Minister of Finance reveals preparations for the launch of Syria's first sovereign sukuk
Finance Minister Mohammed Yusr Barnieh revealed that the Syrian government is working on launching the country's "first sovereign sukuk" and that efforts are currently focused on completing the necessary legislative, regulatory and technical structure before announcing the value of the first issuance, in order to ensure "the success of Islamic financing instruments and achieving a sustainable impact in the local market."
In his capacity as Governor of Syria at the World Bank, the Minister announced that the Bank has officially approved the financing of the first two projects in the water and health sectors worth $225 million, with strict oversight mechanisms to ensure governance and transparency.
Corporate taxes to less than 15%
Barnieh stressed that the reduction of the corporate profits tax from 28% to less than 15% represents a strategic step aimed at stimulating investment and boosting production in the industrial and agricultural sectors, pointing out that the government seeks to make the Syrian tax system one of the most competitive in the region.
He explained that the ministry is not betting on raising tax rates to compensate for revenues, but on the generalization of tax justice and the expansion of the costly base, as high-income groups and self-employed people have remained outside the actual tax umbrella for many years, according to him.
The minister said that the total tax exemption ceiling of 64 million Syrian pounds consists of 50 million Syrian pounds as a basic exemption, in addition to 6 million dependency allowances and 8 million living and medical allowances, pointing out that the financial cost of this decision has been accurately calculated within the 2026 budget.
These measures will result in the full exemption of the largest segment of workers and employees from taxes, which will ease living pressures and improve the purchasing power of Syrian families.
11 international projects worth $1.4 billion
Bernier said in press statements on Monday (May 25th) that the portfolio of international projects under consideration currently includes 11 vital projects worth approximately $1.4 billion, including the sectors of infrastructure, water networks, energy and basic services. The minister expressed optimism about the flexibility and international praise that the government has received during its recent meetings in Washington.
Barnia revealed that the talks with the IMF focused on accelerating the executive steps to reach the unified treasury account and unify public sector accounts, which will end the state of dispersion of the state's cash liquidity within banks and raise the efficiency of government spending, as the government aims through this track to build the 2027 budget on the basis of efficiency, transparency and financial discipline.
Bernier: We will pay the salaries of military retirees
In press statements, Minister Bernier pointed out that the issue of pensions and defectors has humanitarian and legal dimensions, pointing out that the General Insurance and Pensions Corporation has started sending text messages and electronic links to beneficiaries in preparation for digital matching and legal scrutiny.
He stressed the government's commitment to disburse pensions and restore the suspended rights of every soldier, civilian or defector whose legal reviews prove that he was not involved in crimes against civilians.
The Minister of Finance revealed on May 1 that the ministry has matched more than 58,000 requests to repay the salaries of defectors and military retirees, with the records of the Insurance and Pensions Corporation, and the link to the form has been sent to all beneficiaries and that work is underway to arrange appointments for their personal attendance to the Foundation's branches to complete the procedures.
What is a Consolidated Treasury Account?
The Consolidated Treasury Account (TSA) is a centralized financial structure through which all government bank accounts are managed through a single main account with the Central Bank, to which all sub-accounts of ministries and public entities are linked with the aim of concentrating cash flows and enhancing transparency and financial discipline.
The system is based on consolidating the balances and inflows of the public sector into a single account, so that public revenues such as taxes, fees, and investment returns are transferred directly to it, and from which all government payments are disbursed.
Despite the centralization of the account, the system allows government entities to have sub-books in book, provided that the actual balances are liquidated daily in the central account to ensure operational flexibility without losing financial control. The successful implementation of the Consolidated Treasury Account requires an integrated technical and legislative structure that includes electronic linkage through the Government Financial Information Management System (IFMIS), unification of databases, inventory of employees and public entities, and updating International Account Numbers (IBAN).