Syria's Economy Reborn after Being Freed from Assad

Under Assad, Syria was under heavy economic sanctions and mired in seemingly endless crisis - AFP
Under Assad, Syria was under heavy economic sanctions and mired in seemingly endless crisis - AFP
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Syria's Economy Reborn after Being Freed from Assad

Under Assad, Syria was under heavy economic sanctions and mired in seemingly endless crisis - AFP
Under Assad, Syria was under heavy economic sanctions and mired in seemingly endless crisis - AFP

When Bashar al-Assad ruled Syria, merchants like Youssef Rajab kept much of their imported stock hidden for fear of arrest for breaking the law.

But after opposition factions toppled Assad in a lightning offensive last month, Rajab put previously banned foreign goods such as chocolate, biscuits and shampoo back on the shelf.

Such products are now openly on sale in Damascus, and foreign currency is once again traded without fear.
Under Assad, Syria was mired in corruption, under heavy economic sanctions, and in seemingly endless crisis.
Foreign currency was in carefully controlled supply, and engaging in its trade or in the sale of banned goods could have meant a stay in one of the country's notorious jails.

"A day after the regime fell, I brought out all the foreign merchandise I'd been hiding and put it for sale, without having to worry," Rajab told AFP.

"It was a strange feeling, but I was happy," added the 23-year-old, speaking beside shelves stacked with imported products.

Previously, the few imported goods that were available were smuggled in from Lebanon by traders who risked arrest, or were acquired by bribing officials as businessmen controlled imports to a country wracked by 13 years of civil war.

"It's true that now we have great freedom to engage in business, but it has also been chaotic," said Rajab.

On every street corner, makeshift money changers now tout for business from passers-by.

"It's a job that was done in secret before," said Amir Halimeh, sitting at a small table on which there were wads of Syrian pounds and US dollars.

"We used to refer to dollars as 'mint' or 'parsley' or something else green" to bypass surveillance, he added.

- Currency market 'freed' -

Assad's government kept a firm grip on foreign currency dealings as a way to control the economy, and any freelance operators faced punishment of seven years in prison and a heavy fine.

"The market has now been completely freed... as has the exchange rate," the moneychanger said.

The pound lost about 90 percent of its value against the US dollar in 2011, the year Syria descended into civil war after a brutal crackdown on democracy protests.

Now it is being traded at between 11,000 and 12,000 to the greenback.

Before Damascus fell to the coalition led by the Hayat Tahrir al-Sham group, the black market rate soared to 30,000 pounds for one dollar.

"The economy in the future Syria will be free and competitive," the interim government's Economy Minister Bassel Abdel Hanan told reporters.

He said the new authorities would implement "policies aimed at protecting domestic output, supporting the industrial sector and protecting agriculture".

They have yet to elaborate on their future economic plans during the three-month interim phase that began in December.

Economics professor Adnan Suleiman of Damascus University said that "the economic model that existed before the fall of the regime... was a market economy", but a "distorted" one.

- Sanctions -

"Supply and demand were not free. Instead of competition there was a monopoly," he said of people close to Assad who controlled different sectors of the economy.

In an effort to turn the page, the interim government has been lobbying for international sanctions to be lifted.

Earlier this month, the US Treasury Department announced it was providing additional sanctions relief on some activities for the next six months to ease access to basic services, including fuel and humanitarian aid.

Asaad al-Shaibani, Syria's top diplomat, told the World Economic Forum in Davos on Wednesday: "Removing economic sanctions is the key for the stability of Syria."

They had been imposed for the benefit of Syrians, but are now "against the Syrian people", he said.

"We inherited a collapsed state from the Assad regime, there is no economic system," Shaibani said, adding that "the economy in the future will be open".

Under Assad, fuel sales were a monopoly and were severely limited.

But now vendors openly sell cans of petrol and fuel oil on the streets of the capital -- where new models of car have also made an appearance.

Previously, the import of vehicles was tightly regulated.

Syria's war took a terrible toll not only on the people, but also on its infrastructure.

Damage to power plants and pipelines has caused power cuts lasting up to 20 hours a day.

