New Syria Defines Its Economic Identity: ‘Partnership’ Replaces Privatization in Recovery Plan

28 May 2026, Syria, Jobar: Syrians play in an Eid al-Adha amusement park in a devastated area amid the completely destroyed Jobar neighborhood on the outskirts of Damascus during the second day of the Muslim Feast of Sacrifice, Eid al-Adha. Photo: Moawia Atrash/dpa
28 May 2026, Syria, Jobar: Syrians play in an Eid al-Adha amusement park in a devastated area amid the completely destroyed Jobar neighborhood on the outskirts of Damascus during the second day of the Muslim Feast of Sacrifice, Eid al-Adha. Photo: Moawia Atrash/dpa
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New Syria Defines Its Economic Identity: ‘Partnership’ Replaces Privatization in Recovery Plan

28 May 2026, Syria, Jobar: Syrians play in an Eid al-Adha amusement park in a devastated area amid the completely destroyed Jobar neighborhood on the outskirts of Damascus during the second day of the Muslim Feast of Sacrifice, Eid al-Adha. Photo: Moawia Atrash/dpa
28 May 2026, Syria, Jobar: Syrians play in an Eid al-Adha amusement park in a devastated area amid the completely destroyed Jobar neighborhood on the outskirts of Damascus during the second day of the Muslim Feast of Sacrifice, Eid al-Adha. Photo: Moawia Atrash/dpa

Syria has settled the debate over the identity of its new financial and investment system, adopting a model of “strategic partnership” between the public and private sectors as a fundamental alternative to outright privatization. The shift officially elevates the private sector from a marginal supporting role to the “engine of economic development” and the principal partner in leading the recovery and reconstruction phase.

The strategic approach, crowned by the launch of a broad national dialogue in 2026, aims not only to attract domestic and expatriate capital and reconnect local value chains, but also to redefine the state’s role as a regulator and guarantor of a free market. Supported by an international vision focused on sustainability and an unprecedented package of legislative incentives, the strategy seeks to bridge a trust deficit that has persisted for years and build an open social market economy that balances freedom of individual initiative with broader developmental responsibility.

First dialogue after the political transition

Damascus recently concluded the First National Conference for Private Sector Dialogue in Syria 2026, held over three days at the Conference Palace.

The event was the first of its kind in the country since the beginning of the political and economic transition following the fall of the former regime at the end of 2024.

Organized by the Ministry of Economy and Industry in cooperation with the United Nations Development Programme (UNDP), with funding and support from the Japanese government, the conference drew nearly 500 economic figures, including ministers, representatives of public institutions, chambers of commerce, industry and agriculture, business councils, experts and businesspeople from inside and outside Syria, as well as international organizations.

According to official Ministry of Economy and Industry materials, the conference aimed to formulate practical visions and recommendations to support the path toward recovery and comprehensive development.

Syria’s new economic vision aligns with UNDP principles that view “economic diversification as a strategic asset.” Under this framework, the Syrian private sector is not regarded as a monolithic bloc but rather as a diverse and resilient ecosystem. Its structure spans several levels, most notably micro, small and medium-sized enterprises, which account for more than 90 percent of Syria’s business landscape and represent the country’s primary reservoir for absorbing the national workforce. It also includes family businesses and craft workshops that preserved productive skills locally throughout years of crisis under severe pressure, as well as agricultural producers and local manufacturers who ensured the continued minimum flow of goods into domestic markets.

Syrian workers load sacks of freekeh, a roasted green wheat grain widely used in Levantine cuisine, after burning and roasting immature wheat over open flames to separate and preserve the grains, on the outskirts of Taftanaz, northwestern Syria, Sunday, May 24, 2026. (AP Photo/Ghaith Alsayed)

Identity of the new economy

In comments to Asharq Al-Awsat, Osama Kadi, an economic expert and senior adviser for local economic policy affairs at Syria’s Ministry of Economy and Industry, said the conference had “removed ambiguity” regarding the identity of the Syrian economy in the coming phase.

