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
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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.



Algeria Begins Exporting First Jet Fuel Shipments to Niger

Sonatrach stated that delivering the jet fuel shipment to Niger reflects its efforts to enhance direct cooperation with African oil and gas companies (X)
Sonatrach stated that delivering the jet fuel shipment to Niger reflects its efforts to enhance direct cooperation with African oil and gas companies (X)
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Algeria Begins Exporting First Jet Fuel Shipments to Niger

Sonatrach stated that delivering the jet fuel shipment to Niger reflects its efforts to enhance direct cooperation with African oil and gas companies (X)
Sonatrach stated that delivering the jet fuel shipment to Niger reflects its efforts to enhance direct cooperation with African oil and gas companies (X)

Algeria’s Sonatrach has started delivering its first shipments of Jet A1 aviation fuel to Niger from Adrar refinery (RA1D), Sonatrach group announced on Saturday.

The move is part of implementing the sale and purchase agreement signed with Niger's national oil company "SONIDEP," it said in a statement.

Sonatrach stated that delivering the jet fuel shipment to Niger reflects its efforts to enhance direct cooperation with African oil and gas companies.

Sonatrach has launched drilling of an exploration well in Niger.

The start of operations was formalized on Thursday during a ceremony presided over by Algerian Prime Minister Sifi Ghrieb and his Nigerien counterpart, Ali Mahaman Lamine Zeine.

In June, Algeria delivered a 40-megawatt power plant to Niger to supply Niamey and its surrounding area.


Saudi Arabia Reshapes the Future of the Digital Economy Through Advanced Digital Infrastructure, Global Partnerships

File photo of the Saudi capital Riyadh - File/AAWSAT
File photo of the Saudi capital Riyadh - File/AAWSAT
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Saudi Arabia Reshapes the Future of the Digital Economy Through Advanced Digital Infrastructure, Global Partnerships

File photo of the Saudi capital Riyadh - File/AAWSAT
File photo of the Saudi capital Riyadh - File/AAWSAT

Saudi Arabia has leveraged its advanced digital infrastructure and partnerships with leading global technology companies to establish its position as a global hub for artificial intelligence investment, underpinned by competitive advantages that include reliable energy, vast land availability, and a strategic geographic location.

The Kingdom has made rapid strides in the data center sector, with capacity increasing from 68 MW in 2021 to more than 467 MW in the first quarter of 2026, supported by investments exceeding SAR56.2 billion in data centers and digital infrastructure. The sector has grown more than sixfold since the launch of Saudi Vision 2030, as part of a national data and AI strategy that contributes to economic diversification and strengthens the Kingdom’s readiness for the knowledge economy.

Saudi Arabia has further strengthened its position as a global destination for technology investment by attracting some of the world’s largest cloud service providers. The Kingdom hosts operations for Oracle, Alibaba Cloud, and Google Cloud, alongside an SAR11 billion strategic partnership between HUMAIN and Blackstone, reflecting growing global confidence in Saudi Arabia’s digital investment environment, SPA reported.

This investment appeal is underpinned by a comprehensive set of competitive advantages, including abundant energy resources, extensive land available for data center expansion, and a geographic location connecting Asia, Africa, and Europe, positioning the Kingdom second globally in data center market attractiveness.

Saudi Arabia’s leadership has extended to helping shape the future of the global digital economy. As one of the leading G20 countries in the communications and technology sector, the Kingdom led G20 consensus on a roadmap for defining and measuring the digital economy and the adoption of human-centered, trustworthy AI principles. It also contributed to transforming the Digital Economy Task Force into a permanent working group, reinforcing its role as an international partner in advancing digital policies and strengthening global cooperation in technology.

As part of its efforts to bridge the global digital divide, the Kingdom has led pioneering initiatives, including a 5G trial using High-Altitude Platform Systems (HAPS), which demonstrated the ability to cover nearly half a million square kilometers in remote areas. Saudi Arabia also conducted the first-of-its-kind trial integrating non-terrestrial networks (NTN) with terrestrial networks, offering a future solution for expanding connectivity and accelerating access for unconnected communities.

These achievements have been reflected in the Kingdom’s performance across international indicators. Saudi Arabia ranked first globally twice in the International Telecommunication Union’s (ITU) 2026 ICT Development Index, outperforming 159 countries, reflecting the strength of its integrated digital infrastructure, widespread connectivity, and high levels of digital adoption. The Kingdom also ranked second among G20 countries in the ITU’s ICT Regulatory Tracker and second among G20 countries in digital competitiveness according to the European Center for Digital Competitiveness, while digital infrastructure coverage reached approximately 99% of the Kingdom’s population.

