Syrian opposition allegedly assures a system of unrestricted commerce.
Syrian opposition allegedly assures a system of unrestricted commerce.
The Syrian government, as reported by its primary trade union, has revealed plans to establish a free market economy. As stated by Bassel Hamwi, chairman of the Damascus Commerce Chamber, this will be a system based on competition. This decision represents a substantial shift away from decades of state-controlled corruption.
Hamwi spoke following a meeting with a government delegation led by interim Syrian economy minister Bassel Abdul Asis. Abdul Asis and government spokespeople remained unreachable for comment at the time.
According to Hamwi, Abdul Asis proposed dismantling the complex customs system, a longtime request from traders and industrialists. Hamwi stated that any registered business would be allowed to import goods, subject to specific regulations. He also reported an increase in inquiries from Syrian businessmen abroad regarding the new government's trade policies, encouraging their return to Syria. He emphasized the substantial investment required for reconstruction, industry, and the service sector: "These individuals will contribute significantly to Syria's development."
Syrian business leaders praised the initiative to make the Syrian economy investment-friendly, essential for post-civil war recovery. However, they expressed reservations about the new administration's commitment to its promises. "The society remains uncertain as to whether it will evolve into a liberal society or an Islamic state," a businessman from Beirut shared, requesting anonymity.
An Economy in Despair
Syria traditionally imposed strict import and export controls, constituting an opaque system that required traders to secure import licenses and exchange Syrian pounds for dollars at the central bank. This often resulted in delays and scarcities of essential commodities. Independent foreign currency trading was previously punishable by incarceration, but has since become common due to the fall of President Bashar al-Assad. The Syrian economy has suffered significantly from Western sanctions, the destruction of commercial and industrial cities like Aleppo and Homs during the conflict, and the decrease in foreign exchange earnings from oil exports. Estimated losses exceed tens of billions of dollars. Prior to the 2011 protests against Assad's rule, the Syrian pound traded at around 50 to the dollar. Currently, it is over 15,000, leading to skyrocketing inflation that leaves many shop owners struggling to set prices for their wares.
The stabilization and liberalization of the economy are deemed crucial by economists for attracting necessary investments and the potential return of millions of Syrians, many of whom are educated professionals who left the country during the conflict. "Syria has a substantial, educated, and relatively affluent diaspora that could celebrate double-digit growth rates for years," a high-ranking financial official from the region noted, choosing to remain anonymous.
The establishment of a free market economy as revealed by the Syrian government is seen as a significant shift away from decades of state-controlled corruption. Hamwi, chairman of the Damascus Commerce Chamber, believes that registered businesses will be allowed to import goods under specific regulations, attracting investment and potentially encouraging the return of Syrian businessmen abroad.