Despite the easing of international sanctions, Syria’s economy continues to face major challenges due to persistent political and security instability. The complex internal environment, marked by conflicting interests and regional pressures, has created uncertainty that directly affects the economy and undermines investor confidence. This fragile situation remains the main obstacle to reconstruction and sustainable growth.
Economists note that political and legal ambiguity prevents the normal flow of foreign investments. The absence of clear legislation guaranteeing investors’ rights increases financial and legal risks, despite Syria’s rich natural and human resources. Experts emphasise that political stability is essential for rebuilding the economy and regaining investor trust. Such stability requires deep political, legal, and administrative reforms, along with a transparent investment environment and modern infrastructure.
Opportunities and Missed Chances
According to economist Dr Abdulrahman al-Nasser, Syria holds significant potential in natural resources such as oil, phosphates, and agriculture, as well as its strategic geographic location. However, exploiting these opportunities demands a secure and stable investment climate with clear regulatory frameworks.
He told +963 that the interim authorities are working to draft an economic roadmap focused on restoring stability, improving international relations, and rebuilding ties with Western countries through trade agreements and memoranda of understanding. Yet he believes this process will take time and regional cooperation before investments can flow in and benefit society.
Al-Nasser stresses the need for a clear national investment plan that directs capital to priority sectors, noting that reconstruction may cost over $400 billion, according to UN estimates. Simplifying administrative procedures, protecting investors through effective legislation, and developing digital infrastructure are essential steps to attract capital and reduce costs. He also highlights the importance of public–private partnerships and regular dialogue with investors to strengthen confidence.
Agriculture remains a key sector, representing 20% of GDP and employing nearly one-third of the workforce. Supporting this sector could enhance food security and reduce costly imports, while light industries such as food processing and textiles could generate thousands of jobs amid unemployment rates exceeding 50% in some regions.
Read also: Syria: A Nation Without Political Parties
Instability and Investor Confidence
The main challenge, Al-Nasser explains, is persistent political and security instability, which weakens investor confidence and hinders sustainable growth. Investors also face legal uncertainty and bureaucratic complexity, deterring them from committing to long-term projects.
Weak infrastructure and limited access to finance add to the difficulties. Local financial institutions remain unable to support major investments, prompting calls for regional investment funds in partnership with Gulf countries to mobilise capital.
Al-Nasser concludes that political and security stability is the foundation for any successful economic recovery. Without domestic consensus, legal protection, and a secure business environment, investor trust will remain fragile. Rebuilding Syria’s economy requires first rebuilding trust among political actors and ensuring a safe environment for capital inflow, an effort that demands both internal reform and regional diplomacy.
Between Promises and Implementation: The Reality of Investment Agreements
Legal expert Saba Atallah told +963 that the interim authorities have signed several memoranda of understanding (MoUs), especially in the energy sector, including projects in solar and wind power, gas field development, and electricity network upgrades.
In total, Damascus has signed MoUs worth around $14 billion with Arab and international companies covering infrastructure, airports, housing, and transport projects, many announced in mid-2025 after the lifting of US sanctions. These MoUs, Atallah explains, mark an initial stage of economic recovery and a signal of Syria’s intent to attract investment.
However, most MoUs are non-binding. They represent declarations of intent and a framework for negotiation rather than enforceable contracts. Globally, only 20–30% of MoUs in transitional economies are converted into binding agreements, and Syria’s case is unlikely to be different.
Atallah notes that the government is reportedly reviewing previous agreements to confirm their feasibility and ensure genuine implementation. The Minister of Economy, Nidal al-Shaar, recently stated that companies must undergo due diligence checks before signing contracts to avoid potential “errors” or “misplaced trust.”
