AGP Executive Report

Syria–Turkey Trade Talks: Syria’s Economy and Industry Minister Mohammad Nidal al-Shaar is set to meet Turkey’s Trade Minister Ömer Bolat in Gaziantep to map the next phase of trade and investment, with a broader push to deepen business ties between Aleppo and Gaziantep. Regional Connectivity & Logistics: Turkey and Saudi Arabia signed MoUs on transport and rail cooperation aimed at reviving the historic Hejaz Railway as an overland alternative to Strait of Hormuz shipping risks, potentially routing cargo via Syria and Jordan toward Gulf access. Energy Security Pressure: With Hormuz under strain, countries are pitching “safe haven” energy supply roles to investors and the U.S., while the wider Iran conflict keeps energy prices and supply-chain planning at the center of policy debates. Nuclear Safety Alarm: The IAEA warned that drone attacks on nuclear power infrastructure are unacceptable after a strike damaged safety systems at the Barakah plant in the UAE, prompting a Gulf crisis tour. Migration & Returns: Türkiye’s temporary protection population of Syrians has fallen to about 2.2 million since returns began after Dec. 8, 2024, while irregular apprehensions dropped sharply in 2026’s first months. Sanctions & Compliance Watch: A new report alleges agricultural goods from illegal Israeli settlements are entering Europe under false origin labels, raising fresh scrutiny for importers and retailers.

Energy & Investment: Syria is pitching itself as a “vital regional hub” for energy security, with Energy Minister Mohammed al-Bashir telling the Atlantic Council that Damascus is moving toward reconstruction and “economic openness” and is in talks with major firms including Chevron, ConocoPhillips, TotalEnergies and others, plus a reported $7bn Qatar-linked deal covering electricity, infrastructure and renewables. Trade & Border Facilitation: Türkiye says it will modernize Syrian border gates to speed up trade, including AI-enabled customs work and digital data sharing to cut waiting times. Regional Rail & Logistics: Türkiye and Saudi Arabia signed railway and logistics MoUs aimed at reviving the Hejaz Railway corridor via Syria and Jordan, with longer-term plans to extend toward Oman—positioned as an overland alternative to chokepoints like the Strait of Hormuz. Food Security: FEWS NET warns economic pressures, fuel price hikes and reduced aid are keeping large parts of Syria in Crisis (IPC Phase 3) through September, despite improved rainfall. Labor & Industry: Workers at Damascus-area ceramics firms staged protests and strikes demanding better wages and conditions, while unrest also spread to parts of northeast Syria. Security & Business Risk: Syria’s Interior Ministry says it detained 235 terrorism suspects and disrupted ISIS plots over three months, seizing weapons and devices—an indicator of ongoing operating risk for investors.

Labor & Wages: Workers at Zenobia Ceramics and the Madar factory in al-Kiswah staged protests and strikes in the Damascus countryside, demanding higher wages and better working conditions, while demonstrations also spread to Heseke and Raqqa over basic services and worsening living costs. Regional Trade & Logistics: Turkey and Saudi Arabia signed MoUs to boost railways and logistics, with plans tied to reviving the Hejaz Railway and building a Gulf-to-Europe land corridor via Türkiye, Syria and Jordan—an effort aimed at reducing reliance on chokepoints like the Strait of Hormuz. Energy Investment: Syria’s Petroleum Company says major US firms are interested in investing in Syria’s oil and gas sector, focusing on technology transfer and restarting exploration and production. Food Security Data: Syria’s Household Food Security Assessment Survey (Phase 10) is set to start June 27 for 35 days, aiming to improve household-level data for better targeting of relief and development. Protests Beyond Damascus: Demonstrators in Syria’s Jazira region also protested deteriorating living conditions, adding pressure on local authorities amid economic strain.

Syria Tourism Push: Syria’s Ministry of Tourism launched the 2026 summer season with President Ahmad al-Sharaa in Tartus, aiming to revive spending and jobs as recovery gains momentum; the event spotlighted upgraded visitor access like the Al-Tahouna Port link to Arwad Island and readiness by tourist police, civil defense, and the Red Crescent. Energy Cooperation: Egypt’s petroleum minister met Syria’s energy counterpart to advance oil and gas coordination, including follow-ups on gas supply via the Arab Gas Pipeline and plans to rehabilitate Syria’s energy infrastructure using Egyptian firms ENPPI and Petrojet, plus training and technical exchange. Regional Trade Pressure: With the Strait of Hormuz disrupted, Iraq is accelerating alternate exports through the Kurdistan-Turkey pipeline network, targeting higher shipments to Turkey’s Ceyhan port—an indirect signal for Syria’s wider trade and energy corridor planning. Security & Shipping Risks: The Houthis announced a “complete and total ban” on Israeli shipping through the Red Sea, threatening escalation on key global routes—raising the odds of higher logistics costs that can spill into Syria-linked imports and exports. Governance Watch: A UK Cabinet Office dossier claims over £28bn in taxpayer funds from aid and Covid schemes ended up with terrorists, criminals, and hostile states, including alleged Islamic State-linked flows tied to Syria—another reminder of how external financing risks can reach the Levant.

