Latest news with #economicrecovery
Zawya
14 hours ago
- Business
- Zawya
Trading resumes at Damascus Securities Exchange after 6-month suspension
Damascus: The trading resumption ceremony at the Damascus Securities Exchange commenced Monday after a six-month suspension. Syrian Minister of Finance Dr. Mohammad Yusr Barniyeh emphasized that reopening the exchange is a sign that Syria's economy is beginning to recover and move forward. "The Damascus Securities Exchange will operate as a private company and serve as a genuine hub for Syria's economic development, with a strong focus on digital," the Syrian news agency (SANA) quoted the Minister as saying. Executive Director of the Damascus Securities Exchange Dr. Basel Asaad described the reopening as a historically significant milestone for Syria. He affirmed the exchange's readiness to resume operations and strengthen its role, anticipating broader and more substantial investments in Syria's evolving economy. Despite limited resources, Dr. Asaad highlighted the exchange's success in carrying out its responsibilities with transparency and ensuring investor ownership protection. He expressed confidence in its ability to keep pace with future developments. Meanwhile, Chairman of the Board of Directors of Damascus Securities Exchange Fady Al Golailaty said that the Damascus Securities Exchange will not merely be a platform for trading stocks and bonds, but will also play an active role in reconstruction, economic growth, and attracting both local and international investments. He added that it will contribute to stabilizing the national currency and integrating the Syrian economy with global economies. © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (
Arab News
a day ago
- Business
- Arab News
Can sanctions relief deliver quick wins for Syria's economy?
LONDON: Like a relic from another era, its promise long faded, the Syrian pound still lingers in the wallets of shopkeepers and shoppers in Damascus. Yet, green shoots of hope are sprouting across the war-weary nation. That rekindled sense of optimism owes much to US President Donald Trump's pledge to ease sanctions and signs of regional support for Syria's economic recovery. A major boost came on May 31, when Saudi Arabia and Qatar announced they would jointly fund salary support for Syrian state employees, many of whom have struggled for years on paltry and irregular wages. The pledge builds on earlier Gulf efforts to stabilize Syria's economy and signals a deeper commitment to reconstruction. On May 12, Saudi Arabia and Qatar settled Syria's $15.5 million in arrears to the World Bank's International Development Association — a key step that reopened access to loans and grants. The international backing comes at a crucial moment. After 14 years of war and isolation, Syria's economy has nearly collapsed. Exports have dried up, foreign reserves have fallen to just $200 million, the currency has lost 99 percent of its value, and more than 90 percent of Syrians live below the poverty line. Trump's March 13 announcement in Riyadh sparked spontaneous celebrations in the capital's streets. But even amid the jubilation, many Syrians recognized that true recovery would take more than a policy shift — and much longer to materialize. 'Partial sanctions relief sends a political signal, not a legal guarantee,' Harout Ekmanian, public international lawyer at Foley Hoag LLP in New York, told Arab News. 'Investors remain cautious, and there is a risk of overcompliance with any remaining sanctions that are in place, particularly in sensitive sectors like banking,' he said. He added that the need for 'a complete lifting of the tangled web of sanctions to facilitate investment from compliance sensitive investors from the US and Europe' cannot be overstated. Delaney Simon, a senior analyst with the International Crisis Group's US program, concurred. 'If Trump is actually planning to lift all or even most sanctions on Syria, he is doing something virtually unprecedented in the recent history of sanctions relief,' he told Arab News. He cautions, though, that 'lifting sanctions is not straightforward.' 'It will require a massive bureaucratic and possibly political lift in Washington, including mobilization of different arms of the US government including the Treasury, State and Commerce departments and Congress,' Simon said. Even with formal relief, private firms may be slow to re-engage. 'Relief on paper might not translate to relief in practice,' he said. 'The private sector may be wary of engaging with Syria once the restrictions are lifted.' Despite those concerns, Simon urges patience. 'President Trump has a tough road ahead to make good on this commitment, but he should persevere,' he said. 