Syria's New Economic Direction

By Timour Azhari

DAMASCUS (Reuters) – Syria's new government promises a shift towards a free-market model, aiming to integrate into the global economy, according to business leaders.

Bassel Hamwi, head of the Damascus Chambers of Commerce, outlined this shift as a competition-based economy following the toppling of President Bashar al-Assad, marking an end to a 54-year family autocracy.

Syrian businessmen are cautiously optimistic, eager to learn how the Islamist-rooted government will operate. They expressed hope for an investment-friendly environment crucial for rebuilding after a devastating 13-year civil war. However, concerns remain about whether Hayat Tahrir al-Sham, a former al Qaeda offshoot now leading the government, will ensure an open society or become an Islamic state.

Hamwi met with Syria's interim economy minister, Bassel Abdul Aziz, to discuss reforms, such as eliminating restrictive customs systems that have hindered trade and led to shortages. Previously, unauthorized foreign currency trading could result in imprisonment, but it has reportedly become common since Assad's ousting.

Under the new governance, anyone registered with the chambers can import goods within a regulated framework. This contrasting approach indicates a move away from the tightly controlled business environment benefitting loyalist businessmen.

The economy has suffered significantly from conflicts, with damages in the tens of billions of dollars, leading to skyrocketing inflation and a depreciating Syrian pound. Economists believe liberalizing the market is essential for attracting foreign investment and encouraging the return of exiled Syrians who could aid in reconstruction.

Hamwi receives numerous inquiries from Syrian expatriates interested in post-war economic prospects, urging them to return and invest in rebuilding Syria's economy and infrastructure.