Following the ousting of President Bashar al-Assad in December 2024, Syria faces a monumental reconstruction challenge. Estimates place the total cost of rebuilding between $250 billion and $400 billion, with some projections reaching up to $500 billion. This report provides an in-depth analysis of the sector-specific rebuilding costs and outlines the vision and steps undertaken by the new Syrian government under President Ahmed al-Sharaa to achieve national recovery.
1. Sectoral Rebuilding Costs
Housing and Urban Infrastructure
- Estimated Cost: Approximately 60% of total reconstruction costs, equating to $150–$240 billion.
- Current Initiatives: Projects like Marota City in Damascus aim to provide 12,000 housing units and modern amenities, serving as a blueprint for sustainable urban development.
Energy Sector
- Estimated Cost: Around $5.5 billion to restore the national grid.
- Current Initiatives: A $7 billion investment led by Qatar’s UCC Holdings focuses on constructing four gas turbine power plants and a solar facility, aiming to restore over 50% of Syria’s electricity supply.
Education and Health
- Estimated Cost: Tens of billions of dollars, considering widespread damage and displacement.
- Current Initiatives: Plans include establishing temporary schools for returning refugee children and rebuilding healthcare facilities to address urgent needs.
Transportation and Industry
- Estimated Cost: Significant investment required to rebuild roads, railways, and industrial zones.
- Current Initiatives: Turkish firms are exploring opportunities in construction and manufacturing sectors, anticipating up to a quarter of Syria’s nearly $1 trillion reconstruction market.
2. Vision and Strategic Steps of the New Syrian Government
Political Reforms
- Interim Constitution: Ratified in March 2025, establishing a five-year transitional period with a focus on inclusive governance.
- Government Composition: The transitional government includes representatives from various minority groups, aiming to foster national unity.
Economic Reforms
- Privatization and Investment: Plans to dismantle Assad-era socialism by privatizing state-owned entities and attracting foreign investment.
- Financial Support: Saudi Arabia and Qatar have announced joint initiatives to provide financial support to Syrian state employees over a three-month period.
Security and Social Stability
- Integration of Armed Factions: Efforts to dissolve armed factions and integrate them into state institutions to ensure centralized control and stability.
- Return of Displaced Persons: Initiatives to facilitate the return of millions of displaced Syrians, including rebuilding homes and infrastructure.
3. International Engagement and Support
- Sanctions Relief: The lifting of U.S. and EU economic sanctions has opened avenues for international investment and aid.
- Foreign Investment: Countries like Qatar and Turkey are leading significant investment projects, particularly in the energy sector.
- Diplomatic Relations: The reopening of the U.S. ambassador’s residence in Damascus signifies a thaw in relations and potential for increased cooperation.
4. Recent Government Contracts and Foreign Business Engagements
$7 Billion Energy Infrastructure Deal
In May 2025, the Syrian government signed a memorandum of understanding with a consortium led by Qatar’s UCC Holding, including Turkish firms Kalyon GES Enerji Yatırımları and Cengiz Enerji, and U.S.-based Power International USA. The agreement encompasses the construction of four combined-cycle gas turbine power plants with a total capacity of 4,000 megawatts and a 1,000-megawatt solar power plant in southern Syria. This project aims to restore over 50% of Syria’s electricity supply within three years.
Port Operations Agreement with France’s CMA CGM
In February 2025, the Syrian port authority in Latakia signed a deal with French shipping company CMA CGM to operate the container terminal at Latakia port. The agreement includes revised revenue distribution and lease terms, marking a significant step in revitalizing Syria’s maritime trade infrastructure.
Increased Turkish Business Involvement
Following the lifting of U.S. sanctions, Turkish companies such as Formul Plastik and Entegre Harc have expressed strong interest in Syria’s reconstruction, particularly in construction, transportation, and manufacturing sectors. Turkish exports to Syria surged by 37% in the first four months of 2025, highlighting robust demand for machinery and construction materials.
Reopening of Damascus Securities Exchange
The Damascus Securities Exchange reopened in June 2025 after a six-month closure, signaling a move towards economic stabilization. The exchange aims to modernize as a private, digitally-focused institution to attract fresh investments.
Conclusion
Syria’s path to recovery is fraught with challenges, including vast financial requirements, political complexities, and the need for international support. However, the strategic steps taken by the new government, coupled with international engagement, provide a framework for rebuilding a stable and prosperous Syria.