Saudi Arabia has continued to strengthen its standing across global AI indices, ranking first in the Arab world and 14th globally in the Global AI Index. The Kingdom also ranked first globally in AI security, privacy, and encryption; first in women’s empowerment in AI; third globally in the development of advanced AI models; and third in the share of specialized AI talent, while recording the world’s highest growth rate in specialized talent. It also ranked fourth globally in attracting international talent.

The impact of this progress has extended to empowering people and improving quality of life. Saudi Arabia launched the world’s largest virtual hospital, leveraging artificial intelligence technologies to deliver advanced healthcare services. The Kingdom has also made significant strides in empowering women in the technology sector, with their participation rising from 7% to 35%, surpassing the averages of both the G20 and the European Union. This reflects the success of investing in human capital alongside investment in digital infrastructure.

Saudi Arabia’s readiness has also received recognition from independent international institutions. JLL, as reported by Bloomberg, expects Riyadh to lead the growth of AI-related data centers in the Middle East, further underscoring the Kingdom’s growing position as one of the world’s leading destinations for investment in artificial intelligence and digital infrastructure.


Saudi Arabia Moves to Strengthen Stability and Development in the Region

Saudi Arabia continues its initiatives to promote security and peace in the region... The Saudi flag is seen at a site in the city of Jazan (SPA).
Saudi Arabia continues its initiatives to promote security and peace in the region... The Saudi flag is seen at a site in the city of Jazan (SPA).
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Saudi Arabia Moves to Strengthen Stability and Development in the Region

Saudi Arabia continues its initiatives to promote security and peace in the region... The Saudi flag is seen at a site in the city of Jazan (SPA).
Saudi Arabia continues its initiatives to promote security and peace in the region... The Saudi flag is seen at a site in the city of Jazan (SPA).

At a time of growing uncertainty surrounding the global economy, amid the repercussions of the US-Iranian war, tensions related to the Strait of Hormuz, and risks facing shipping through several vital maritime routes, Saudi Arabia is intensifying its regional initiatives aimed at strengthening security and stability. The approach is based on a vision that links reducing geopolitical risks with creating the conditions necessary for growth, development, and attracting investment.

In this context, the "Makkah Agreement" between Saudi Arabia, Türkiye, and Pakistan stands out as one of the initiatives that specialists believe could contribute to strengthening regional stability and increasing confidence in the economic and investment environment in a region that occupies a pivotal position in global energy markets, trade, and supply chains.

Specialists who spoke to Asharq Al-Awsat said Saudi initiatives are part of a broader strategy aimed at building a more stable regional environment capable of withstanding shocks. They emphasized that strengthening security has a direct impact on the sustainability of energy supplies, the safety of shipping routes, and the movement of trade and investment, while also paving the way for broader economic integration and joint projects among countries in the region.

They also noted that the significance of Saudi initiatives extends beyond immediate security considerations to supporting development by reducing risk levels, strengthening investor confidence, and creating opportunities for new partnerships in energy, industry, technology, mining, logistics, and defense industries.

Stable Energy Supplies and Shipping

Fadl bin Saad Al-Bouainain, a member of the Shura Council, told Asharq Al-Awsat that the initiatives adopted by Saudi Arabia, foremost among them the "Makkah Agreement for Joint Defense" between Saudi Arabia, Pakistan, and Türkiye, could have an impact on the global economy, food security, and international trade, given the region's economic and strategic weight.

He added that the region exports nearly one-fifth of the world's oil needs, in addition to gas and agricultural nutrients, making its stability and security essential to ensuring the continuity of energy supplies and the safety of maritime shipping routes.

Al-Bouainain explained that Crown Prince Mohammed bin Salman places great importance on economic development as a foundation for the prosperity of peoples and states, with a focus on investment flows as one of the drivers of development, alongside strengthening the Kingdom's capabilities in the energy sector and maintaining its influential position within the global supply system.

He said Saudi efforts seek to achieve security and stability in the region in ways that positively affect both the Saudi economy and the economies of neighboring countries. Development, he noted, requires a stable foundation on which to build, while the defense agreement contributes to strengthening deterrence and reducing risks that could affect economic activity.

He pointed out that investors consider the stability of the investment environment a priority when making decisions. Accordingly, strengthening regional security and providing greater clarity over the economic outlook are factors that support the attractiveness of the Saudi market, given the diverse investment opportunities it offers.

