Middle East
HTS to ‘shrink the state’ through privatization and civil servant sackings
Syria’s new Islamist leaders are embarking on a radical overhaul of the country’s economy, including plans to sack a third of public sector workers and privatize state-owned companies that dominated under the Baath Party and the Assad’s.
The first sackings began just weeks after the ouster of Bashar al-Assad on December 8, while the pace of the announced crackdown “against waste and corruption” has triggered protests by government employees, including fears of a “sectarian purge of jobs,” Reuters reported by Riham Alkousaa.
Reuters spoke to five ministers in the interim government formed by Hayat Tahrir al-Sham (HTS), all of whom described the broad scope of plans to “downsize the state.” They said this included the elimination of a large number of “ghost employees” (people who allegedly received salaries for doing little or nothing under Assad).
Reuters lends support to the sectarian narrative, arguing that under Hafez and Bashar al-Assad, Syria was organized as a “militarized, state-led economy that favored an inner circle of allies and family members, with members of the Alawite sect of the family heavily represented in the public sector.”
107 state-owned companies to be divested
HTS’s economy minister, 40-year-old former energy engineer Basil Abdel Hanan, told Reuters that there was a major shift towards a “competitive free market economy.”
The government under “interim president” Abu Mohammed al-Jolani (Ahmed al-Shara) will work to privatize state-owned industrial companies, which Hanan said total 107, most of which are loss-making.
Hanan promised to keep “strategic” energy and transport assets in public hands but did not name the companies to be sold. Syria’s main industries include oil, cement, and steel.
Finance Minister Mohammad Abazeed said in an interview that some state-owned companies existed only to embezzle funds and would be closed down. Abazeed said, “We expected corruption, but not this much.”
Half of the civil servants may be sacked
Abazeed said that based on a preliminary examination, only 900,000 of the 1.3 million people on the state payroll actually showed up for work.
“That means there are 400,000 ghost names. Eliminating them would save considerable resources,” Mr. Abazeed said.
Administrative Development Minister Mohammad Alskaf, who oversees public sector staffing, went further, telling Reuters that the state would need between 550,000 and 600,000 employees, less than half the current number.
Abazeed said that the reforms, which also aim to grant amnesty for penalties and simplify the tax system, aim to remove obstacles and encourage investors to return to Syria.
HTS’s goal is familiar: Reduce bureaucracy, boost exports
“So factories inside the country can serve as a launching pad for global exports,” said Abazeed, who was an economist at Al-Shamal private university before serving as a treasury official in the HTS stronghold of Idlib in 2023.
Since 2017, HTS has been attracting investment and the private sector in Idlib “with less bureaucracy and pressure on hardline religious groups,” according to Reuters.
The new government hopes for a nationwide increase in foreign and domestic investment to create new jobs as Syria rebuilds after 14 years of conflict, three ministers told Reuters.
However, for HTS to replicate the “Idlib model,” it will have to overcome a wide range of challenges, notably international sanctions that severely hamper foreign trade.
The question of the legitimacy of al-Jolani’s government could be raised
Maha Katta, Resilience and Crisis Response Specialist for Arab Countries at the International Labour Organisation, said the economy is currently not in a position to create enough private jobs.
Katta said, “I’m not sure it’s really a wise decision,” adding that restructuring the public sector “makes sense” but questioning whether it should be a top priority for a government that needs to revive the economy first.
While recognizing the imperative for interim leaders to act quickly to get the country under control, some critics see the scale and pace of the planned changes as overreaching.
Aron Lund of the Middle East-focused think tank Century International said, “They talk about a transition, but they are making decisions as if they were a legitimately constituted government.”
Islamist government to administer neoliberal ‘shock therapy’
Economy Minister Hanan said economic policy would be designed to manage the consequences of rapid market reforms to avoid the chaos of recession and unemployment that followed the “shock therapy” imposed on post-Soviet countries in Europe in the 1990s.
