Emad ALshara Interview

The Syrian economy today stands at a crossroads, burdened by the lasting impact of war, international sanctions, currency depreciation, and weakened production capacities. Exchange rate instability, low investor confidence, and a fragile financial system continue to restrict growth and threaten the standard of living. However, with well-structured reforms and carefully implemented economic policies, Syria can set the foundation for recovery and long-term sustainability.

Drawing on decades of expertise in finance, corporate governance, and economic strategy, I propose a roadmap focused on stabilizing currency fluctuations, attracting foreign investment, and implementing both financial and monetary reforms tailored to Syria’s realities.

Addressing Exchange Rate Fluctuations

The Syrian pound has faced sharp depreciation, eroding purchasing power and increasing inflationary pressures. Stabilizing the exchange rate requires both immediate interventions and long-term strategies:

  1. Central Bank Independence – Grant greater autonomy to the Central Bank to implement transparent monetary policies free from political interference.
  2. Foreign Currency Reserves – Rebuild reserves through targeted export growth, remittances, and controlled inflows of foreign aid.
  3. Dual-Rate System Reform – Move gradually toward unifying official and parallel exchange rates to reduce market distortions.
  4. Encouraging Domestic Confidence – Incentivize savings and investments in local currency through higher-yield bonds and deposit schemes.

Mechanisms to Attract Foreign Investment

Foreign investment is a lifeline for reconstruction and growth, but Syria must rebuild trust with investors. The following mechanisms are essential:

  1. Legal and Regulatory Clarity – Establish transparent investment laws aligned with international standards, including protection of property rights and contract enforcement.
  2. Public-Private Partnerships (PPPs) – Encourage joint ventures in infrastructure, energy, logistics, and housing to attract regional investors.
  3. Investment Incentives – Offer tax holidays, customs exemptions, and repatriation guarantees for investors entering priority sectors.
  4. Diaspora Engagement – Mobilize Syrian expatriates with secure investment vehicles that allow them to contribute to reconstruction while ensuring returns.

Financial Policies for Economic Revival

To improve the Syrian economy in the near term, fiscal policies must aim at rebuilding state revenue while supporting vulnerable populations:

  1. Tax Reform – Modernize tax collection with digital systems, reduce evasion, and introduce progressive taxation for equitable distribution.
  2. Expenditure Prioritization – Focus public spending on critical infrastructure, healthcare, and education while minimizing non-productive expenditures.
  3. Strengthening Corporate Governance – Ensure transparency in state-owned enterprises and private businesses to build investor confidence.
  4. Debt Management – Negotiate restructuring of foreign debt and pursue concessional financing from friendly nations and development funds.

Monetary Policies for Stability

To complement fiscal reforms, the Central Bank must adopt targeted monetary policies:

  1. Inflation Control – Implement a cautious tightening of money supply to curb hyperinflation without stifling growth.
  2. Credit Support – Direct subsidized credit toward productive sectors like agriculture, manufacturing, and SMEs.
  3. Banking Sector Reform – Recapitalize banks, strengthen oversight, and adopt international standards such as Basel III to enhance financial resilience.
  4. Digital Payments Expansion – Promote e-payment systems to reduce reliance on cash, improve efficiency, and expand the tax base.

Conclusion

The road to economic recovery in Syria is undoubtedly complex, but it is achievable through coordinated reforms that address immediate challenges while laying the groundwork for sustainable growth. Stabilizing the exchange rate, restoring investor trust, reforming fiscal and monetary policies, and embracing transparency are critical first steps.

Syria has the potential to transform its economy from fragility to resilience. With disciplined leadership, structural reforms, and a commitment to sound financial governance, the nation can once again become a competitive player in the regional and global economic landscape.

Connect with Dr. Emad ALshara on LinkedIn

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