Syria Looks to Privatization for Establishing Free Market Economy

Syria's new leadership is embarking on a sweeping economic overhaul, including plans to lay off a third of all public sector workers and privatize state-run companies that have dominated the economy under five decades of Assad family rule. The interim government, formed by the former rebel group Hayat Tahrir al-Sham (HTS), has already begun implementing changes, with the first wave of dismissals occurring just weeks after rebels ousted Bashar al-Assad on December 8. However, the rapid pace of these reforms has sparked protests from government employees, many of whom fear a sectarian purge in job cuts. 

In interviews with Reuters, five ministers in the new administration detailed plans to shrink the state’s role in the economy, including the removal of so-called "ghost employees"—individuals who were on the payroll but performed little or no work under Assad’s rule. For decades, Syria operated as a militarized, state-led economy that benefited a close-knit group of allies and family members, with heavy representation from the Alawite sect to which the Assad family belongs. Now, according to Economy Minister Basil Abdel Hanan, a 40-year-old former energy engineer, the government is shifting toward a "competitive free-market economy." 

The transition government, led by President Ahmed al-Sharaa, aims to privatize 107 state-run industrial enterprises, most of which are operating at a loss. However, Hanan assured that key energy and transportation assets would remain under public control, though he did not specify which companies would be privatized. Syria's primary industries include oil, cement, and steel, which have long been state-controlled.