By Timour AzhariDAMASCUS (Reuters) – Sanctions imposed by Western nations on Syria’s banking sector are creating obstacles for crucial investments in the battered economy, despite a significant desire from both Syrian and foreign investors following the removal of Bashar al-Assad. The head of Syria’s investment agency, Ayman Hamawiye, expressed concerns over the impact of these sanctions on the country’s populace and their economic struggles. Hamawiye, a 36-year-old appointed by the rebel-led Hayat Tahrir al-Sham following their successful campaign against the former president Assad, highlighted the challenges faced due to the restrictions on the financial sector.
The Syrian Investment Agency, established in 2007 during Assad’s tenure, aimed to attract investment and promote economic reforms. However, despite the interest from local Syrian businesses, as well as investors from Turkey, the Gulf Arab region, and Europe, Hamawiye noted the difficulty in executing investments due to the banking sector being under sanctions. The inability to conduct financial transactions through traditional channels is hindering potential projects, such as hospital construction, wind power initiatives, and real estate development.
Hamawiye emphasized the impracticality of carrying large sums of money in cash, stressing the need for formal banking systems for modern business dealings. While the U.S. granted a temporary waiver on certain Syria sanctions focused on energy and financial transfers, restrictions on the central bank persist, isolating Syria from the global financial network. The European Union is also deliberating on easing its extensive sanctions on Syria, potentially including measures affecting the banking sector, although specific details are still being finalized in Brussels.
Expressing dissatisfaction with the current status of sanctions, Hamawiye stressed the importance of conducting transactions through regulated and transparent banking systems rather than informal channels. The aspiration is for investments to flow through legitimate financial networks, ensuring oversight and accountability for all involved parties, as the Syrian economy continues to grapple with the aftermath of conflict and instability.
(Reporting by Timour Azhari in Damascus; Editing by Ros Russell)
