Syria willing to co-operate with US to unlock US investment, Economy Minister says

Mohammed Al Shaar also makes case for US technology transfer as Syria continues global reconnection efforts

A stall surrounded by war-damaged buildings in a Damascus suburb in Syria. AP

Syrian Economy Minister Mohammed Al Shaar expressed willingness on Tuesday to co-operate with the US to reassure American businesses that their investments in the country would be secure.

The new Syrian government has been seeking to reconnect with the international community and global financial system after the toppling of former president Bashar Al Assad's regime in December.

Severe Assad-era sanctions imposed on the country by the US and others left Syria disconnected from the world during its nearly 14-year civil war.

“We're back with open hearts. We would like to co-operate. We believe in the American financial system,” Mr Al Shaar said on the sidelines of the International Monetary Fund and World Bank annual meetings in Washington.

President Donald Trump lifted most US sanctions on Syria during a Riyadh speech in May. And the US Senate last week moved towards repealing the 2019 Caesar Act, which imposed sanctions on Syria in response to the Assad government's war crimes.

Mr Al Shaar said at the time the decision marked the start of a new step in Syria's economic recovery, Syria's state-run news agency reported. The repeal of the Caesar Act, which is tied to a US defence policy bill, still requires approval from the House of Representatives.

“We believe that we can benefit from the models created in the US and we think that in Syria, the fact that we're coming out of nothing … that presents an opportunity for us to do things right the first time,” he said in a discussion at the Gulf International Forum.

“We believe that the US financial system is a unique system. It's a good system for us and we can follow up on it. To do that, we have to integrate ourselves into that system."

Experts say that the removal of sanctions alone is not enough to reassure investment. People tied to the Assad regime and other sanctioned figures such as ISIS remain in Syria.

When asked by The National on the priority to co-operate with US regulators on anti-money laundering and counter-terrorism finance, Mr Al Shaar said: “Definitely, that's number one. Of course that's our desire."

Mr Al Shaar also said a top priority would be to ask for a technology transfer, saying Syria has missed on technology and digitisation. He said Syria's young population can benefit from expertise in advanced technologies such as artificial intelligence, programming, cryptocurrencies and blockchain technology.

“Those three guiding principles will pretty much control everything we do, starting from infrastructure rebuilding, all the way to energy, all the way to SMEs. Everything we do those the overriding principles will govern our action.”

Regional integration

Mr Al Shaar said Syria was “completely deprived of everything” under the Assad regime – losing its technological and social advancements, as well as human capital.

Now, as Syria looks to make inroads on reconnecting with regional neighbours and the broader community, he said the government is operating under the principles of resilience, governance and transparency, and inclusion.

He also noted the importance of reintegrating Syria with neighbouring countries in the Arab world.

Gulf states and Turkey have led the push to invest in Syria since the fall of the Assad regime, with Qatar and Saudi Arabia paying off Syria's $15.5 million outstanding arrears to the World Bank, making it eligible for grants to help fund rebuilding costs.

Syria and a Qatar-led consortium signed a $7 billion deal in May to help rebuild its energy sector, while the new government in July signed an $800 million agreement with DP World to develop the port of Tartus.

Mr Al Shaar said that Syria is seeking investment opportunities, not international aid, to support its shattered economy.

“Our economic resources are limited, so we have to rely on our friends to provide investment opportunities. We're not going to ask for aid. We're going to ask for investment experience,” he said.