Syria has attracted growing international investment and aid commitments in the six months since the fall of the regime of former president Bashar Al Assad, as the country seeks to rebuild its shattered economy.
This rapid influx of investment marks a stark contrast to the years of economic decline and isolation that defined the country’s post-2011 era.
Since Mr Al Assad’s departure last December, investors from across the region and beyond have started to take a stake in Syria’s post-conflict recovery.
Qatar, Saudi Arabia and the UAE were among the first nations to endorse the country’s new leadership, with President Ahmad Al Shara invited to visit all three countries a handful of times since he took office in a bid to secure economic support.
Major commitments include a $7 billion energy infrastructure deal led by Qatar’s UCC Holding, a $6.5 billion aid pledge from international donors and an $800 million port development agreement with Dubai-based DP World.
Half a century of recovery
Despite the momentum, Syria’s reconstruction needs range between $400 billion, according to the World Bank, and $1 trillion, as estimated by Mohammad Al-Shaar, Syria’s Minister of Economy and Industry, last month.
In February 2025, the UNDP published a report in which it estimated that Syria’s economy could take half a century to recover to prewar levels.
Before the 2011 uprising, Syria’s economy was valued at $67.5 billion, ranking 68th globally and comparable to economies like Paraguay and Slovenia according to the World Bank.
By 2023, however, years of conflict and sanctions had reduced the country’s gross domestic product by 85 per cent to just $9 billion, placing it 129th in the global rankings.
Between 2000 and 2010, Syria enjoyed steady economic growth averaging 4.5 per cent annually, with inflation below 5 per cent. At its peak, nominal GDP reached $60 billion, and the average income per member of the population approached $3,000.
People power
Despite the investments and interest, a key challenge will be getting the country workforce-ready. The prolonged war in Syria has displaced millions, with more than 6.2 million Syrians registered as refugees, and an additional 7.2 million internally displaced. This mass displacement has resulted in a substantial reduction in the available labour force, particularly in critical sectors such as construction and health care.
A significant portion of the population has also experienced disruptions in education and vocational training, leading to a skills gap that hampers reconstruction efforts.
To address these challenges, new initiatives like cash-for-work programmes have been introduced. These programmes aim to provide immediate employment opportunities while simultaneously rebuilding essential infrastructure. They also offer on-the-job training, helping to bridge the skills gap and empower communities to participate actively in the nation’s recovery.