Damascus- US President Donald Trump announced the lifting of US sanctions on Syria in a historical step “to give it an opportunity” in a speech to the Saudi -American Investment Forum in Riyadh.
The announcement comes in conjunction with a significant improvement in the value of the Syrian pound against foreign currencies, as it recorded a remarkable increase today, Tuesday, to reach 8400 pounds against one dollar, compared to 11 thousand pounds yesterday, achieving an increase of about 23%.
Syrian Foreign Minister Asaad Al -Shaibani welcomed the US President’s statements regarding the lifting of sanctions on Syria, and described the decision as a pivotal turning point for the Syrian people, according to the Syrian News Agency (SANA).
SANA quoted Al -Shaibani as saying that Trump gave the Syrian people more than his ancestors who allowed war criminals to bypass the red lines, and stressed that President Trump can achieve a historic peace agreement and a real victory for American interests in Syria.
In this report, Al -Jazeera Net reviews the opinions of economic experts on this decision, its dimensions, and its expected effects on the economy and the level of living of the Syrians.
The dimensions of lifting the penalties
Economist Ziyad Arabash says that the US President’s decision to lift the sanctions on Syria “a historic event”, given “everything that the Syrians suffered in the past, and the size of their high hopes for the future.”
In a comment to Al -Jazeera Net – he indicates that the results of the Trump advertisement can be touched after the value of the Syrian pound improved today and 40%.
Arbash confirms that the psychological impact of Trump’s declaration seemed clear on the Syrian economy, expecting the economy to enter today for the first time in decades in order to “integrate the global economy”, especially if the European Union, as expected, will enter the path of the United States and lift sanctions on other sectors and new areas compared to the current lifting of its penalties that extend for one year only.
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He believes that the decision to lift economic sanctions on Syria will have many dimensions, most notably:
- Firstly: It gives positive signals to the international community and international organizations, especially after the positive results of the visit of the Syrian delegation to America and the return of work with the World Bank and the International Monetary Fund.
- secondly: Real possibilities to help many countries for Syria. For example, Saudi Arabia, Qatar and Turkey have sought in recent months to support the Syrian economy with unremitting efforts, and now it is easy to increase the aspects of bilateral and multi -party cooperation, in order to restore Syria’s economy to regional integration and access to global markets.
- Third: It is expected that the region as a whole will benefit if the lifting of basic service sectors that contribute to the rehabilitation of infrastructure in the country.
- Fourth: If the sanctions are suspended from the technology and technology sectors, the overall sectors of the economy will rise, especially since the sanctions included everyone who deals with the Syrian government, even if it belongs to Western countries.
- Fifth: Opening the way for Arab and international investment forums, including with Turkey, as well as the possibility of establishing companies working to meet the needs of the Syrian market, and at the same time aimed at exporting to foreign markets, which enhances the location of the Syrian lira and strengthens its position.
An attractive environment for investments
Syrian economist Younis Karim believes that the decision to lift sanctions on Syria gives a broader margin for the movement of regional states towards it, and provides both Saudi and Qatar, the most prominent supporters of the new Syrian administration regionally, to move investment within the country, support state institutions and salary financing, in light of previous Qatari pledges in this regard, and a direct Saudi encouragement for investors to contribute to reconstruction.
In the context of the expected effects of the decision, Karim adds in an interview with Al -Jazeera Net that the lifting of sanctions, especially for the Syrian Central Bank, leads to facilitating import and export operations, and enabling Syrians abroad to support the national economy in a more effective way, as well as to launch a general policy of internal political openness, and achieving a degree of stability that encourages attracting investments.
In the medium term, Karim believes that the decision may open the door to “focusing on transparency and governance, and it is also possible that the decision re -draw economic activity and economic philosophy in the country, and hold mini elections in regions, rural areas and cities for local councils, allowing the formation of an attractive formula for long -term investments.”
The economist expects that understandings will be reached with the Syrian Democratic Forces “SDF” to develop infrastructure, especially in the oil and road sectors.
Activation of censorship
For his part, economist Abdel Moneim Al -Halabi believes that the Syrian government must, in the near future, to activate a number of mechanisms to achieve a positive and actual impact of this decision on the life and level of living of the Syrians.
He pointed out that these mechanisms include:
- Activating government control over the prices of goods and services in proportion to the nominal value of the Syrian lira, and in a way that reflects positively on the purchasing power of citizens.
- Reducing the import of competing goods for national products, to support local production and achieve balanced economic growth that is compatible with the available liquidity, which contributes to establishing a sustainable economic balance based on real indicators.
- Update the infrastructure of the banking system and reliance on digital transformation, to reduce dependence on cache (cash deal).
- Enhancing the use of the Syrian pound in performing its traditional functions and reducing the dollar level.
- Providing public and balanced investment incentives, including tax benefits and credit facilities.
- Enhancing administrative and financial decentralization, to enable different cities and regions to contribute to the actual contribution to development decisions, focusing on the most affected areas of the war.
- Expanding the scope of local participation in development also contributes to creating the appropriate conditions for the return of refugees, by improving services and job opportunities in their original areas.
Al -Halabi concludes his speech to Al -Jazeera Net by noting that the Syrian government must also develop a five -year plan with clear goals and measurable and evaluation indicators in various sectors of the local economy.
US sanctions
US sanctions began on Syria since the 1980s, but they escalated dramatically after 2003, and reached their climax after the outbreak of the conflict in Syria in 2011, and Washington used it as a tool for political and economic pressure on the former Syrian regime.
With the outbreak of protests in Syria in 2011, the United States imposed a successive assertion of sanctions, especially targeting figures in the former Syrian regime, including ousted President Bashar al -Assad and members of his family, in addition to government entities such as the Syrian Central Bank, the ministries of defense and the interior, and military and security institutions, as well as the oil sector by banning and importing Syrian oil export, and obstructing foreign investments in energy, banks, companies, companies, companies, companies Financial transfer, which led to the isolation of Syria from the international financial system.
The Caesar Law, which was imposed by the United States of America on Syria in June 2020, was the most influential on the economy, and led to a major collapse in the exchange rate of the lira at the time, and its repercussions included punishing any party or person, whether inside or outside Syria, providing material, technical or financial support to the Syrian government, and his primary goal was to pressure to prevent any efforts to re -feed the regime or financing reconstruction without a political solution.
