Experts believe that the process of encouraging investment in Syria is a strategic challenge that requires a mixture of local and international solutions, due to the large extent of the destruction of the country as a result of the war that has lasted and lasted years.
A report issued by the Syrian “response coordinators” team was conducted on January 2025, statistics for the destruction, which was inflicted on Syria through various survey tools.
The report concluded that 161 health facilities were damaged, 892 schools were destroyed, 4,626 km of roads, 51 bridges, 511 furnaces, 66 communications tower and 72 water stations. The report also reported that sewage networks were damaged with a length of 7393 km.
According to a report published by the specialized energy platform, more than 50% of the electrical infrastructure, including 59 conversion stations.
The cost of direct damage to the electricity sector in Syria was estimated at $ 40 billion.
According to a report published on the Al -Jazeera Net website, the energy sector in Syria was severely damaged, the almost complete collapse of the energy infrastructure, and the production of production from 380 thousand barrels per day to approximately 40 thousand barrels.
The Syrian ports, especially the port of Lattakia, were also suffered by major material damage as a result of repeated Israeli attacks in December 2021, which led to severe fire and material damage.
The infrastructure, which includes the electricity, energy, water, roads, and health facilities sector, as well as the industrial sector that is counting on to recover the Syrian economy, is the most urgent sectors for reconstruction and construction through various tools.
In this report, we review a number of options available to the new Syrian administration to implement major projects.
Administration contracts
In a special statement to Al -Jazeera Net, Dr. Abdel Rahman Jamous, who specializes in strategic management, believes that one of the options that may bear fruit in encouraging investment and establishing the infrastructure of Syria and its institutions is the application of management contracts between the state and the private sector.
The administration contracts are being implemented through the conclusion of agreements according to which the state is granted institutions of medium weight, such as oil factories, cotton and mills, to private companies that are managed by a contract, provided that the structure of these factories is developed by private companies in exchange for obtaining a percentage of profit, with the necessity of the state province The ownership of these institutions.
Dr. Jamous stresses the importance of applying management contracts by creating conditions to implement them, by enacting regulatory laws and procedures that regulate the process of implementing management contracts between the private sector and the state.
BOT system application
The BOT-OPERATE-TRARANSFer is an investment model in which the public and private partnerships are used to implement infrastructure and public services projects.
This system focuses on involving the private sector in financing and building and operating major projects for a specific period of time, then transferring the project ownership to the state.
Dr. Jamous believes that major projects such as ports, airports, and railways should be left investment until after the sustainability of stability in the country, as huge investments can be attracted to implement these projects with a BOT system (construction and operation and then transfer ownership to the state).
After the end of the decades of the BOT system, the ownership of the state is returned to the state, and it can be restarted through other contracts across the country.
Jamous believes that the application of the BOT system in Syria is a viable solution to the restoration and construction of many infrastructure projects, especially for the transportation and electricity sector.
https://www.youtube.com/watch?v=0mx_ynzQGEC
Privatization
Privatization is defined as the process of transferring the ownership of services and facilities from ownership of the public sector to ownership of the private sector.
The general goal of this process is to enhance the process of the economic cycle, and open the way for competition in the market, which should have a positive impact on consumers, as competition between companies will result in a decrease in the prices of goods and services as well as high quality.
In a special special statement to Al -Jazeera Net, the Syrian Minister of Economy said that privatization could take place at 3 levels:
- The first: The privatization of small and medium -sized companies, which were exposed to permanent losses during the era of the defunct system. The minister believes that these productive companies can be better managed by the private sector.
- The second: Partially allocate some of the state’s productive institutions, by making these institutions open to the contribution of the people and investors by making them joint stock companies, with 51% remain in the hands of the state.
- Third: The sovereign companies, such as the Electricity and Water Company, will often not be allocated, according to the minister.
In this context, Jamous believes that privatization is not beneficial to the country’s economy, and instead it is necessary to grant private companies to manage these laboratories, whose tasks are the restructuring of machinery and structure of institutions and to maintain employment.
Obtaining funding from international monetary institutions
Obtaining financing from international financing institutions may be one of the solutions offered by the new Syrian administration.
It is the International Monetary Fund and the World Bank For construction and construction is one of the most important monetary institutions for loans.
In this context, Dr. Jamous asserts that the loans may be one of the forms of support, because Syria has liberated the economy and is ready to deal with international monetary institutions.
On the other hand, others have warned against borrowing from international monetary institutions, to avoid the conditions and dictates they may impose on the state.
Establish joint stock companies
Dr. Jamous sees the necessity of offering the idea of establishing national joint stock companies, which are funded through a public subscription, and citizens are allowed to contribute to them, and their basic purpose will be the implementation of reconstruction projects in partnership with international companies with technical experience, to be a technical crane for this company.
The establishment of these joint -stock companies by encouraging local investors to establish companies specialized in reconstruction, and offering these companies to the public contribution so that citizens can participate and earn, and this would achieve financial gains and revenues that will remain within the country, which is national capital.
Jamous notes the importance of establishing sovereign funds in the country that supports local joint stock companies in a certain percentage, and foreign companies can contribute to it, but 51% remain for local shareholders.
https://www.youtube.com/watch?v=n9kf6buwaa
Preparing for an international donor conference
A report published on Al -Jazeera Net dealt with the importance of holding international conferences on financing for reconstruction in Syria.
It is important for the conference to meet the aspirations of the construction process and to guarantee a plan that is similar in terms of offering the Marshall project to rebuild Germany after World War II, to ensure that international aid and investments are directed towards rebuilding infrastructure and economy.
Restructuring of the tax system
In new economic schools, taxes are important tools, and they have a prominent role in financing the public treasury.
Yahya Al -Sayed Omar, the economist, says that the most important role in the issue of taxes is to direct and control the economy, because the government can through taxes direct investment and spending towards specific sectors.
The expert adds that the role and effectiveness of taxes may be low, and their application is often associated with negative aspects, especially indirect taxes, which are imposed on losing companies, winning, poor and rich.
In Syria, taxes cannot be relied upon to finance public expenditures, because most companies need support and tax exemptions, not the other way around.
With a different vision of Mr. Omar, a buffalo sees in reliance on taxes one of the options for supporting the state treasury, and indicates that the tax rate should not be less than 10%.
Practical planning
In addition to the funding options offered, the new economic management in Syria must rely on flexible stages that are appropriate to its current capabilities and future needs in a manner consistent with the available options that the report addressed.
Among these needs:
- Supporting small and medium industries as a first stage for economic advancement.
- Reforming economic policies, by liberalizing the economy while providing legal ground that supports competition.
- Adopting innovative financing strategies, such as directing loans and credits towards the targeted industries.
- Promote capital to support innovation and emerging projects.
- Enhancing efficiency and quality, by focusing on high -efficiency industrial sectors, which contributes to rebuilding the reputation of Syrian products.