"The former regime left a huge legacy," said Suleiman.

"The greatest task facing future governments is to finance development and reconstruction."



Israeli Settler Outpost Becomes a Settlement within a Month

Israeli finance minister Bezalel Smotrich, center, strides through the newly-legalized Jewish settlement of Yatziv, adjacent to the Palestinian town of Beit Sahour, in the West Bank, Jan. 19, 2026. (AP)
Israeli finance minister Bezalel Smotrich, center, strides through the newly-legalized Jewish settlement of Yatziv, adjacent to the Palestinian town of Beit Sahour, in the West Bank, Jan. 19, 2026. (AP)
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Israeli Settler Outpost Becomes a Settlement within a Month

Israeli finance minister Bezalel Smotrich, center, strides through the newly-legalized Jewish settlement of Yatziv, adjacent to the Palestinian town of Beit Sahour, in the West Bank, Jan. 19, 2026. (AP)
Israeli finance minister Bezalel Smotrich, center, strides through the newly-legalized Jewish settlement of Yatziv, adjacent to the Palestinian town of Beit Sahour, in the West Bank, Jan. 19, 2026. (AP)

Celebratory music blasting from loudspeakers mixed with the sounds of construction, almost drowning out calls to prayer from a mosque in the Palestinian town across this West Bank valley.

Orthodox Jewish women wearing colorful head coverings and with babies on their hips, shared platters of fresh vegetables as soldiers encircled the hilltop, keeping guard.

The scene Monday reflected the culmination of Israeli settlers’ long campaign to turn this site overlooking the Palestinian town of Beit Sahour into a settlement. Over the years they fended off plans to build a hospital for Palestinian children on the land, always holding to the hope it would one day become theirs.

That moment is now, they say.

Smotrich goes on settlement spree

After two decades of efforts, it took just a month for their new settlement, called “Yatziv,” to go from an unauthorized outpost of a few mobile homes to a fully recognized settlement. Fittingly, the new settlement's name means “stable” in Hebrew.

“We are standing stable here in Israel,” Finance Minister and settler leader Bezalel Smotrich told The Associated Press at Monday’s inauguration ceremony. “We’re going to be here forever. We will never establish a Palestinian state here.”

With leaders like Smotrich holding key positions in Israel’s government and establishing close ties with the Trump administration, settlers are feeling the wind at their backs.

Smotrich, who has been in charge of Israeli settlement policy for the past three years, has overseen an aggressive construction and expansion binge aimed at dismantling any remaining hopes of establishing a Palestinian state in the occupied West Bank.

While most of the world considers the settlements illegal, their impact on the ground is clear, with Palestinians saying the ever-expanding construction hems them in and makes it nearly impossible to establish a viable independent state. The Palestinians seek the West Bank, captured by Israel in 1967, as part of a future state.

Emboldened

Settlers had long set their sights on the hilltop, thanks to its position in a line of settlements surrounding Jerusalem and because they said it was significant to Jewish history. But they put up the boxy prefab homes in November because days earlier, Palestinian attackers had stabbed an Israeli to death at a nearby junction.

The attack created an impetus to justify the settlement, settlement council chair, Yaron Rosenthal, told the AP. With the election of Israel’s far-right government in late 2022, Trump’s return to office last year and the November attack, conditions were ripe for settlers to make their move, Rosenthal said.

“We understood that there was an opportunity,” he said. “But we didn’t know it would happen so quickly.”

“Now there is the right political constellation for this to happen."

Smotrich announced approval of the outpost, along with 18 others, on Dec. 21. That capped 20 years of effort, said Nadia Matar, a settler activist.

“Shdema was nearly lost to us,” said Matar, using the name of an Israeli military base at the site. “What prevented that outcome was perseverance.”

Back in 2006, settlers were infuriated upon hearing that Israel's government was in talks with the US to build a Palestinian children's hospital on the land, said Hagit Ofran, a director at Peace Now, an anti-settlement watchdog group, especially as the US Agency for International Development was funding a “peace park” at the base of the hill.

