After a decade of war and sanctions, Syria's new administration is trying to attract foreign investors for the country's reconstruction. The Syrian Sovereign Fund, established last year by President Ahmed Shara, stands out as the main vehicle for this effort.
Although the fund is designed to manage state assets and oversee investment projects, experts voice serious transparency concerns. Economist Karam Shaar describes the fund as 'a black box,' calling it the biggest test for Shara.
Major projects with Gulf capital
In the capital Damascus, projects for residential complexes, hotels and entertainment venues are being promoted in several areas, including the former army headquarters. In early June, officials announced an ambitious 20,000-unit project called 'Abyat Hills' with a Saudi company.
Last week, Bloomberg reported that Dubai real estate mogul Mohamed Alabbar is planning two major projects worth at least $20 billion in Damascus and Latakia. Economist Karam Shaar said that 'more than 20 percent' of the memorandums of understanding signed by Damascus have moved to the implementation stage.
Fund's structure and management unclear
Ahmad al-Riz of The Syria Report highlighted the lack of transparency in the fund's structure. 'In addition to the lack of transparency in the fund's structure, it is unclear on what basis state assets to be offered for foreign investment are selected,' Riz said, adding that the identity of the fund manager has not been officially disclosed.
Several people who asked not to be named said they met with the fund's director, Abu Maryam al-Australi, whose name means 'the Australian.' Australi, who is under sanctions by Canberra, was close to Shara when he led a jihadist group in northwestern Syria.
Massive assets and ties to the former regime
Riz noted that the Ministry of Finance estimates the sovereign fund's assets at $50 billion, while Syria's GDP in the current year's budget is about $33.7 billion. The fund also manages assets confiscated from businessmen close to the former government.
Among them is Mohammad Hamsho, who is under sanctions by the European Union and the United States. Hamsho reached an agreement with the new authorities and continues his economic activities with relatives in Qatar. Economist Shaar defended the move as ensuring 'economic continuity,' but also voiced concern that it could lead to 'crony capitalism.'
Architects and experts stress that these developments are based on a speculative model and risk turning cities into sterile environments disconnected from residents' daily needs. Ahmad Salah of the Reclaiming Urbanism initiative said, 'There is very little emphasis on sustainable or strategic investments that could structurally improve people's lives.'
