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, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has announced its sponsorship of the “Innovation and Sustainable Technology Solutions Competition (GU - IST Solutions), hosted by Gulf University at its main campus.
This strategic sponsorship reflects BENEFIT’s active role in advancing technological innovation and fostering sustainable solutions to future challenges. It also seeks to empower Bahraini youth by enhancing their skills, capabilities, and competitiveness in innovation and solution development—contributing meaningfully to the broader goals of sustainable development across all sectors.
As part of BENEFIT’s active involvement in the competition, the company has announced that Hanan Abdulla Hasan, Senior Manager of Public Relations and Communication, will serve on the competition’s supervisory committee. Her upcoming participation reflects BENEFIT’s forward-looking commitment to championing academic and professional excellence.
Commenting on the occasion, Hanan Abdulla Hasan, Senior Manager of Public Relations and Communication at BENEFIT, said, “We are privileged to support this pioneering initiative, which aligns seamlessly with BENEFIT’s enduring commitment to fostering innovation and nurturing the potential of Bahrain’s youth. Our participation is rooted in a deep sense of social responsibility and a firm belief in the pivotal role of innovation in shaping a sustainable future. Through such platforms, we seek to empower the next generation with the knowledge, skills, and foresight required to develop impactful solutions that address future challenges, in line with the United Nations Sustainable Development Goals 2030.”
Dr. Aseel Al Ayash Dean of the College of Engineering in Gulf University commented, “We extend our sincere gratitude to BENEFIT for their generous sponsorship and support of the Innovation and Sustainable Technology Solutions Competition. This contribution plays an instrumental role in helping us achieve the strategic goals of this initiative, namely, cultivating a culture of innovation and sustainability, encouraging efforts that address the imperatives of sustainable development, and enhancing the practical and professional capabilities of our students and participants.”
The event will bring together a diverse spectrum of participants, including secondary school students, university undergraduates, engineers, industry professionals, entrepreneurs, academic researchers, and subject matter experts representing a wide range of disciplines.
The competition seeks to inspire participants to develop and present innovative, sustainable technologies aimed at addressing pressing environmental, social, and economic challenges. It encourages the formulation of business models that integrate advanced technological solutions with core principles of sustainability. Moreover, it serves as a platform for emerging leaders, entrepreneurs, and innovators to contribute to the advancement of the Sustainable Development Goals, promote the ethos of responsible technology, and demonstrate its transformative potential across various sectors.
Attendees will have the opportunity to view a series of project presentations submitted by participants, covering diverse areas such as eco-friendly product design, smart and sustainable innovations, renewable energy technologies, water conservation and management, waste minimisation and recycling, green architectural solutions, and sustainable transportation systems. Outstanding projects will be formally recognised and awarded at the conclusion of the event.