New Syria Defines Its Economic Identity: ‘Partnership’ Replaces Privatization in Recovery Plan

28 May 2026, Syria, Jobar: Syrians play in an Eid al-Adha amusement park in a devastated area amid the completely destroyed Jobar neighborhood on the outskirts of Damascus during the second day of the Muslim Feast of Sacrifice, Eid al-Adha. Photo: Moawia Atrash/dpa
28 May 2026, Syria, Jobar: Syrians play in an Eid al-Adha amusement park in a devastated area amid the completely destroyed Jobar neighborhood on the outskirts of Damascus during the second day of the Muslim Feast of Sacrifice, Eid al-Adha. Photo: Moawia Atrash/dpa
TT

New Syria Defines Its Economic Identity: ‘Partnership’ Replaces Privatization in Recovery Plan

28 May 2026, Syria, Jobar: Syrians play in an Eid al-Adha amusement park in a devastated area amid the completely destroyed Jobar neighborhood on the outskirts of Damascus during the second day of the Muslim Feast of Sacrifice, Eid al-Adha. Photo: Moawia Atrash/dpa
28 May 2026, Syria, Jobar: Syrians play in an Eid al-Adha amusement park in a devastated area amid the completely destroyed Jobar neighborhood on the outskirts of Damascus during the second day of the Muslim Feast of Sacrifice, Eid al-Adha. Photo: Moawia Atrash/dpa

Syria has settled the debate over the identity of its new financial and investment system, adopting a model of “strategic partnership” between the public and private sectors as a fundamental alternative to outright privatization. The shift officially elevates the private sector from a marginal supporting role to the “engine of economic development” and the principal partner in leading the recovery and reconstruction phase.

The strategic approach, crowned by the launch of a broad national dialogue in 2026, aims not only to attract domestic and expatriate capital and reconnect local value chains, but also to redefine the state’s role as a regulator and guarantor of a free market. Supported by an international vision focused on sustainability and an unprecedented package of legislative incentives, the strategy seeks to bridge a trust deficit that has persisted for years and build an open social market economy that balances freedom of individual initiative with broader developmental responsibility.

First dialogue after the political transition

Damascus recently concluded the First National Conference for Private Sector Dialogue in Syria 2026, held over three days at the Conference Palace.

The event was the first of its kind in the country since the beginning of the political and economic transition following the fall of the former regime at the end of 2024.

Organized by the Ministry of Economy and Industry in cooperation with the United Nations Development Programme (UNDP), with funding and support from the Japanese government, the conference drew nearly 500 economic figures, including ministers, representatives of public institutions, chambers of commerce, industry and agriculture, business councils, experts and businesspeople from inside and outside Syria, as well as international organizations.

According to official Ministry of Economy and Industry materials, the conference aimed to formulate practical visions and recommendations to support the path toward recovery and comprehensive development.

Syria’s new economic vision aligns with UNDP principles that view “economic diversification as a strategic asset.” Under this framework, the Syrian private sector is not regarded as a monolithic bloc but rather as a diverse and resilient ecosystem. Its structure spans several levels, most notably micro, small and medium-sized enterprises, which account for more than 90 percent of Syria’s business landscape and represent the country’s primary reservoir for absorbing the national workforce. It also includes family businesses and craft workshops that preserved productive skills locally throughout years of crisis under severe pressure, as well as agricultural producers and local manufacturers who ensured the continued minimum flow of goods into domestic markets.

Syrian workers load sacks of freekeh, a roasted green wheat grain widely used in Levantine cuisine, after burning and roasting immature wheat over open flames to separate and preserve the grains, on the outskirts of Taftanaz, northwestern Syria, Sunday, May 24, 2026. (AP Photo/Ghaith Alsayed)

Identity of the new economy

In comments to Asharq Al-Awsat, Osama Kadi, an economic expert and senior adviser for local economic policy affairs at Syria’s Ministry of Economy and Industry, said the conference had “removed ambiguity” regarding the identity of the Syrian economy in the coming phase.

He explained that the country’s economic direction is closest to a guided market economy, or social market economy, similar to those found in Germany, much of Europe and Canada. The private sector, he said, is viewed as the driver of economic development, while the public sector is not destined for privatization, with the government instead pursuing a partnership model with private enterprise.

Kadi added that the economic identity of the new Syria is based on free supply-and-demand mechanisms without monopolistic practices, while emphasizing good governance and the state’s role in monitoring the implementation of laws, ensuring their flexibility and fostering an attractive investment environment through tax rates designed to encourage economic activity.

Investment Law No. 114

Under Investment Law No. 114 of 2025, the Syrian government exempted all agricultural and educational activities from taxation and introduced incentives for industrial production.

