reconnecting the country to global finance after 14 years of war and sanctions. The country is working to revive its economy after years of conflict, with its transitional government, led by President Ahmed Al-Sharaa, implementing reforms such as privatizing state-owned firms, easing import restrictions, and attracting foreign investment. 'We aim to enhance the brand of the country as a financial hub given the expected foreign direct investment in rebuilding and infrastructure — this is crucial,' Husrieh told the FT. Key developments in Syria include a $7 billion energy deal with Qatar, the reopening of the Damascus Securities Exchange, and a $300 million fiber-optic project with Gulf telecom companies. These initiatives come as Saudi Arabia and Qatar pledge financial support to help stabilize Syria's economy amid a gradual easing of Western sanctions. SWIFT reconnection to boost trade and investment The reintegration into SWIFT marks a milestone in the new government's economic liberalization efforts following the lifting of US sanctions last month. The Society for Worldwide Interbank Financial Telecommunications is a global cooperative that facilitates secure international money and security transfers through a vast messaging network, enabling banks and financial institutions to exchange information and instructions for financial transactions. Husrieh, who took office in April, said that significant progress has been made but acknowledged that there's still much work ahead. Post-war economic challenges Since 2011, Syria has been isolated from global markets due to war and sanctions. The economy collapsed under ex-President Bashar Assad and when Al-Sharaa took power last December, his government swiftly introduced free-market reforms to revive the economy and reassure wary foreign investors. Last month, President Donald Trump's announcement of lifting sanctions provided a major boost, but Husrieh stressed that 'a full policy shift is still needed,' calling for comprehensive sanctions removal rather than selective measures. 'The central bank previously micromanaged the financial system, overregulated lending, and restricted withdrawals,' he said. 'We're reforming through recapitalization, deregulation, and re-establishing banks as intermediaries between households and businesses.' Reconnecting to SWIFT will reduce import costs, facilitate exports, and curb reliance on informal financial networks. Husrieh said all foreign trade will now go through formal banks, cutting out money changers who took a 40 percent cut on dollar transactions. Before Assad left the presidency, the Syrian pound plummeted. While it has since strengthened, volatility remains. Husrieh aims to unify official and black-market rates before transitioning to a managed floating exchange rate system. Gulf nations are actively supporting the reforms in Syria, and Saudi Arabia and Qatar cleared the country's World Bank debt and pledged to cover public sector salaries for three months. 'Effective May 12, 2025, the arrears of approximately $15.5 million due to the International Development Association by the Syrian Arab Republic have been cleared,' the World Bank confirmed on May 16.
Arab News
2 hours ago
- Arab News
Non-oil sector drives Saudi Arabia's GDP growth to 3.4% in Q1: GASTAT
RIYADH: Saudi Arabia's economy expanded by 3.4 percent year on year in the first quarter of 2025, propelled by robust growth in non-oil activities, according to official data. The estimates released by the General Authority for Statistics showed that the seasonally adjusted real gross domestic product also saw a quarterly rise of 1.1 percent, signaling sustained economic momentum. The non-oil sector emerged as the primary engine of growth, increasing by 4.9 percent compared to the first quarter of 2024. In contrast, oil activities contracted by 0.5 percent year on year, reflecting ongoing volatility in the energy sector. Saudi Arabia's GDP growth aligns with the broader Middle East trend, where countries are steadily advancing economic diversification. The UAE's Ministry of Economy forecasts a 5-6 percent growth rate in 2025, fueled by robust performance in key sectors such as technology, renewable energy, trade, financial services, and infrastructure. Meanwhile, Fitch Ratings has lowered Qatar's 2025 real GDP growth forecast from 2.9 percent to 2.6 percent, citing the effects of US tariffs on global growth, weaker energy prices, and heightened investor caution amid rising international uncertainty. In a release covering the latest Saudi Arabia figures, GASTAT stated: 'The main driver of growth in real GDP was non-oil activities, which contributed 2.8 percentage points. Government activities and net taxes on products also contributed positively adding 0.5 and 0.2 PP respectively.' Sectoral performance According to the GASTAT report, several non-oil sectors posted strong growth across the quarter, with the wholesale and retail trade, restaurants, and hotels sector leading at an 8.4 percent annual increase. The transport, storage, and communication sector also showed robust performance, growing by 6 percent year on year. Meanwhile, finance, insurance, and business services expanded by 5.5 percent despite experiencing a slight 0.1 percent quarterly dip. These gains highlight the diversification and resilience of the economy beyond the oil industry. Gross fixed capital formation jumped by 8.5 percent annually, underscoring confidence in the economy, while government spending