logo
'Too good to be true': investors eye Syria after Trump sanctions move

'Too good to be true': investors eye Syria after Trump sanctions move

Yahoo14-05-2025
By Timour Azhari and Karin Strohecker
DAMASCUS/LONDON (Reuters) - An end to U.S. sanctions on Syria is expected to mark a new era for an economy devastated by 13 years of war, opening the way for investment flows from the Syrian diaspora, Turkey, and Gulf states that back the new government.
Business executives, Syria's finance minister, and analysts told Reuters they anticipated an influx of capital into the bankrupt economy once sanctions are lifted in line with President Donald Trump's surprise announcement, notwithstanding the many challenges still facing the deeply-fractured nation.
Billionaire Syrian businessman Ghassan Aboud told Reuters he was making plans to invest, and expected other Syrians with international business ties to be doing the same.
"They were scared to come and work in Syria due to the sanctions risks ... This will completely disappear now," said Aboud, who lives in the UAE.
"I'm of course planning to enter the market, for two reasons: I want to help the country recover in any way possible, and second, the ground is fertile: any seed planted today can result in a good profit margin," he said, outlining a multi-billion dollar plan to boost Syrian art, culture and education.
The lifting of sanctions would radically reshape an economy already set on a new course by Syria's new rulers, who have pursued free-market policies and shifted away from the state-led model adopted during five decades of rule by the Assad family.
The United States and other Western powers imposed tough sanctions on Syria during the war that spiralled out of protests against Bashar al-Assad's rule in 2011.
Washington kept them in place after he was toppled in December, as it formulated its Syria policy and monitored the actions of the new administration led by interim President Ahmed al-Sharaa, a former al Qaeda commander.
Saudi Arabia and Turkey, which both support Sharaa's government, had urged Washington to lift the sanctions. Saudi Arabia's foreign minister said on Wednesday there would be many investment opportunities once that happens.
The conflict has turned many urban areas to rubble and killed hundreds of thousands of people. More than 90% of the 23 million Syrians live below the poverty line, U.N. agencies say.
'There's a real chance for a transformational change in Syria and the broader region," said Timothy Ash, senior sovereign strategist for emerging markets at RBC BlueBay Asset Management.
Turkish firms and banks are expected to benefit from the lifting of sanctions, said Onur Genc, chief executive officer of financial group BBVA, whose group comprises Garanti BBVA, the second-largest private bank in Turkey.
"For Turkey, it's going to be positive because there's a lot of reconstruction needed in Syria. Who's there to do that? The Turkish companies," he told Reuters.
"The lifting of the sanctions would allow the Turkish companies to go there now much better, and the Turkish banks to be able to finance them - so it will help," he said.
Turkey strongly backed Syria's opposition during the war, which decimated a diverse and productive economy.
It more than halved between 2010 and 2021, official Syrian data cited by the World Bank in 2024 showed. However, this was likely an underestimate, the bank said.
'NATIONWIDE CONSTRUCTION SITE'
Syria's pound has strengthened since Trump's announcement.
Currency traders said it was hovering between 9,000 and 9,500 to the dollar on Wednesday, compared to 12,600 earlier this week. Before the war in 2011, it traded at 47.
Syrian Finance Minister Yisr Barnieh told Reuters that investors from the United Arab Emirates, Kuwait and Saudi Arabia, among others, had been making inquiries about investing.
"Syria today is a land of opportunities, with immense potential across every sector—from agriculture to oil, tourism, infrastructure, and transportation," he told Reuters.
"We call on all investors to take this opportunity."
Watching footage of Trump meeting Sharaa in Riyadh on Wednesday at his Damascus office, Karam Bechara, general manager of Shahba Bank in Syria, described excitement in the business community. "It's too good to be true," he said.
"We're on the right track now internationally unless something happens in Syria that derails the process,' he said.
Syria remains fragile.
Some armed groups have yet to turn their weapons over to the government, Kurdish autonomy demands are a point of friction, and sectarian violence has left minorities afraid of Sharaa's rule, despite his promises of protection and inclusive governance. Israel opposes Sharaa, saying he remains a jihadist, and has bombed Syria repeatedly.
Jihad Yazigi, editor of a leading newsletter on Syria's economy, Syria Report, said the U.S. decision was transformative because it sent "a very strong political signal" and opened the way for its reintegration with the Gulf, international financial organisations, and Syria's big diaspora in the West.
Imad al-Khatib, a Lebanese investor, said he had accelerated his plans to invest in Syria after Trump's announcement.
Together with Lebanese and Syrian partners, he carried out a feasibility study for a $200 million waste sorting plant in Damascus two months ago. On Wednesday morning, he sent a team of specialists to Syria on Wednesday to begin preparations.
"This is the first step ... and larger steps will follow, God willing. We will certainly work to attract new investors because Syria is much larger than Lebanon," he told Reuters.
(Additional reporting by Suleiman al-Khalidi in Amman; Libby George in London; Laila Bassam and Tom Perry in Beirut; Writing by Tom Perry, editing by Deepa Babington)
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Van Hollen: ‘A big lie' that UN aid for Gaza has been ‘systematically' stolen by Hamas
Van Hollen: ‘A big lie' that UN aid for Gaza has been ‘systematically' stolen by Hamas