'He is right that lifting sanctions gives Syria a chance at greatness.' For now, such an outcome remains uncertain. The most severe Western sanctions were imposed in 2011 by the US, EU, UK, and others in response to the Assad regime's crackdown on protesters. Following the ousting of Bashar Assad in December, the new interim government, led by President Ahmad Al-Sharaa, inherited a damaged economy and the sanctions that helped undermine it. Washington's measures were among the most sweeping: a near-total trade embargo, asset freezes, and secondary sanctions targeting foreign firms doing business with Syria. The Caesar Act of 2020 imposed additional restrictions, further isolating Assad's regime. Signs of change came on May 23, when the US Treasury's Office of Foreign Assets Control issued General License 25, lifting most of those restrictions. The relief, however, comes with conditions: political reform, respect for human rights, and counterterrorism commitments from Damascus. Soon after, the EU and UK followed suit, underscoring a broader Western alignment with the Al-Sharaa government. Still, experts say sanctions relief alone will not revive an economy ravaged by years of conflict. A key next step is rejoining the SWIFT financial network. Bankers in Damascus expect the connection to be restored within weeks, enabling smoother international transactions and potentially unlocking billions in remittances from Syrians abroad. Nevertheless, global banks remain cautious, awaiting clearer legal guidance from Western governments. 'Syria's financial system is a black box that nobody understands,' Stephen Fallon, a banking and sanctions expert, told The Economist newsmagazine. 'If I run a Western bank and I accidentally receive funds from terrorists, it's me the American regulators will come after.' Foley Hoag's Ekmanian sees potential short-term gains but says they depend on legal clarity. 'Sanctions relief can act as a pressure valve by easing immediate economic distress, but without legal clarity on asset recovery and investor protections, quick wins may remain elusive,' he said. Access to frozen reserves could help stabilize liquidity. But long-term recovery, he added, depends on structural reform and investor confidence — both difficult to achieve. Syria's central bank holds just $200 million in foreign exchange reserves, Reuters news agency reported — a steep decline from the $18.5 billion the International Monetary Fund estimated before the war. It also retains nearly 26 tonnes of gold, currently valued at over $2.6 billion. The interim government hopes to unlock up to $400 million in frozen overseas assets to fund reforms, including recent salary hikes for public workers. But the actual value, location, and timeline for repatriation remain unclear. Switzerland has identified $118 million in local banks, according to Reuters, while The Syria Report estimates another $217 million is in the UK. Ekmanian emphasized that even modest gains 'hinge on the credibility of the sanctions relief architecture.' He noted that 'if businesses fear snapback sanctions or regulatory ambiguity, even the thawing of restrictions won't translate into meaningful economic movement.' Predictability, he said, underpins international investment. 'International investment law tells us that predictability is key,' he said. 'While sanctions relief can unlock trade routes and aid, without legal assurances and investment protection commitments, Syria risks a piecemeal recovery vulnerable to geopolitical shifts.' Beyond legal guarantees, Syria must overhaul its domestic institutions. 'Legal frameworks must catch up with policy signals,' Ekmanian said. 'Re-engagement with Syria under international economic law requires more than opening bank accounts,' he explained. 'It demands credible reforms to the domestic legal framework, judiciary, arbitration frameworks, debt transparency, and governance of sovereign assets.' He also warned of legal risks that could deter investors: a growing docket of war-related tort and atrocity litigation in European and US courts under universal jurisdiction and terrorism exceptions to sovereign immunity. 'Even with various US sanctions and EU Council Regulation 36/2012 partially relaxed, this needs to be accompanied by steps to ensure that the new government and Syrian people are not unduly burdened by the prior regime's liabilities,' he said. Ultimately, he said, 'modest sanctions relief can ease humanitarian transactions and marginally bolster foreign-exchange buffers, but it cannot deliver a durable uplift in trade, investment or debt restructuring without parallel movement on governance, transparency, and human-rights benchmarks that anchor international economic law.' Syria's external debt is another major obstacle, estimated by the new government to be between $20 billion and $23 billion — high relative to its 2023 GDP of about $17.5 billion. Much of it was accrued under Assad through military and oil-related loans from allies such as Iran and Russia, complicating restructuring efforts. Despite these hurdles, some see progress. 