According to Al-Bouainain, the "Makkah Agreement" sends reassuring messages to local and foreign investors and strengthens confidence in the sustainability of energy supplies and the protection of critical infrastructure. This could, in turn, affect the pace of projects, investment flows, and trade.

He stressed that Saudi Arabia is relying on "Vision 2030" and its development programs, which require substantial investment, making greater economic certainty and reduced geopolitical uncertainty important factors in supporting capital flows and project implementation.

He added that strengthening the regional security system could encourage investors to seize opportunities and participate in development projects, with the positive effects extending to the economies of the region as a whole, not just Saudi Arabia.

Al-Bouainain noted that the signing of the agreement after years of negotiations reflects the depth of relations between Saudi Arabia, Türkiye, and Pakistan and opens the way for a broader phase of cooperation, supporting efforts to establish security, stability, and prosperity.

He said the initiatives led by the Saudi Crown Prince have helped strengthen the role of diplomacy and political dialogue in addressing regional crises, alongside efforts to unify responses to challenges. This supports security and stability and provides a stronger foundation for economic and development programs.

Economic Integration Takes Shape

Saudi businessman Abdullah bin Zaid Al-Mulaihi, CEO of Saudi technology holding company Al-Tamayoz, said Saudi Arabia continues to work to strengthen confidence in both the domestic and regional economies. He noted that the "Makkah Agreement" is among the initiatives that could enhance the Kingdom's regional and international standing and open the way for a new phase of economic cooperation and integration.

Al-Mulaihi told Asharq Al-Awsat that Saudi steps to strengthen security and stability have a direct impact on the economic and investment environment. He said Saudi-Turkish-Pakistani rapprochement provides a foundation for developing joint political, economic, defense, and human cooperation.

He added that the Kingdom has established itself as an influential political and economic power by building strategic partnerships aimed at achieving shared interests and supporting regional security and stability.

Al-Mulaihi believes that Saudi Arabia's strategy of strengthening stability and building long-term partnerships helps create a more attractive environment for investment and opens opportunities for the private sector in industry, technology, energy, mining, logistics, defense industries, and trade.

He noted that Saudi Arabia has a large economy, a strategic geographic location, and ambitious transformation programs under "Vision 2030."

He said political and security rapprochement could develop into broader economic partnerships benefiting investors and business leaders, particularly through joint projects, knowledge and technology transfer, localization of industries, and increased trade.

Al-Mulaihi emphasized that the economy, development, and citizens are the direct beneficiaries of regional stability. He noted that the Kingdom's political strength and balanced partnerships give the private sector greater confidence and strengthen its ability to attract capital, technologies, and international partnerships.

He concluded that Saudi Arabia is pursuing a vision that combines protecting its interests, strengthening its security, and building the economy of the future. He considered the "Makkah Agreement" a factor that strengthens the Kingdom's position in shaping the region's security, development, and cooperation framework.

The Path to Sustainable Development

Abdulrahman Baashen, head of the Al-Shorouq Center for Economic Studies in Jazan, told Asharq Al-Awsat that Saudi Arabia is strengthening its international credibility by adopting initiatives aimed at reducing risks and supporting stability, including the "Makkah Agreement for Joint Defense." He believes the agreement could help increase economic certainty in the region following the repercussions of the US-Iranian war and tensions in the Strait of Hormuz.

Baashen added that the Saudi approach, which combines political, security, and economic action, supports regional balance and strengthens confidence in the Saudi economy and the region's business environment. This could be reflected in trade, investment, and international partnerships, particularly given the Kingdom's central role in global energy markets.

He expects the next phase to see increased trade and investment activity, particularly in defense-related technology industries, alongside the expansion of strategic partnerships with countries possessing advanced expertise and capabilities in these fields.

Baashen believes the agreement could provide a supportive framework for launching high-value economic projects and initiatives between Saudi Arabia, Türkiye, and Pakistan, with their impact extending to their international partners and laying broader foundations for economic integration and sustainable development among Riyadh, Ankara, and Islamabad.

He noted that developing partnerships in industry, technology, energy, supply chains, infrastructure, and transportation could turn the strategic rapprochement among the three countries into tangible economic opportunities and increase the region's ability to withstand external disruptions.

He stressed that the essence of Saudi initiatives lies in linking security with development. Reducing tensions and strengthening regional stability do not affect only the political sphere, but also extend to protecting trade flows and energy supplies, improving the investment environment, and providing a more sustainable foundation for regional economic growth.