The mayor of Beit Sahour urged the US Consulate to pressure Israel to begin hospital construction, while settlers began demonstrations at the site calling on Israel to quash the project, according to consulate files obtained through WikiLeaks.

It was “interesting” that settlers had “no religious, legal, or ... security claim to that land,” wrote consulate staffer Matt Fuller at the time, in an email he shared with the AP. "They just don’t want the Palestinians to have it — and for a hospital no less — a hospital that would mean fewer permits for entry to Jerusalem for treatment.”

The hospital was never built. The site was converted into a military base after the Netanyahu government came to power in 2009. From there, settlers quickly established a foothold by creating a makeshift cultural center at the site, putting on lectures, readings and exhibits.

Speaking to the AP, Ehud Olmert, the Israeli prime minister at the time the hospital was under discussion, said that was the tipping point.

“Once it is military installation, it is easier than to change its status into a new outpost, a new settlement and so on,” he said.

Olmert said Netanyahu — who has served as prime minister nearly uninterrupted since then — was “committed to entirely different political directions from the ones that I had,” he said. “They didn’t think about cooperation with the Palestinians.”

Palestinians say the land is theirs

The continued legalization of settlements and spiking settler violence — which rose by 27% in 2025, according to Israel’s military — have cemented a fearful status quo for West Bank Palestinians.

The land now home to Yatziv was originally owned by Palestinians from Beit Sahour, said the town’s mayor, Elias Isseid.

“These lands have been owned by families from Beit Sahour since ancient times,” he said.

Isseid worries more land loss is to come. Yatziv is the latest in a line of Israeli settlements to pop up around Beit Sahour, all of which are connected by a main highway that runs to Jerusalem without entering Palestinian villages. The new settlement “poses a great danger to our children, our families," he said.


Respiratory Virus Claims Lives in Gaza amid Limited Capacity for Testing

A Palestinian man carries the body of his three-month-old daughter on Tuesday after she died from the cold in Gaza City. (AFP)
A Palestinian man carries the body of his three-month-old daughter on Tuesday after she died from the cold in Gaza City. (AFP)
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Respiratory Virus Claims Lives in Gaza amid Limited Capacity for Testing

A Palestinian man carries the body of his three-month-old daughter on Tuesday after she died from the cold in Gaza City. (AFP)
A Palestinian man carries the body of his three-month-old daughter on Tuesday after she died from the cold in Gaza City. (AFP)

Gaza resident Yusra al-Hajjar, 32, went through harrowing moments after she was shocked by a sharp rise in the temperature of her five-month-old infant, Nidal, prompting her to rush him to a clinic at the Al-Shifa Medical Complex in Gaza City as his condition worsened.

Initial medical examinations failed to determine the exact cause of the infant’s illness, forcing the medical team to resort to basic measures such as intravenous fluids and fever-reducing medication in an attempt to control the symptoms.

The treatment was temporarily successful, and the baby’s condition improved after several hours.

“We left the clinic in a better condition, but less than a day later, we brought him back after a new deterioration,” al-Hajjar told Asharq Al-Awsat.

“As of this morning, Tuesday, five days have passed since my baby fell ill. I am still trying basic methods, such as cooling his forehead with cold water and giving him some medication to reduce the fever and stop the vomiting and weakness, while doctors have been unable to determine the cause,” she added.

The infant’s case is not the only one. Residents of Gaza have been struggling in recent weeks with what medical officials describe as a widespread outbreak of identical symptoms, particularly among the elderly and children, according to Mohammed Abu Salmiya, director of the Al-Shifa Medical Complex.

Abu Salmiya said that for nearly a month, new deaths have been recorded on an almost daily basis due to the spread of what he described as a dangerous and deadly virus.

He said the virus causes severe pneumonia, leading to fatalities primarily among vulnerable patients with weakened immune systems, and secondarily among individuals with stronger immunity, including some young people whose deaths were recorded in recent days.

No capacity for testing

Abu Salmiya said Gaza’s health system lacks even the most basic laboratory capabilities needed to identify the virus, suggesting it could be a new COVID variant spreading in the world.

