Under Bashar al-Assad, more than a decade of heavily centralized mismanagement, cronyism and conflict left Syria’s economy essentially in ruins. While Assad is now gone, Syria is still facing a tattered economy, international sanctions and reconstruction costs estimated to be in the billions. Foreign investors are also wary of business with Syrian companies or associations with the post-Assad authorities under caretaker President Ahmad al-Shara’a. While Damascus has taken steps to address corruption by investigating regime-linked businesses, the current approach remains highly centralized. Instead, there should be a renewed focus on small businesses and community needs as a framework for revitalizing the Syrian economy. This is best achieved by empowering small and micro-enterprises, promoting transparency and accountability and developing an overall more competitive market.
Empowering small & micro-enterprises
Syria has the opportunity to empower its private sector and build a healthy economy free of state corruption. Under Assad, regime-linked individuals monopolized key industries, with figures like Rami Makhlouf controlling major companies such as SyriaTel (until Makhlouf’s very public fallout with Assad in 2020). Even with Assad now in Moscow, crony elites and opportunists can still prey on Syria’s economy in this vulnerable moment of transition.
To counter this, small and micro-enterprises should be empowered and given space to flourish. In the immediate short term, focusing on Syria’s agricultural sector could be a huge boost to workers and the larger economy, not to mention supporting overall food security. Women-owned businesses, too, should be given an opportunity to establish themselves and expand. Small business owners would benefit most from funding for training programs, specialized technical support and partnership-building. In turn, these enterprises can create jobs, improve local economies and foster long-term stability.
Promoting transparency & accountability
In addition to the weight of sanctions, Syrian companies also suffer from the stigma of Assad-era corruption. The Syrian diaspora can play a crucial role in attracting foreign investment by supporting businesses that prioritize ethical and transparent practices. Authorities could also create independent legal committees to review current laws and propose amendments to hold businesses accountable and foster investor confidence.
Developing competitive markets
To make the Syrian market more competitive, business owners would benefit from community-expert dialogues and connections with producers in the foreign market. This requires fostering connections between business owners, industry experts and foreign producers. Expanding networks beyond provincial boundaries will allow small enterprises to collaborate across regions, unlocking new markets and partnerships in the process. Cooperation and communication not only opens new markets and partnerships but also improves their collective bargaining power with the relevant authorities.
Community-focused rebuilding
Rebuilding Syria’s economy has largely been framed around international sanctions and government policies, often overlooking local communities. This approach has so far sidelined the needs and interests of small businesses and their communities. Local communities and small businesses would benefit greatly from funding to support training and capacity-building, all in order to rebuild a more resilient and competitive Syrian economy.
