The Future of Revenues in Syria: Challenges and Opportunities for the Interim Government

A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
TT

The Future of Revenues in Syria: Challenges and Opportunities for the Interim Government

A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)

Syria faces significant challenges as discussions intensify about the post-Bashar al-Assad era, particularly in securing the necessary revenues for the Syrian interim government to meet the country’s needs and ensure its sustainability. The widespread destruction of the economy and infrastructure poses a dual challenge: rebuilding the nation while stimulating economic activity and ensuring sufficient financial resources for governance.

Currently, the interim government relies heavily on international and regional support during the transitional phase. Donor countries are expected to provide financial and technical assistance to help rebuild institutions and alleviate the suffering of the Syrian people.

However, as the country transitions, external support alone will not suffice. The government must identify sustainable revenue sources, such as managing natural resources, imposing taxes, and encouraging foreign investments.

Opportunities from the Syrian Diaspora

The Syrian diaspora is seen as a significant economic resource, contributing through remittances or involvement in reconstruction projects. However, realizing these opportunities requires the establishment of strong, transparent institutions, effective resource management, and a clear strategic plan to rebuild trust with both local and international communities.

Securing revenues for the interim government is not merely a financial challenge but also a test of its ability to lead Syria toward stability and prosperity.

Securing Economic Resources

Nasser Zuhair, head of the Economic and Diplomatic Affairs Unit at the European Policy Organization, stated that the interim government, currently led by Mohammed al-Bashir, may replicate its revenue-generating models from Idlib. Resources in Idlib were drawn from temporary measures that are insufficient for sustaining a national economy like Syria’s.

In an interview with Asharq Al-Awsat, Zuhair explained that these resources included taxation, fuel trade with Syrian Democratic Forces (SDF)-controlled areas, international aid for displaced persons in Idlib, remittances from the Syrian diaspora, and cross-border trade facilitated by Turkiye.

“The interim government believes that sanctions relief is a matter of months, after which it can begin to establish a sustainable economy. For now, it will rely on the same resources and strategies used in Idlib and other controlled areas,” Zuhair added.

Challenges and Opportunities

Despite the former regime’s reliance on illicit revenues, such as drug trafficking and Captagon production—estimated to account for 25% of government revenues—the interim government has several potential avenues for generating revenue.

International Aid

Zuhair emphasized that cross-border humanitarian aid indirectly supports local economies. “The current government understands that international and regional aid will be substantial in the coming period, particularly for refugee repatriation and infrastructure development,” he noted.

He added that efforts to secure funding from the Brussels Conference, which allocates about $7 billion annually to support Syria, will be critical. Strengthening ties with regional and European countries, such as Saudi Arabia, Kuwait, Germany, and the UK, is also a priority. However, securing such aid depends on establishing a political framework where Hayat Tahrir al-Sham (HTS) does not dominate governance.

He further noted that international and regional support will likely remain a key revenue source for the interim government, including humanitarian and developmental aid from organizations such as the United Nations and the World Bank.

Taxes and Tariffs

Zuhair highlighted taxes and tariffs as essential components of the government’s revenue strategy. This includes taxing local economic activities, customs duties on cross-border trade, and fair taxes on merchants and industrialists in major cities like Damascus and Aleppo.

“The government can also impose income, corporate, and property taxes while improving border management to maximize revenue from customs and tariffs,” he added.

Agriculture and Natural Resources

Syria’s vast and fertile agricultural lands present an opportunity for revenue generation, Zuhair underlined, explaining that taxes on agricultural products could contribute to state income. However, this sector faces logistical challenges and high production costs. By directing the agricultural sector toward self-sufficiency, the government could reduce dependence on imports and create surplus revenue, he remarked.

Additionally, managing natural resources such as oil and gas could provide a significant revenue stream if the government gains control over resource-rich areas like northeastern Syria, the official noted.

Reconstruction

Reconstruction presents another potential revenue source. International companies could be encouraged to invest in rebuilding efforts in exchange for fees or taxes. Public-private partnerships with local and foreign firms in sectors such as infrastructure and housing could also generate significant funds.

Remittances from the Diaspora

Zuhair stressed the importance of remittances from Syrians abroad, estimating that these transfers could reach $2 billion annually by 2025. Encouraging the diaspora to send funds to support family members and rebuild properties will be a key priority for the government.

Domestic Investments

The interim government has shown its ability to attract domestic investments in real estate, industry, commerce, and agriculture, despite international sanctions. According to Zuhair, leveraging Türkiye as an international gateway, the government could expand this model across Syria, taking advantage of the challenging economic conditions left by the previous regime to draw reasonable investments in its first year.

