Investing in Syria means banking on the country's future

One way to judge an economy’s health is by seeing how people pay for goods and services. A region once dominated by cash, many parts of the Middle East have adopted card and digital payments – a process spurred by smartphone adoption, government policy and the Covid-19 pandemic. A notable exception has been Syria . Isolated from global banking networks by decades of economic mismanagement, sanctions and war, Syrians made do with devalued local currency or a mix of foreign bills. In a sign of changing times, however, smiling officials were filmed this week using a new card payment system linked to the Visa and Mastercard networks. Paying with plastic might be a convenience many people now take for granted, but in Syria it is another step on the country’s path away from economic isolation. This journey received a major boost this week with news that Emaar founder Mohamed Alabbar is planning to invest as much as $18 billion (Dh65.10 billion) in the country. The Dubai businessman is assessing projects worth between $5 billion and $7 billion on the Syrian coast and up to $11 billion in Damascus and its surroundings. Play 01:59 UAE and Syria hold first business forum since Assad regime's fall Although notable for its ambition, this investment plan is not the first major UAE-linked vote of confidence in Damascus’s new direction. On Sunday, the two countries convened their first bilateral business forum in the Syrian capital, with a large UAE delegation of officials and businessmen arriving for the first time since the fall of the regime of Bashar Al Assad in December 2024. Syria received even more promising news a day later, with the EU restoring full trade and diplomatic ties with Damascus. The decision “sends a clear political signal of the EU’s commitment to re-engage with Syria and support its economic recovery”, the European Council stated. Even more valuable than these deals and agreements, however, is what they represent in real terms. Projects to revitalise the country’s tourism sector or to develop infrastructure – such as last year’s $800 million Tartus port deal between Syria and the UAE’s DP World – mean restored livelihoods and more money in the economy. Quote Projects to revitalise the country’s tourism sector or to develop infrastructure mean restored livelihoods and more money in the economy With substantial investments come stabilised markets, better salaries, a connected banking system, access to credit and functioning institutions. These all serve to loosen the grip of armed militias and dilute the appeal of the black market. Syria’s government – the guardian of the country’s transition – has a heavy responsibility to shoulder in making sure such opportunities are not squandered through corruption or patronage networks. This week’s major government shake-up by Syrian President Ahmad Al Shara – that included removing his elder brother Maher from a sensitive state position – should inspire confidence that complacency has not set in. In the meantime, steady steps forward– such as having a functioning credit card system – will hopefully reassure Syrians that when it comes to their future, they can bank on the state doing the right thing.