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."



Why is Israel Launching Crackdown in the West Bank after the Gaza Ceasefire?

Israeli army vehicles are seen during a military operation in the West Bank city of Jenin, Tuesday, Jan. 21, 2025. (AP Photo/Majdi Mohammed).
Israeli army vehicles are seen during a military operation in the West Bank city of Jenin, Tuesday, Jan. 21, 2025. (AP Photo/Majdi Mohammed).
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Why is Israel Launching Crackdown in the West Bank after the Gaza Ceasefire?

Israeli army vehicles are seen during a military operation in the West Bank city of Jenin, Tuesday, Jan. 21, 2025. (AP Photo/Majdi Mohammed).
Israeli army vehicles are seen during a military operation in the West Bank city of Jenin, Tuesday, Jan. 21, 2025. (AP Photo/Majdi Mohammed).

In the days since a fragile ceasefire took hold in the Gaza Strip, Israel has launched a major military operation in the occupied West Bank and suspected Jewish settlers have rampaged through two Palestinian towns.

The violence comes as Israeli Prime Minister Benjamin Netanyahu faces domestic pressure from his far-right allies after agreeing to the truce and hostage-prisoner exchange with the Hamas militant group. US President Donald Trump has, meanwhile, rescinded the Biden administration's sanctions against Israelis accused of violence in the territory.

It's a volatile mix that could undermine the ceasefire, which is set to last for at least six weeks and bring about the release of dozens of hostages in exchange for hundreds of Palestinian prisoners, most of whom will be released into the West Bank.

Israel captured the West Bank, Gaza and east Jerusalem in the 1967 Mideast war, and Palestinians want all three territories for their future state. Escalations in one area frequently spill over, raising further concerns that the second and far more difficult phase of the Gaza ceasefire - which has yet to be negotiated - may never come.

Dozens of masked men rampaged through two Palestinian villages in the northern West Bank late Monday, hurling stones and setting cars and property ablaze, according to local Palestinian officials. The Red Crescent emergency service said 12 people were beaten and wounded.

Israeli forces, meanwhile, carried out a raid elsewhere in the West Bank that the military said was in response to the hurling of firebombs at Israeli vehicles. It said several suspects were detained for questioning, and a video circulating online appeared to show dozens being marched through the streets.
On Tuesday, the Israeli military launched another major operation, this time in the northern West Bank city of Jenin, where its forces have regularly clashed with Palestinian militants in recent years, even before Hamas' Oct. 7, 2023, attack out of the Gaza Strip triggered the war there.

At least nine Palestinians were killed on Tuesday, including a 16-year-old, and 40 were wounded, the Palestinian Health Ministry said. The military said its forces carried out airstrikes and dismantled roadside bombs and "hit" 10 militants - though it was not clear what that meant.

Palestinian residents have reported a major increase in Israeli checkpoints and delays across the territory.

Israeli Defense Minister Israel Katz cast the Jenin operation as part of Israel's larger struggle against Iran and its militant allies across the region, saying "we will strike the octopus' arms until they snap."

The Palestinians view such operations and the expansion of settlements as ways of cementing Israeli control over the territory, where 3 million Palestinians live under seemingly open-ended Israeli military rule, with the Western-backed Palestinian Authority administering cities and towns.

Prominent human rights groups call it a form of apartheid since the over 500,000 Jewish settlers in the territory have all the rights conferred by Israeli citizenship. Israel rejects those allegations.

Netanyahu has been struggling to quell a rebellion by his ultranationalist coalition partners since agreeing to the ceasefire. The agreement requires Israeli forces to withdraw from most of Gaza and release hundreds of Palestinian prisoners - including militants convicted of murder - in exchange for hostages abducted in the Oct. 7 attack.

One coalition partner, Itamar Ben-Gvir, resigned in protest the day the ceasefire went into effect. Another, Finance Minister Bezalel Smotrich, has threatened to bolt if Israel does not resume the war after the first phase of the ceasefire is slated to end in early March.

They want Israel to annex the West Bank and to rebuild settlements in Gaza while encouraging what they refer to as the voluntary migration of large numbers of Palestinians.

Netanyahu still has a parliamentary majority after Ben-Gvir's departure, but the loss of Smotrich - who is also the de facto governor of the West Bank - would severely weaken his coalition and likely lead to early elections.

That could spell the end of Netanyahu's nearly unbroken 16 years in power, leaving him even more exposed to longstanding corruption charges and an expected public inquiry into Israel's failure to prevent the Oct. 7 attack.

Trump's return to the White House offers Netanyahu a potential lifeline.

The newly sworn-in president, who lent unprecedented support to Israel during his previous term, has surrounded himself with aides who support Israeli settlement. Some support the settlers' claim to a biblical right to the West Bank because of the Jewish kingdoms that existed there in antiquity.

The international community overwhelmingly considers settlements illegal.

Among the flurry of executive orders Trump signed on his first day back in office was one rescinding the Biden administration's sanctions on settlers and Jewish extremists accused of violence against Palestinians.

The sanctions - which had little effect - were one of the few concrete steps the Biden administration took in opposition to the close US ally, even as it provided billions of dollars in military support for Israel's campaign in Gaza, among the deadliest and most destructive in decades.

Trump claimed credit for helping to get the Gaza ceasefire agreement across the finish line in the final days of the Biden presidency.

But this week, Trump said he was "not confident" it would hold and signaled he would give Israel a free hand in Gaza, saying: "It's not our war, it's their war."