He explained that the country’s economic direction is closest to a guided market economy, or social market economy, similar to those found in Germany, much of Europe and Canada. The private sector, he said, is viewed as the driver of economic development, while the public sector is not destined for privatization, with the government instead pursuing a partnership model with private enterprise.

Kadi added that the economic identity of the new Syria is based on free supply-and-demand mechanisms without monopolistic practices, while emphasizing good governance and the state’s role in monitoring the implementation of laws, ensuring their flexibility and fostering an attractive investment environment through tax rates designed to encourage economic activity.

Investment Law No. 114

Under Investment Law No. 114 of 2025, the Syrian government exempted all agricultural and educational activities from taxation and introduced incentives for industrial production.

Any investment company that exports more than 50 percent of its production receives an 80 percent tax exemption, while the general tax rate does not exceed 15 percent. Production lines and machinery used in manufacturing operations are also exempt from taxes.

Kadi noted that the law’s executive regulations support micro, small and medium-sized enterprises, which make up more than 90 percent of Syria’s businesses, through credit lines, concessional loans, business incubators and accelerators. The regulations also encourage such enterprises to participate in local and international exhibitions through business councils announced during the conference in more than 17 countries.

Mohammad Nidal al-Shaar speaks during the opening of the First National Conference for Private Sector Dialogue in Syria (X).

Balancing private initiative and the role of the state

Speaking at the conference’s opening session, Minister of Economy and Industry Mohammed Nidal al-Shaar said Syria is moving toward building a new economic model that combines realism, ambition and openness.

He said the country is closely examining states that have achieved successful models and rapid development over relatively short periods in order to learn from and adapt those experiences while building its own model based on its capabilities, strategic location and the expertise of Syrians at home and abroad.

Al-Shaar said that “adopting a free-market approach does not mean the absence of the state or the abandonment of market controls. Successful experiences have proven to be based on a balanced model between freedom of initiative and the strategic role of the state.”

He added that “modern economic revival is not built on slogans, but on efficiency, discipline, stability and genuine partnerships, as well as an economy that provides opportunities for initiative, creativity and production within a clear national vision.”

He stressed that the state’s economic role should not be reduced to a debate between public ownership and privatization, nor should privatization be viewed as a stigma, a default option or an automatic solution to economic challenges. The real value of public assets, he said, lies not in their sale price but in their ability to generate sustainable added value for the national economy.

Sectors for strategic partnership

Speaking to Asharq Al-Awsat, Kadi identified agriculture, agro-industry, energy, transport, infrastructure and reconstruction as the key sectors expected to lead public-private cooperation.

He said Syria remains an underdeveloped opportunity, with no more than 5 percent of its human potential, resources and underground wealth having been utilized. He also said Syria's geopolitical position had long been underutilized despite its potential and now contributes more than one-third of the state budget. As an example, he said that 11,800 aircraft crossed Syrian airspace in May alone, generating revenue for the public treasury.

Kadi said the most important element in relations between the public and private sectors is the clarity of the partnership itself, particularly through transparency in contracts and the adoption of environmental, social and governance (ESG) standards.

In this context, he said, the shift toward a green transition and the efficient use of resources should be viewed not as a luxury but as an economic necessity that can reduce long-term operating costs and prepare Syrian products for global markets.

A boy carries balloons as shoppers stroll through the old market in Damascus ahead of the Eid al-Adha holiday on May 26, 2026. (Photo by LOUAI BESHARA / AFP)

Institutionalizing partnership

The convening of the private sector dialogue in Damascus for the first time since its launch in 2018 marked a milestone in institutionalizing and localizing the process.

The question now, observers ask, is how far this shift can help bridge the “perception gap” and build mutual trust and accountability between traders and industrialists on one side and government institutions on the other.

