Dispute between Government, Makhlouf Deepens Syria's Economic Woes

A man watches a Facebook video posted by Syrian businessman Rami Makhlouf in Damascus on May 11, 2020. (AFP)
A man watches a Facebook video posted by Syrian businessman Rami Makhlouf in Damascus on May 11, 2020. (AFP)
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Dispute between Government, Makhlouf Deepens Syria's Economic Woes

A man watches a Facebook video posted by Syrian businessman Rami Makhlouf in Damascus on May 11, 2020. (AFP)
A man watches a Facebook video posted by Syrian businessman Rami Makhlouf in Damascus on May 11, 2020. (AFP)

Concerns over the economy increased in Damascus as the result of the dispute between the government and businessman Rami Makhlouf.

The latter warned of an “economic meltdown” in the event that his company, Syriatel, collapsed.

The government’s Telecommunications and Postal Regulatory Authority had informed two of Makhlouf’s companies, Syriatel and MTN mobile phone, to pay about 234 billion Syrian pounds to the state treasury as a penalty, after failing to meet a deadline to pay hundreds of millions in dues.

The businessman, who for decades had the country’s most prominent economic pillars, is facing a series of measures that would affect his shares in the state-owned Syrian Telecom Company (Syriatel), the country’s biggest mobile phone company.

Makhlouf published on Facebook on May 10 a letter from Syriatel to the government saying the company was ready to pay immediately “a first instalment to be determined on the basis of the liquidity available to the company.” He also criticized the Telecommunications and Regulatory Authority for posting a statement that contradicts his letter.

In response, the Authority issued a document on May 16, signed by five managers of Syriatel Mobile Telecom, in which they declared their approval of the Authority’s requests, but noted that Makhlouf had refused to give them the green light to proceed with the agreement.

Syria’s security bodies had launched a campaign of arrests earlier this month targeting dozens of employees of companies affiliated with Makhlouf, and stormed his house in Yaafur.

In a video on social media, the businessman implored his cousin, President Bashar Assad, to “intervene and put an end to the security services’ operations” and the release of his employees and managers.

Amid the dispute, anxiety mounted in the Syrian street over an economic deterioration, in parallel with the strict health measures imposed by the government over the coronavirus outbreak, which have compounded unemployment and poverty.



UN Food Agency Says Its Food Stocks in Gaza Have Run out under Israel’s Blockade

A girl puts a pot to her head as Palestinians wait to receive food cooked by a charity kitchen, in Beit Lahia, northern Gaza Strip, April 24, 2025. (Reuters)
A girl puts a pot to her head as Palestinians wait to receive food cooked by a charity kitchen, in Beit Lahia, northern Gaza Strip, April 24, 2025. (Reuters)
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UN Food Agency Says Its Food Stocks in Gaza Have Run out under Israel’s Blockade

A girl puts a pot to her head as Palestinians wait to receive food cooked by a charity kitchen, in Beit Lahia, northern Gaza Strip, April 24, 2025. (Reuters)
A girl puts a pot to her head as Palestinians wait to receive food cooked by a charity kitchen, in Beit Lahia, northern Gaza Strip, April 24, 2025. (Reuters)

The World Food Program says its food stocks in the Gaza Strip have run out under Israel’s nearly 8-week-old blockade, ending a main source of sustenance for hundreds of thousands of Palestinians in the territory.

The WFP said in a statement that it delivered the last of its stocks to charity kitchens that it supports around Gaza. It said those kitchens are expected to run out of food in the coming days.

Some 80% of Gaza’s population of more than 2 million relies primarily on charity kitchens for food, because other sources have shut down under Israel’s blockade, according to the UN. The WFP has been supporting 47 kitchens that distribute 644,000 hot meals a day, WFP spokesperson Abeer Etefa told the Associated Press.

It was not immediately clear how many kitchens would still be operating in Gaza if those shut down. But Etefa said the WFP-backed kitchens are the major ones in Gaza.

Israel cut off entry of all food, fuel, medicine and other supplies to Gaza on March 2 and then resumed its bombardment and ground offensives two weeks later, shattering a two-month ceasefire with Hamas. It says the moves aim to pressure Hamas to release hostages it still holds. Rights groups have called the blockade a “starvation tactic” and a potential war crime.

Israel has said Gaza has enough supplies after a surge of aid entered during the ceasefire and accuses Hamas of diverting aid for its purposes. Humanitarian workers deny there is significant diversion, saying the UN strictly monitors distribution. They say the aid flow during the ceasefire was barely enough to cover the immense needs from throughout the war when only a trickle of supplies got in.

With no new goods entering Gaza, many foods have disappeared from markets, including meat, eggs, fruits, dairy products and many vegetables. Prices for what remains have risen dramatically, becoming unaffordable for much of the population. Most families rely heavily on canned goods.

Malnutrition is already surging. The UN said it identified 3,700 children suffering from acute malnutrition in March, up 80% from the month before. At the same time, because of diminishing supplies, aid groups were only able to provide nutritional supplements to some 22,000 children in March, down 70% from February. The supplements are a crucial tool for averting malnutrition.

Almost all bakeries shut down weeks ago and the WFP stopped distribution of food basics to families for lack of supplies. With stocks of most ingredients depleted, charity kitchens generally can only serve meals of pasta or rice with little added.

World Central Kitchen -- a US charity that is one of the biggest in Gaza that doesn’t rely on the WFP -- said Thursday that its kitchens had run out of proteins. Instead, they make stews from canned vegetables. Because fuel is scarce, it dismantles wooden shipping pallets to burn in its stoves, it said. It also runs the only bakery still functioning in Gaza, producing 87,000 loaves of pita a day.

The WFP said 116,000 tons of food is ready to be brought into Gaza if Israel opens the borders, enough to feed 1 million people for four months.

Israel has leveled much of Gaza with its air and ground campaign, vowing to destroy Hamas after its Oct. 7, 2023, attack on southern Israel. It has killed over 51,000 Palestinians, mostly women and children, according to Gaza’s Health Ministry, whose count does not distinguish between civilians and combatants.

In the Oct. 7 attack, gunmen killed about 1,200 people, mostly civilians, and abducted 251. They still hold 59 hostages after most were released in ceasefire deals.