Iraq–Syria Energy Trade: Iraq boosted oil exports via Syria, with more than 150 Iraqi fuel tankers entering Syria on Monday through the Rabia–Al-Yarubiyah border crossing and moving toward Baniyas for shipment to global markets, after Iraq’s first crude export push through the same route in May. Iraq Oil Infrastructure: Basra Oil Company says export capacity through northern outlets tied to Turkey and Syria is set to reach about 650,000 barrels per day, aiming to cut reliance on Hormuz-linked maritime routes. Damascus–Ankara Business Talks: Syria’s Economy and Industry Minister Mohammad Nidal al-Shaar is set to meet Turkey’s Trade Minister Ömer Bolat in Gaziantep to map the next phase of trade and investment cooperation. Syrian Reconstruction Payments: In Homs, a social-media dispute over unpaid reconstruction commitments reportedly ended with development funds arriving after public pressure. Regional Shipping Risk: With Iran–Israel tensions flaring and Hormuz disruption fears rising, analysts warn energy and transport costs could surge, reshaping trade corridors and logistics decisions.

Eastern Syria Economy Under Strain: Protesters in Syria’s Jazira region blocked fuel-tanker routes near al-Hol, citing worsening living conditions and frustration with slow government-SDF integration after the Jan. 29 deal, with residents linking economic hardship to lingering administrative uncertainty. Aviation Disruptions: Syria extended southern air-corridor closures and kept Damascus International Airport suspended, rerouting flights to Aleppo as regional Iran-Israel tensions triggered emergency airspace restrictions across Iraq and Syria. Energy and Trade Pressure: Israel struck Iran’s Mahshahr petrochemical facility, while the Hormuz risk is pushing up shipping costs—spot container rates Asia-to-U.S. West Coast jumped sharply—adding new pressure to regional logistics and prices. Syria’s Leadership Signal: U.S. President Donald Trump praised Syria’s new leadership under Ahmad al-Sharaa, saying Washington eased sanctions and that Syria is “cleaning up” its act, with potential support for broader regional security efforts. Türkiye-Syria Trade Push: A Gaziantep-Aleppo summit in Gaziantep on June 9 will focus on reviving Türkiye-Syria trade, logistics, and production links, including ideas for regulated border production zones.

Middle East Security & Trade Risk: Iran launched missiles at Israel for the first time since an April ceasefire, after Israel struck Beirut’s southern suburbs; Israel says it intercepted the barrages but warned its defenses aren’t “hermetic,” while Iran framed the move as a “warning” tied to Lebanon and warned of continued attacks if Israel doesn’t stop. Lebanon Cross-Border Shock: The Beirut strike killed two and wounded 20, and the wider escalation threat is likely to keep aviation, logistics, and insurance costs elevated across the region. Iraq–Syria–Turkey Energy Corridor: Iraq is planning to boost oil exports via pipelines and overland routes through Syria and Turkey to about 650,000 bpd, with Kirkuk flows rising toward Ceyhan and additional transport capacity planned. Syria Economy & Governance: Syria’s foreign chief visited Algeria to boost bilateral cooperation, while separate reporting points to ongoing efforts to revive tourism and infrastructure—signals of recovery priorities despite instability. Water & Food Security: Raqqa floods have reignited debate over Euphrates management and who controls releases, with farmland damage and displacement reported.

Hormuz Shock to Gulf Trade: Iraq’s foreign minister warns Baghdad is “printing cash” to cover salary gaps as oil export revenues plunge under Strait of Hormuz disruptions, calling a prolonged conflict a “financial catastrophe.” OPEC+ Output vs. Export Reality: Despite expectations of a July output increase, Iraq faces tougher delivery constraints, pushing plans to expand exports via Turkey’s Ceyhan pipeline and routes toward Jordan and Syria. World Bank Roads Push: The World Bank backs a $900m Iraq road-infrastructure upgrade aimed at boosting transport corridors, safety, and private-sector opportunities—key for trade and regional integration. US Considers Frozen-Iran Assets for Reconstruction: Reuters reports Washington is weighing redirecting Iranian assets to fund reconstruction and compensate Gulf damages, as tensions and drone/missile exchanges continue. Syria-Tied Connectivity Plans: Türkiye’s Hejaz Railway modernization is set to link to Aleppo and eventually Oman, positioning Syria-area corridors as part of an alternative trade route away from Hormuz risk. Lebanon Airport Revival: Lebanon starts rehabilitation of Qlayaat’s Rene Mouawad Airport to open within months, a move that could ease pressure on Beirut’s airport amid ongoing security threats. Humanitarian Supply Chain Detours: WFP says fortified biscuits for Afghanistan were rerouted through nine countries after border closures and Hormuz disruptions, underscoring how regional shocks hit food logistics. QRCS Eid Aid Reaches Syria: Qatar Red Crescent’s Eid al-Adha campaign delivered aid to 247,344 beneficiaries across 14 countries including Syria, highlighting continued cross-border humanitarian flows.

