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)
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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.



Saudi Crown Prince’s Directives Cut Riyadh Property Prices by 3%

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)
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Saudi Crown Prince’s Directives Cut Riyadh Property Prices by 3%

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)

Real estate prices in Saudi Arabia’s capital fell 3% in the final quarter of last year, reversing a 1% rise in the previous quarter, in a shift that highlights the on-the-ground impact of policy moves ordered by Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister, to rein in soaring property costs across the Kingdom, particularly in Riyadh.

According to an index issued by the General Authority for Statistics on Tuesday, the real estate price index in Saudi Arabia fell 0.7% in the fourth quarter of last year compared with the same period of 2024.

The decline was driven mainly by weaker performance in the residential sector, which carries the most significant weight in the index, as its annual rate of change fell 2.2%.

The commercial sector continued to see a slight slowdown in growth momentum, while maintaining positive annual growth of 3.6%.

A real balance

Real estate specialists told Asharq Al-Awsat that the Crown Prince’s directives have become evident on the ground after property prices in Riyadh surged to unprecedented levels, prompting government intervention to curb the increases and enable citizens to own their first homes without excessive financial burdens.

Real estate analyst Khaled Al-Mobid said the 0.7 % decline in the real estate price index in the fourth quarter of 2025 reflects the market’s entry into a phase of real balance after years of rapid price increases, describing it as a healthy indicator that supports, rather than weakens, market sustainability.

“What we are witnessing today is not a loss in value, but a logical price correction, particularly in the residential sector, due to increased supply, improved regulation, and greater awareness among market participants, whether buyers or investors,” Al-Mobid told Asharq Al-Awsat.

He added that this balance creates better opportunities for end users, redirects investment toward appropriate products at fair prices, and curbs short-term speculation, serving the real estate economy over the medium and long term.

Housing stability

Real estate specialist Ahmed Omar Basudan told Asharq Al-Awsat that the sector has seen declines in many regions of the Kingdom, as buyers await the effects of government decisions issued under the Crown Prince’s direction.

He cited recent measures, including the announcement of the names of beneficiaries of subsidized land grants in northern Riyadh, located in some of the area’s best neighborhoods.

Basudan said the decision to fix residential rental prices in Riyadh for five years also contributed to the decline in the capital’s real estate market, as tenants are experiencing a period of housing stability, reducing demand for purchases at this stage.

He added that recent amendments to fees on undeveloped land and vacant properties, which have been implemented and are now being collected, also played a role, prompting landowners to move quickly to sell some plots at competitive prices to avoid bearing those fees.

Data from the General Authority for Statistics showed that residential real estate prices fell in the fourth quarter of last year compared with the same quarter of 2024, with the sector declining 2.2%. The drop was driven by a 2.4% fall in residential land prices, a 2.5% decline in apartment prices, a 1.3% decrease in villa prices, and a 0.2% drop in residential floor prices.

Quarterly comparison

The real estate price index fell 0.4% in the fourth quarter of last year, at a slower pace than in the third quarter.

The index was affected by a 0.4% decline in the residential sector, driven by a 0.7% drop in residential land prices, a 0.4% fall in apartment prices, and a 0.2% decrease in residential floor prices, while villa prices rose 0.8%.

At the regional level, the annual real estate price index fell 0.7% nationwide in the fourth quarter of last year, with Riyadh recording a 3% decline, compared with a 1% increase in the third quarter.

The Eastern Province posted the highest real estate price increase at 4%, followed by Makkah at 2.5%, Tabuk and Jazan at 1.1% each, and Al-Jawf at 0.4%.

By contrast, Hail, the Northern Borders region, and Madinah recorded the steepest declines, at 8.9%, 6.8%, and 6.1%, respectively.


Saudi Industry Minister Meets with Global Leaders at World Economic Forum to Advance Partnerships

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held a series of high-level meetings with government officials and global business leaders at the World Economic Forum. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held a series of high-level meetings with government officials and global business leaders at the World Economic Forum. (SPA)
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Saudi Industry Minister Meets with Global Leaders at World Economic Forum to Advance Partnerships

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held a series of high-level meetings with government officials and global business leaders at the World Economic Forum. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held a series of high-level meetings with government officials and global business leaders at the World Economic Forum. (SPA)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held on Tuesday a series of high-level meetings with government officials and global business leaders on the sidelines of the Kingdom's participation in the 2026 World Economic Forum in Davos.

As part of the Saudi delegation, Alkhorayef participated in a meeting with Swiss President Guy Parmelin. The meeting reviewed the robust strategic partnership between their nations and explored avenues to deepen cooperation in the industrial and mining sectors, aiming to expand bilateral ties to serve mutual interests.

Alkhorayef met with CEO of BlackRock Larry Fink, and President and CEO of the World Economic Forum Børge Brende. Talks focused on boosting the partnership between the Kingdom and the forum, exploring new cooperation in advanced manufacturing and critical minerals, and strengthening joint efforts to fortify industrial and mining supply chains.

In a series of bilateral meetings, Alkhorayef met with leaders of major global firms, including CEO of Capgemini Aiman Ezzat, Senior Partner at Bain & Company Dr. Jörg Gnamm, and CEO of Copa-Data Stefan Reuther. The meetings focused on unlocking opportunities for collaboration in advanced manufacturing, digital solutions, industrial automation, and smart systems. The officials emphasized leveraging global consulting expertise to boost factory efficiency, accelerate the Kingdom's industrial transformation, and bolster the competitiveness of its industrial and mining sectors.


Saudi-US Trade and Investment Council Meetings Kick Off in Riyadh

Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities. (SPA)
Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities. (SPA)
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Saudi-US Trade and Investment Council Meetings Kick Off in Riyadh

Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities. (SPA)
Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities. (SPA)

Technical team meetings of the Saudi-US Trade and Investment Council (TIFA) kicked off in Riyadh on Tuesday.

Held under the theme “A Platform for Dialogue, Partnership, and Economic Growth,” the meetings were attended by Deputy Governor of the General Authority of Foreign Trade (GAFT) for International Relations Abdulaziz Alsakran, Assistant United States Trade Representative for Europe and the Middle East Bryant Trick, with the participation of 20 entities from both sides.

Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities.

The council focuses on five main objectives: developing trade and investment policies; facilitating trade and addressing technical and regulatory barriers; supporting cooperation on sanitary and phytosanitary measures and agricultural products; enhancing intellectual property protection; and advancing digital trade, innovation, and emerging technologies.

Saudi government entities participating in the council work to develop initiatives and activities that help elevate cooperation between the two countries and achieve its objectives, serving mutual interests.

Over the past ten years, trade exchange between Saudi Arabia and the United States has reached $500 billion, making the United States the Kingdom’s second-largest import partner. Trade exchange since 2020 has recorded a growth rate exceeding 50%, reflecting the depth and strength of economic relations between the two countries.