'US sanctions relief will be a major step not only towards economic recovery, but also towards ending the cycles of violence that have trapped Syria for over a decade,' said Nanar Hawach, a senior Syria analyst at the International Crisis Group. He argued that economic collapse has contributed to insecurity by weakening services, deepening grievances and driving recruitment into armed groups. 'Lifting sanctions could help reverse that dynamic,' he told Arab News. Syria's post-Assad transition remains unsettled. Renewed violence has erupted in several areas, including rural Damascus, Homs, and the Alawite-dominated coast, now largely controlled by HTS, the group that led the offensive to oust Assad. The group has since absorbed rival factions, some still having Daesh-aligned extremists in their ranks. Elsewhere, sectarian clashes have hit Homs and rural Damascus, while the interim government struggles to contain unrest among Druze in the south and Kurds in the northeast. Still, the psychological effect of sanctions relief may prove powerful. 'The most immediate benefit is psychological: a clear boost in investor confidence,' Hawach said. 'Even when sanctions were partially eased in the past, most banks and companies, especially international ones, avoided Syria out of fear of getting blacklisted,' he said. 'Simply put, the word 'Syria' was enough to trigger overcompliance,' but a shift is noticeable now. He noted that some regional investors are already engaging with Syria. 'Some have already taken the decision to invest and are now looking into the technical aspects of it,' he said. 'There's a lot of momentum. It's looking very promising.' Since May 13, several regional investors have announced major projects. On May 29, Syria signed a strategic agreement with a consortium led by Qatar's UCC Holding to build four gas power plants and a 1,000-megawatt solar facility — a $7 billion investment expected to meet over half the country's electricity needs. In another sign of momentum, DP World, the Dubai-based ports operator, signed an $800 million agreement to develop and expand the port of Tartus — the largest foreign investment in Syria since sanctions relief began. Diaspora entrepreneurs are also stepping in. Mohamed Ghazal, managing director of Startup Syria, a community-led initiative supporting Syrian entrepreneurs, says Syrian startup founders are targeting key sectors for recovery: infrastructure, public services, agriculture, digital services, and food security. 'These sectors can generate jobs quickly, particularly in construction, agriculture, and tech,' Ghazal told Arab News. He also cited healthcare, education, and fintech as areas for investment, especially given Syria's push to reconnect with global financial systems. 'Vocational training, online learning, digital health services — these are where youth and diaspora professionals can really contribute,' he said. As Syria begins its journey back into the international community, the road ahead is still rocky and the challenges daunting. Yet, for the first time in years, the nation appears to be moving toward a new era — one shaped not by conflict and sanctions, but by constructive diplomacy, reform and cautious optimism.
Fast Company
a day ago
- Business
- Fast Company
Damascus stock exchange reopens in Syria as the war-torn country aims to rebuild its economy
Trading resumed on the Damascus Securities Exchange Monday after a six-month closure, as Syria's new leaders attempt to shore up the country's battered economy and begin rebuilding after nearly 14 years of civil war. The stock exchange had closed during the chaotic days leading up to the ouster of former President Bashar Assad in a lightning rebel offensive. Syrian Finance Minister Mohammed Yisr Barnieh, who attended the reopening, said that it signals that the country's economy is beginning to recover and that the stock exchange 'will operate as a private company and serve as a genuine hub for Syria's economic development, with a strong focus on digital,' state-run news agency SANA reported. He said the country's new leaders plan to 'facilitate business operations and open doors to promising investment opportunities.' The move to reopen comes as international restrictions on Syria's financial systems begin to ease. The United States and Europe both last month announced the lifting of a wide raft of sanctions that had been slapped on Syria under the Assad dynasty's rule. Last week, Syria inked a power deal worth $7 billion with a consortium of Qatari, Turkish and U.S. companies for development of a 5,000-megawatt energy project to revitalize much of Syria's war-battered electricity grid. The consortium led by Qatar's UCC Concession Investments—along with Power International USA and Turkey's Kalyon GES Enerji Yatirimlari, Cengiz Enerji—will develop four combined-cycle gas turbines with a total generating capacity estimated at approximately 4,000 megawatts and a 1,000-megawatt solar power plant.
