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.



Iraqis Stranded in Beirut Face Black Market for Return Tickets

Iraqi citizens wait outside Iraqi Airways office in Beirut (Asharq Al-Awsat)
Iraqi citizens wait outside Iraqi Airways office in Beirut (Asharq Al-Awsat)
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Iraqis Stranded in Beirut Face Black Market for Return Tickets

Iraqi citizens wait outside Iraqi Airways office in Beirut (Asharq Al-Awsat)
Iraqi citizens wait outside Iraqi Airways office in Beirut (Asharq Al-Awsat)

The Iraqi Airways office in Beirut has become a daily destination for stranded Iraqi citizens desperately seeking tickets and empty seats on flights home, after Baghdad suspended air travel amid escalating regional tensions sparked by Israel’s assault on Iran.

From tourists who had planned family vacations, to patients seeking treatment or workers on business trips, hundreds of Iraqis have been stuck in Lebanon for over a week with no clear path home.

The Iraqi Ministry of Transport halted air traffic across all airports last week—except Basra International Airport, which resumed limited daytime operations on Sunday—as a precaution following the Israeli strike on Iran, a move mirrored by other regional countries impacted by the conflict.

Iraq’s airport authority said it had set up an emergency operations room and designated Basra as the sole return point for citizens stranded abroad. The decision has triggered flight bottlenecks and chaos, with Basra now receiving planes from multiple countries.

“It’s a mess,” said Mustafa, one of the many Iraqis stranded in Beirut. “We were supposed to fly back with my family of six, but our flight was suddenly cancelled, and we were given no details about an alternative.”

Efforts by Asharq Al-Awsat to reach the Iraqi embassy in Beirut and airline officials for clarification went unanswered.

Video footage circulating online shows chaotic scenes at Beirut airport, where frustrated Iraqi travelers jostle and argue over limited tickets to Basra.

“There’s no transparency,” Mustafa added. “The plane can hold 280 passengers, but only 60 official tickets are sold. The rest are offered by black market brokers for as much as $1,200 each. These tickets should have been issued by the airline for free.”

For a 60-year-old Iraqi woman who came to Beirut for medical treatment, the wait has turned into a painful ordeal.

“I was scheduled to return to Baghdad three days ago after finishing my treatment,” she told Asharq Al-Awsat while sitting outside the Iraqi Airways office. “I’ve been coming here every day since, waiting for help. I’m ill and in pain—this delay is unbearable.”

On Tuesday, Reuters quoted Ali Jumah, Iraq’s civil aviation representative at Basra airport, as saying: “The airport is now open from 5 a.m. to 7 p.m. by order of the Ministry of Transport to help evacuate Iraqis, Arabs, and foreigners. Despite the airport’s limited capacity, our staff and crisis cell are working around the clock.”

The Ministry of Transport confirmed it had deployed Iraqi Airways to operate international routes via Basra to repatriate stranded travelers, regardless of nationality.

The ministry said 19 evacuation flights were conducted on Monday and Tuesday alone, and it is prepared to increase capacity to bring back all Iraqis abroad.

Iraq has nine civilian airports, with Baghdad International Airport handling around two million passengers in 2021, making it the country’s busiest. Basra ranks fourth by passenger volume.