By Timour Azhari
DAMASCUS (Reuters) – Imposing Western sanctions on Syria’s banking sector is hindering crucial investments in the war-torn economy, despite substantial interest from both Syrian and foreign investors following the ousting of Bashar al-Assad, according to the country’s investment head.
“Sanctions have put a stop to everything. At present, they are primarily affecting the Syrian people and exacerbating their hardships,” remarked Ayman Hamawiye, the 36-year-old director of the Syrian Investment Agency, during an interview at his office.
Hamawiye was appointed to his position by the former rebels-turned-governing body Hayat Tahrir al-Sham after their rapid offensive that removed the ex-Syrian President Assad from power last year. Prior to this role, he was involved in managing Syrian crisis response initiatives and advising on economic policies within HTS’s administration in the rebel-held Idlib province.
Established in 2007, the Syrian Investment Agency was created to attract investments as Assad aimed to implement reforms to liberalize an economy that ultimately remained tightly controlled by his family and a select group of businessmen.
Hamawiye revealed that he receives numerous inquiries daily from predominantly Syrian, Turkish, and Gulf Arab companies, as well as some European entities, expressing interest in various projects such as constructing hospitals, implementing wind power initiatives, and developing real estate.
“However, they all express concerns about the challenges of investing due to the banking sector being subject to sanctions. Carrying millions of euros in a suitcase is not a viable approach to conducting business in today’s world,” Hamawiye expressed.
In January, the U.S. issued a six-month waiver for its Syria sanctions, directed towards the energy sector and financial transactions involving Syrian governing bodies, while maintaining sanctions on the central bank, thereby isolating Syria from the global financial network.
Additionally, at the end of January, the EU outlined a plan to gradually ease its broad Syria-related sanctions, potentially including the removal of certain restrictions on the banking sector, although specific details are still being finalized in Brussels.
“The measures taken regarding sanctions so far are insufficient,” Hamawiye critiqued. “In my view, it is in everyone’s best interest for these transactions to be conducted through a regulated and transparent banking system rather than informal channels for fund transfers,” he added.
(Reporting by Timour Azhari in Damascus; Editing by Ros Russell)
