Finance

In the first half of 2026, Syria’s state budget recorded a deficit of USD 1 billion, with revenues at  over USD 2.69 billion and expenditures at USD 3.7 billion, according to figures published by the Ministry of Finance on Monday. The results from the first six months point to a significant expansion in government expenses and revenues. Fiscal revenues doubled compared to the same period last year, thanks mostly to a surge in oil and gas revenues. However, expenditure expanded at a much faster pace, shifting public finances from a surplus in the first half of 2025 to a deficit during the same period in 2026.

Syria has adopted a new legal and regulatory framework for electronic payments and money transfers, marking the latest step in the authorities’ efforts to expand electronic payment options and reduce reliance on cash.

The General Secretariat of the Presidency issued Decision No. 862 of 2026 (Official Gazette No. 28), approving the entry of Qatari capital in Shahba Bank.

Syria formally concluded the replacement of its old banknotes on July 30, bringing to an end a seven-month nationwide currency replacement process. As a result, all denominations of the old Syrian currency have officially ceased to be legal tender in the market. Since January, approximately 95 percent of the old currency has been replaced. The replacement process has exposed several structural problems, such as the shortage of smaller banknote denominations, and difficulties in implementing the replacement process in areas of the northeast and the Suweida Governorate.

In this interview, Adnan Hassan, General Manager of the Popular Credit Bank, discusses the bank’s activity following the resumption of lending in 2026. He outlines the bank’s lending policy, the expansion of banking services and digital transformation efforts, as well as plans to finance small and medium-sized enterprises (SMEs).

A year and half into post-Assad Syria, development banks are reengaging with Syria at different speeds; Germany’s Kreditanstalt für Wiederaufbau, with total ongoing portfolio of EUR 674 million,  is set to open an office in Damascus in August; France’s Agence Française de Développement currently has four active projects and Proparco, its affiliate, is exploring inroads in the microlending scene; while the World Bank Group has launched four grant-based projects and has four more on the pipeline with a combined value of USD 931 million. Meanwhile, other institutions, like the Islamic Development Bank and the European Investment Bank, have adopted a slower tempo. 

Syrian commercial banks with financial exposure to Lebanon were required in September 2025 to submit restructuring plans for their frozen deposits to the Central Bank of Syria (CBS) within six months. While banks complied, the unpopular decision by the former CBS governor drew heavy criticism, with bankers saying the restructuring has unnecessarily hit their balance sheets and shown how under-capitalised banks are at a time when they are trying to get back on their feet and rejoin the international financial system.

The Syrian government is preparing to issue sovereign debt instruments, including the country’s first Islamic bonds (sukuk), as part of broader efforts to finance the state budget and develop domestic capital markets. While officials present the initiative as a gradual strategy to diversify public financing, economists warn that its success will depend on investor confidence, the productive use of borrowed funds, and its impact on private-sector access to financing.

Syrian transitional president Ahmad Al-Sharaa has dismissed Central Bank Governor AbdulQader Husrieh and replaced him with Safwat Raslan, the head of the Syrian Development Fund. The decision highlights tensions within the Syrian authorities over monetary policy and governance.

Fifteen years after Visa and MasterCard suspended their operations and withdrew from Syria after the United States banned all exports and the provision of services to Syria, the Syrian government has launched the country’s first experimental electronic payment operations linked to the global payment networks. Paymera, a private joint stock company owned by the Syrian Sovereign Fund, will serve as the national transfer system for payments and collections.

A year and a half into post-Assad Syria, the business community in the coastal region navigates the positive and negative economic reverberations of the transitional government’s policies.

Several ministries have issued various decisions to increase the powers of local administrations, particularly at the governorate level, according to the Official Gazette, Issue No. 17 of 2026. 

Following the fall of the former regime at the end of 2024, the areas that had previously been under its control have undergone a significant transformation in terms of currency exchange operations, going from a tightly controlled and restrictive environment to a more open environment.

The Central Bank has issued four decisions in the past week regulating the foreign exchange market and tightening control over liquidity.

On April 26, the Qatari group Estithmar Holding announced the acquisition of a 49 percent stake in Syria’s Shahba Bank.

Syria participated in the 2026 Spring Meetings of the International Monetary Fund (IMF) and the World Bank, held in Washington, D.C., between April 13 and 18, furthering the engagement with international financial institutions that restarted last year, following years of absence.

Norway lifted last week the ban on investments in Syrian government bonds by its USD 2.2 trillion wealth ​fund.

The Ministry of Finance issued two decisions on March 24 establishing an advance tax payment system and stricter compliance requirements for importers. According to official statements, these measures aim to enhance tax equity, curb tax evasion, and improve the availability of accurate data to support fiscal policymaking and commercial activity. However, some traders have expressed concerns that the requirement to present tax clearance certificates will lead to delays, while the advance payment may add a financial burden on small traders.

During the Eid Al-Fitr celebrations last Friday, Syria’s Transitional President Ahmad Al-Sharaa announced that the country’s GDP grew between 30 and 35 percent in 2025 and projected that this year GDP will return to pre-conflict levels. In parallel, the Minister of Finance, Mohammad Yusr Barniya, announced that the 2026 budget totals USD 10.5 billion, a stark increase from the USD 3.5 billion budget from last year. Neither Mr Sharaa, nor Mr Barniya, explained the methodology used to produce these numbers. The GDP data, in particular, appears particularly disconnected from reality.

On March 20, coinciding with the Eid Al-Fitr celebrations, Syria’s Transitional President Ahmad Al-Sharaa announced four presidential decrees establishing a 50 percent hike in salaries of public employees; several tax exemptions for industrial, touristic and commercial establishments damaged during the conflict; and a mechanism for debt settlements and loan rescheduling in state-owned banks.