Tourism and Small Businesses

Revitalizing the tourism sector could directly contribute to revenue, he added, noting that restoring historical and cultural sites, once security and stability are achieved, will attract visitors and generate income.

In addition, encouraging small and medium-sized enterprises will help revive the economy and create jobs, Zuhair emphasized, pointing that supporting manufacturing industries could provide a sustainable revenue stream.



Al Akaria Riyadh Land Cleared, Returning Strategic Asset to Development

Al Akaria participates in the Cityscape Global exhibition (Company handout)
Al Akaria participates in the Cityscape Global exhibition (Company handout)
TT

Al Akaria Riyadh Land Cleared, Returning Strategic Asset to Development

Al Akaria participates in the Cityscape Global exhibition (Company handout)
Al Akaria participates in the Cityscape Global exhibition (Company handout)

Lifting regulatory restrictions on real estate assets marks an important stage in the investment cycle, allowing owners to regain flexibility in managing and developing their properties.

Saudi Real Estate Co. (Al Akaria), which is majority-owned by Saudi Arabia’s Public Investment Fund, said restrictions had been lifted on a plot of land it owns in Riyadh’s northern Al-Arid district.

Experts said the move gives the company a wider range of investment options, although its economic value will ultimately depend on management’s ability to develop or invest the land in ways that generate future returns.

The company received the property registration deed issued by the Real Estate Registry, lifting restrictions on the 30,000-square-meter plot, which has a book value of 98.4 million riyals ($26 million).

The move transforms the property from an asset unavailable for development into one that can be used as part of the company’s investment strategy.

Sulaiman Al-Hamid Al-Khalidi, a financial and economic expert and member of the Saudi Economic Association, told Asharq Al-Awsat that the decision had renewed attention on one of the most important assets in Al Akaria’s portfolio and raised questions about whether it could strengthen the company’s market value in the coming period.

Greater asset management flexibility

Al-Khalidi said that although Al Akaria had confirmed there would be no immediate financial impact, the significance of the development went beyond its short-term accounting effect.

It gives the company greater flexibility in managing one of its strategic assets and allows it to benefit from the property through development, partnerships or the restructuring of its investment uses in ways that support future growth, he added.

From an investment perspective, investors do not generally view the removal of regulatory restrictions as an objective in itself, but rather as a step that can pave the way for the creation of new economic value.

The true assessment of the decision will therefore depend on management’s ability to turn the asset into a source of returns and cash flows, rather than merely regaining the right to dispose of it, Al-Khalidi said.

He said a legitimate question remained over whether the market had anticipated the development and already priced in a large part of its positive impact, particularly as investors had been following efforts to resolve the issue.

In such cases, continued momentum depends more on subsequent disclosures and implementation plans than on the announcement itself, he said.

The decision is also important for the broader property sector because it reflects stability and growth in the real estate market, he added.

Awaiting development plans

Al-Khalidi said markets reward companies not for announcements alone, but for their ability to turn developments into profits and cash flows.

The lifting of restrictions on Al Akaria’s land is therefore a positive step, but the final assessment will remain linked to the development and investment plans the company announces in the coming period, he said.

Decision supports real estate activity

Abdullah Al-Mousa, a property expert and observer, told Asharq Al-Awsat that lifting the restrictions was a positive development from a market perspective, as it returned a major real estate asset to economic use after a period of uncertainty.

When large plots become available for development or investment, they support activity in the property sector and create opportunities for new projects that can increase supply and stimulate investment, he said.

This is particularly significant when the land is strategically located in northern Riyadh, an area experiencing rapid urban growth, he added.

Al-Mousa said the real impact would not be measured merely by the removal of the restrictions, but by how quickly the asset was converted into a productive project that added value to the market.

Actual development is what affects investment volumes, employment opportunities and the diversity of real estate products, he said.

The decision is positive because it gives the company greater flexibility in managing one of its strategic assets, whether through direct development, partnerships, or other forms of investment consistent with its operational plan.

It could also increase the asset’s economic value and improve the options available to management for its future use, Al-Mousa said.

The actual financial impact, however, will depend on what the company later announces regarding its development plans, investment approach and implementation timetable.

Lifting the restrictions is a preliminary step, while economic value will be realized only when development or investment begins, he added.

Saudi Real Estate Co. announced that restrictions on the land it owns in the Al-Arid district of northern Riyadh were lifted following the issuance of a property registration deed by the Real Estate Registry.

The 30,000-square-meter plot is located within the commercial corridor between King Fahd Road and Olaya Road.

The property was among the plots mentioned in Emphasis of Matter paragraph 5/A of the company’s external auditor’s report on its condensed consolidated interim financial statements for the period ending March 31, 2026.