Tourism & Investment: Libya’s envoy to Syria, Walid Ammar, met Syria’s tourism minister Mazen al-Salhani in Damascus to revive past tourism agreements and expand cooperation, including training, support for handicrafts, and joint projects. Diplomacy: Egypt appears to be moving toward approving a new Syrian ambassador nominee after reservations delayed earlier acceptance, with Mohammad Taha Al-Ahmad named as the latest candidate. Ports & Trade: Syria’s Latakia port handled over 2 million tons of cargo in the first five months of 2026, with 273 vessels and about 120,000 containers, citing modernization and faster customs procedures. Aviation & Connectivity: Lebanon kicked off rehabilitation of Rene Mouawad Airport in Qlayaat to open as the country’s second civilian airport within months, aiming to serve routes including Istanbul and Dubai and reduce pressure on Beirut’s airport. Humanitarian Supply Chains: WFP says fortified biscuits reached Afghanistan after a 15,000-km detour through nine countries due to border closures and Strait of Hormuz disruptions. Regional Finance: Amman Chamber of Commerce reported a 24.1% rise in export certificates of origin value to 624 million dinars in five months, with Syria among key destinations.

Port & Trade: Latakia Port handled over 2 million tons of cargo and containerized goods in the first five months of the year, moving through 273 vessels and about 120,000 containers, as modernization efforts streamline customs and speed up turnaround times. Business & Recovery: Syria is pushing for “bankable projects” and a clearer economic identity as recovery planning shifts toward “partnership” rather than privatization, aiming to attract foreign investment. Currency & Daily Economics: With local currencies under strain, more people are turning to the dollar as trust erodes—an economic pressure that hits vendors, pricing, and household purchasing power. Regional Finance: The World Bank approved a $900m package for Iraq and the Kurdistan Region to upgrade road corridors linking Baghdad with Turkey, Syria, and Jordan, targeting safer transport and better trade access for businesses and communities. Security & Cross-Border Risk: Reports say Israeli forces shelled areas in southern Syria’s Daraa countryside and briefly advanced near farmland, underscoring ongoing sovereignty violations that can disrupt local economic activity.

World Bank Infrastructure Push: The World Bank approved a $900m package to upgrade Iraq and the Kurdistan Region’s road network, targeting two main corridors linking Baghdad to Turkey (E2/E1 routes) and to Syria and Jordan, aiming to improve safety, reliability, and trade while benefiting about 7.9–8 million people. Syrian Power & Prices in Court: Syria’s Civil Court dismissed a lawsuit challenging electricity price hikes, citing procedural grounds and lack of jurisdiction, leaving consumers’ complaints over affordability unresolved. Captagon Crackdown: Anti-narcotics units in Syria carried out raids and seized Captagon pills as the government pushes back against the drug trade that helped fund the former Assad regime. Syria-Economy Angle: Coverage also points to Syria’s push to attract investment through “bankable projects” and broader recovery planning, as well as efforts to boost tourism and airspace activity amid regional disruption. Regional Risk Signals: The U.S. Embassy in Jerusalem issued a security alert urging Americans to reconsider travel to Iran, Iraq, Lebanon, Syria, Gaza and Yemen (Level 4) and to exercise extra caution across much of the Middle East (Level 3).

Syria–Algeria Diplomacy: Syria’s foreign chief Asaad Al-Shaibani met Algeria’s President Abdelmadjid Tebboune to push cooperation in energy, economy, investment, and security, with plans to reactivate a joint high committee and a Syria–Algeria business council. Syria Currency Update: Syria’s Central Bank extended the deadline again for exchanging old banknotes into the new Syrian lira, saying the process is 63% complete, while economists warn the repeated extensions show monetary transition strain and weak recovery of old notes. Finance & Payments in Syria: Reports say Visa and Mastercard restarted business in Syria, a move that could improve card payments and merchant access as the country’s recovery efforts continue. Trade & Logistics: Turkey is discussing reviving the Hejaz Railway and extending it toward Oman as an alternative corridor to the Strait of Hormuz, with the Damascus–Amman link mentioned as potentially reactivatable—an angle that matters for regional trade routes and Syria’s connectivity. Business Risk Watch: A major cyber-fraud case in India involved accounts tied to a bank in the name of a firm, highlighting how financial fraud networks keep evolving—relevant for regional compliance and bank controls.