Asharq Al-Awsat
2 days ago
- Business
- Asharq Al-Awsat
Damascus Stock Exchange Reopens After 6-Month Closure
Trading resumed on the Damascus Securities Exchange Monday after a six-month closure, as Syria's new leaders attempt to shore up the country's battered economy and begin rebuilding after nearly 14 years of civil war. The stock exchange had closed during the chaotic days leading up to the ouster of former President Bashar al-Assad in a lightning opposition offensive. Syrian Finance Minister Mohammed Yisr Barnieh, who attended the reopening, said that it signals that the country's economy is beginning to recover and that the stock exchange 'will operate as a private company and serve as a genuine hub for Syria's economic development, with a strong focus on digital,' state-run news agency SANA reported. He said the country's new leaders plan to 'facilitate business operations and open doors to promising investment opportunities.' The move to reopen comes as international restrictions on Syria's financial systems begin to ease. The United States and Europe both last month announced the lifting of a wide raft of sanctions that had been slapped on Syria under the Assad dynasty's rule. Last week, Syria inked a power deal worth $7 billion with a consortium of Qatari, Turkish and US companies for development of a 5,000-megawatt energy project to revitalize much of Syria's war-battered electricity grid. The consortium led by Qatar's UCC Concession Investments, along with Power International USA and Türkiye's Kalyon GES Enerji Yatirimlari, Cengiz Enerji, will develop four combined-cycle gas turbines with a total generating capacity estimated at approximately 4,000 megawatts and a 1,000-megawatt solar power plant.
Arab News
3 days ago
- Business
- Arab News
Will the lifting of sanctions usher in a new beginning for the Syrian people?
LONDON: When news broke that Western sanctions on Syria would be lifted, Marwah Morhly finally allowed herself to imagine something she had not dared to in years: a stable life in her hometown of Damascus. A Syrian writer and editor now living in Turkiye, Morhly once navigated a precarious existence back home — trying to earn a remote income in a country cut off from global banking systems and mired in uncertainty. Returning to Damascus always felt like a distant dream — too risky and too complicated. But with sanctions easing, that dream is beginning to look attainable. 'It's a different kind of freedom — the freedom to dream,' she told Arab News. 'As someone who works remotely, the lifting of sanctions lets me imagine a future where I can work from my home in Damascus, receive my salary through a bank transfer directly to my account there, without any form of danger or exploitation.' Under sanctions, she said, Syrians working with foreign clients had to operate in secrecy. 'We were working in the shadows … like ghosts,' she said. 'We weren't allowed to be visible, like unknown soldiers, because the moment it became clear (to employers abroad) that the work was happening inside Syria, it could jeopardize our livelihoods.' The breakthrough came on May 13, when US President Donald Trump, during a visit to Riyadh, announced the lifting of sanctions on Syria. He framed the move as a historic opportunity for economic recovery and political stabilization. Ten days later, the US Treasury Department issued General License 25, authorizing transactions with Syria's new transitional government, led by President Ahmad Al-Sharaa. In parallel, the State Department suspended the Caesar Act sanctions for 180 days, signaling a pivot toward reconstruction and humanitarian relief. The EU soon followed suit, announcing the end of its own economic sanctions in a coordinated effort to support a nation fractured by more than a decade of civil war. On Saturday, Saudi Arabia's Foreign Minister Prince Faisal bin Farhan Al-Saud announced from Damascus a joint effort with Qatar to fund salary support for Syria's state employees. The move built on the two countries' decision earlier in May to pay off the $15.5 million debt Syria owed to the International Development Association, a World Bank fund that provides zero- or low-interest loans and grants to the world's poorest countries. This policy shift did not happen in a vacuum. Ibrahim Al-Assil, a senior fellow at the Middle East Institute, said years of grassroots advocacy were pivotal. 'Of course, the Saudi role was huge, and many Syrians appreciate that, and same for the Turkish role,' Al-Assil told CNN. 'But also, many Syrians have been working on that — from students to academics to activists to business leaders and journalists writing and talking about this and pushing more and more towards lifting sanctions.' The impact of these efforts goes beyond international politics. 