Syria is planning to print a newly-designed currency in the United Arab Emirates (UAE) and Germany, moving away from its previous reliance on Russia. This shift comes as Syria aims to strengthen its ties with Gulf Arab and Western nations, motivated by new opportunities following the loosening of U.S. sanctions. Three sources confirmed this development, highlighting the changing political landscape for Syria.

In a notable sign of improving relations with the UAE, Syria signed an initial deal worth $800 million with DP World to develop Tartus port. This agreement marks the first such collaboration since the announcement by former President Donald Trump on Tuesday that U.S. sanctions on Syria would be lifted. The redesign of the currency will feature the removal of former Syrian leader Bashar al-Assad’s image from one of the denominations that is still in circulation.

Syria’s new leadership is urgently working to revitalize an economy that has suffered significantly over 13 years of war. The economy is currently facing challenges, including a shortage of banknotes. During the civil war, Russia had printed Syria’s currency after European Union sanctions led to the termination of a contract with a European firm. Despite Assad’s departure to Russia last December, ties with Moscow have continued, with recent cash shipments, fuel, and wheat received as Russia maintains its military presence in the country.

The EU has sought to limit Russian influence in Syria, especially in light of the ongoing conflict in Ukraine. In February, the EU suspended sanctions on Syria’s financial sector, allowing for the possibility of currency printing. Syrian authorities are reportedly in advanced discussions with the UAE-based company Oumolat for a currency-printing agreement. This was confirmed by Syrian financial sources who noted that the country’s central bank governor and finance minister visited Oumolat during a trip to the UAE.

In Germany, interest has been expressed by the state-backed firm Bundesdruckerei and the private company Giesecke+Devrient regarding the currency printing, although it remains unclear which company will ultimately be chosen. A spokesperson for Bundesdruckerei stated that they are not currently in talks with the Syrian government. Meanwhile, Giesecke+Devrient declined to comment on the matter.

Currently, there is a shortage of Syrian pound notes, with varying reports on the reasons behind it. Officials claim that citizens and other actors are hoarding the currency, while bankers suggest that the Syrian authorities are deliberately restricting circulation to manage the exchange rate. Banks frequently deny depositors and businesses access to their savings, putting additional strain on an economy already challenged by competition from low-cost imports. As of Friday, the Syrian pound was trading at approximately 10 000 per U.S. dollar on the black market, a significant improvement from the rate of around 15 000 prior to Assad’s ousting. In 2011, one U.S. dollar was equivalent to just 50 pounds.