As Syria embarks on its post-sanctions recovery, economic expert Dr Ziad Arbash has emphasised the urgent need for strategic reforms in the country’s energy sector, describing it as the “bottleneck” hindering the revival of nearly every productive and service industry. In comments to Al-Hurriya, Arbash hailed the lifting of international sanctions as a “turning point” that has attracted global interest, but cautioned that a more agile and realistic approach is now required to convert this geopolitical opportunity into economic renewal.
Strategic Sector, Strategic Debt
“The energy sector was once the backbone of the Syrian economy,” said Arbash, referring to the pre-war years (2011–2025) when oil exports and domestic energy production supported both public revenues and national infrastructure. Since the onset of war, however, production collapsed and Syria became dependent on costly energy imports—particularly through a controversial credit line from Iran.
“These loans, obtained under the former regime when Syria was at its weakest, are what we in economics call ‘odious debt,’” he noted. Iran is now demanding repayment, prompting the transitional government to review their legitimacy. Arbash suggested Tehran may consider converting some of these liabilities into direct investments—provided a healthy and transparent relationship is re-established.
In contrast, Russia could offer a more pragmatic partnership. “Russian companies may be better positioned to rehabilitate energy infrastructure without excessive political baggage,” he said.
Zero Output Without Energy
Arbash stressed that energy is the essential input for all sectors: “Without fuel derivatives, transport grinds to a halt—whether public or freight. Agriculture, manufacturing, construction, tourism, communications—all rely on sufficient energy carriers.”
He warned that many sectors have effectively reached “zero productive output” due to the scarcity of fuel, especially in transportation and agriculture. The collapse of energy provisioning has made power shortages the central obstacle to any economic restart.
The expert urged the government to leverage both European expertise and Syrian expatriates—individuals and companies alike—to support the rehabilitation of oil, gas, and electricity systems, including renewable energy initiatives. “This is a national priority,” he insisted.
Legal Reform and Energy Waste
Beyond investments, Arbash emphasised the need for a new legislative framework to govern the sector, one that encourages public-private partnerships and large-scale projects in both traditional and renewable energy. But he also sounded an alarm: “So far, we’ve failed to confront the massive losses in the energy system.”
According to Arbash, technical and commercial electricity losses in some rural areas exceed 50%. “From every 100 kilowatts generated, more than half may be lost before reaching consumers,” he said, calling for serious action before embarking on costly new infrastructure.
While the installed capacity of home-based solar systems has reached 50 megawatts—an improvement from two years ago—Arbash deemed this figure far too modest. “Renewable energy still plays no decisive role in the national grid,” he stated. Industrial-scale solar and wind farms are needed, not just individual household installations.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
