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."



Hezbollah’s Legacy in Syria: Drug Labs, Counterfeit Money Factories

Syrian border security forces patrol a border area in Wadi al-Hourani, Hawik village, near the Lebanese border (Asharq Al-Awsat)
Syrian border security forces patrol a border area in Wadi al-Hourani, Hawik village, near the Lebanese border (Asharq Al-Awsat)
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Hezbollah’s Legacy in Syria: Drug Labs, Counterfeit Money Factories

Syrian border security forces patrol a border area in Wadi al-Hourani, Hawik village, near the Lebanese border (Asharq Al-Awsat)
Syrian border security forces patrol a border area in Wadi al-Hourani, Hawik village, near the Lebanese border (Asharq Al-Awsat)

Syrian border security forces have discovered dozens of factories producing narcotics, Captagon pills, hashish, and counterfeit US dollars in abandoned warehouses on a hilltop in Al Qusayr’s village of Hawik, near the western countryside of Homs, close to the Syrian-Lebanese border.

The illicit goods were intended for smuggling into neighboring countries and beyond, authorities said.

The border area, facing Lebanon’s Baalbek province, was until recently under the control of Hezbollah. Following the group’s expulsion, Syrian security forces dismantled the drug operations, paving the way for the Lebanese army to secure the region, according to officials.

In a makeshift drug lab perched on a remote hill along a secondary road in Hawik—just a few hundred meters from the Lebanese border—Syrian security forces found stockpiles of equipment and materials used in drug production.

Inside the warehouses, they uncovered industrial machinery, large blue storage tanks filled with raw substances for Captagon production, as well as wooden containers and sealed plastic boxes containing hashish.

Homs border security chief Maj. Nadim Mdakhneh told Asharq Al-Awsat that the previous regime and Hezbollah had turned the area into a drug smuggling route and a hub for illegal drug production, weapons trafficking, and counterfeiting before being expelled this month.

Syrian military operations forces launched a sweeping security campaign this week, targeting villages near the Lebanese border, including Hawik, Jarmash, Wadi al-Hourani, Akoum, and Wadi Hanna.

Clashes erupted with Hezbollah fighters, remnants of the ousted regime, and drug and arms traffickers.

The forces seized full control of the border strip, set up checkpoints, and implemented strict measures to prevent smuggling, officials said.

The crackdown included raids in several Syrian villages, particularly Hawik, Jarmash, and Hit—key hubs for drug trafficking.

Mdakhneh said security forces discovered around 15 drug production facilities and a counterfeit currency printing press.

“We seized massive shipments of weapons, drugs, and raw materials intended for smuggling,” Mdakhneh said. “These areas were the economic lifeline of these criminal networks.”

Syria and Lebanon share a 330-kilometer border, much of it unmarked and stretching across valleys and rugged mountains—terrain long exploited by drug smugglers and arms dealers.

Counterfeit Money Operation

In a third warehouse, Hezbollah operatives set up a counterfeit money operation, producing fake $100 bills using advanced printers, holograms, ultraviolet scanners, and an offset printing press, security officials said.

During Syria’s war, the country became the region’s top producer of Captagon, especially under ousted President Bashar al-Assad. Some reports have called Syria a “narco-state,” with British data estimating it produced nearly 80% of the world’s Captagon supply by the end of last year.

In another warehouse hidden in a mountainous area, a security officer opened a device and found round drug tablets inside.

“This is how they made and hid the drugs before smuggling them to the Gulf and beyond,” said security officer Nader Abu al-Bara, who took part in the raid.

Captagon Pills, Hashish Stored in Packages

Captagon pills were packed in sealed bags. Hashish was stored in medium-sized wooden crates and plastic containers, while processed batches were wrapped in red gloves for identification, security officials said.

Residents of the border region said civilians were strictly prohibited from approaching the heavily guarded drug production sites.

“No one was allowed near these facilities,” said Ahmad al-Saab, 55, a resident of Hawik. “Syrian intelligence and Hezbollah fighters stationed in the area kept us away. We often smelled strange, unpleasant odors, but we had no idea what was happening inside. We only heard rumors about factories, but no one dared to get close.”

Security forces discovered surveillance cameras and network lines connected to Lebanese territory during their operations, officials said.

Mdakhneh stressed that the crackdown was limited to Syrian villages near the Lebanese border.

He said coordination between Syrian military operations and the Lebanese army is ongoing, adding that “for the first time in 14 years, the Lebanese army has begun deploying in this area.”

Mdakhneh said clashes erupted with Hezbollah fighters and traffickers, and during the raids, security forces found documents linking members of Lebanese tribal families to the smuggling operations.

The trade in Captagon pills in Syria was worth an estimated $6 billion by the end of 2024, according to United Nations figures. The drugs were primarily smuggled to neighboring Iraq and Jordan before being trafficked onward to Gulf states.