{"id":40146,"date":"2025-10-29T11:44:29","date_gmt":"2025-10-29T11:44:29","guid":{"rendered":"https:\/\/963media.com\/en\/?p=40146"},"modified":"2025-10-29T11:44:29","modified_gmt":"2025-10-29T11:44:29","slug":"syria-between-economic-reform-and-political-constraint","status":"publish","type":"post","link":"https:\/\/963media.com\/en\/29\/10\/2025\/syria-between-economic-reform-and-political-constraint\/","title":{"rendered":"Syria… Between Economic Reform and Political Constraint"},"content":{"rendered":"

Since the formation of the Syrian Interim Government led by Ahmad al-Sharaa, the country has entered a delicate phase in which politics intersects with economics. The slogan \u201cZero Problems,\u201d adopted by the government as a key to regional and international openness, clashes with partial sanctions, hesitant financial support, and legal complexities that hinder the flow of capital. Between the aspirations of reconstruction and the ambiguity of foreign positions, Syria faces a test of confidence: will the promises turn into a tangible economic reality?<\/span><\/p>\n

It can be said that the economic relationship between the Syrian Interim Government and the Gulf states, in particular, is still in the process of formation. However, it is not yet a fully integrated relationship and, according to some observers, has not lived up to the rhetoric of the past few months. Saudi Arabia and Qatar announced a joint initiative to pay the salaries of public-sector employees in Syria, while Saudi Arabia granted priority to settling Syria\u2019s outstanding debts with the World Bank as part of a shift in its approach to financial assistance. Yet these steps have proven insufficient amid Syria\u2019s deteriorating conditions in all sectors. Should Gulf support materialize, it would represent an important opportunity for Syria to rebuild its economy and for Gulf countries to enter the reconstruction and investment markets. However, success in this regard requires internal reforms and clear international confidence.<\/span><\/p>\n

The relationship between states remains governed primarily by political and geostrategic considerations. This has been evident in the international sanctions imposed on Syria, which continue to have a significant impact despite the partial lifting of many restrictions. Sanctions have become a major constraint to economic revival and investment recovery, hindering large-scale investments, market liberalization, capital inflows, and the improvement of living standards. All of this remains stalled not only because of sanctions but also due to internal and external factors.<\/span><\/p>\n

Read also: Washington Eases Toward Damascus, but Partnership Is on Hold<\/a>
\n<\/strong><\/p>\n

Legal and Political Complexities<\/b><\/h2>\n

Academic and economic advisor Dr. Ziad Arbash told +<\/strong><\/span>963<\/b>\u00a0that the partial lifting of US sanctions on Syria was neither complete nor final, with the \u201cCaesar Act\u201d still in force despite certain exemptions or temporary suspensions of up to 180 days. He attributed this to legal and political complexities within the US Congress, which must approve any permanent lifting of sanctions, in addition to the US administration\u2019s concerns about the Syrian government\u2019s compliance with Washington\u2019s conditions, such as the expulsion of foreign fighters, combating terrorism, and guaranteeing minority rights. Thus, sanctions remain a political tool that can be lifted or reimposed rapidly depending on developments in the Syrian file, limiting the tangible economic effects of partial relief.<\/span><\/p>\n

He added that \u201cthe level of Arab and Gulf economic support directed toward Syria remains insufficient. This is due to internal crises within Syria\u2019s economic structure and its reliance on temporary grants that cover only basic needs, such as public-sector salaries. Gulf support is often temporary and emergency-based rather than part of a sustainable development plan. This is evident in the $89 million grant, which covered only three months of salaries without addressing the deep financial crisis. There is coordination with the United Nations, but the assistance remains weak compared to the scale of economic challenges.\u201d<\/span><\/p>\n

Regarding the recent meetings between a Syrian delegation and representatives of the World Bank and the International Monetary Fund, Arbash considered them an important step toward strengthening international confidence in Syria\u2019s financial and administrative reforms, even if they did not result in direct loans. Technical cooperation with these institutions can send positive signals to the global financial community, potentially encouraging Arab and regional capital investment, especially with expectations of an improved exchange rate and a more stable Syrian pound if the dialogue is accompanied by genuine reform programs. Hence, the full lifting of sanctions remains crucial for tangible economic impact, while Arab and Gulf support is still below expectations, despite promising opportunities from cooperation with international financial institutions.<\/span><\/p>\n

Last Saturday, Syria\u2019s interim Finance Minister, Mohammed Yisr Barnieh, said in a meeting with Akihiko Nishio, the World Bank\u2019s Vice President for Development Finance, that Syria is seeking about one billion dollars in grants from the World Bank over the next three years.<\/span><\/p>\n

Conditions and the Formation of a New Policy<\/b><\/h2>\n

Camille Sari, Professor of Economics and International Relations at the Sorbonne University in France, affirms that regional and international economic support for the Syrian government is primarily tied to the political landscape. It requires elections, a stable government, and functioning institutions capable of identifying the priority sectors for reconstruction, economic recovery, and investment. Foreign or regional companies cannot invest without legal guarantees and a clear vision for the future. Therefore, regional and Gulf countries cannot strengthen or support relations with the Syrian government without these essential elements, which are, in his view, vital to defining a coherent long-term policy toward Damascus.<\/span><\/p>\n

In statements to +<\/strong><\/span>963<\/b>, he pointed out that the United States largely takes Israel\u2019s interests into account when shaping its relations with countries in the region, including Syria. Washington is currently working to restructure the Middle East and formulate a new policy that grants broader powers to Israel, which may conflict with providing full support or facilities to the new Syrian government. At the same time, however, the United States seeks to accommodate its Arab allies, such as Saudi Arabia, which has called for lifting American sanctions on Syria.<\/span><\/p>\n

The Sorbonne professor explained that international financial assistance, such as that provided by the World Bank, comes with a set of conditions. These include ensuring that the projects proposed by the Syrian government are beneficial, verifying good governance from all legal and institutional aspects, maintaining peace and security, ensuring equality between men and women, providing adequate housing, supporting national education, building schools and universities, and reconstructing war-damaged areas. The health sector is also of critical importance. Therefore, Syrians must be cautious and aware that internal tensions and structural problems reflect negatively on the external perception of their country and its investment environment. This, in turn, affects the potential for political, economic, or security support. These factors are essential for achieving what Syrians inside and outside the country most need today.<\/span><\/p>\n

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Since the formation of the Syrian Interim Government led by Ahmad al-Sharaa, the country has entered a delicate phase in which politics intersects with economics. The slogan \u201cZero Problems,\u201d adopted by the government as a key to regional and international openness, clashes with partial sanctions, hesitant financial support, and legal complexities that hinder the flow […]<\/p>\n","protected":false},"author":137,"featured_media":40147,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard","override":[{"template":"1","single_blog_custom":"0","parallax":"1","fullscreen":"1","layout":"left-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"float","share_float_style":"share-normal","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"g:i a d\/m\/Y","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","show_zoom_button":"1","zoom_button_out_step":"5","zoom_button_in_step":"4","show_post_tag":"1","number_popup_post":"1","show_post_related":"1"}],"image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","disable_ad":"0","subtitle":"Syria\u2019s Transitional Government Faces Crucial Test Between Promises and Economic Reality"},"jnews_primary_category":[],"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"jnews_post_split":{"post_split":[{"template":"1","tag":"h2","numbering":"asc","mode":"normal","first":"0","enable_toc":"0","toc_type":"normal"}]},"footnotes":""},"categories":[430,19],"tags":[],"ppma_author":[429],"class_list":["post-40146","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights","category-slider"],"yoast_head":"\nSyria... 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