The Hill

time28 minutes ago

  • The Hill

Van Hollen: ‘A big lie' that UN aid for Gaza has been ‘systematically' stolen by Hamas

Sen. Chris Van Hollen (D-Md.) said Sunday there is no truth to claims that United Nations aid for Palestinians in Gaza has been 'systematically' stolen by Hamas. 'This is a big lie, the claim that when the U.N. organizations were delivering food to Palestinians, civilians, that it was being systematically diverted to Hamas,' Van Hollen told CBS News's Margaret Brennan on 'Face the Nation.' 'I want to say loudly and clearly, this is a big lie,' the Maryland senator added. On Sunday, Trump said Hamas is stealing food that was meant for people in Gaza, saying to reporters on multiple occasions that goods are being stolen as he was pressed on the hunger crisis in the region. Trump, alongside President of the European Commission Ursula von der Leyen in Turnberry, Scotland, was questioned about his response to the images of starving children in Gaza. 'When I see the children and when I see, especially over the last couple of weeks people are stealing the food, they're stealing the money, they're stealing the money for the food. They're stealing weapons, they're stealing everything,' the president said. 'It's a mess, that whole place is a mess. The Gaza Strip, you know it was given many years ago so they could have peace. That didn't work out too well,' Trump continued. House Speaker Mike Johnson echoed Trump on Sunday's 'Meet the Press' on NBC News. 'This is important to note: Israel, since this war began, has supplied over 94,000 truckloads full of food. It's enough food to feed 2 million people for two years trying to get that into Gaza. But Hamas has stolen the food, a huge amount,' Johnson said. He also criticized 'the system,' calling it 'broken,' adding that beginning tomorrow, the Israeli military will open 'new channels of distribution to get it [food] to those people who are desperately in need.' Former President Obama said on Sunday that 'aid must be permitted to reach people in Gaza.' 'There is no justification for keeping food and water away from civilian families,' the former president added in a post on the social platform X on Sunday.

Analysis-Out-gunned Europe accepts least-worst US trade deal
Analysis-Out-gunned Europe accepts least-worst US trade deal

