Sharaa meeting with local industrialists in Damascus after taking power. — AFP
SYRIA’s new rulers are investigating the billion-dollar corporate empires of ousted president Bashar al-Assad’s allies, engaging in talks with some of the country’s most powerful tycoons in what they describe as a campaign to root out corruption and illegal activity.
Since seizing power in December, the Hayat Tahrir al-Sham (HTS) rebel group, now governing Syria, has pledged to rebuild the nation after 13 years of civil war and dismantle the highly centralised and corrupt economic system that allowed Assad’s inner circle to thrive.
To achieve this, the new administration, led by President Ahmed al-Sharaa, has formed a committee to scrutinise the extensive corporate interests of Assad-linked businessmen, including Samer Foz and Mohammad Hamsho, according to three sources.
Shortly after taking control of Damascus, the new leadership ordered the freezing of companies and bank accounts linked to Assad’s allies. The directive also targets individuals and businesses already subject to US sanctions.
Foz and Hamsho, sanctioned by the US Treasury in 2019 and 2011, respectively, returned to Syria and met with senior HTS officials in January, according to a government official and two sources familiar with the matter.
The two businessmen, notorious among ordinary Syrians for their ties to Assad, reportedly pledged cooperation with the new government’s investigations.
Foz’s sprawling Aman Holding conglomerate has interests in pharmaceuticals, sugar refining, trade, and transport. Hamsho’s business empire, grouped under Hamsho International Group, spans petrochemicals, metal products, and television production.
The US Treasury has accused Hamsho of acting as a front for Assad and his brother Maher.
Neither businessman responded to requests for comment.
Power and influence
The formation of the investigative committee, whose members remain undisclosed, and the private discussions between the new government and Assad’s closest business allies mark a critical juncture for Syria’s economy.
The outcome of these engagements could influence Syria’s ability to persuade Washington and its allies to lift sanctions, analysts and business figures suggest.
Trade Minister Maher Khalil Al-Hasan and Syrian investment chief Ayman Hamawiye confirmed that the government had been in contact with some Assad-linked businessmen but refrained from naming them or providing further details.
Khaldoun Zoubi, a long-time associate of Foz, confirmed that his partner had met with Syrian authorities.
“Foz told them he is ready to cooperate with the new administration and provide all necessary support to the Syrian people and the new state,” Zoubi stated from the lobby of the Four Seasons hotel in Damascus, in which Foz’s group holds a majority stake. “He is willing to do anything asked of him.”
Foz, who also holds Turkish citizenship, left Damascus after the talks.
Under scrutiny
The US has imposed sanctions on several of Assad’s key economic allies, including Yasser Ibrahim, the former president’s most trusted adviser.
Syrian analysts estimate that around a dozen businessmen formed Assad’s inner economic circle, and all are now under scrutiny by the HTS-led government.
Despite these investigations, authorities have ordered businesses linked to these tycoons to continue operations under government supervision.
“Our policy is to allow their employees to continue working and supplying goods to the market while freezing their money movements for now,” Trade Minister Hasan explained in an interview in January.
“It’s a massive task – Assad’s business allies controlled an economy the size of a state. We cannot simply force them out overnight.”
Hamsho International Group is among the companies placed under HTS supervision.
A Reuters visit in late January revealed minimal activity at its headquarters in Damascus, where some offices had been looted following Assad’s departure.
Employees were instructed to cooperate fully with the new administration, which has been making regular visits to gather information.
People walking behind a destroyed building in the town of Qusayr in Syria’s central Homs province. — AFP
Rising costs
Some economists argue that Syria’s economic crisis necessitates allowing major domestic corporations to operate, regardless of their past affiliations.
With 90% of Syrians living below the poverty line, according to UN figures, any drastic crackdown on key businesses could exacerbate shortages and hardship.
Although trade restrictions have eased since Assad’s fall, many Syrians continue to struggle with rising costs.
“Authorities must tread carefully. A harsh crackdown on Assad-era cronies could lead to severe shortages,” said Karam Shaar, director of a Syria-focused economic consultancy.
Methodical approach
Assad’s abrupt exit on Dec 8, when he fled to Russia, left many oligarchs unable to relocate or liquidate their local assets, providing the new rulers with significant leverage.
However, HTS’s lack of transparency in dealing with these tycoons and their businesses could lead to public backlash.
“The approach towards Assad’s business allies remains unclear. It may depend on individual circumstances and external support,” Shaar observed, advocating a structured legal process.
Hamawiye, the official overseeing economic policy and foreign investment, acknowledged concerns over the fate of Assad-linked businesses.
He clarified that ordinary entrepreneurs, who had to navigate the corrupt system to survive, were not the government’s primary focus.
However, those who directly profited from illicit dealings, such as Maher Assad’s alleged involvement in the production of captagon – a powerful amphetamine – would be subject to greater scrutiny.
“If you simply imprison or punish these businessmen, who benefits? A methodical approach with investigations and committees is necessary to achieve meaningful justice,” Hamawiye said.
Meanwhile, Zoubi, who has maintained ties with both opposition groups and the Assad-era business elite, believes the new administration is taking a pragmatic stance.
“I sense they are avoiding personal vendettas,” he noted. “They want reconciliation, not retribution.” — Reuters
