Syria's Sovereign Wealth Fund Drives Economy Amid Transparency Questions

Syria's sovereign wealth fund has rapidly emerged as one of the central power centers in the Syrian economy following the fall of the regime of Bashar al-Assad. Established last year by President Ahmed al-Sharaa, the fund consolidates assets confiscated from business figures close to the previous regime and promotes multi-billion-dollar real estate, infrastructure, and technology deals. However, alongside the ambition to rebuild the economy and attract foreign investment, the fund's activities raise questions regarding its transparency, asset management, and leadership, according to an investigation by the Financial Times.

The Syrian Minister of Finance estimated the value of the fund's assets at $50 billion last year. Its holdings include real estate, factories, shopping malls, and bank shares, managing businesses that reportedly employ over 40,000 workers. Despite the scale of its operations, the fund has not published a full breakdown of its assets, financial data, or the identity of its director officially.

A Powerful Economic Body Reporting Directly to the President

The fund reports directly to al-Sharaa, and the Syrian Minister of Tourism heads it. According to three people who met with him, its director is Ibrahim Sukkarieh, a Lebanese-Australian citizen who does not appear on the fund's website. Sukkarieh is subject to Australian sanctions due to allegations that he joined an al-Qaeda-affiliated group that preceded Hayat Tahrir al-Sham, led by al-Sharaa, whose members overthrew the Assad regime.

The fund has become a key tool in the new government's efforts to attract capital from Gulf states. The scale of its assets gives it influence over many economic sectors, and it is involved in decision-making regarding business management and investments in key fields.

Thaer Lahham, CEO of the Syrian Business Council, defined the fund as the most economically significant body in Syria and the wealthiest entity in the country for now. A businessman maintaining ties with it described the power centers in the country by saying: "What is the state today? These are the government offices and the fund."

Billion-Dollar Deals and Foreign Investor Influx

The fund is already involved in large-scale international projects. One of the central ones is a $7 billion real estate venture with the Emirati development company Arada. Additionally, it has signed agreements with Turkish supply chain firm Tiryaki Agro and Saudi cable manufacturer Riyadh Cables Group to upgrade and manage assets.

In the telecommunications sector, the fund acquired a 25% stake in a Syrian company established by Kuwaiti technology firm Zain, which won a $747 million license to operate a cellular network. The fund has also established new businesses, including a payment company operating with Visa in Syria and a local vehicle manufacturer.

Concurrently, the fund is developing its real estate activities through direct asset holding, management of public lands, and cooperation with private developers. In some cases, it acts as an intermediary between government bodies and private companies, or represents the state and receives a share of project revenues.

Confiscated Assets and Ownership Disputes

A central part of the fund's activity involves assets confiscated from business figures identified with the previous regime. A government committee dealing with the restitution of illegally acquired assets stated that the fund was involved in managing 32 companies and bodies in trade, services, and banking previously owned by Samer Foz, one of the prominent businessmen during the Assad era.

Another asset is a shopping mall in Damascus confiscated from businessmen Mohammad Wasim Katan. Foz and Wasim Katan were subjected to American and European sanctions due to their support for Assad. According to people familiar with the fund's operations, after taking over companies, senior managers were usually replaced, while lower-tier employees remained in their positions.

However, transferring assets to the fund's control is not without difficulties. The fund struggled to change the registered owners of certain companies, and former property owners are attempting to reclaim their holdings or contest the confiscations. In one case, an entrepreneur whose mall was taken during the Assad era and later transferred to Wasim Katan petitioned for relief. According to the Damascus District, the fund reached a settlement with him. The fund stated that all revenues from its assets belong to the Syrian state.

Transparency Remains a Central Question

Alongside economic activity, the fund faces criticism for a lack of transparency. It refused to provide the Financial Times with detailed information on its assets, revenues, and management, but stated that it is gradually building its corporate governance mechanisms and working to align its operations with international standards customary in sovereign wealth funds.

Jihad Yazigi, editor of the journal "Syria Report", warned that the lack of transparency could damage trust between citizens and the state. He stated that managing huge amounts of money by a body that does not publish full information about its activity, and whose managers are not officially identified, raises many questions. However, he noted that Gulf investors may prefer a body capable of bypassing government bureaucracy.

Meanwhile, the fund continues to advance its development plans. The "New Damascus" project, in partnership with Arada, includes a plan to establish 11,000 housing units on the outskirts of the capital, alongside a hospital and a school. The project illustrates the Syrian government's ambition to attract investment through large real estate and infrastructure ventures, but also the fund's power and the open questions regarding how it manages state assets.