Interview: Mohammed Al Shaar, Minister of Economy and Industry, on balancing financial recovery with new production models
By what means should the country balance the restoration of pre-war industries with the development of new areas of economic activity?
MOHAMMED AL SHAAR: Reconstruction cannot be limited to restoring the production systems that existed before the conflict. Syria has missed approximately 15 years of technological development and many factories, tools and operating models are now obsolete. The immediate priority is to revive activity while upgrading technology, production methods and know-how. At the same time, unemployment requires an early focus on labour-intensive industries capable of absorbing large numbers of workers. Textiles, building materials, construction, roads and railways can all contribute, while investment in technology should increase productivity across industry, agriculture and services.
This will be costly and Syria’s domestic financial resources are limited. Partnerships will be essential to bring capital, technology and expertise. Energy costs remain a constraint but the authorities expect higher domestic oil and gas production to improve supply and reduce costs over time. In construction and manufacturing, cooperation with Syrian and global investors can help restore capacity and secure raw materials.
What is required to reintegrate Syria into regional supply chains and the global financial system?
AL SHAAR: Syria’s geographic position gives it a natural role as a transit point connecting neighbouring markets and regional trade routes. Rebuilding transport, energy and logistics infrastructure can support the country’s reintegration into supply chains and create opportunities in transit and related services.
Financial reintegration is a parallel priority. The authorities have begun a gap assessment of the financial system and are working to bolster anti-money laundering and counter-terrorist financing frameworks. This includes establishing an independent entity responsible for overseeing compliance; preparing executive procedures; and seeking cooperation with international institutions, central banks and specialist entities.
Domestic private banks must strengthen their balance sheets, clean their books where necessary and raise capital. Technical connectivity alone is not sufficient: banks need correspondent relationships abroad before global payments can operate normally at scale. The removal of external restrictions and designations remains an important prerequisite.
How can the private sector, the diaspora and workforce development support economic recovery?
AL SHAAR: Investors need clarity, predictability, transparency, stability and good governance. These principles matter equally for local entrepreneurs and foreign firms because no business can invest confidently when the regulatory ground is shifting. The authorities are therefore working to improve the legal and institutional environment while drawing on international expertise.
The diaspora can play a major role. Syrians abroad combine knowledge of the local market with skills, capital and experience acquired overseas. Many are interested in returning or partnering with businesses inside the country. Their contribution may be particularly important for small and medium-sized enterprises, which can create employment and broaden the productive base more quickly than large projects alone.
Business councils are being established in multiple countries to connect diaspora communities with Syrian firms and institutions. These entities can help organise investment, transfer knowledge and identify commercial partnerships. Human capital inside the country must also be upgraded. Workers’ capabilities vary after years of disruption, so training, rehabilitation and professional development are essential. Investors entering Syria are being encouraged to bring training systems and prepare local employees before operations begin. This can improve productivity while ensuring that new investment develops lasting national capacity.
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