Yahoo

timean hour ago

  • Yahoo

Analysis-Out-gunned Europe accepts least-worst US trade deal

By Mark John LONDON (Reuters) -In the end, Europe found it lacked the leverage to pull Donald Trump's America into a trade pact on its terms and so has signed up to a deal it can just about stomach - albeit one that is clearly skewed in the U.S.'s favour. As such, Sunday's agreement on a blanket 15% tariff after a months-long stand-off is a reality check on the aspirations of the 27-country European Union to become an economic power able to stand up to the likes of the United States or China. The cold shower is all the more bracing given that the EU has long portrayed itself as an export superpower and champion of rules-based commerce for the benefit both of its own soft power and the global economy as a whole. For sure, the new tariff that will now be applied is a lot more digestible than the 30% "reciprocal" tariff which Trump threatened to invoke in a few days. While it should ensure Europe avoids recession, it will likely keep its economy in the doldrums: it sits somewhere between two tariff scenarios the European Central Bank last month forecast would mean 0.5-0.9% economic growth this year compared to just over 1% in a trade tension-free environment. But this is nonetheless a landing point that would have been scarcely imaginable only months ago in the pre-Trump 2.0 era, when the EU along with much of the world could count on U.S. tariffs averaging out at around 1.5%. Even when Britain agreed a baseline tariff of 10% with the United States back in May, EU officials were adamant they could do better and - convinced the bloc had the economic heft to square up to Trump - pushed for a "zero-for-zero" tariff pact. It took a few weeks of fruitless talks with their U.S. counterparts for the Europeans to accept that 10% was the best they could get and a few weeks more to take the same 15% baseline which the United States agreed with Japan last week. "The EU does not have more leverage than the U.S., and the Trump administration is not rushing things," said one senior official in a European capital who was being briefed on last week's negotiations as they closed in around the 15% level. That official and others pointed to the pressure from Europe's export-oriented businesses to clinch a deal and so ease the levels of uncertainty starting to hit businesses from Finland's Nokia to Swedish steelmaker SSAB. "We were dealt a bad hand. This deal is the best possible play under the circumstances," said one EU diplomat. "Recent months have clearly shown how damaging uncertainty in global trade is for European businesses." NOW WHAT? That imbalance - or what the trade negotiators have been calling "asymmetry" - is manifest in the final deal. Not only is it expected that the EU will now call off any retaliation and remain open to U.S. goods on existing terms, but it has also pledged $600 billion of investment in the United States. The time-frame for that remains undefined, as do other details of the accord for now. As talks unfolded, it became clear that the EU came to the conclusion it had more to lose from all-out confrontation. The retaliatory measures it threatened totalled some 93 billion euros - less than half its U.S. goods trade surplus of nearly 200 billion euros. True, a growing number of EU capitals were also ready to envisage wide-ranging anti-coercion measures that would have allowed the bloc to target the services trade in which the United States had a surplus of some $75 billion last year. But even then, there was no clear majority for targeting the U.S. digital services which European citizens enjoy and for which there are scant homegrown alternatives - from Netflix to Uber to Microsoft cloud services. It remains to be seen whether this will encourage European leaders to accelerate the economic reforms and diversification of trading allies to which they have long paid lip service but which have been held back by national divisions. Describing the deal as a painful compromise that was an "existential threat" for many of its members, Germany's BGA wholesale and export association said it was time for Europe to reduce its reliance on its biggest trading partner. "Let's look on the past months as a wake-up call," said BGA President Dirk Jandura. "Europe must now prepare itself strategically for the future - we need new trade deals with the biggest industrial powers of the world." (Additional reporting by Jan Strupczewski in Brussels; Christian Kraemer and Maria Martinez in Berlin; Writing by Mark John; Editing by Nick Zieminski) Sign in to access your portfolio

Magnetic Resources Joins 2 Other ASX Penny Stocks Worth Watching
Magnetic Resources Joins 2 Other ASX Penny Stocks Worth Watching

