Syria’s economic advisor for Syrian affairs and board member of the Syrian Telecommunications Company, Mahmoud Al-Tarn, stated that Syria today needs to rebuild its financial and technical infrastructure to enable it to reintegrate into the global financial system, in line with international standards, especially those related to combating money laundering and terrorist financing.
Al-Tarn explained that this infrastructure was, until a few months ago, completely dysfunctional, as there was no effective system to combat money laundering or terrorist financing, which made connecting Syria to the global financial system impossible at that stage.
He added that this path requires an integrated technical, regulatory, and legislative effort in the field of compliance, which Syria is currently undertaking to the best of its ability, as acknowledged by most international financial bodies collaborating with Syrian authorities to rebuild this infrastructure from scratch.
He pointed out that rebuilding from scratch carries a clear advantage, but the main challenge remains time. In this context, he highlighted the announced cooperation between Mastercard and the Central Bank of Syria to establish a digital payment system, in addition to Visa’s announcement of its intention to return to the Syrian market. He emphasized that setting an exact timeframe in days or hours is not possible, but the mere return of these companies and their official statements indicate that work is ongoing, genuine, and serious.
Al-Tarn said: “With full confidence, I can say that Syria will return to the global financial system in a very short period, on the best path and with full international standards.” He did not rule out the possibility of using Visa, Mastercard, and perhaps American Express cards in Syria by 2026, considering this a significant development directly linked to the recovery of the banking sector.
In his assessment of the banking sector’s situation, Al-Tarn explained that Syrian banks are currently suffering from a shortage of capital, noting that the Syrian economy has historically been a cash economy that does not primarily rely on banking operations.
He added that the challenge lies in achieving a gradual transition from a cash economy to one where citizens are accustomed to using banks, credit cards, and electronic payment methods, a path that requires time and cumulative efforts.
Al-Tarn touched on the composition of the banking sector, noting that several Syrian banks are still owned by Lebanese banks, which complicates the situation due to the impact of the crisis in Lebanon on these banks and their inability to finance commercial projects. He explained that proposed solutions include either recapitalizing these banks or entering into merger and acquisition processes, pointing to instructions from the Central Bank of Syria requiring full provisions for exposure to Lebanon.
He affirmed that there is a general trend to facilitate merger and acquisition operations in the banking sector, as they are the fastest and most attractive route for foreign investors compared to obtaining new banking licenses, which are subject to regulatory procedures that may take a year or more. He considered that acquiring an existing bank allows the investor to conduct banking activities immediately upon completing the deal.
Regarding the telecommunications sector, Al-Tarn said that Syria has a genuine vision to bring about a qualitative leap in this sector, not only locally but also regionally and internationally. He explained that this vision stems from the right of Syrians to have telecommunications services at the highest standards, adding: “Syria will become a global digital hub thanks to a clear leadership vision and work from day one with major international companies to transform the Syrian telecommunications sector.”
He pointed to Gulf and global interest in investing in the Syrian telecommunications sector, expressing confidence that positive news in this area will emerge gradually.
On the topic of investments, particularly those from Saudi Arabia, Al-Tarn confirmed that there is a real effort for coordination between various Syrian ministries to facilitate the entry of investments and transform them from figures and announcements into actual projects on the ground. He said that foreign investors testify to the smoothness of government coordination, known as cross-ministry alignment, considering that the absence of conflicting authorities and directions is the most important factor in reassuring investors.
Al-Tarn emphasized that what is happening today in Syria within a short period is remarkable, attributing this to the presence of true statesmen working according to a clear vision for the country’s future.