Mr. Hanan said, “The aim is to balance private sector growth with support for the most vulnerable.”
The government has announced a 400% increase in civil servant salaries, currently around $25 a month, starting in February. It is also mitigating the impact of layoffs through severance pay or by asking some workers to stay at home while needs are assessed.
Hussein El Khatib, Director of Health Facilities at the Ministry of Health said, “We are saying to the employees who are hired just to get a salary: please take your salary and sit at home, but let us do our job.”
Discontent Among Public Laborers Grows
But discontent among workers is growing. Workers have been showing Reuters lists circulating in the labor and trade ministries, which have scaled back Assad-era employment programs for former soldiers who fought alongside the government in the war.
One of these veterans, Mohammed, told Reuters he was dismissed from his data entry job at the labor ministry on January 23 and given three months’ paid leave. Mohammed said 80 other former fighters had received the same notice, which he shared with Reuters.
Responding to questions from Reuters, the labor ministry said that “due to administrative inefficiencies and implicit unemployment” some employees had been placed on three months’ paid leave to assess their work situation, after which their status would be reviewed.
The plans sparked protests in January in cities such as Daraa in southern Syria and Latakia on the coast.
Daraa Health Directorate employees carried banners reading “No to arbitrary and unjust dismissals” during a demonstration attended by dozens of people.
Demonstrator Adham Abu Al-Alaya said he fears losing his job. He says he supports the elimination of ghost labor but rejects the allegation that he or his colleagues are being paid for doing nothing. He was hired in 2016 to manage records and pay bills.
Abu Al-Alaya said, “My salary helps me meet my basic needs, such as bread and yogurt,” adding that he also works another job to make ends meet.
He said, “If this decision is implemented, unemployment will increase across society, which is something we cannot afford.”
Middle East
Iran resumes ballistic missile assembly using stockpiled parts
Iran has resumed ballistic missile production in underground facilities, despite statements by Israeli and US authorities asserting that this capacity had been completely eliminated.
According to a report by The Wall Street Journal citing US and Middle Eastern officials, the Tehran administration is utilizing pre-stockpiled components in the manufacturing process.
Officials report that despite strikes on missile sites and industrial installations at the beginning of the war, Iran continues the assembly of both solid- and liquid-fuelled missiles.
Intelligence data indicates activity at numerous underground centres, including the Khojir complex in the southeast of the country, along with efforts to establish additional underground assembly points to protect against new air strikes.
Current assembly operations are being maintained at lower volumes compared with pre-war levels, as US and Israeli operations destroyed several facilities and a naval blockade has impeded the import of components and solid-fuel ingredients.
Assessing the process, Tal Inbar, a senior analyst at the US-based Missile Defense Advocacy Alliance, stressed that damaged infrastructure can be repaired during periods when facilities are not targeted, and parts procured from other countries can be stored there.
Inbar noted that it would be naive to believe Iran is not rebuilding its missile production capacity.
Arguing that the facilities were destroyed and Tehran has suffered severe losses, the official stated that Iran remains weaker than ever before, and US President Donald Trump will never permit the country to acquire nuclear weapons.
Pentagon spokesman Sean Parnell stated that the US has destroyed up to 90% of Iran’s drone, ballistic missile, and naval industrial infrastructure, severely degrading Tehran’s ability to launch missiles and unmanned aerial vehicles.
Another US government official pointed out that the Tehran administration may have revived production, albeit on a low scale, following preliminary talks conducted in mid-June with the Trump administration regarding the opening of the Strait of Hormuz and ending the war. The official noted that existing stockpiles are sufficient to assemble at least two hundred missiles.
A CNN report in late May indicated that the Tehran administration was attempting to reopen underground missile shelters, struck by the US and Israel with costly munitions, using bulldozers and dump trucks.
Excavation activities accelerated after the April ceasefire decision; out of 69 tunnel entrances struck across 18 distinct locations, 50 have been made accessible again.
Experts stressed that it is impossible to destroy missile power solely by bombing tunnel entrances, underlining the limitations of such bombardments.
