Interview: Amir Rahwan, CEO, National Islamic Bank, on how sharia- compliant lending, policy reforms and digitalisation can help accelerate the reconstruction agenda
How do you expect customer preferences and demand for retail banking services in Syria to evolve?
AMIR RAHWAN: Demand in retail banking is being shaped by several opposing forces. On the one hand, liquidity constraints have pushed banks to impose strict withdrawal limits, which naturally slow the adoption of newer banking channels. Cash still dominates, and international remittances are mostly paid out in cash as well. On the other hand, the demographic reality is impossible to ignore. Around two-thirds of the population is under 35, and as reconstruction picks up, this younger group is expected to enter the workforce in much larger numbers. Many of them have never held formal savings or needed a bank account because unemployment has been so high, but regular employment will change that. As more young people earn consistent income, they will need places to keep savings, receive salaries and eventually invest. Given their expectations around speed and ease of use, demand is likely to shift away from purely branch-based, cash-only models and towards mobile-first, accessible digital platforms.
In what ways can digital transformation reshape service delivery across the banking sector?
RAHWAN: Digital transformation has the potential to reshape the sector end-to-end. Even in a market where cash is still used for the majority of daily transactions, digital capabilities can cut operating costs, improve efficiency and deliver a better customer experience. There are several areas where transformation could make a meaningful difference. Digital onboarding would simplify account opening and reduce pressure on branches. E-payments and e-wallets could introduce new ways to handle day-to-day transactions, even if adoption starts slowly. Over time, these tools can help shift behaviour by giving customers faster, more convenient options than physical cash. As long as services are designed around what people actually need, resistance is unlikely to be a major barrier. Once digital channels prove reliable and easy to use, habits can change fairly quickly, even in markets with strong cash preferences.
What policy, regulatory or market reforms do you view as critical to expanding financial inclusion?
RAHWAN: Several reforms could move the needle on financial inclusion. Enabling remote onboarding would make it far easier for people outside major cities to access banking services. Allowing simplified or lower-tier know-your-client requirements for small accounts could help customers who may not have full documentation. Expanding agency banking would extend reach to underserved areas without requiring new branches. A national payment switch would also be significant. Enabling card interoperability across all banks would make electronic payments more practical and consistent. Additionally, creating a national digital identity verification platform would support secure digital onboarding – something currently missing.
How could sharia-compliant financing models support Syria’s reconstruction needs?
RAHWAN: Sharia-compliant models are built on shared risk and reward and they are asset-backed transactions, which align well with the needs of borrowers in housing, manufacturing and other reconstruction-related sectors. In an ijara (leasing) structure, for example, the bank purchases an asset and leases it to the customer, either as an operational lease or as a lease-toown arrangement. That removes the need for upfront collateral. Diminishing musharaka (joint venture) and other partnership-based models offer a similar benefit: the institution provides capital or assets, enters into a shared-ownership arrangement, and the customer buys out the bank’s share over time. Profits are shared throughout the partnership. These approaches broaden access to financing for segments that might struggle to qualify under conventional lending rules, making them well-suited to Syria’s overall reconstruction agenda.
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