Syrian government 'touches the neck' of the richest tycoon, considered the 'thief' of the country

Rami Makhlouf (center), one of Syria's richest tycoons. Photo: Balkis Press

The Syrian finance ministry has accused Rami Makhlouf, 50, of smuggling goods and fined him 11 billion Syrian pounds (£16 million). It said that in 2017, Makhlouf's company, Abar Petroleum Service, imported 25 million pounds worth of oil, diesel, gasoline and liquefied petroleum gas into Syria without paying customs fees. The charges against Mr Makhlouf are part of a wider campaign by President Bashar al-Assad's regime to limit the influence of businessmen in the war in Syria.

Local media said Mr Makhlouf, who has been under house arrest since the beginning of this year, owns a chain of luxury hotels, financial companies and SyriaTel, Syria's main mobile phone company, among other assets.

Before the civil war broke out in 2011, Makhlouf was said to have controlled as much as 60% of Syria’s economy. Makhlouf was one of the men who was allowed to connect and monopolize the private sector in the 1990s, during Syria’s boom years under the leadership of his uncle Hafez al-Assad (father of President Bashar al-Assad). Makhlouf’s son, Mohammad, is believed to have a fortune of $2 billion. He owns a $43 million private jet.

The Makhlouf family’s public wealth has angered even supporters of the Assad regime, while the opposition sees it as a symbol of corruption in Syria. In the early days of the uprising, protesters called Mr. Makhlouf a “thief” of the country.

Analysts described the Syrian government's decision as an "unusual move" during the eight-year civil war. "The Syrian government may be trying to consolidate its legitimacy at a time when its revenues are really down and millions of people are in dire straits," said Chris Doyle, director of the British Arab Council. "It may also be that the government has so little financial resources at the moment that it needs to raise billions of pounds to be able to continue to develop," he added.

The Syrian pound has fallen sharply in recent weeks, with observers saying the economic situation has worsened since the uprising in neighboring Lebanon began in October 2019. Lebanon, considered a financial “lung” for Syrian businessmen, is facing a major financial crisis due to the protests and the ongoing political deadlock.

Some experts say the war has destroyed the middle class in Syria. Currently, Syrian society is only left with the very poor and the extremely rich. Because in any war, there are always those who benefit. The decision to "touch" tycoon Makhlouf by the Damascus government is expected to open similar campaigns targeting wealthy businessmen who have made a fortune from the war in Syria, in an effort to avoid a state budget deficit.