Syrian economist Ziad Arabsh said the move contributes to narrowing that gap by transferring discussions from exile to the domestic arena, where industrialists, traders and government officials confront the same challenges, including electricity, raw materials and procurement.

He said trust is strengthened through direct dialogue without international intermediaries, while bringing all stakeholders together in one place creates social pressure to follow through on commitments.

Arabsh added that institutionalization helps bridge perceptions by transforming dialogue from a temporary initiative into a permanent institutional mechanism linked to the Ministry of Economy and UNDP. The conference, he said, also turns discussion from a theoretical exercise into a practical decision-making process.

Since the fall of the former regime, the Syrian government has been working to restore economic growth and attract domestic and foreign capital to participate in rebuilding the economy.

The World Bank estimated in November 2025 that rebuilding Syria would cost about $216 billion, while direct physical damage to infrastructure and residential and non-residential buildings amounted to roughly $108 billion.

Given the caution of foreign investors, experts broadly agree that expatriate Syrian capital and diaspora networks represent the most realistic and fastest source of financing in the near term.

Arabsh said translating policy recommendations into implementation plans with binding timelines requires a clear institutional mechanism. This should include a joint executive committee tasked with converting recommendations into action plans and specific projects, establishing implementation schedules, linking plans to realistic budgets, creating monitoring and evaluation systems, and tying compliance to incentives and penalties.

Without binding deadlines and public accountability, he said, recommendations risk remaining merely words on paper.

Regarding legal guarantees and banking mechanisms designed to encourage expatriate capital to return, Arabsh pointed to the protections contained in Law No. 114, including safeguards for private and industrial property, regulations guaranteeing the transfer of profits in foreign currencies, easier financial transfers from abroad, concessional financing for joint ventures and the activation of leasing finance.

He added that investment incentives include tax exemptions lasting between five and 10 years, industrial land at symbolic prices in industrial cities, and build-operate-transfer partnerships with the public sector that preserve state ownership while allowing efficient private-sector management.

Arabsh also highlighted diaspora initiatives, including European Union and International Fund for Agricultural Development support for members of the Syrian diaspora to strengthen agricultural investment, as well as digital platforms such as “Bunyan Syria” that connect expatriates with reconstruction projects.

“Expatriates need legal certainty, banking liquidity and tangible incentives, not just emotional appeals,” he said.

An international co-financing platform

In concluding remarks, Arabsh stressed the strategic importance of building strong ties with international financial institutions.

He said the prominent involvement of UNDP and the Japanese government provides a trusted international guarantee that could encourage the World Bank, the International Monetary Fund and regional development banks to engage with Syria’s emerging economic landscape.

Arabsh argued that UNDP’s strength lies in its ability to create structural integration on two fronts: a local track focused on supporting livelihoods and developing the micro, small and medium-sized enterprise sector, and a strategic track aimed at improving the national business environment.

He concluded that the most urgent priority today is to transform the dialogue into a “co-financing platform” capable of bringing together public resources, donor funding and private capital within a single productive framework, ensuring that the diverse capacities of the private sector evolve from a tool of resilience and survival into a genuine driver of sustainable economic revival.



Oil Stocks in US Strategic Petroleum Reserve Fall to Lowest Level since 1982

Crude oil, gasoline, and diesel storage tanks at Kinder Morgan's facility in Los Angeles (Reuters)
Crude oil, gasoline, and diesel storage tanks at Kinder Morgan's facility in Los Angeles (Reuters)
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Oil Stocks in US Strategic Petroleum Reserve Fall to Lowest Level since 1982

Crude oil, gasoline, and diesel storage tanks at Kinder Morgan's facility in Los Angeles (Reuters)
Crude oil, gasoline, and diesel storage tanks at Kinder Morgan's facility in Los Angeles (Reuters)

Stocks of crude oil in the US Strategic Petroleum Reserve fell to 283 million barrels last week, the lowest level since October 1982, according to data from the Department of Energy, Reuters reported.