Earlier on Tuesday, a seven-month-old infant, Shaza Abu Jarrad, died due to extreme cold and a lack of adequate shelter and heating, raising the number of child deaths from similar conditions to about 10.

Abu Salmiya said the current cold weather has fueled the spread of the virus, contributing to a high number of deaths amid the harsh living conditions in Gaza following the Israeli war.

He said there is a direct link between the war and weakened immunity among Gaza’s population, who have endured repeated bouts of hunger, alongside water contamination.

He added that this comes amid severe shortages of medicines and medical supplies, leaving health authorities unable to mount an effective and rapid response to the current health crisis.

The United Nations Relief and Works Agency for Palestine Refugees, UNRWA, said in a post on X that despite the collapse of Gaza’s health system, it continues to provide primary health care to thousands of people every day, but faces an acute shortage of medicines.

UNRWA accused Israel of preventing its aid supplies stuck in warehouses in Jordan and Egypt from entering Gaza since March 2 last year, stressing the urgent need to allow its assistance into the territory.

It said harsh winter conditions are compounding the suffering of families in Gaza who have been exhausted by war and repeated displacement, calling for large-scale access for humanitarian aid.

Mahmoud Bassal, spokesman for Gaza’s Civil Defense, warned of a rise in deaths, particularly among young children, due to the severe cold wave coinciding with the deterioration of humanitarian conditions in the enclave.

He said field and health conditions are extremely harsh, especially for infants, the sick, and the elderly, as most families live in dilapidated tents that offer little protection from the cold, rain, and other environmental conditions.


Khartoum Markets Back to Life but 'Nothing Like Before'

Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)
Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)
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Khartoum Markets Back to Life but 'Nothing Like Before'

Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)
Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)

The hustle and bustle of buyers and sellers has returned to Khartoum's central market, but "it's nothing like before," fruit vendor Hashim Mohamed told AFP, streets away from where war first broke out nearly three years ago.

On April 15, 2023, central Khartoum awoke to battles between the Sudanese army and the paramilitary Rapid Support Forces, who had been allies since 2021, when they ousted civilians from a short-lived transitional government.

Their war has since killed tens of thousands and displaced millions. In greater Khartoum alone, nearly 4 million people -- around half the population -- fled the city when the RSF took over.

Hashim Mohamed did not.

"I had to work discreetly, because there were regular attacks" on businesses, said the fruit seller, who has worked in the sprawling market for 50 years.

Like him, those who stayed in the city report living in constant fear of assaults and robberies from fighters roaming the streets.

Last March, army forces led an offensive through the capital, pushing paramilitary fighters out and revealing the vast looting and destruction left behind.

"The market's not what it used to be, but it's much better than when the RSF was here," said market vendor Adam Haddad, resting in the shade of an awning.

In the market's narrow, dusty alleyways, fruits and vegetables are piled high, on makeshift stalls or tarps spread on the ground.

- Two jobs to survive -

Khartoum, where entire neighborhoods were once under siege, is no longer threatened by the mass starvation that stalks battlefield cities and displacement camps elsewhere in Sudan.

But with the economy a shambles, a good living is still hard to provide.

"People complain about prices, they say it's too expensive. You can find everything, but the costs keep going up: supplies, labor, transportation," said Mohamed.

Sudan has known only triple-digit annual inflation for years. Figures for 2024 stood at 151 percent -- down from a 2021 peak of 358.

The currency has also collapsed, going from trading at 570 Sudanese pounds to the US dollar before the war to 3,500 in 2026, according to the black market rate.

One Sudanese teacher, who only a few years ago could provide comfortably for his two children, told AFP he could no longer pay his rent with a monthly salary of 250,000 Sudanese pounds ($71).

To feed his family, pay for school, and cover healthcare, he "works in the market or anywhere" on his days off.

"You have to have another job to pay for the bare minimum of basic needs," he said, asking for anonymity to protect his privacy.

For Adam Haddad, the road to recovery will be a long one.

"We don't have enough resources or workers or liquidity going through the market," he said, adding that reliable electricity was still a problem.

"The government is striving to restore everything, and God willing, in the near future, the power will return and Khartoum will become what it once was."