Syria’s economic reset: Damascus is moving from privatization toward a “strategic partnership” model, elevating the private sector as the “engine of economic development” and framing the state as a regulator and guarantor as recovery and reconstruction ramp up. Central banking discipline: Syrian Central Bank Governor Mohammad Safwat Raslan said the next phase will be based on institutional work and coordination, ruling out improvised decisions as the banking sector dialogue continues. Sanctions and delisting pressure: Syrian President Ahmed al-Sharaa told Trump that lifting sanctions is key to reviving the economy, while the remaining U.S. State Sponsor of Terrorism designation is still a major blocker for finance and aid. Tourism push: Damascus announced a new Tourism Police Unit to guide visitors and secure routes, alongside hotel and heritage-site rehabilitation plans. Private-sector momentum: The National Private Sector Dialogue in Damascus signaled a new economic identity for Syria’s recovery, with UNDP support and a focus on investment and value-chain reconnection. Regional trade corridor idea: Turkey is discussing reviving the Hejaz Railway and extending it toward Oman, with the Damascus–Amman link highlighted as part of an alternative route to Hormuz. Security transition concerns: OPCW inspectors reported newly uncovered hidden chemical weapons materials in Syria, adding pressure to manage a fragile, shifting security landscape.

Syria’s water crunch: A Syrian hydrologist warns that hundreds of thousands of illegal wells are worsening the country’s water “catastrophe,” draining aquifers and drying springs—an issue that matters for both farming and energy output along the Euphrates. Damascus business push: Syria’s National Private Sector Conference opened in Damascus, signaling a push for a new economic vision and more investment-ready projects. Regional trade corridor plans: Türkiye is planning to modernize and extend the Hejaz Railway, starting with a link to Aleppo in Syria, aiming to build an alternative route to reduce reliance on the Strait of Hormuz. Lebanon airport revival (spillover for Syria logistics): A new civilian airport is expected from the Lebanese Army’s Qlayaat base, with redevelopment plans that could reshape northern Lebanon’s connectivity for regional commerce. Sanctions & reconstruction talks: Reports say Syria’s al-Sharaa and Trump discussed lifting remaining sanctions and reconstruction in phone calls, keeping economic recovery on the agenda. Oil & gas activity: Coverage notes activity ramping up in Syria’s oil and gas sector, alongside broader efforts to expand export routes.

Syria Tourism Push: Syria has set up a Tourism Police unit to guide visitors and secure routes to designated attractions, as Damascus looks to revive tourism after years of war and economic strain. Damascus Market Activity: Two large deals lifted trading on the Damascus Securities Exchange on June 3, pushing total turnover to about SYP80.8mn across 296 transactions. Oil & Gas Momentum (Regional Spillover): Activity is ramping up across the oil and gas corridor tied to the Strait of Hormuz disruption, with Iraq moving to expand exports via Turkey’s Ceyhan and using Syria-linked routes. Iraq Export Diversification: Iraq’s cabinet approved a major jump in pipeline exports toward Ceyhan, aiming to raise shipments to as much as 770,000 bpd within weeks, while also directing Kurdistan producers to resume operations. Sanctions Relief Talks (Syria): Syria’s leadership discussed sanctions relief and reconstruction with Trump, signaling continued efforts to unlock investment and restart the economy. Flood Impact on Eastern Syria: Euphrates flooding damaged farmland and forced emergency response and displacement in Deir ez-Zor, adding pressure to recovery and livelihoods. Security & Governance: Syria’s broader economic recovery agenda is also being shaped by security measures and governance steps, including new institutional moves like the tourism unit.

Syrian Private Sector Push: Syria’s National Private Sector Conference opened in Damascus, with the Economy Ministry, UNDP and Japan backing a new public-private cooperation model aimed at investment, recovery and a better business climate. Reconstruction & Investment Framing: In the same push, officials stressed Syria’s “historic juncture,” calling for “bankable projects” and leveraging the country’s geography to attract global markets. Food Security Pressure: Wheat farmers protested government procurement prices, arguing $330/tonne fails to cover input costs as the Syrian pound slides—raising fresh questions about how far liberalization can go in a politically sensitive staple. Regional Trade Routes: Turkey discussed reviving a Gulf transport corridor via Syria and Jordan, signaling renewed interest in logistics links that could matter for Syrian trade corridors. Russia’s Syria Resupply: The Wall Street Journal reported Russia resumed resupplying its Syria bases after Assad’s fall, underscoring continued strategic leverage at Tartus and Hmeimim. Damascus Airspace Revenue: Reporting suggests the Iran-Israel conflict is boosting Syria’s airspace-related revenues as airlines reroute.