Enab Baladi – Jana al-Issa
Several meetings recently conducted by the leader of the new Syrian administration, Ahmed al-Sharaa, with a number of businessmen and capital owners loyal to the previous regime have opened the door to questions about the potential role these individuals may play in Syria’s economic future.
No official statement has been made by the administration or the government regarding the nature of this role or how they will deal with those whose names are directly associated with the regime; they are either financial supporters of the military war machine and linked to human rights violations and subjected to international sanctions, or they directly benefited through their close relationships.
Violations and sanctions
In a report denied by the interim Damascus government, Arab media outlets recently claimed that Syrian businessman Mohammad Hamsho returned to Damascus after traveling to Beirut following the regime’s collapse, intending to conduct a “settlement” for a sum he would pay to the government, amounting to one billion US dollars, which he would put into the state’s treasury to contribute to the country’s reconstruction. However, the settlement failed, leading Hamsho to leave Damascus again, according to the media.
Hamsho has close ties to the Assad family, overseeing businesses for years in construction, telecommunications, information technology, engineering, and tourism in Syria, alongside Maher al-Assad, the brother of the ousted Syrian president, according to the text of US sanctions imposed on him in 2020; he is also sanctioned by the European Union.
Hamsho is a partner of the Fourth Division in Mining Committees (melting down iron and copper from buildings destroyed by the regime’s bombardment in his factories), the owner of a security guard company, and involved in the trade of Captagon drugs.
In a separate context, Ahmed al-Sharaa met on January 10 with a group of Syrian industrialists, including well-known names close to the previous regime, such as Bassam Mahmoud Maamari, Haitham Sobhi Jude, Omar Rateb al-Shalah, Vaskin Yacoubian, and Thaer Duraid Lahham.
According to the Observatory for Political and Economic Networks, Bassam Maamari serves as the President of Bemo Bank and is linked to the Syria Trust for Development, which was managed by Asma al-Assad, with sources linking him to Captagon smuggling activities.
The networks of companies organized and analyzed by the observatory reveal that Thaer Duraid Lahham is connected to many joint ventures with Haitham Jude, while the connections show Vaskin Yacoubian is indirectly linked to Bassam Maamari through ownership in the Ahli Trust Bank (ATB) – Bank Audi.
The judiciary rules
The Minister of Economy in the interim Damascus government, Bassel Abdul Hanan, commented on the rumors surrounding the return of some businessmen affiliated with the previous regime to Syria, stating, “I heard the media reports regarding the settlement with businessman Mohammad Hamsho, and there is no basis for them. We are talking about dozens of businessmen associated with the previous regime and fictitious names.”
The minister confirmed in an interview with CNBC Arabia on January 13 that “Syria was managed with the mentality of an ‘economic gang’ or ‘economic mafia,’ as we discovered secret economic councils managing Syria’s economy during the previous regime.”
Regarding the fate of businessmen linked to the former Syrian regime and their money and companies, the Syrian economy minister, Bassel Abdul Hanan, stated that the money of businessmen related to the Assad regime would not be confiscated.
He noted that “any money acquired by businessmen through dual dealings with the authority will be returned to the public treasury, and the judicial committee will determine the fate of Assad’s businessmen according to their status,” emphasizing that “private ownership is sacred, and we will not intervene in their funds that were not in partnership with the state.”
Abdul Hanan added, “We were surprised by the number of companies with dubious partnerships with the previous regime, which numbered in the hundreds; therefore, we decided to separate the companies related to the previous regime from their owners.”
He continued, “What concerns us is the full return of the work of companies associated with the previous regime and their employees,” stressing that no dealings have yet occurred with any businessman affiliated with the previous regime.
Conditional settlement: Funds needed for the country
Expert and consultant in data analysis and financial crimes, and technical director at the Observatory for Political and Economic Networks, Wael al-Alwani, told Enab Baladi that all Syrian businessmen must have a role in Syria’s economic future under certain conditions, as the previous regime predominantly controlled the economic landscape, making it natural for businessmen to be close to the state.
Proximity to the regime does not necessarily imply involvement in violations or the regime’s violent and criminal activities, according to al-Alwani.
Two viewpoints concerning businessmen close to the previous regime have recently emerged. The first is the notion of not allowing businessmen to participate at all, but rather seizing their property for the benefit of the state treasury. The second viewpoint considers leveraging their funds to aid reconstruction and economic recovery, but under conditions that ensure accountability for the violations they are accused of and prevent them from directly benefiting from the economy.
Expert Wael al-Alwani favors the second viewpoint, noting that for the country’s economic future, it is beneficial for the state to utilize these funds but with the consent of the businessmen, necessitating a conditional agreement between both parties. This evaluation sees these businessmen categorized based on their levels of crime and involvement in suspicious activities that have harmed the people or the Syrian state’s resources.
Not all businessmen associated with the regime are involved in violations or had a clear role in the war economy; some were used by the regime as fronts, and the approach to them must differ from those proven to be involved.
For example, businessmen involved in Captagon trafficking should not be dealt with unless there is a specific mechanism to leverage their funds or even their information and concessions on significant corruption cases, after thorough examination by a committee comprised of influential decision-makers, legal experts, and economists, with the outcome of these negotiations and studies published transparently, according to al-Alwani.
This manner of engagement with businessmen indicates a legal-based approach that can reassure hesitant businessmen—both Syrian and foreign—about investing in Syria.
However, this method is not without downsides, as it requires considerable time; gathering evidence is no easy task, and businessmen are known for their successes and abilities to assert non-involvement.
Commenting on the story of the billion dollars Mohammad Hamsho would pay in exchange for his involvement in Syria, al-Alwani stated that a person like Hamsho, being the most prominent front for Maher al-Assad, could be accepted for a settlement under larger conditions. For instance, he could disclose Maher al-Assad’s secret accounts and the companies that helped him hide them, potentially returning multiples of that billion dollars to the treasury if we assess it in terms of profits and losses.
Concerning how to benefit from businessmen’s funds, al-Alwani confirmed that this should occur with the businessmen’s approval and presence, ensuring that no assets are seized without legal decisions, as this could lead to numerous lawsuits harmful to the country’s economy—such as other businessmen’s fear of government interference, resulting in capital flight.
Capital flight
Capital flight is an economic and political phenomenon that occurs when investors withdraw their funds from one country’s market to invest in another, seeking a more stable economic or political environment.
This phenomenon arises due to a lack of economic or political stability in the country, or it may be caused by currency flotation, while inflation in commodity prices is also a contributing factor in capital flight.
The flight of existing capital or even that which may be considering entering will harm the country’s economy and investment therein, as the government may be perceived as easily managing the funds of businessmen, irrespective of the reasons behind its decisions and businessmen’s involvement in legal breaches, according to al-Alwani.