Any investment company that exports more than 50 percent of its production receives an 80 percent tax exemption, while the general tax rate does not exceed 15 percent. Production lines and machinery used in manufacturing operations are also exempt from taxes.

Kadi noted that the law’s executive regulations support micro, small and medium-sized enterprises, which make up more than 90 percent of Syria’s businesses, through credit lines, concessional loans, business incubators and accelerators. The regulations also encourage such enterprises to participate in local and international exhibitions through business councils announced during the conference in more than 17 countries.

Mohammad Nidal al-Shaar speaks during the opening of the First National Conference for Private Sector Dialogue in Syria (X).

Balancing private initiative and the role of the state

Speaking at the conference’s opening session, Minister of Economy and Industry Mohammed Nidal al-Shaar said Syria is moving toward building a new economic model that combines realism, ambition and openness.

He said the country is closely examining states that have achieved successful models and rapid development over relatively short periods in order to learn from and adapt those experiences while building its own model based on its capabilities, strategic location and the expertise of Syrians at home and abroad.

Al-Shaar said that “adopting a free-market approach does not mean the absence of the state or the abandonment of market controls. Successful experiences have proven to be based on a balanced model between freedom of initiative and the strategic role of the state.”

He added that “modern economic revival is not built on slogans, but on efficiency, discipline, stability and genuine partnerships, as well as an economy that provides opportunities for initiative, creativity and production within a clear national vision.”

He stressed that the state’s economic role should not be reduced to a debate between public ownership and privatization, nor should privatization be viewed as a stigma, a default option or an automatic solution to economic challenges. The real value of public assets, he said, lies not in their sale price but in their ability to generate sustainable added value for the national economy.

Sectors for strategic partnership

Speaking to Asharq Al-Awsat, Kadi identified agriculture, agro-industry, energy, transport, infrastructure and reconstruction as the key sectors expected to lead public-private cooperation.

He said Syria remains an underdeveloped opportunity, with no more than 5 percent of its human potential, resources and underground wealth having been utilized. He also said Syria's geopolitical position had long been underutilized despite its potential and now contributes more than one-third of the state budget. As an example, he said that 11,800 aircraft crossed Syrian airspace in May alone, generating revenue for the public treasury.

Kadi said the most important element in relations between the public and private sectors is the clarity of the partnership itself, particularly through transparency in contracts and the adoption of environmental, social and governance (ESG) standards.

In this context, he said, the shift toward a green transition and the efficient use of resources should be viewed not as a luxury but as an economic necessity that can reduce long-term operating costs and prepare Syrian products for global markets.

A boy carries balloons as shoppers stroll through the old market in Damascus ahead of the Eid al-Adha holiday on May 26, 2026. (Photo by LOUAI BESHARA / AFP)

Institutionalizing partnership

The convening of the private sector dialogue in Damascus for the first time since its launch in 2018 marked a milestone in institutionalizing and localizing the process.

The question now, observers ask, is how far this shift can help bridge the “perception gap” and build mutual trust and accountability between traders and industrialists on one side and government institutions on the other.

Syrian economist Ziad Arabsh said the move contributes to narrowing that gap by transferring discussions from exile to the domestic arena, where industrialists, traders and government officials confront the same challenges, including electricity, raw materials and procurement.

He said trust is strengthened through direct dialogue without international intermediaries, while bringing all stakeholders together in one place creates social pressure to follow through on commitments.

Arabsh added that institutionalization helps bridge perceptions by transforming dialogue from a temporary initiative into a permanent institutional mechanism linked to the Ministry of Economy and UNDP. The conference, he said, also turns discussion from a theoretical exercise into a practical decision-making process.

Since the fall of the former regime, the Syrian government has been working to restore economic growth and attract domestic and foreign capital to participate in rebuilding the economy.

The World Bank estimated in November 2025 that rebuilding Syria would cost about $216 billion, while direct physical damage to infrastructure and residential and non-residential buildings amounted to roughly $108 billion.

Given the caution of foreign investors, experts broadly agree that expatriate Syrian capital and diaspora networks represent the most realistic and fastest source of financing in the near term.

Arabsh said translating policy recommendations into implementation plans with binding timelines requires a clear institutional mechanism. This should include a joint executive committee tasked with converting recommendations into action plans and specific projects, establishing implementation schedules, linking plans to realistic budgets, creating monitoring and evaluation systems, and tying compliance to incentives and penalties.

Without binding deadlines and public accountability, he said, recommendations risk remaining merely words on paper.

