US sanctions hold up Qatari support for Syria: Reuters
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Qatar is postponing funding for Syria’s public sector salary increases due to concerns over US sanctions, hindering efforts to revive the country’s economy.
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Qatar's Emir Sheikh Tamim bin Hamad al-Thani, left, is welcomed by Syria's interim President Ahmad al-Sharaa, upon his arrival at the airport in Damascus, Syria, on January 30, 2025. (Qatar news agency via AP)
Qatar is delaying funding to Syria's new rulers to raise public sector salaries due to concerns that the transfers could violate US sanctions, according to four sources. They added that this setback hinders efforts to revive Syria’s war-torn economy.
The delay in Qatar’s plan, first reported by Reuters in January, underscores the significant challenges faced by Syria’s new leadership in stabilizing the fractured country and gaining the confidence of foreign powers in their governance.
Although the previous US administration granted a sanctions exemption on January 6 for transactions with Syria’s governing bodies for six months, Qatar believes this exemption does not fully cover the payments needed to finance the salary increase through the central bank, the sources added.
Three sources stated that Qatar is awaiting clarity on US President Donald Trump's policy toward Damascus. One of the sources, a US official, added that Qatar had not begun paying salaries due to ambiguity over US sanctions.
Another of the sources also said that Qatar was not paying public sector salaries but noted that Doha had sent two shipments of liquefied petroleum gas to help alleviate crippling energy shortages.
On that note, it is worth mentioning that Syria's Finance Minister Mohammed Abazeed announced on January 5 that public sector employees will see their salaries increase by 400% starting next month.
The move came as part of an effort to stabilize the country's fragile economy following over a decade of war and sanctions.
The planned salary hike, expected to cost approximately 1.65 trillion Syrian pounds ($127 million), will be funded through a combination of existing state resources, regional support, new investments, and efforts to reclaim Syrian assets currently frozen abroad.
Economic crisis
Boosting the economy is a top priority for al-Sharaa, with nine out of ten Syrians living in poverty. His administration plans to cut a third of public sector jobs, which were previously used to secure loyalty under Assad.
The US sanctions exemption, valid until July 7, allows for personal remittances and some energy transactions but doesn't lift US sanctions.
Al-Sharaa has repeatedly called for the lifting of Western sanctions imposed on Assad’s regime after its brutal crackdown in the civil war, which started in 2011.
Syrian officials claim some sanctions have been suspended or eased, and the EU recently suspended restrictions on energy, banking, transport, and reconstruction.
The Trump administration has remained silent on its Syria policy, with US Secretary of State Marco Rubio expressing caution about replacing one destabilizing force with another.