The drawdowns are part of a US agreement to release 172 million barrels from the facility.

Additionally, the Trump administration last week said it is offering to loan energy companies 40 million barrels of oil from the Strategic Petroleum Reserve.


Saudi Market Resumes Decline Under Pressure from Banking Sector

A man monitors trading screens in the Saudi market (Saudi Exchange)
A man monitors trading screens in the Saudi market (Saudi Exchange)
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Saudi Market Resumes Decline Under Pressure from Banking Sector

A man monitors trading screens in the Saudi market (Saudi Exchange)
A man monitors trading screens in the Saudi market (Saudi Exchange)

The Saudi Exchange's main index, TASI, resumed its decline at the close of Monday's trading, falling 0.25 percent to 10,479 points.

The decline was driven by losses in a number of stocks. On Sunday, the index had ended a losing streak, rising about 1 percent.

Riyadh Development Company (Ridan) led the decliners, falling 4.43 percent to SAR18.13, followed by SNB, which dropped 2.77 percent to SAR38.60, and BSF, which fell 2.75 percent to SAR19.80.

On the other hand, Saudi Fisheries Company led the gainers, rising 9.96 percent to SAR51.90, followed by East Pipes Integrated Company, which gained 7.70 percent to SAR184.70, and Leden, which rose 6.98 percent to SAR1.84.


Saudi Arabia's SAL Expands Logistics Options as Global Trade Map Shifts

A SAL booth at the Saudi Warehousing & Logistics Expo (Asharq Al-Awsat)
A SAL booth at the Saudi Warehousing & Logistics Expo (Asharq Al-Awsat)
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Saudi Arabia's SAL Expands Logistics Options as Global Trade Map Shifts

A SAL booth at the Saudi Warehousing & Logistics Expo (Asharq Al-Awsat)
A SAL booth at the Saudi Warehousing & Logistics Expo (Asharq Al-Awsat)

The speed and cost of transporting shipments are no longer the only factors determining companies' choices in the logistics services market. Geopolitical disruptions and changes in global trade routes have redefined the concept of supply chain efficiency. Securing transportation alternatives, the ability to shift quickly between routes and modes of transport, and ensuring the uninterrupted flow of goods have become more prominent factors in customer decisions.

In Saudi Arabia, this shift is reflected in growing demand for integrated logistics services, alongside the expansion of industrial activity, imports, and infrastructure investment. Companies operating in the sector are taking advantage of this trend to expand their operational capabilities and develop solutions that combine air, land, and sea transport, providing greater flexibility in response to changes in global trade.

SAL is among the leading beneficiaries of this demand, having recorded its highest quarterly revenue in its history during the second quarter of this year, at SAR512.1 million ($136.6 million), up 30 percent year on year. Net profit rose 18 percent to about SAR191 million ($50.9 million). In the first half of the year, revenue increased 23.1 percent to SAR957.9 million ($255.4 million).

Rayan Al-Bakri, CEO of SAL's logistics business, said that "reliability and flexibility have become among the most important factors influencing customer decisions and global supply chains." He noted that when certain trade routes or transportation channels face operational challenges or unexpected changes, customers turn to solutions that ensure business continuity and speed of access to markets.

He added in an exclusive statement to Asharq Al-Awsat that SAL is seeing growing interest in integrated logistics solutions that combine more than one mode of transport according to each customer's needs. He explained that the company does not view air or land freight as direct alternatives to sea transport, but rather as complementary elements within a single system designed to achieve efficiency and flexibility in the movement of goods.

Al-Bakri said that "goods always find a way to reach the end customer, with the means varying," noting that the company continues to leverage strategic partnerships to expand logistics connectivity options for customers.

In this context, he pointed to SAL's cooperation with SPARK Logistics to activate a new land corridor between the Port of Sohar in Oman and the dry port at King Salman Energy Park (SPARK). He said the route strengthens regional trade flows and increases the flexibility and reliability of supply chains.

