Cairo

Source: Al-Wafd newspaper

Dr. Ali Mohamed Al-Khouri

In light of the economic and political conditions witnessed by the Arab region, it has become necessary to understand the strategic relationship between Syria and the Arab countries within a more integrated framework. It is not enough to look at Syria as a country suffering from crises, but we must address it as an integral part of the Arab entity, and realize that its economic and political stability constitutes a necessary pillar for the stability of the entire region. The discussion table must go beyond the idea of ​​immediate support, to reach the formation of a more comprehensive vision that adopts long-term development paths, allowing Syria to overcome its crises and rebuild an economy capable of contributing effectively to the Arab economic system.

Relations between Syria and its Arab neighbors, most notably Saudi Arabia, the UAE, and Egypt, have long been a model of strategic partnership that combines shared history and vital economic interests. In this context, there is a need to develop this partnership in a way that facilitates its transition from the stage of traditional cooperation to a deeper level based on long-term investments. Although national initiatives such as Saudi Arabia’s Vision 2030 and the UAE’s Vision 2071 aim to achieve major economic transformations, their strategies can expand to include supporting economic reconstruction in Syria, through joint projects that serve the interests of all parties. The Arab economic cooperation model – if seriously adopted – is capable of transforming Syria’s economic landscape from dependence on external support to building a productive economy that contributes to narrowing the economic gap in the region.

The issue of inflation in Syria is one of the most pressing challenges, as ongoing conflicts, corruption, and the occupation of some of its lands containing agricultural and oil resources have led to high inflation rates, a deterioration in the value of the local currency, and negatively affected citizens’ ability to bear the burdens of living.
Reports indicate that the inflation rate in Syria has reached unprecedented numbers, reflecting the depth of the economic crisis in the country. Inflation in April 2024 reached 120.4%, with monthly inflation of 7.6%. According to a World Bank report in May 2024, the poverty rate in Syria reached 69% of the population in 2022, with the extreme poverty rate reaching 27%.

Addressing the problem of inflation requires regaining control over national resources and redirecting them to support the local economy, in addition to implementing structural reforms aimed at curbing corruption, which in turn will restore confidence to citizens and enhance growth opportunities.

Although the current challenges seem complex, the solutions are not far-fetched. Reviving the Syrian economy requires providing an attractive investment environment for Arab and foreign capital, improving the legal framework that regulates investments, ensuring the protection of investors’ financial rights, and providing clear and transparent mechanisms for resolving commercial disputes. Global studies indicate that stimulating investment environments are capable of attracting capital that contributes to raising productivity, providing new job opportunities, and contributing to reducing inflation and achieving long-term economic stability. It cannot be overlooked that capital seeks stable and organized environments, and when these criteria are met, Syria will be able to attract investments that can contribute to rebuilding its infrastructure and diversifying its economy.

Many countries also offer successful experiences in overcoming economic crises through policies that support small and medium-sized industries and are keen to expand the production base. South Korea is an inspiring model, as it adopted integrated economic policies that included supporting emerging industries, which enabled it to transform from a developing economy to a global economic power. Applying a similar model – after adapting it to the Syrian reality – could form the basis for strengthening the Syrian economy, providing job opportunities for youth, and opening new horizons for sustainable development. Supporting these industries will represent a fundamental pillar for rebuilding the economy from the grassroots, and will provide citizens with opportunities to grow and contribute to building their country.

In conclusion, it can be said that the Syrian economy needs a comprehensive vision that goes beyond temporary solutions and focuses on building institutions capable of absorbing challenges and achieving development. Real change will not be achieved through foreign aid alone, but rather through rebuilding trust between the government and citizens, and attracting investments that enhance regional integration and restore Syria’s position at the heart of the Arab economy.