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Syria’s Wobbling War Economy

James Denselow
The headlines from Syria have rightly focused on the escalating violence in the northwest of the country where almost a million people are on the move displaced by the fighting. However, as the Syrian conflict approaches its ninth anniversary in March it is worth keeping a close eye on the unravelling of the country’s economy.
Indeed with the Syrian currency collapsing to record lows, the Government in Damascus launched a symbolic ‘one-pound’ campaign which encourages traders to sell goods or services for only one Syrian pound. The one-pound coin has no real value and the campaign is an attempt to keep millions for falling way below the poverty line.
Already eight out of ten Syrians earn less than $100 a month and the currency’s disintegration means they’re seeing sky-rocketing prices. The pre-war exchange rate saw 48 pounds per dollar, today the official rate is 434 pounds but the unofficial rate has topped over 1,200 pounds per dollar.
The perfect economic storm is engulfing the country. Intensive fighting with little regard for the use of precision munitions has battered many of the key urban districts and gutted industrial manufacturing. The loss of human capital has seen half the country flee their homes, millions of highly skilled Syrians have left the country entirely. Education and professional training have all stalled as the country’s leadership focuses on the existential fight for its own survival.
On top of this sanctions from large parts of the international community are limited what potential there is for trade and prosperity. In particular the continued isolation of the Regime’s leadership means there is little prospect of major reconstruction investment and instead they’ve focused on giving subsidised concessions to their Iranian and Russian allies which have done little to kick start the economy.
Whilst the ‘one pound’ campaign is the soft cuddly part of the Regime’s approach, the more heavy handed response is the detaining of merchants selling products in dollars and clamping down on money exchange houses. Meanwhile they are looking to reform the means of subsidising basic items - rice, tea and sugar for example - to show that they are taking steps to protect the most vulnerable Syrians still living in their control.
However, millions remain dependent on humanitarian aid to get by, with the World Food Programme reaching some 4.5 million Syrians in December alone. Attempts to support basic items via subsidy are a stark contrast to the efforts the Regime and its allies have made to impair cross-line and cross border aid from getting to Syrians in all parts of the country.
Syria’s battered social and human infrastructure is exacerbated by international sanctions, regional chaos - particularly the protests and economic instability in neighbouring Lebanon and Iraq - as well as the corruption that has blighted the country for decades. What is more areas of the country with lucrative natural resources are outside of the government’s control.
Recent weeks have seen US and Russian forces come head to head around who can move where in the northeast of the country. Here the ‘Syrian Democratic Forces’ sovereignty over the east of the Euphrates takes with it access to oil and gas that the Regime in Damascus desperately needs.
This year’s ‘Corruption Perceptions Index’ placed Syria in the bottom three globally alongside Somalia and South Sudan. Average wealth in Syria has plummeted from $10,000 before the war to $2,000 today. It’s not obvious where the foreign direct investment needed to reverse this collapse will come from whilst the Regime, its structure and personnel remain in place.
In many respects you could argue that its one thing to win back territory with the support of powerful allies and with the absence of international restrictions to the Regime’s behaviour, it’s quite another to transition from a war economy to a sustainable post-war economy with the impediments that this article has outlined. Indeed the solidarity that comes with the narrative of continued conflict and campaigns such as ‘one pound’ may fray if and when the northwest falls more fully under Regime control. The paradox being that continued conflict is both the cause of the country’s economic collapse and perhaps one of the only means it survives that same collapse.
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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