US Secretary of War Pete Hegseth claimed in April that they had effectively ended Iran’s missile programme. However, an NBC News report noted that Tehran utilized the ceasefire period to reconstitute its military strength.
Middle East
Mohammed bin Salman urges Trump to strike Houthis after Mokha falls
Saudi Crown Prince Mohammed bin Salman has requested that US President Donald Trump launch air strikes against the Houthis in Yemen.
According to two US officials who spoke to Axios, Trump rejected the request, and US officials emphasised that the administration has no plans for direct intervention against the Houthis for now.
Oil prices surged on Thursday after the resistance led by Houthi militias (Ansarallah) seized the strategic coastal city of Mokha in Yemen.
This development brought the Yemeni resistance one step closer to the Bab el-Mandeb Strait, which is vital for global trade and Saudi oil exports.
With Iran already disrupting traffic in the Strait of Hormuz, Houthi control over Bab el-Mandeb could provide Tehran with powerful new leverage over the US and its Gulf allies.
On Thursday, as Houthi forces advanced towards the coastal city of Mokha and Saudi-backed Yemeni forces retreated, bin Salman telephoned Trump to brief him on the deteriorating situation.
A few hours later, the prince called again to request that Trump carry out US air strikes against the Houthis.
Trump declined, but a US official stated that the administration would provide Saudi Arabia with intelligence and targeting data on the Houthis.
The official noted that approximately 200 US military personnel are currently stationed in Saudi Arabia, providing non-military support.
A senior Trump administration official indicated that Washington’s priority is keeping the Red Sea open, while leaving the broader fight to regional partners.
“We are in continuous dialogue with Saudi Arabia and the Government of the Republic of Yemen regarding regional stability,” the official said.
The official continued:
“The US remains focused on protecting our core national security interests, such as ensuring freedom of navigation in the Red Sea, while empowering our regional partners to take the lead in managing and resolving regional security challenges.”
The US is concerned by the rapidly escalating conflict in Yemen and is seeking to avoid direct military intervention while increasing its support for Saudi Arabia.
According to two sources familiar with the matter, Admiral Brad Cooper, Commander of US Central Command (CENTCOM), travelled to Saudi Arabia on Thursday for urgent coordination meetings.
The conflict between Saudi Arabia and Yemeni resistance forces reignited in July after Riyadh blocked an Iranian aircraft carrying senior Houthi officials from landing in Sanaa following their return from Ali Khamenei’s funeral.
Bin Salman requested Trump’s political support to strike Sanaa airport, but made clear that Saudi Arabia did not require US military assistance. Trump granted his support.
The Houthis subsequently retaliated by attacking Saudi tankers in the Red Sea. These strikes threatened a route crucial to the kingdom’s oil exports, and the group later expanded its attacks to Saudi energy facilities.
Saudi Arabia and its Yemeni allies responded with air strikes and ground operations against Houthi positions.
Saudi Arabia’s request for direct US military intervention marks a sharp reversal from July, when Riyadh informed Washington that it could manage the Houthis on its own.
As clashes intensified, the Saudis began seeking progressively greater support from the US.
Sources close to the discussions noted that in recent weeks, US military and civilian officials informed their Saudi counterparts that Trump’s directive is to keep American forces focused on Iran and the Strait of Hormuz, and to avoid opening a new front.
Middle East
Netanyahu ignored MBZ warning on Hamas 7 October plan, report says
Israeli Prime Minister Benjamin Netanyahu reportedly ignored a direct warning from UAE President Sheikh Mohamed bin Zayed Al Nahyan in the run-up to 7 October 2023, according to an investigation by the Israeli newspaper Haaretz.
The report states that the UAE leader, widely known as MBZ, was convinced in September 2023 that an explosion was imminent in the region, particularly given the escalating tensions in the West Bank.
