Assad Family Allegedly Profits from Syria’s Scrap Metal Trade

Monopoly of Syria’s Scrap Metal Industry Controlled by Assad’s Inner Circle

A The National investigation has uncovered troubling details about Syria‘s scrap metal industry, revealing that it has been monopolized by a network connected to the Assad family, particularly Bashar Al Assad’s brother, Maher Al Assad. Sources within Aleppo, Syria’s war-torn city, claim that the 4th Division of the Syrian Army, led by Maher Al Assad, has embedded soldiers in key scrap metal processing plants. These plants were reportedly forced to purchase metal from dealers linked to the military division, establishing a profitable cartel.

This cartel allegedly controls the flow of scrap metal in Aleppo, using local intermediaries to enforce their monopoly over the trade of metals like iron and copper, which are essential for Syria’s rebuilding efforts. According to a melt shop worker known as Ammar, there were even designated rooms in every plant for members of the 4th Division, ensuring that they received a cut of the business. These operations are estimated to have generated billions in Syrian pounds monthly, although the currency’s low value—0.00008 USD per pound—indicates a much smaller real-world profit.

Involvement of Sanctioned Businessman Mohammed Hamsho

Further complicating the situation is the role of Mohammed Hamsho, a businessman and former member of the Syrian parliament who has been placed on US and UK sanctions lists in late 2023. Hamsho is believed to have used his influence to help maintain the monopoly over the scrap metal trade, working in tandem with the 4th Division’s operations. His involvement deepens the ties between Syria’s political elite and its underground economy, where large sums of money were generated at the expense of the country’s reconstruction and economic development.

“Small Mafia” Network Behind Scrap Metal Collection and Distribution

Adding another layer of control, sources claim that a small network of 20-30 local collectors—described as a “small mafia”—was responsible for gathering scrap metal from abandoned or occupied buildings throughout Aleppo. These collectors reportedly sold low-quality metal to the melt shops, which were then forced to accept these materials, even when the metal’s quality was questionable. This system not only deprived Aleppo of quality materials for reconstruction but also fed into the corrupt system that the Assad family and its associates profited from.

Recommendations for Regulatory Reform in the Scrap Metal Sector

Experts suggest that the Syrian government, should it undergo reforms in the future, must take urgent steps to regulate and reinstate ethical practices within the scrap metal industry. Ayman Al Dassouki, an expert from the Omran Centre for Strategic Studies, recommends the re-establishment of the Syrian Metals and Steel Council, which could help reintroduce operating standards for the recycling sector. According to Al Dassouki, such measures could help reduce corruption and set the stage for the rebuilding of Syria with more transparent and sustainable business practices.