Damascus, Aug. 6 (SANA) The International Monetary Fund’s assessment of the sustained momentum of Syria’s economic recovery reflects the country’s transition toward a largely balanced trajectory, as banking legislation and financial reforms adopted after liberation have helped establish a more stable environment for attracting investment and supporting sustainable economic recovery.
The IMF report, issued on August 4, serves as a key starting point for understanding the financial and economic transformations underway in Syria. It confirms that the Syrian economy is moving along an upward recovery path, with growth expected to exceed 10 percent this year and strong performance projected through 2027.
The Fund attributes this improvement to several interconnected factors, most notably the gradual return of confidence to the markets, improved performance across productive and service sectors, and Syria’s increasing integration into regional and international economies.
Syrian Finance Minister Mohamed Yisr Barnieh welcomed the IMF’s assessment of improved growth and fiscal performance, stressing that the evaluation represents an important message that reinforces confidence in the reforms the government is implementing to restore macroeconomic stability and support recovery.
Comprehensive monetary reforms
The IMF’s positive assessment coincides with a series of reform measures implemented by the Syrian government over the past year and a half aimed at restructuring fiscal and monetary policy.
In addition to restructuring the general budget and establishing a macro‑fiscal policy unit—created in cooperation with the IMF to develop a medium‑term fiscal framework that strengthens financial discipline—the introduction of the new Syrian pound through the removal of zeros has become a key pillar for facilitating transactions and reducing inflation.
In a statement to SANA, President of the Syrian‑French Business Council Jamal al-Qasemi said Thursday that the redenomination process is a step in the right direction toward curbing inflation and is part of broader monetary reforms that mark the beginning of an economic revival in Syria. He added that this approach has proven successful in many countries, particularly Türkiye, which suffered from inflation prior to the economic boom that positioned it as a leading global economy and a competitor to EU states.
The reforms also included developing banking legislation, strengthening anti‑money‑laundering and counter‑terrorism financing frameworks, and improving the quality of economic statistics—measures that support monetary policy efficiency and restore confidence in the banking sector. Additionally, Syria has gradually resumed using the international SWIFT financial system following the lifting of Western sanctions, facilitating external transfers.
Transformations in the financial environment
With progress in lifting economic sanctions, the repeal of the Caesar Act, and Syria’s removal from the list of state sponsors of terrorism, the financial environment has begun to shift significantly.
These steps have removed legal and psychological barriers for investors and global banks, gradually opening the door for the return of banking operations, facilitating financial transfers, issuing commercial credits, and creating favorable conditions for reconstruction and infrastructure projects.
In this context, former U.S. Assistant Secretary of State for Near Eastern Affairs Barbara Leaf said in an earlier interview with SANA that “removing Syria from the list of state sponsors of terrorism has a positive economic impact, as businesspeople and investors no longer fear legal repercussions from the United States related to dealings with a country previously designated as supporting terrorism.”
Creating an investment‑friendly environment
Despite this progress, the IMF assessment indicates that the next phase requires completing a set of measures to strengthen financial stability and attract further investment.
These measures include developing banking and investment legislation to make them more competitive, and improving the quality of economic statistics to support national economic stability and enhance Syria’s integration into the international financial system.
Al-Qasemi told SANA that reactivating banking transfers to Syria—interrupted for more than fifty years—is the most important factor in improving the investment climate.
He also highlighted the importance of providing guarantees to companies seeking to invest in Syria. He noted that during a session held last month with Minister of Economy and Industry Nidal al‑Shaar, Syria announced plans to establish arbitration centers as a key pillar for reassuring investors by providing a transparent international legal framework that supports the business environment.
Leaf, in a previous interview with SANA, emphasized the need for the Syrian government to modernize the legal system, investment laws, financial and banking regulations, and the banking sector, noting that most legislation and regulatory frameworks require updating to align with 2026 standards and create an attractive environment for investment and economic activity—whether for Syrians abroad, government investors, or the private sector.
Urgency of easing financial restrictions
Accelerating the implementation of sanctions‑lifting measures is a decisive factor in driving investment in Syria, as it provides international banks and companies with greater legal clarity and reduces compliance risks that previously hindered the entry of foreign capital.
This clarity opens the door to direct investment flows and enables the private sector to lead growth in energy, infrastructure, and services—enhancing the Syrian economy’s ability to achieve sustainable expansion and regain its role in regional and international markets.
Although former U.S. President Donald Trump notified the removal of Syria from the terrorism list, Leaf noted that the process requires additional steps that may take up to 45 days for U.S. congressional approval before becoming final and enforceable.
She added that this process is a highly significant step in encouraging investment in Syria, which suffered from decades of sanctions that directly discouraged investors. She noted that investment flows may take time to materialize.
At this stage, Syria needs international support that goes beyond temporary humanitarian relief toward a long‑term development‑financing path that enables the launch of comprehensive reconstruction—requiring substantial investment in infrastructure, energy, and the rehabilitation of the oil and gas sector. Such efforts would rebuild the essential economic foundations needed for sustainable recovery and strengthen the country’s ability to regain its activity and regional role.
R A H / H.H