rose by 5.2 percent. Private consumption grew by 4.5 percent year on year, though it declined slightly from the previous quarter. Trade balance improvement Saudi Arabia's exports rebounded sharply, rising by 12.3 percent quarter on quarter, while imports fell by 10 percent over the same period, narrowing the trade deficit. The data highlights the Kingdom's progress in diversifying its economy under Vision 2030, with non-oil sectors increasingly offsetting fluctuations in oil revenues. In its latest World Economic Outlook report, the International Monetary Fund projected Saudi Arabia's GDP to grow by 3 percent in 2025, a downward revision from its January estimate of 3.3 percent. The IMF also trimmed its projection for 2026, reducing the expected growth rate by 0.4 percentage points to 3.7 percent. These forecasts reflect broader trends in the global economic environment, where shifts in energy markets and oil production adjustments continue to play a pivotal role in shaping near-term growth prospects. The Kingdom's economic performance remains closely tied to hydrocarbon sector dynamics, but ongoing reforms under Vision 2030 are gradually reducing this dependence, fostering more sustainable, long-term growth. Further reinforcing this outlook, a December 2024 report from Mastercard Economics emphasized the accelerating expansion of Saudi Arabia's non-oil sector, which has become a key driver of economic resilience. The analysis projected that the Kingdom's GDP will grow by 3.7 percent year on year in 2025, a figure slightly higher than the IMF's estimate, largely due to strong performance in non-oil industries such as tourism, entertainment, technology, and manufacturing. The Mastercard report also noted that economic diversification will remain a top priority in 2025, with Saudi authorities leveraging the country's strong fiscal buffers to fund ambitious infrastructure projects and attract private investment. Key initiatives include mega-developments like NEOM, the Red Sea Project, and Qiddiya, alongside investments in renewable energy and digital transformation. 'Population growth is an important driver of economic activity, and particularly private consumption,' the report added.
Asharq Al-Awsat
2 hours ago
- Asharq Al-Awsat
Saudi Arabia Eyes Tourism as Key Economic Pillar by 2030
Saudi Arabia is positioning its tourism sector to rival oil as a cornerstone of the national economy by 2030, targeting a 10% contribution to GDP. This ambitious goal is part of the Kingdom's broader Vision 2030 plan to diversify income sources and reduce reliance on hydrocarbons. To achieve this goal, Saudi Arabia is developing a comprehensive tourism ecosystem. This includes mega-projects like NEOM, Qiddiya, and the Red Sea, alongside nationwide infrastructure upgrades spanning major cities, villages, and remote areas. These efforts are already bearing fruit: the Kingdom surpassed 100 million visitors well ahead of schedule, prompting an upward revision of its target to 150 million tourists by the end of the decade. Tourism revenues have surged, growing more than 148% in 2024 compared to 2019. The sector's contribution to GDP has doubled to 5%, also generating thousands of new jobs and reinforcing Saudi Arabia's presence on the global tourism map. Speaking at the Saudi-US Investment Forum in Riyadh, Minister of Tourism Ahmed Al-Khateeb highlighted the Kingdom's rapid progress in establishing tourism as a foundational economic sector. He credited sweeping reforms, a pro-investment regulatory framework, and a robust national tourism strategy for the industry's momentum. The transformation includes major legislative and operational milestones: the rollout of a new tourism law, streamlined e-visa procedures, the establishment of training programs for Saudi talent, and the introduction of tech-driven visitor experiences. These initiatives aim to enhance both competitiveness and sustainability. Industry experts say Saudi Arabia's geographic, climatic, and cultural diversity gives it a strong edge. From the mountains of Asir and the historic sites of AlUla to the beaches of the Red Sea, the Kingdom offers varied attractions catering to a broad range of travelers. Nasser Al-Ghailan, a tourism investor and partner in Amla Tourism Group, said these natural advantages have been transformed into strategic assets. He pointed to infrastructure improvements, expanded airport capacity, and new airline routes connecting the Kingdom to the region and the world. 'Combining modern infrastructure with digital innovation and high service quality has made Saudi Arabia a rising player on the global tourism stage,' he said, noting growing interest from investors. In the Asir region, Abdullah bin Ahmed, Vice President of the Tourist Guide Club, emphasized the importance of community engagement and local workforce development. He sees tour guides as cultural ambassadors who can convey the richness of Saudi heritage to international audiences. 'People are the heart of the tourism experience. Empowering them is key to long-term success,' he said. According to the UN World Tourism Organization, Saudi Arabia led the G20 in tourism growth in 2024, with a 69% rise in international arrivals compared to 2019. With strategic investments and a clear vision, Saudi Arabia is on track to become a premier global destination, delivering unique travel experiences while maintaining a delicate balance between economic growth, cultural preservation, and environmental sustainability.