Regarding legal guarantees and banking mechanisms designed to encourage expatriate capital to return, Arabsh pointed to the protections contained in Law No. 114, including safeguards for private and industrial property, regulations guaranteeing the transfer of profits in foreign currencies, easier financial transfers from abroad, concessional financing for joint ventures and the activation of leasing finance.

He added that investment incentives include tax exemptions lasting between five and 10 years, industrial land at symbolic prices in industrial cities, and build-operate-transfer partnerships with the public sector that preserve state ownership while allowing efficient private-sector management.

Arabsh also highlighted diaspora initiatives, including European Union and International Fund for Agricultural Development support for members of the Syrian diaspora to strengthen agricultural investment, as well as digital platforms such as “Bunyan Syria” that connect expatriates with reconstruction projects.

“Expatriates need legal certainty, banking liquidity and tangible incentives, not just emotional appeals,” he said.

An international co-financing platform

In concluding remarks, Arabsh stressed the strategic importance of building strong ties with international financial institutions.

He said the prominent involvement of UNDP and the Japanese government provides a trusted international guarantee that could encourage the World Bank, the International Monetary Fund and regional development banks to engage with Syria’s emerging economic landscape.

Arabsh argued that UNDP’s strength lies in its ability to create structural integration on two fronts: a local track focused on supporting livelihoods and developing the micro, small and medium-sized enterprise sector, and a strategic track aimed at improving the national business environment.

He concluded that the most urgent priority today is to transform the dialogue into a “co-financing platform” capable of bringing together public resources, donor funding and private capital within a single productive framework, ensuring that the diverse capacities of the private sector evolve from a tool of resilience and survival into a genuine driver of sustainable economic revival.



Gold Steadies after Hitting over 3-month Peak, US Inflation Data Looms

A saleswoman adjusts gold jewelry displayed for sale in a shop in Lianyungang City, eastern Jiangsu Province, China (AFP)
A saleswoman adjusts gold jewelry displayed for sale in a shop in Lianyungang City, eastern Jiangsu Province, China (AFP)
TT

Gold Steadies after Hitting over 3-month Peak, US Inflation Data Looms

A saleswoman adjusts gold jewelry displayed for sale in a shop in Lianyungang City, eastern Jiangsu Province, China (AFP)
A saleswoman adjusts gold jewelry displayed for sale in a shop in Lianyungang City, eastern Jiangsu Province, China (AFP)

Gold held steady after hitting its highest in more than three months on Tuesday, as investor focus shifted to upcoming US inflation data and a speech later this week by Federal Reserve Chair Kevin Warsh.

Spot gold steadied at $4,645.67 per ounce by 0651 GMT, after scaling its highest since May 14 earlier. US gold futures rose 0.1% to $4,702.00.

"Looking ahead, we expect dips in gold to be well-supported from ⁠buyers looking for ⁠gold to make its way towards the next upside resistance at $4,900/$5,000," IG market analyst Tony Sycamore said.

Prices rose sharply last week after the US Treasury Department said it would double the size of liquidity support buyback operations for longer-dated notes and bonds. The announcement spurred currency debasement fears.

"These US ⁠dollar debasement fears should see gold be well-supported in the coming weeks, as the Fed has not been sending a clear signal it is ready to fight higher inflation," TD Securities said in a note.

"However, it's too early for the metal to surge to our $5,350/oz target, given the risk rates on the short term may eventually rise as crude grinds higher."

While gold is widely regarded as an inflation hedge, elevated rates can curb its appeal as it is a ⁠non-yielding asset.

Fed Chairman ⁠Warsh's debut speech at the annual Jackson Hole conference this week has taken on added weight as traders and analysts look for guidance about the recent jump in bond yields and for reassurance of his independence from the Trump administration.

The US Personal Consumption Expenditures report, the Fed's preferred inflation gauge, is due on Wednesday.

On the geopolitical front, Iran promised to retaliate against expanded US economic sanctions that Washington said would cut off Tehran's economic lifeline.

Among other metals, spot silver fell 0.7% to $68.43 per ounce, platinum lost 1.1% to $1,854.67 and palladium slipped 1.4% to $1,338.15.


Saudi Economic Growth Draws Foreign Investment

Saudi Arabia and France strengthened cultural cooperation through nine executive programs during the French president’s visit in December 2024. (SPA)
Saudi Arabia and France strengthened cultural cooperation through nine executive programs during the French president’s visit in December 2024. (SPA)
TT

Saudi Economic Growth Draws Foreign Investment

Saudi Arabia and France strengthened cultural cooperation through nine executive programs during the French president’s visit in December 2024. (SPA)
Saudi Arabia and France strengthened cultural cooperation through nine executive programs during the French president’s visit in December 2024. (SPA)

French President Emmanuel Macron described the visit of Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, to France as an important milestone in bilateral relations.

