Following the lifting of U.S. and EU sanctions, investment contracts and infrastructure projects announced by Syria’s transitional government have become a dominant topic of discussion among Syrians—many of whom have endured over 14 years of crumbling public services and infrastructure. Hopes are now pinned on these new deals to usher in a transformative era of economic recovery and rapid development across key sectors.
In recent weeks, Damascus revealed a series of large-scale deals, most notably a $7 billion power generation project to be executed by a Qatari–Turkish–American consortium. According to World Bank estimates, total investment in Syria could reach up to $400 billion in the coming years. Meanwhile, Mustafa Ismail, Head of Corporate Affairs at the General Directorate of Domestic Trade and Consumer Protection, stated that 456 new companies were licensed in the first four months of 2025 alone.
The transitional government inherited, as economist Mohib Saleha of the Arab International University puts it, “a shattered economy plagued by hyperinflation, stagnant growth, exorbitant energy and transportation costs, low wages, currency depreciation, and widespread supply bottlenecks.”
In an interview with 963+, Saleha emphasised that “investment contracts in sectors like energy, transport, and ports—signed with major Arab and international companies—are set to spark economic growth. There is no economy without energy. A reliable power supply will lower production costs, support industrial and agricultural ventures, and help stabilise wages, prices, and the Syrian pound. It will also create jobs and boost aggregate demand, gradually pushing growth to record levels, driven by Syria’s urgent need for capital and skilled labour.”
He added that the cumulative effect of this recovery will reflect across all macroeconomic indicators, benefiting the business community through increased profit margins, freer movement of capital, goods, and people. This, in turn, would pave the way for Syria’s transition to a competitive free-market economy, with appropriate legal and regulatory frameworks.
However, Samer Kaakrali, head of the Economic Office in the Syrian Democratic Left Party, cautioned that these investments can only contribute meaningfully to recovery if they are protected from the entrenched corruption inherited from the Assad era. “There must be a new regulatory framework governing these investments,” he warned.
Speaking to 963+, Kaakrali argued that investment-driven recovery may prove more effective than traditional reconstruction. He cited Egypt’s $2 billion Beni Suef power plant project—which generates 4,800 megawatts, roughly the same capacity as Syria’s upcoming $7 billion plant—as an example of how better cost efficiency might have been achieved, potentially freeing up $3–4 billion for other projects.
He further noted that growth potential varies by sector, suggesting that Syria’s comparative advantages lie in the food processing and textile industries, which benefit from existing expertise and abundant raw materials. Prioritising these sectors, he argued, could yield the highest returns.
As for the tangible impact on ordinary Syrians, Kaakrali pointed to improved electricity supply, better living standards, currency stabilisation, job creation, and a revival of local production as some of the most immediate and important benefits expected from these investments.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
