Is Syria ready for investment? What do we need to attract capital?

In this episode, we discuss the future of the Syrian economy at a time when the rules of the economic game are rapidly changing. This includes everything from the exchange rate and the new Syrian pound (with the removal of zeros), to customs, imports, foreign investment, competition, and exports, culminating in the future of the Syrian merchant and the state's role in economic reconstruction.

Has holding large quantities of goods and inventory become a risky decision given the changing laws and customs duties? How can merchants cope with an economic environment where import, transportation, and customs costs are fluctuating? Does the solution lie in increasing the velocity of capital and inventory, converting liquidity into goods and selling them quickly instead of freezing funds for extended periods?

We also discuss the resilience of Syrian merchants, who have managed to withstand difficult economic conditions for many years. But is this experience sufficient when the market transitions from a closed and limited-competition model to a more open one? How can Syrian merchants and manufacturers move beyond a mindset of relying solely on the local market and begin to consider exporting and global markets?

We also discuss the importance of Syrian manufacturers examining global products, understanding current quality, technology, and pricing, and then developing their products at the lowest possible cost, even if it means accepting lower profit margins to increase sales volume and open new markets outside Syria.

Another important topic in this episode is the role of the state in supporting exports, and how international exhibitions, partnerships, and support programs can help Syrian companies reach foreign customers and markets, instead of Syrian products remaining confined to the domestic market.

We also examine the new investment law and the entry of foreign investors, and what it means to allow foreign investors full ownership in some cases and benefit from foreign expertise and labor. Does the entry of foreign investors pose a threat to local companies or an opportunity to build genuine partnerships? And why might it be better for Syrian traders or manufacturers to seek a foreign partner rather than engage in direct competition?

Furthermore, we highlight the relationship between investment, reconstruction, and infrastructure. Should the state leave all sectors to investors according to market principles, or should it direct investment towards essential sectors such as industry, infrastructure, and pharmaceuticals, while using incentives and facilitations to attract the investments that the economy truly needs?

This leads us to an important question: Does Syria today possess the governance system and standards necessary to select investors and projects worthy of support? If these tools are not adequately available, can we benefit from the experiences of other countries and global best practices instead of reinventing the wheel?

This episode also addresses Syrian human capital as one of the most important assets that can be invested in. Instead of focusing solely on capital-intensive industries, it is possible to simultaneously develop the technology, programming, call center, services, and operational offices sectors, and to work on exporting Syrian services and expertise to foreign markets.

In the critical segment of the episode, we examine the launch of the new Syrian currency and the removal of two zeros. Does removing zeros lead to a real change in the currency's value? Or is it merely a measure to facilitate cash transactions and accounting? And what is the difference between the psychological and social impact of the new currency and its actual economic impact?

We will examine the experiences of countries like Turkey and Poland in removing zeros from their currencies, comparing them to other experiences that did not achieve the desired results. This leads us to the fundamental point: removing zeros does not, in itself, constitute economic reform. Its success depends on a comprehensive economic plan that includes public finances, reserves, the deficit, production, trade, and monetary stability.

We will also discuss the issue of confidence in the Syrian pound. Can issuing a new currency increase demand for it? And why does confidence in the currency require time and cumulative steps before citizens and merchants feel that holding the pound is safer?