'Why? Because it allows Syrians to breathe again,' he said, adding that sanctions are often viewed only on a macro level as something that affects an entire country. In reality, they have a serious impact on daily life. 'We forget that they affect the lives of the individuals on the tiny details — from medicine to connectivity and being able to check their email normally … also to what industries they can have, where they can travel, what kind of machines they can buy for their factories.' For ordinary Syrians, these limitations posed immense challenges. Now, Al-Assil said, the situation is changing. 'It's still challenging, but the major obstacle seems to have been moved out of the way for Syrians, allowing them to move ahead and rebuild their country.' Beyond basic needs, the lifting of sanctions opens new possibilities for professionals still living in Syria — many of whom have endured years of isolation, limited access to technology, and restricted earning potential. Salma Saleh, a graphic designer based in Damascus, says she has spent 13 years building her career under the weight of sanctions, along with the years before that dedicated to her education. 'The challenges have been endless,' she told Arab News. 'We struggled to access most technologies and tools. Often, we had to use workarounds just to get hold of banned software or platforms.' Freelancing is no easier. 'Syrians are blocked from PayPal and most global payment platforms used by freelancing platforms,' she said. 'Even sites essential for our work like Shutterstock, Freepik, and Envato are inaccessible. We can't even purchase courses on Coursera or Udemy, nor the software we work with, such as Adobe programs. 'We can't promote our work on social media platforms due to the ban on paid advertisements in Syria. Clients are afraid to work with Syrian freelancers because of the difficulty with payment methods and fears of being accused of funding terrorism.' Electricity outages posed further challenges. 'My heart nearly stopped every time the power cut while I was rendering a video on my laptop,' said Saleh. 'It happened so many times we eventually got used to it. Syrian designers have become the most resilient professionals out there.' Syria's electricity sector has all but collapsed owing to infrastructure damage, fuel shortages, and economic sanctions. Once relatively stable, the system now delivers just a few hours of electricity per day. In some areas, that is as little as 30 minutes. 'We had to jump through hoops just to keep up with the rest of the world,' said Saleh. 'We gave it everything. I consider the Syrian designer a super designer — and rightfully so.' For Syrians across the diaspora, the developments mark a fragile but significant turning point. Cautious optimism is beginning to take root — even as the country remains divided and the road to recovery is long. Lama Beddawi, a Syrian-American DevOps environment analyst based in the US, echoed that sentiment. 'The recent decision to lift sanctions on Syria marks a pivotal turning point, and I am hopeful that it signals a move in the right direction,' she told Arab News. 'This development brings a sense of optimism that the country's long-strained economy may begin to recover, opening the door for increased stability and renewed international investment,' she said. 'With fewer restrictions, Syria has the potential to rebuild its infrastructure, strengthen its institutions, and create opportunities for its people, paving the way for a more sustainable and prosperous future.' Still, the benefits remain largely theoretical for now. On the ground, daily challenges persist, and progress will take time. 'Everyone understands this isn't a magic fix — the effects will take time to show,' said Morhly. 'As one man from central Damascus put it: 'For now, we'll take a hit from the dollar rate, but in a couple of months, more people will actually be able to afford meat again.'' There is also cautious optimism that basic services might begin to improve. 'There's hope the electricity situation might improve — which is the second biggest concern after water, especially with summer approaching and the heat already setting in,' she added. From an economic perspective, the lifting of sanctions presents both opportunities and challenges. Mohamed Ghazal, managing director of Startup Syria, a community-led initiative supporting Syrian entrepreneurs, believes translating sanctions relief into concrete gains such as jobs, investment, and basic services 'will be a complex and gradual process.' He remains optimistic about certain sectors. 'Quicker gains are possible in transport and trade,' Ghazal told Arab News. However, critical areas like general business development and startups are experiencing slower momentum. 