Economy

A decision by Syria’s Ministry of Energy to raise fuel prices has triggered the country’s largest wave of popular protests since the fall of the former regime in December 2024, with demonstrations, road blockades, and strikes spreading across several governorates. The ministry increased the price of gas oil (mazout) by 40 percent, petrol by more than 25 percent, and household and industrial gas by around 9 percent. The increases immediately pushed up public transport fares and fuel-related costs across the country, at a time when Syria is already experiencing double-digit inflation and widespread pressure on household purchasing power.

Syria’s diplomatic opening has created an economic opportunity that would have seemed remote only a short time ago. The danger is that the political value of this opening will erode if Syrians see investment announcements multiplying while their own livelihoods remain insecure. The government’s ability to turn international interest into functioning businesses, reliable services and broadly shared opportunities will help determine whether the transition earns durable public confidence.

Recent investments in the building materials and construction sector reflect the strong activity in that industry. Syria’s construction sector will contribute significantly to economic growth in the foreseeable future in view of the huge demand for building materials and construction services. Across the country, many Syrians are not waiting for a nationwide state-sponsored reconstruction drive to rebuild their homes. Ensuring that these building materials are produced in Syria, rather than imported, is very important.

This explainer details the economic ramifications of this step (from easing export controls and foreign assistance) and the implications for the lawsuits filed against the Syrian government in courts in the United States under the Foreign Sovereign Immunities Act (FSIA).

Last week at the Damascus International Fair, the Idlib-based White Room Holding Group and Chinese firm Zhongh announced a USD 500 million investment to establish five factories related to the construction sector in Hessia Industrial City in the Homs Governorate.

The final delisting came after U.S. President Donald Trump notified Congress on 8 July of his intention to remove Syria from the list, triggering a 45-day statutory review period before the delisting process could be completed.

The value of U.N. major procurement contracts with Syrian companies in 2025 dropped to USD 78 million, from USD 83 million in 2024. The value recorded in 2024-2025 marks the lowest point since 2014. These figures refer to major procurement contracts over USD 30,000. 

Syria formally concluded the replacement of its old banknotes on July 30, bringing to an end a seven-month nationwide currency replacement process. As a result, all denominations of the old Syrian currency have officially ceased to be legal tender in the market. Since January, approximately 95 percent of the old currency has been replaced. The replacement process has exposed several structural problems, such as the shortage of smaller banknote denominations, and difficulties in implementing the replacement process in areas of the northeast and the Suweida Governorate.

Syria presents one of the region’s most significant investment opportunities, but also one of its most legally complex environments. The country is emerging from prolonged conflict, institutional disruption, sanctions, currency instability, and economic isolation. Its legal and regulatory framework is evolving rapidly. Although many economic sanctions have been lifted, targeted sanctions, export controls, counterterrorism restrictions, and compliance risks remain. Investors should therefore approach Syria with a layered legal and commercial risk-management strategy rather than assuming that a standard arbitration clause will provide sufficient protection. (This article is a guest contribution by Harout Ekmanian.)

The Syrian government has announced the signature of 54 economic-related MoUs and agreements so far this year; 30 MoUs and 24 agreements. Gulf countries - Saudi Arabia, the United Arab Emirates, Qatar and Kuwait - accounted for half of all signings. At the sectoral level, energy and hydrocarbons ranked first in terms of the number of MoUs and agreements, accounting for 22.2 percent of the total. While the transport and logistics sector ranked second, representing 18.5 percent. Of these MoUs and agreements, 17 had clearly entered the implementation phase, while seven others showed tangible progress towards implementation.

In recent months, Syrian authorities and economic players have held several meetings with representatives of British companies. Testing the waters of investment in Syria,  British investors have taken some steps in terms of market assessment, technical cooperation and institutional development; but investment flows from UK firms have not yet materialised.

This profile provides an overview of Syria’s waste collection system, outlining the role of the public administration, the private sector and the NGOs in the collection, treatment and disposal of solid waste. Waste collection rates vary per district, but in most of the country the services fall well short of demand. Over half of the solid waste is dumped at uncontrolled open sites or burnt, posing serious public health risks. The role of the private sector is limited, but expanding. The government estimates that revamping the waste collection system will require hundreds of millions of dollars, and is in talks with the World Bank to secure grant funding to support the solid waste sector.

The first US-Syria Business Forum, held on Monday at the Dama Rose Hotel in Damascus,  brought together senior Syrian officials, representatives of U.S. companies and business leaders in Damascus, reflecting growing momentum behind efforts to rebuild commercial ties between the two countries.

In this interview, the Director General of the General Establishment for Geology and Mineral Resources (GEGMR), Siraj Al-Hariri, discusses the situation of the mining sector in Syria and its development plans, focusing on investment opportunities and legislative reforms aimed at attracting investors.

Activist Hassan Akkad was released on June 21 after a five-day detention ordeal in a controversial online defamation case involving regime crony Mohammad Hamsho. The way the arrest was conducted and the reliance of the transitional authorities on Assad-era tools to repress dissent such as the Cybercrime Law have sparked a wave of local and international outcry and a popular pressure campaign that led to the release of this high-profile activist and BAFTA-winning filmmaker.

The controversial five-day detention ordeal of an activist seeking accountability for the unfulfilled pledges made at local reconstruction fundraisers has thrown into the spotlight the challenges that the organisers of such fundraisers face.

In this interview, the Director General of the Small and Medium Enterprises Development Commission delves into the main challenges that small and medium companies face in Syria, and the plans of the authorities to support these types of companies, which represent the bulk of the country’s economic fabric.

Workers at Zanobia company have secured several concessions after several days of protests, while a separate strike at Madar company is ongoing. The disputes initially centred on wages and working conditions, but have also raised broader questions regarding labour rights, social protections and the role of state institutions in mediating between employers and workers.

Last week, the Illicit Gain Combating Committee (IGCC) took control of the Qalamoun Private University after taking over a company owned by Salim Daaboul, a businessman linked to former regime circles. 

In 2025, Syrian exports exceeded USD 2 billion, with oil exports accounting for 10 percent and phosphate for 3 percent. Syria has considerably increased its exports to countries like Egypt, Germany, Saudi Arabia, Jordan and Italy, but its exports to Turkey have significantly shrunk, dropping from USD 437.57 million in 2024 to USD 235.1 million in 2025.