Israeli President Isaac Herzog, who maintains close ties with bin Zayed, recounted: “In the months leading up to the war, he spoke with me about this issue frequently. He consistently conveyed the message that the situation needed to be de-escalated. He even dispatched a special envoy to Israel who met with the prime minister. The emir appeared to sense that the region was on the verge of erupting.”
MBZ also engaged in direct discussions with Netanyahu. These exchanges followed a standard operational protocol: a representative from the United Arab Emirates embassy would arrive at the prime minister’s office equipped with a specialised, secure telephone device to ensure confidentiality.
However, according to the newspaper, the call initiated by bin Zayed on this occasion was extraordinary in nature.
A week and a half before 7 October 2023, the UAE ruler placed a call to Netanyahu from the Presidential Palace in Abu Dhabi, and the two leaders spoke for 45 minutes.
During this conversation, bin Zayed warned that Yahya Sinwar, the Hamas leader in Gaza, was planning a major operation against Israel.
Bin Zayed voiced deep concern that such an event would not only lead to significant bloodshed, but would also destabilise the entire region and undermine the Abraham Accords.
Haaretz reported that three senior foreign sources possess direct knowledge of the call’s contents, marking the first public disclosure of the conversation’s existence.
A close Palestinian adviser to bin Zayed, who had emigrated from Gaza to Abu Dhabi years earlier and maintained extensive connections across the Gaza Strip, was also present during the exchange.
According to the adviser, the UAE ruler stressed to Netanyahu that Israel needed to prepare for this specific threat.
The adviser stated:
“The emir explained that, according to his assessment, Sinwar was preparing for a major event. He told Netanyahu that Israel had to be prepared. At the same time, he proposed working towards an economic solution for the Gaza Strip to prevent escalation, alongside calming the situation in the West Bank.”
Bin Zayed urged Netanyahu to take the matter seriously. Yet, to the emir’s surprise, the prime minister reacted with relative calm.
Netanyahu told bin Zayed that, in his own assessment, Hamas was planning to operate in the West Bank area. Reassuring the Emirati leader, Netanyahu insisted that Israel was prepared for any scenario.
The UAE leader later recounted his conversation with Netanyahu and his subsequent warning to CIA Director William J. Burns.
Bin Zayed shared with Burns the intuitive alarm he had sought to convey to Netanyahu—that “something over there is about to blow”—and noted the Israeli prime minister’s conviction that the unstable theatre was in fact the West Bank.
“The emir hoped that, despite Netanyahu’s reserved reaction, he would take the message seriously and take action,” the adviser said.
However, neither anticipated that the prime minister would hear the warning without briefing the heads of his defence and security establishments: neither the director of the Shin Bet, nor the director of the Mossad, nor the chief of staff of the Israel Defence Forces was informed of MBZ’s warning.
Haaretz noted that Gaza-related negotiations between Israel and Hamas had been proceeding smoothly in early 2023, providing the context in which the Emirati ruler’s concerns emerged.
The report received swift corroboration from the Israeli political opposition. Former prime minister and leader of the B’Yachad party, Naftali Bennett, stated that he knew the warning issued by UAE leader Mohamed bin Zayed to Netanyahu concerning Hamas’s plans prior to 7 October was genuine.
Speaking to 103FM, Bennett said: “I am telling you: I know this to be true.”
Bennett continued:
“Mohamed bin Zayed of the UAE warned Netanyahu that Sinwar was planning an operation. The head of the Egyptian General Intelligence Directorate, Abbas Kamel, also notified Netanyahu a few days before the massacre that a major operation was being planned. I do not wish to discuss my sources with anyone. I am telling you: I know this fact to be true.”
Contending that Netanyahu had led Israel “blindly into this horrific disaster,” the opposition figure asserted: “He was so deeply captive to the conception that Hamas was an asset that, despite receiving explicit warnings, he did nothing.”
Bennett maintained that Netanyahu bears direct responsibility for 7 October, not merely by virtue of being prime minister, but because “he spent 15 years strengthening Hamas and doing nothing.”
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