'Lifting sanctions can take months,' said Ghazal. 'Capital flow issues persist due to a crippled banking system. 'Syria's banks lack access to SWIFT (Society for Worldwide Interbank Financial Telecommunication), suffer low liquidity, and operate under opaque regulations. 'Attracting foreign capital requires a modern investment law, clear property rights, business licensing frameworks, and financial repatriation mechanisms. 'The speed of progress depends on comprehensive reforms, institutional rebuilding, international investment, and continued humanitarian support. 'The lifting of sanctions is expected to open up channels like new funding, banking, or investment channels for Syrian startups.' Diaspora and foreign investors could offer the capital injection needed to get the economy off its knees. There are 'positive signs from the Syrian diaspora and potential foreign direct investment, especially from GCC countries and Turkiye,' said Ghazal. 'Interest from impact investors seeking financial returns and social and environmental impact.' He identified several immediate priorities for revitalizing the economy, including restoring access to SWIFT, enacting a modern investment law with clear legal protections, and easing import restrictions on essential technology to enable the use of software, cloud services, and digital tools. The SWIFT system is a global messaging network that enables financial institutions to exchange transaction details — like money transfer instructions — quickly, securely, and accurately across borders. Before Lebanon's 2019 financial collapse, many Syrians used its banking system to bypass sanctions, parking billions in assets and accessing US dollars and trade channels. When the system froze, transfers stopped, savings were locked, and Syrians lost access to critical funds. The Syrian pound then collapsed, inflation surged, and the economy worsened. While some estimates once placed Syrian deposits as high as $40 billion, remaining deposits in 2025 were estimated at just $3 to $4 billion, according to the Karam Shaar Advisory consultancy. Some experts believe sanctions relief could signal a path forward. Ghassan Ibrahim, a London-based Syria analyst and founder of the Global Arab Network, believes sanctions relief could unlock trade and investment. 'Lifting Western sanctions removes long-standing barriers to Syria joining the global market,' he told Arab News. 'It restores credibility and sends a message that Syria is on the right path.' Investor interest is already growing. 'Next week, a few American investors are heading to Damascus. We're also seeing engagement from GCC countries and Chinese firms already operating there. 'Any relief, especially from the US, will help get Syria back on track. It boosts the government's legitimacy and strengthens its diplomatic hand.' The broader economic and political impact cannot be understated. 'President Al-Sharaa will be able to travel more freely, engage in diplomacy, and attract serious development partnerships,' said Ibrahim. 'That's critical for reconstruction. 'Ultimately, this shift could improve quality of life, create jobs, and drive long-term growth.' Still, Syria's path to recovery remains long. Nearly six months after the fall of Bashar Assad, the country is still plagued by deep sectarian divisions, persistent violence, and political fragmentation. In March 2025 alone, more than 1,100 people were killed in attacks targeting the Alawite minority following coordinated assaults on government forces. Survivors remain fearful of further violence, and many perpetrators have not been brought to justice. Foreign threats compound internal instability. Israel has launched multiple airstrikes, including one near the presidential palace, citing threats to the Druze minority. Syria's new leadership condemned the attacks, highlighting the fragility of foreign relations. Internally, law and order remains weak. Women and minorities still face abuse, rights protections are unevenly enforced, and extremist groups continue to assert control in some regions, several news agencies have reported. The humanitarian crisis also endures. Around 16.7 million Syrians rely on aid, while millions remain displaced. Israel maintains a military presence, and Turkiye has voiced opposition to any settlement between Damascus and Kurdish factions — complicating efforts toward national unity. Though US, EU, and UK sanctions relief is meant to support Syria's transition, the UN warns of 'real dangers of renewed conflict.' Meanwhile, the interim government faces the daunting task of rebuilding a country where 90 percent of the population lives in poverty and millions remain displaced. The door may be open, but walking through it will require more than hope. It will take time, trust, and tangible change.