The paragraph stated that some company-owned plots were unavailable for use or development at the time, for various reasons related to conditions in the areas where the properties were located, or for other reasons under review by the relevant committees.

The company said it was studying the best possible uses for the land in line with its strategy and in a manner that would create added value for the company and its shareholders.

It said lifting the restrictions would have no immediate financial impact and that it would disclose any material developments in due course in accordance with applicable laws and regulations.

The company’s financial statements show that it owns land that is currently unavailable for disposal or development, with a total book value of more than 3 billion riyals.

Management is working with the relevant authorities to resolve the obstacles affecting those properties as part of a strategy to develop strategic assets and exit non-priority land holdings.

The strategy is intended to improve the efficiency of the company’s portfolio and reduce the costs associated with fees imposed on undeveloped land.


Oil Rises on Renewed US-Iran Hostilities and Threat of Red Sea Closure

Drills operate in an oil field in California (Reuters)
Drills operate in an oil field in California (Reuters)
TT

Oil Rises on Renewed US-Iran Hostilities and Threat of Red Sea Closure

Drills operate in an oil field in California (Reuters)
Drills operate in an oil field in California (Reuters)

Oil prices rose by more than 2% on Friday after the US and Iran stepped up attacks across the Gulf, with shipping threatened by a potential Red Sea closure on top of the restricted traffic through the Strait of Hormuz.

Brent crude futures rose by $1.77, or 2.1%, to $86 a barrel by 1158 GMT. US West Texas Intermediate futures were up $1.91, or 2.4%, at $80.86.

Both benchmarks have climbed about 13% this week, with Brent on track for a third consecutive weekly gain and WTI set for its second.

Diesel refining margins hit record highs on Friday, with low-sulphur gasoil futures touching $66.25 over Brent crude.

The Middle East is a major diesel exporter and the Hormuz closure, as well as attacks on oil refineries, have tightened fuel markets and bolstered prices globally. The broken truce between the US and Iran has resulted in a drop in oil flows out of the strait.

Iran said it launched fresh strikes on US facilities in the Middle East on Friday, including the first direct attack in Syria, after a sixth straight night of US strikes on Iranian military facilities. US Central Command said on Thursday that American forces had begun a new wave of strikes against Iran to further degrade Iranian military capabilities. "Oil security is still a critical issue," International Energy Agency Executive Director Fatih Birol said on Thursday at a Council on Foreign Relations event in Washington.

"We should be worried, and I am worried, if the situation does not improve in the next few weeks," he said.


Gold Heads for Biggest Weekly Loss in Six as Middle East War Fans Inflation Worries

16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. (dpa)
16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. (dpa)
TT

Gold Heads for Biggest Weekly Loss in Six as Middle East War Fans Inflation Worries

16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. (dpa)
16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. (dpa)

Gold was on track for its biggest weekly loss in six on Friday, as escalating US-Iran clashes lifted oil prices, adding to inflationary pressures and strengthening the case for higher US interest rates.

Spot gold was up 0.8% at $4,002.39 per ounce by 0624 GMT, having touched its lowest since July 1 earlier ‌in the day. US ‌gold futures for August delivery gained ‌0.4% ⁠to $4,006.10.

The metal has ⁠lost 3% so far this week, its largest decline since June 1, with the Middle East conflict outweighing support from softer June US inflation figures released this week.

"Gold is making tentative steps higher today after the sight of the metal slipping below $4,000 attracted some bargain hunting," said Tim Waterer, chief market analyst at ⁠KCM Trade.

However, "geopolitical risks in the Middle East ‌are still present, with inflation and yield ‌concerns being the dominant forces holding gold back," Waterer said.

Oil prices ‌have climbed about 12% this week as the escalating US-Iran conflict ‌raised supply concerns.

The surge in oil prices risks reigniting inflation worries and increasing the likelihood of interest rate hikes. Non-yielding gold typically struggles in a high-interest-rate environment, as investors gravitate towards assets offering higher returns.

Dallas Federal ‌Reserve President Lorie Logan became the first of Fed Chairman Kevin Warsh's new colleagues to ⁠call publicly for ⁠a rate hike.

Fed Vice Chair Philip Jefferson also suggested he would be open to raising rates if there is no near-term improvement in inflation.

Traders are pricing in a 73% chance of a rate hike in December, according to the CME FedWatch Tool.

Gold discounts in India widened to a one-month high this week as hopes of lower prices kept buyers on the sidelines, while premiums in China were largely steady.

Elsewhere, spot silver rose 0.6% to $55.83 per ounce, while platinum lost 1% to $1,602.02 and palladium eased 0.4% to $1,244.84. All three metals were headed for a weekly loss.