Syria’s Acting Finance Minister Faces Daunting Economic Challenges
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Following the recent overthrow of President Bashar al-Assad by Islamist rebels, Syria’s acting finance minister, Riad Abd El Raouf, is confronting significant economic hurdles. Appointed by Assad in September 2024, Raouf, 49, is the sole member of the former regime to retain a top cabinet position. With a doctorate in accounting and auditing from France’s Université Paul Verlaine and fluency in Arabic, French, and English, he previously taught at Damascus University and chaired the Commercial Bank of Syria.
Immediate Actions to Stabilize the Economy
Since Assad’s departure on December 8, Raouf has taken swift measures to stabilize Syria’s economy. He successfully reopened a crucial border crossing with Jordan, which had been closed during the conflict, facilitating trade and the movement of goods. Additionally, Raouf implemented policies that calmed panic selling of the Syrian pound, restoring its value to 13,000 to the dollar.
Despite these initial successes, Raouf faces formidable long-term challenges. The World Bank reports that Syria’s economy has contracted by 85% since the civil war began in 2011. Foreign currency reserves are critically low, estimated at around $200 million, while debt to Iran, a key ally of the former regime, ranges between $30 billion and $50 billion.
Compounding these issues is Syria’s international isolation. The ruling group, Hay’at Tahrir al-Sham, is designated as a terrorist organization by both the United States and the United Nations. This designation, along with pervasive international sanctions, severely hampers efforts to revive the Syrian economy. According to data provider Castellum.AI, Syria is the third-most sanctioned country globally, following Russia and Iran. Notably, the Syrian government has had no formal engagement with the International Monetary Fund (IMF) since 2009.
Potential International Support
Despite these obstacles, there are incentives for the international community to assist in Syria’s reconstruction. Countries like Turkey and various European nations are interested in facilitating the return of approximately 4.5 million Syrian refugees. Additionally, the United States and Arab Gulf states aim to diminish the influence of Iran and Russia in the region. An IMF spokeswoman has indicated that the organization “stands ready to support the international community’s efforts to assist Syria’s reconstruction as needed, and when conditions allow.”
Raouf’s ability to navigate these complex challenges and secure international support will be crucial for Syria’s path toward economic recovery and stability.