“The Saudi Crown Prince’s visit to France marks an important stage,” Macron wrote on X ahead of his meeting with the Crown Prince. “Faced with the challenges in the region, France and Saudi Arabia have always worked together to promote peace and stability and will continue their consultations to this end.”

Macron said the partnership was rooted in action, spanning major projects, advanced technologies, investment and international events, including the Esports World Cup held in France this summer. “We have achieved a great deal together, and we want to go further,” he added.

In a second post, Macron said France was proud to have hosted the Esports World Cup “at Saudi Arabia’s request,” describing its success as the product of a shared ambition to develop talent and bring the two countries closer.

Shared economic ambitions

Macron’s remarks reflect not only the state of Saudi-French relations, but also their ambitions. Data from both countries show that economic ties, broadly encompassing trade, investment and other commercial activities, are expanding, with both sides seeking further growth.

One aim of the Crown Prince’s visit is to accelerate those ambitions. The Crown Prince and Macron chaired the first meeting of the Saudi-French Strategic Partnership Council, established in late 2024, at the Élysée Palace on Monday.

Saudi Arabia, which is moving rapidly into new strategic sectors, is seeking partnerships that build on decades of cooperation. Artificial intelligence, digital technologies, innovative and low-carbon industries and environmental sustainability are among the areas at the heart of Vision 2030.

France, meanwhile, is seeking to align its economic agenda with Saudi Arabia’s and participate in the Kingdom’s major development projects.

The ‘new economy’

A briefing by the Saudi Ministry of Investment highlighted the Kingdom’s economic strengths and the incentives it offers investors seeking access to the region’s largest economy.

Bilateral trade reached €10.1 billion last year, up 7.2% from the previous year. French direct investment in Saudi Arabia exceeded €16 billion in 2024, spread across 18 sectors and 651 licenses.

Macron has repeatedly encouraged Saudi investment in France while urging French companies to pursue opportunities in the Kingdom.

French presidential sources said the planned opening of a Saudi Public Investment Fund (PIF) office in Paris could help increase the Kingdom’s still relatively modest investment in France.

Paris, for its part, pointed to France’s record in attracting foreign investment. EY’s 2026 European Attractiveness Survey ranked France first in Europe for international investment projects for a seventh consecutive year, with 852 projects last year, ahead of the United Kingdom with 730 and Germany with 548. Europe’s 47 countries attracted a combined 5,026 projects.

Growth attracts investment

The French-Saudi Investment Roundtable held in Paris on Monday focused on investment and new opportunities, bringing together executives from major companies in both countries.

French businesses have traditionally concentrated on energy, water, transport, logistics, construction, hospitality and health care in Saudi Arabia. That footprint is now expanding into AI, digital infrastructure, culture, creative industries and mining.

Available figures show that the PIF invested about €7.36 billion in France between 2017 and 2024, supporting some 29,000 jobs. A financing memorandum between the PIF and state-backed Bpifrance also established a framework for €8.56 billion in new investment.

Laurent Germain, CEO of engineering and infrastructure consultancy at Egis, said he attended the forum to meet clients who had traveled to Paris for the occasion and to explore opportunities for new projects.

Egis has generated €300 million from its Saudi operations and employs 1,700 people there, most of them Saudis, in line with the government’s Saudization drive.

Germain described the Saudi economy as highly attractive, citing growth of around 4%, above global rates.

Egis intends to expand its investment in the Kingdom and continue supporting Saudi Vision 2030, launched a decade ago, he revealed.

The company has worked on projects, including Qiddiya, Diriyah, AlUla and the Riyadh Metro.

Florence Verzelen, executive vice president at Dassault Systèmes, similarly highlighted Saudi Arabia’s economic growth as a key attraction, saying it was among the highest in the Gulf region and globally.

The €5 billion company focuses on digitalization and AI, using virtual modeling to help accelerate the transition to real-world production. Its technologies are used in aircraft and electric vehicle manufacturing, infrastructure and nuclear projects, as well as pharmaceuticals.

Its Saudi clients include Aramco, railway operators, NEOM, AlUla and food producers, while it also has activities in the defense sector.

Verzelen highlighted Saudi Arabia’s recognition of the importance of the digital economy and its potential for practical applications.


