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From isolation to investment: Syria's comeback highlights Lebanon's stalled crisis
News Bulletin Reports
31-05-2025 | 12:48
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From isolation to investment: Syria's comeback highlights Lebanon's stalled crisis
Report by Joe Farchakh, English adaptation by Yasmine Jaroudi
As U.S. sanctions on Syria are lifted, the war-torn country is witnessing a wave of Arab and international investment, including a $7 billion agreement signed with a consortium of leading energy companies.
The rapid influx of capital is viewed as a significant endorsement of Syria's newly formed government and its efforts to re-enter the regional economic landscape after more than a decade of isolation.
According to LBCI sources, the pace of development projects in Syria is driven by multiple factors. Among them is President Ahmed al-Sharaa's determination, since taking office, to act swiftly to gain both domestic and international trust and to assert his legitimacy as the country's leader despite early skepticism.
Government ministers are also reportedly competing internally to launch successful initiatives, while the state has adopted a thoroughly liberal economic policy aimed at reducing the public sector's dominance and encouraging both Syrian and foreign private investment.
This surge in foreign investment in Syria comes in stark contrast to Lebanon, which continues to suffer from a lack of investor confidence.
Is Lebanon's problem purely political, or does it stem from the absence of a coherent national economic strategy?
The current situation draws comparisons to 1992 when the late Prime Minister Rafic Hariri took office during a similarly dire economic period. Back then, Lebanon was dealing with a deep recession, high inflation, soaring unemployment, and a collapsing currency—conditions that echo today's crisis.
Hariri responded with a clear vision for economic recovery, launching the ambitious "HORIZON 2000" reconstruction plan. His initiative focused on revitalizing Beirut as the heart of the country, rebuilding its downtown district, and rehabilitating essential infrastructure, including the Beirut port and international airport.
The renewed trust in Lebanon that followed helped Hariri attract significant investment from Lebanese, Arab, and international sources in tourism, real estate, finance, and industry. Beirut reemerged as a hub for global conferences and business forums, drawing investors and political leaders alike.
Throughout his tenure, Hariri maintained and strengthened Lebanon's Arab and international ties, leveraging those relationships to rebuild the nation's economy.
Today, as Lebanon faces one of its worst crises, can the country find its way back by reviving the Hariri model of leadership and economic diplomacy?
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Behind closed doors: UN envoy meets Hezbollah official to discuss Resolution 1701 and Israeli violations
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