Qatar is postponing financial aid for salary increases in Syria due to concerns over U.S. sanctions, highlighting the difficulties faced by the new Islamist leadership in stabilizing the country’s economy. With up to 90% of the population living in poverty, and ongoing uncertainty regarding foreign policy and support, the situation remains complex and challenging for Syria’s recovery efforts.
Qatar is delaying financial assistance to Syria’s government for an increase in public sector salaries due to uncertainty over U.S. sanctions. This postponement complicates efforts to revitalize Syria’s economy, which remains severely affected by years of conflict. Despite a six-month sanctions exemption from the previous U.S. administration, Qatar remains cautious about making significant financial transfers, particularly through the central bank, to ensure compliance with U.S. regulations.
Syria’s new Islamist leaders, linked to prior al-Qaeda affiliations, are striving to stabilize the country. They have proposed substantial salary increases, estimated at 400%, but Qatar’s support is crucial for these payments, although specific contribution amounts from Qatar remain unclear. The interim finance minister has indicated that funding will be sourced from regional aid, yet the salary increases have not yet been implemented.
While Qatar waits for clarity on U.S. policy under President Trump, the delay in salary payments raises concerns. According to U.S. sources, Qatar has not initiated the salary payments due to ambiguous guidelines concerning sanctions; however, it has provided two shipments of liquefied petroleum gas to aid in alleviating energy shortages in Syria.
Reviving the economy is vital for Syria’s interim leadership, with reports suggesting that up to 90% of the population lives in poverty. Sharaa’s government aims to reform the public sector, which may include substantial reductions in employment levels. Although a recent exemption allows for personal remittances and certain transaction flows to alleviate humanitarian crises, it does not fully remove the sanctions imposed on Syria.
Calls for lifting sanctions have been repeatedly made by Sharaa, with Syrian officials arguing that the sanctions should no longer be applicable following Assad’s fall. Notably, the EU recently announced the suspension of several sanctions, which could help in stabilizing the economic environment further. Meanwhile, ambiguity surrounding U.S. policies continues to create complexities in the international response to Syria’s transitional governance.
Qatar’s hesitation to support Syria’s public sector salary increases reflects ongoing concerns about compliance with U.S. sanctions, complicating the country’s economic recovery. The interim government, facing significant public sector challenges, is reliant on foreign assistance and has already initiated plans to reduce workforce numbers. Continued uncertainty regarding Western sanctions and policy will play a critical role in shaping Syria’s economic revival efforts.
Original Source: www.usnews.com