Trump’s Plan to Target Iran’s Economy Threatens its Trading Partners

Motorcyclists pass a billboard depicting US President Donald Trump underwater amid explosions, with the words “Great Victory! Strait of Hormuz,” in Tehran, Iran (EPA)
Motorcyclists pass a billboard depicting US President Donald Trump underwater amid explosions, with the words “Great Victory! Strait of Hormuz,” in Tehran, Iran (EPA)
TT

Trump’s Plan to Target Iran’s Economy Threatens its Trading Partners

Motorcyclists pass a billboard depicting US President Donald Trump underwater amid explosions, with the words “Great Victory! Strait of Hormuz,” in Tehran, Iran (EPA)
Motorcyclists pass a billboard depicting US President Donald Trump underwater amid explosions, with the words “Great Victory! Strait of Hormuz,” in Tehran, Iran (EPA)

The administration of US President Donald Trump has threatened “tremendous economic consequences” on any country that does business with Iran, as Treasury Secretary Scott Bessent unveiled a new package of sanctions on Monday aimed at isolating Tehran further from the global economy.

The New York Times listed some of the countries that could be most affected by new Trump administration measures, including China, India, Türkiye and Iraq.

China

China is Iran’s largest trading partner and the primary consumer of its oil, according to recent analysis by the US-China Economic and Security Review Commission, a group founded by Congress to examine America’s bilateral ties to China.

For years, China has been practically alone in its willingness to defy Western sanctions on Iranian oil, buying up to as much as 90% of Tehran’s oil exports. In recent months, however, Iran’s ability to ship oil by sea has been all but cut off by a US naval blockade.

But from a Chinese perspective, that is a drop in the ocean compared to the size of its overall economy, said William Figueroa, an expert in Chinese-Iranian relations at the University of Groningen in the Netherlands.

“It wouldn’t be catastrophic for China if it was to have its trade or its ability to import Iranian oil impacted,” he said.

The biggest advantage Beijing draws from that trade relationship is geopolitical, said Andrea Ghiselli, a political scientist who specializes in China at the University of Exeter in England. Beijing has some interest in preserving the Iranian regime as a thorn in the side of the United States, he said.

Ghiselli described the share of oil that China imports from Iran as marginal, and said that “it can easily be swapped out” for other sources on the global market.

India

According to NYT, Iran was once India’s most important energy supplier. But US sanctions have pushed New Delhi to reduce ties, and the value of trade between the two countries has shrunk dramatically in recent years, according to official data from the Indian embassy in Iran.
The data estimates that in the 2025-26 financial year, total bilateral trade was $1.63 billion, down sharply from over $17 billion in 2018-19.

In 2019, India stopped buying Iranian oil altogether, under pressure from Trump. In the last financial year, Indian officials said the country mainly imported apples, pistachios, dates and kiwis from Iran.

But in April, after the US Treasury issued a 60-day waiver authorizing countries like India to purchase Iranian oil to alleviate war-driven supply disruptions and soaring energy prices, crude from Iran officially returned to India for the first time in seven years.

United Arab Emirates

The UAE also appear vulnerable to Trump’s threat, said Esfandyar Batmanghelidj, chief executive of the Bourse & Bazaar Foundation, a London-based think tank focused on Iran’s economy.

On Wednesday, the UAE appeared to pre-empt Trump’s comments by announcing a halt to all trade and financial transactions with Iran.

According to data from the World Trade Organization, Iranian-Emirati trade was worth roughly $28 billion in 2024.

The Emirati decision could affect the ability of Iranian importers to pay for goods, as a lot of those financial services are provided through the UAE, Batmanghelidj told the NYT.

Iraq, Türkiye and Pakistan

Pakistan and Türkiye have so far been relatively shielded from US economic measures against Tehran, even as they have continued significant overland trade with Iran, Batmanghelidj said.
In 2022, the latest year for which World Trade Organization data was available, Iran imported more than $11 billion worth of goods from Türkiye, its third largest source of imports that year.

For both Pakistan and Türkiye, “it is politically and geopolitically very important that both these countries maintain a good relationship with Iran,” said Batmanghelidj. “And I think this is where the Trump administration is really going to struggle.”

Burcu Ozcelik, a researcher at the Royal United Services Institute research group in London, said Iraq was also vulnerable to US economic pressure because of its continued trade with Iran. American sanctions have already targeted Iranian-linked groups in Iraq.

But Ozcelik said that broader sanctions on Iran’s trading partners would be far more complicated to impose, and that implementing them “will be slow, uneven and difficult to monitor.” It was far from clear, she added, that “greater pressure would produce the political behavior Trump is seeking.”

The NYT wrote that the Trump administration is not wrong to think that Iran’s economic situation is dire. But it’s counting on Iranian authorities responding to more pressure by negotiating; they might well respond by escalating the conflict.