Syria faces immense challenges in rebuilding its war-torn infrastructure
Date
12/31/2024 4:44:04 AM
(MENAFN) After over a decade of devastating conflict, Syria faces immense challenges in rebuilding its war-torn infrastructure. Key sectors such as agriculture, industry, education, health, and energy have all been severely impacted. Experts predict that it will take over a decade to rebuild the country fully. This report highlights five key economic issues the new government in Syria faces: the looted funds, the fate of the Syrian pound, the country's mounting debts, the cost of reconstruction, and the lasting impact of international sanctions.
According to a report by the Financial Times, during the years when Syria was heavily indebted to Russia for military support, the Syrian central bank transferred around $250 million to Moscow. This money was transferred in cash and included nearly two tons of $100 and €500 notes sent to Vnukovo airport in 2018 and 2019. The Assad regime’s assets also include at least 18 luxury apartments in Moscow, with members of Assad’s extended family acquiring various assets in Russia during that time. Before the Syrian civil war broke out, Syria’s dollar reserves amounted to approximately $18.5 billion, and the country held about 25 tons of gold. However, much of this wealth, including funds and assets, has been secretly moved or looted by the Assad regime, with some wealth hidden in Swiss banks.
On the future of the Syrian pound, Adnan Abdul Razzaq, a Syrian journalist and analyst, points out that its value depends on economic, psychological, and political factors, particularly political stability. He notes that the Syrian pound briefly improved after Assad’s fall, but its future value is tied to Syria’s ability to produce and export goods, bringing in hard currency. Caretaker Economy Minister Bassel Abdel Hanan previously discussed plans to stabilize the Syrian pound, with the primary goal being to prevent its collapse. He emphasized that political stability, increased production, and exports would be key to strengthening the currency and stabilizing the market. Financial management professor Firas Shaabu from Turkey's Basaksehir University suggested that the recovery of the Syrian pound will take time. He noted that while the currency's value has significantly deteriorated, there is potential for recovery if Syria can stimulate its economy, restore trust in state institutions, and boost its GDP. In 2010, Syria’s GDP was $61.3 billion, but it has since fallen to just $7.4 billion in 2023.
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