He also pointed to increased operating capacity at airports and the provision of solutions to receive and accommodate demand from customers and partners in the domestic and Gulf markets, alongside connecting airports through an integrated operating network to enhance supply chain flexibility.

Positive Demand Outlook

Al-Bakri views the outlook for demand for SAL's services positively in the coming period, amid continued growth in inbound shipments and expanding imports of spare parts and equipment related to industrial activities, as well as rising demand for more integrated and flexible logistics solutions across the region.

According to Al-Bakri, this outlook is based on several factors, including the diversity of the customer base, the expansion of specialized logistics services, and the investments the company is making to strengthen its operational capabilities and infrastructure.

Domestic consumption and the building of strategic inventories for most products are also creating opportunities for sustainable growth across the sector as a whole.

At the same time, the sector is dealing with a range of global variables that could affect profitability and operating costs, including transportation, insurance, and energy costs, as well as geopolitical developments that could affect international trade flows.

Al-Bakri said SAL is focusing instead on improving operational efficiency, increasing productivity, leveraging modern technologies, and diversifying revenue sources to support sustainable performance over the long term.

He added that the ability to adapt quickly to changes, along with operational discipline and continued investment in value-added services, would remain among the key factors supporting the company's performance in the coming period, ensuring business continuity and maintaining service levels for partners and customers across different sectors and services.

Infrastructure Expansion

Investment in infrastructure and operational capabilities is a key part of SAL's growth strategy. The company is working on a range of parallel initiatives aimed at increasing operational readiness, enabling the logistics sector, and strengthening the Kingdom's position as a global logistics hub.

Al-Bakri said the company's current priorities include expanding operational capabilities at airports across the Kingdom, developing SAL logistics zones, and investing in digital solutions and smart technologies that improve operational efficiency and accelerate the flow of shipments through the various stages of the supply chain.

SAL is also focusing on developing infrastructure that supports specialized services and integrated logistics solutions in line with the needs of the Kingdom's vital and growing sectors.

In this context, Al-Bakri said the company is continuing to expand its international presence through the acquisition of Aviapartner Liège, strengthening connections between its customers and one of Europe's air cargo hubs and supporting SAL's reach across global trade routes.

At the same time, the company is expanding its network of global partnerships supporting the development of advanced infrastructure and logistics services. These include two memorandums of understanding signed with CIMC Middle East to explore cooperation opportunities in cargo handling systems, automation, robotics, and autonomous vehicles.

The areas of cooperation include developing facilities and warehouses within SAL's logistics zones and attracting global investments and companies to the Kingdom, strengthening its position as a regional hub for manufacturing, logistics services, and international trade.

Automation and Specialized Services

As part of its digital transformation, SAL continues to invest in modern technologies and smart solutions, including cooperation with Huawei Tech Investment Saudi Arabia to explore applications of artificial intelligence, 5G, and cloud computing in the logistics sector.

Al-Bakri said these efforts support the development of smarter logistics zones, improve operational efficiency, and enhance the customer experience across the various stages of the supply chain.

At the same time, specialized logistics services, particularly pharmaceutical, medical, and temperature-controlled shipments, continue to grow amid the high levels of precision and reliability required by these sectors.

He said these services are becoming increasingly important within SAL's strategy because they require advanced operational capabilities, specialized infrastructure, and specialized expertise, in addition to the value they provide to customers.

According to Al-Bakri, the company continues to accelerate its automation and digital transformation efforts through investment in smart technologies and solutions that improve operational efficiency, handling accuracy, and decision-making speed.

SAL is also focused on sustainability by adopting practices and solutions that contribute to more efficient use of resources and support the objectives of the logistics sector in the Kingdom.

Al-Bakri said the company's direction is to expand specialized and integrated services, support them with modern technologies, and develop more sustainable logistics solutions that meet customer expectations and keep pace with the transformation taking place in the sector at both the regional and global levels.