Syria reconnects to global finance, but ordinary Syrians are still struggling

DAMASCUS — On September 30, Central Bank Governor Mohammed Raslan posted on Instagram about carrying out his first Mastercard transaction at Dubai International Airport. It was the first transaction using a card issued by a Syrian bank, marking a new step in the country’s efforts to reconnect with global financial networks.

After 14 years of conflict and sanctions, Syria is attempting to establish a new financial system. But while bankers, economists and legislators are working to integrate Syria into global financial markets to attract investors, the day-to-day struggles of ordinary Syrians to afford even basic necessities remain. For most Syrians, the question remains: Will it lead to more jobs, better access to financial services and, ultimately, greater purchasing power?

Governor Raslan’s card transaction is a far cry from the streets of Damascus, where children weave in and out of traffic, selling bread to help support their families. Nearby, drivers at the gas pump complain about rising prices. These daily scenes reflect the economic hardship facing millions of Syrians. According to the UN, around 60 percent of the population is food insecure, with more than nine million people classified as acutely food insecure.

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The transitional government also faces growing pressure to provide essential services as more and more Syrians return home. According to the UN Office for the Coordination of Humanitarian Affairs (OCHA), more than two million internally displaced Syrians and 1.8 million Syrian refugees returned home between December 2024 and September 17, 2026. More are expected, especially if Germany decides to repatriate Syrian refugees. These returnees will put additional strain on the banking sector as they receive wages, transfer money and establish businesses, placing extra demands on a financial system already struggling to serve the population.

Despite the bleak outlook, bankers such as Omar Barhamji, CEO of Al Baraka Bank, seem optimistic about being able to cater to a new Syria. “When investments start establishing themselves in Syria, they will need workers, and workers need banks,” he said. “For the past 14 years, banks existed only in the main cities and were not able to provide their services everywhere.”

“When investments start establishing themselves in Syria, they will need workers, and workers need banks.”

Barhamji believes that expanding banking services could help alleviate poverty. Barhamji claims that each bank branch currently serves over 40,000 Syrians on average, a ratio he describes as a barrier to further investment. “We are the only country in the region that serves its population with such low capacity,” he said. However, the lifting of sanctions “allows Syrians greater flexibility in sending and receiving funds through their preferred channels and currencies,” Barhamji said.

However, while development initiatives are being launched under the patronage of the Ministry of Finance by the banking sector, where conventional, Islamic, and government banks have come together, Syria’s position on the Financial Action Task Force’s (FATF) gray list has hampered efforts. This designation affects how international financial institutions assess transactions and relationships with Syrian banks and how compliant they believe Syrian banks are when it comes to countering money laundering and terror financing. Despite these hurdles, Barhamji is optimistic. “Seeing the developments in the country, I think we will manage to leave the gray list soon. I have hope,” said Barhamji.

But not everyone is placing their hope on expanding Syria’s banking services. Local banking services cannot manage the physical reconstruction costs of homes, properties and infrastructure, which, according to a World Bank Group report, are estimated at $216 billion. Physical reconstruction costs are equivalent to nearly ten times the country’s projected 2024 GDP.

Abeer Asa’ad, a financial expert at Karam Shaar Consulting, argues that the country’s financing needs exceed the capacity of local banks. She pointed to the need for structural reforms, restored confidence among depositors and investors, and a stronger relationship with international banks that act as intermediaries.

Domestic resources remain scarce, global energy prices continue to rise, and supply chains face mounting complexities, Asa’ad said, adding that Syria’s opening to the global economy has not been accompanied by any tangible decline in prices. Instead, inflationary pressures persist, as well as the economy’s heavy reliance on imports to meet essential needs.

Asa’ad identified several developments that she believes could pave the way for greater financial openness, including further changes to sanctions, the restoration of essential services, agreements with international payment networks and support packages aimed at reforming the financial sector.

Beyond expanding banking services, attracting investment also requires a robust legal framework that allows businesses to operate and flourish. This is where legislative reform becomes immensely important.

Legislators are also aware of the scale of the problem. The new parliament is already starting to revise existing Assad-era laws. The Ministry of Economy and Industry is working on proposals intended to protect and strengthen the Syrian market. According to Deputy Economy Minister Rasha Karkouki, the ministry has already amended and activated existing laws on competition and intellectual property protection.

“We are consulting with relevant government, civil society, and community stakeholders,” she said, “a process that involves presenting the draft to these entities, gathering feedback, and then submitting the final version of a trade law that will facilitate company registration and investment to parliament within a three-month timeframe.” Nearly 20,000 companies had been registered in Syria since the fall of the Assad regime by May 2026.

The Ministry of Economy and Industry is also working to automate administrative procedures and documentation to simplify registration and follow-up processes for companies and business owners. “This would help our economy move a step forward towards transparency,” she said.

But these developments, though important, are a long way from resolving the immediate problems of day-to-day life for ordinary Syrians. Mohamad al-Laham, a small-shop owner and father of five, says the cost of essential services leaves little money for food.

“When I pay almost my entire income for the electricity bill, transportation and gas, I have nothing left for food at the end of the month.”

“When I pay almost my entire income for the electricity bill, transportation and gas, I have nothing left for food at the end of the month,” he said.

“We see on television that more money is coming into the country, but [our money] disappears rapidly during the first week of the month,” he added. During the conflict, al-Laham lost his home in the Ghouta area. He now rents a house, and rental costs shot up by 200 percent after the fall of Assad.

But there have been some upsides. Previously, he was obliged to sell low-quality local brands. “Now, with new brands entering the country, local brands are being pushed to improve the quality of their products. I now have new cookies to offer to the kids,” he said.

The availability of new brands may offer more choice and encourage competition; however, greater availability does not mean greater affordability. For households who have to spend the bulk of their income on rent, utilities and transportation, new products still remain out of reach.

“We see on television that more money is coming into the country, but [our money] disappears rapidly during the first week of the month.”

For ordinary Syrians like al-Laham, there is no clear timeline for when they will experience the tangible benefits of financial integration. Progress will depend on whether financing commitments become real investment, businesses create sustainable jobs and incomes keep pace with living costs. Ultimately, the success of Syria’s financial integration with the rest of the world can only be measured by whether ordinary Syrians can afford the essentials of life. Until then, reconnecting with the global economy remains a step towards recovery, but not a sign that the lives of Syrians have improved.

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