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.



Israel Strikes Syria After Projectiles Fired, Holds Sharaa Responsible 

An Israeli military vehicle is seen near the border between the Israeli-occupied Golan Heights and Syria, May 4, 2025. (Reuters)
An Israeli military vehicle is seen near the border between the Israeli-occupied Golan Heights and Syria, May 4, 2025. (Reuters)
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Israel Strikes Syria After Projectiles Fired, Holds Sharaa Responsible 

An Israeli military vehicle is seen near the border between the Israeli-occupied Golan Heights and Syria, May 4, 2025. (Reuters)
An Israeli military vehicle is seen near the border between the Israeli-occupied Golan Heights and Syria, May 4, 2025. (Reuters)

Israel has carried out its first airstrikes in Syria in nearly a month, saying it hit weapons belonging to the government in retaliation for the firing of two projectiles towards Israel and holding interim President Ahmed al-Sharaa responsible. 

Damascus said Israeli strikes caused "heavy human and material losses", reiterating that Syria does not pose a threat to any regional party and stressing the need to end the presence of armed groups and establish state control in the south. 

Israel had not struck Syria since early May - a month marked by US President Donald Trump's meeting with Sharaa, the lifting of US sanctions, and direct Syrian-Israeli contacts to calm tensions, as reported by Reuters last week. 

Israel has bombed Syria frequently this year. Israel has also moved troops into areas of the southwest, where it has said it won't allow the new government's security forces to deploy. 

The projectiles Israel reported fired from Syria were the first since longtime Syrian ruler Bashar al-Assad was toppled. The Israeli military said the two projectiles fell in open areas. 

Israeli Defense Minister Israel Katz said he held the Syrian president "directly responsible for any threat and fire toward the State of Israel". 

A Syrian Foreign Ministry statement said the accuracy of the reports of shelling towards Israel had not yet been verified. 

"We believe that there are many parties that may seek to destabilize the region to achieve their own interests," the Syrian Foreign Ministry added, as reported by the state news agency. 

A Syrian official told Reuters such parties included "remnants of Assad-era militias linked to Iran, which have long been active in the Quneitra area" and have "a vested interest in provoking Israeli retaliation as a means of escalating tensions and undermining current stabilization efforts". 

Several Arab and Palestinian media outlets circulated a claim of responsibility from a little-known group named "Martyr Mohammed Deif Brigades," an apparent reference to Hamas' military leader who was killed in an Israeli strike in 2024. 

Reuters could not independently verify the statement. 

The Syrian state news agency and security sources reported Israeli strikes targeting sites in the Damascus countryside and Quneitra and Daraa provinces. 

Local residents contacted by Reuters said Israeli shelling targeted agricultural areas in the Wadi Yarmouk region. They described increased tensions in recent weeks, including reported Israeli incursions into villages, where residents have reportedly been barred from sowing their crops. 

An Israeli strike also hit a former Syrian army base near the city of Izraa, a Syrian source said. 

Israel has said its goals in Syria include protecting the Druze, a religious minority with followers in both countries. 

Israel, which has occupied the Syrian Golan Heights since the 1967 Middle East war, bombed Syria frequently during the last decade of Assad's rule, targeting the sway of his Iranian allies. 

The newly-appointed US envoy to Syria said last week he believed peace between Syria and Israel was achievable. 

Around the same time that Israel reported the projectiles from Syria, the Israeli military said it intercepted a missile from Yemen. 

Yemen's Iran-aligned Houthis said they targeted Israel's Jaffa with a ballistic missile. The group says it has been launching attacks against Israel in support of Palestinians during the Israeli war in Gaza.