New reconstruction and investment projects in Syria highlight shifting regional economic outlook

Report by Lea Fayad, English adaptation by Mariella Succar

A series of proposed infrastructure and investment projects in Syria is drawing renewed attention to the country’s economic future and its potential regional role following years of conflict.

Plans under discussion include the rehabilitation of four airports in Damascus, Aleppo, Deir ez-Zor and Qamishli, as well as a renewed proposal for a metro system in Damascus.

Energy projects being considered include the construction of four gas plants and a solar power station aimed at improving electricity generation capacity. Along the Syrian coast, from Tartus to Latakia, development plans target transforming the area into a regional commercial and logistics hub.

Additional large-scale investments are also being explored across multiple sectors.

The developments come as Syria’s regional role is increasingly discussed in relation to transit and connectivity projects, particularly amid rising geopolitical risks in the Strait of Hormuz. Proposals include reviving older pipeline routes and developing transport corridors linking Syria with Jordan and Türkiye, potentially extending connectivity toward the Gulf and Europe via rail, electricity and freight networks.

Funding discussions reportedly involve Gulf countries, including Saudi Arabia, Qatar and the United Arab Emirates, as well as Turkish, European and American companies, in addition to Syrian investors abroad.

Businessman Mohamed Alabbar is also reportedly studying two real estate projects in Syria valued at more than $50 billion.

The developments come as Lebanon and Syria remain economically interconnected. Historically, Lebanon served as a commercial, financial and maritime gateway, while Syria functioned as a land-based economic hub connecting Lebanon to Arab markets.

Following the outbreak of the Syrian war in 2011, Lebanon lost its primary overland trade route to Arab countries. This contributed to disruptions in exports and trade and added pressure on Lebanon’s already fragile economy, alongside the burden of hosting refugees, preceding the 2019 financial crisis.

Economic indicators show that both economies once moved in parallel before diverging sharply after the Syrian conflict.

While Syria is now seeking to attract large-scale investment despite widespread destruction, Lebanon continues to face deep economic and political paralysis.

Lebanon’s decision-making system remains slow and complex, involving multiple layers of approval, while Syria’s governance model is more centralized.

Syrian President Ahmed al-Sharaa has framed the country’s economic strategy as one of reconstruction through investment, emphasizing a shift away from conflict toward economic opportunity and regional integration.

He has described Syria’s approach as transforming the country from a platform for conflict into a space for investment in security and sustainable economic development.

In contrast, Lebanon remains in a prolonged state of political uncertainty, with key strategic decisions unresolved and investment opportunities increasingly moving elsewhere.