Damascus — Syrian President Ahmed al-Sharaa’s government is presenting ambitious economic plans aimed at rebuilding the war-torn nation, but foreign investors remain cautious, according to a report by the Financial Times.
A visiting German businessman told a gathering at the Four Seasons hotel in Damascus on Monday that he was “very” impressed by presentations on projects including a Damascus metro and 20-year housing plans. “I thought they’d be pitching us on rubble-clearing projects,” he said. Yet, he added, “It is still too early” to take the risk, citing lingering sanctions, instability, and patchy rule of law.
Since toppling the Assad regime last December, Sharaa has made economic recovery the central focus of his administration. The government has courted international legitimacy, leading the EU and US to lift most sanctions, and has pivoted toward a free-market approach, dismantling aspects of Assad-era socialism. Memoranda of understanding (MOUs) worth billions have been signed with foreign partners, though most have yet to materialize into actual deals.
“The economy is growing just 1% this year,” the World Bank has projected, with GDP currently at half of 2010 levels and two-thirds of Syrians still below the poverty line. Government officials privately suggest growth may be higher.
While some business leaders have welcomed the freer market, sentiments remain mixed. Mazen Derawan, chair of Amana Foods, has returned operations from Jordan and Turkey to Syria, doubling employment to 400. “We feel safer now to invest and expand,” he said. Yet others, like Mounzer Nazha of Nazha Investment Group, note that manufacturing is struggling to compete with cheaper imports from Turkey and China, prompting a pivot toward tourism and reconstruction projects.
Syria’s banking system remains fragile, squeezed by war, sanctions, and the collapse of Lebanon’s financial sector. Companies report difficulty obtaining loans and raising funds abroad due to over-compliance with enduring US sanctions. “European banks and businesses still won’t touch us,” said Derawan, highlighting the constraints on even exempt industries like food and medicine.
Corruption and opacity, once hallmarks of the Assad-era bureaucracy, are reemerging, according to businesspeople and government insiders. Key economic decisions are reportedly controlled by a council led by Sharaa’s brother and an associate with ties to the former HTS rebel group. Some officials defend these measures as necessary in a transitional period where laws are yet to be rewritten. The Syrian Ministry of Information told the Financial Times that “clear legal procedures for contracts, tenders and licensing” are in place, and that financial settlements with former Assad-era cronies are still being finalized.
The Four Seasons gathering illustrated the delicate balancing act facing Sharaa’s administration. Business leaders who thrived under Assad now sit alongside officials linked to HTS — a scenario that reflects both pragmatism and uncertainty. “The government needs these businesses to grow the economy. But they probably shouldn’t get too comfortable — there’s new blood coming in,” said one banker present.
Despite the cautious optimism, foreign investors continue to weigh the risks carefully, indicating that while Syria’s new leadership is aiming high, the road to economic recovery will likely be slow and fraught with challenges.