Yahoo

timean hour ago

  • Yahoo

Magnetic Resources Joins 2 Other ASX Penny Stocks Worth Watching

The Australian market has experienced a mixed performance recently, with significant declines in materials and financials contrasted by gains in the energy sector. Despite these fluctuations, investors continue to seek opportunities beyond the major players, exploring areas like penny stocks for potential growth. While the term "penny stock" might seem outdated, these smaller or newer companies can still offer surprising value when backed by strong financials and stability. Top 10 Penny Stocks In Australia Name Share Price Market Cap Financial Health Rating Alfabs Australia (ASX:AAL) A$0.40 A$114.64M ★★★★☆☆ EZZ Life Science Holdings (ASX:EZZ) A$2.14 A$100.95M ★★★★★★ GTN (ASX:GTN) A$0.59 A$112.49M ★★★★★★ IVE Group (ASX:IGL) A$3.00 A$462.55M ★★★★★☆ West African Resources (ASX:WAF) A$2.38 A$2.71B ★★★★★★ Southern Cross Electrical Engineering (ASX:SXE) A$1.78 A$470.65M ★★★★★★ Regal Partners (ASX:RPL) A$2.90 A$975.05M ★★★★★★ Navigator Global Investments (ASX:NGI) A$1.815 A$889.49M ★★★★★☆ Austco Healthcare (ASX:AHC) A$0.38 A$138.44M ★★★★★★ CTI Logistics (ASX:CLX) A$1.86 A$149.81M ★★★★☆☆ Click here to see the full list of 464 stocks from our ASX Penny Stocks screener. Here's a peek at a few of the choices from the screener. Magnetic Resources Simply Wall St Financial Health Rating: ★★★★☆☆ Overview: Magnetic Resources NL is involved in the exploration of mineral tenements in Western Australia and has a market cap of A$411.91 million. Operations: Currently, there are no reported revenue segments for the company. Market Cap: A$411.91M Magnetic Resources NL, with a market cap of A$411.91 million, is currently pre-revenue and unprofitable, lacking significant revenue streams. The company has less than a year of cash runway based on its current free cash flow and no long-term liabilities or debt. Its short-term assets significantly surpass short-term liabilities, indicating sound financial management despite its challenges. Recent board changes include the appointment of Aaron Sim as an alternate director, bringing extensive financial advisory experience to the table. Earnings are forecast to grow significantly annually; however, past losses have increased over five years at 18.8% per year. Take a closer look at Magnetic Resources' potential here in our financial health report. Learn about Magnetic Resources' future growth trajectory here. NextEd Group Simply Wall St Financial Health Rating: ★★★★☆☆ Overview: NextEd Group Limited offers educational services across Australia, Europe, and South America with a market cap of A$51.09 million. Operations: NextEd Group's revenue is primarily derived from its International Vocational segment at A$73.79 million, followed by Technology & Design at A$11.29 million, Domestic Vocational at A$9.22 million, and Go Study Group contributing A$6.16 million. Market Cap: A$51.09M NextEd Group Limited, with a market cap of A$51.09 million, primarily generates revenue from its International Vocational segment. Despite being unprofitable and not expected to achieve profitability in the next three years, it benefits from a strong cash runway exceeding three years due to positive free cash flow growth. The company is debt-free but faces challenges with short-term assets not covering liabilities. Recent leadership changes include appointing Andrew Nye as Chief Financial Officer, bringing extensive financial management expertise. Although NextEd trades at good value compared to peers, losses have increased significantly over the past five years. Dive into the specifics of NextEd Group here with our thorough balance sheet health report. Examine NextEd Group's earnings growth report to understand how analysts expect it to perform. Perenti Simply Wall St Financial Health Rating: ★★★★★★ Overview: Perenti Limited is a global mining services company with a market capitalization of A$1.64 billion. Operations: Perenti's revenue is primarily derived from Contract Mining Services at A$2.50 billion, followed by Drilling Services at A$750.65 million, and Mining Services and Idoba contributing A$229.77 million. Market Cap: A$1.64B Perenti Limited, with a market cap of A$1.64 billion, primarily derives revenue from Contract Mining Services (A$2.50 billion). Despite negative earnings growth over the past year and lower profit margins (2.5% compared to last year's 3.9%), the company is trading at a significant discount to its estimated fair value. Perenti's debt management has improved, with a reduced debt-to-equity ratio now at 45.5%, and its short-term assets exceed both short- and long-term liabilities, indicating solid financial footing. Earnings are forecasted to grow annually by 24.84%, supported by high-quality past earnings performance and stable weekly volatility (5%). Get an in-depth perspective on Perenti's performance by reading our balance sheet health report here. Evaluate Perenti's prospects by accessing our earnings growth report. Summing It All Up Jump into our full catalog of 464 ASX Penny Stocks here. Ready To Venture Into Other Investment Styles? AI is about to change healthcare. These 26 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:MAU ASX:NXD and ASX:PRN. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store