Syria is entering a new phase after more than 14 years of conflict and the end of Bashar Al Assad’s rule in December 2024. The political transition that followed has created the prospect of rebuilding government institutions, restoring economic links with international markets, and addressing the extensive physical and human damage caused by the war. The scale of the task is considerable, however. Real GDP contracted by nearly 53% from 2010 to 2022, while the World Bank estimates that the country’s post-conflict reconstruction needs will amount to approximately $216bn, close to 10 times the country’s estimated GDP in 2024.
Transition
The transition has nevertheless created opportunities that were largely absent during the final years of the former government. The authorities have begun the process of reforming government institutions and establishing a new constitutional framework. Meanwhile, the easing and removal of major international economic sanctions has opened space for trade, investment and development assistance. The EU lifted its economic sanctions on Syria in May 2025, while the US subsequently terminated its Syria sanctions programme, with targeted measures against former regime figures and other actors remaining in place.
Syria’s geography remains central to its economic and strategic importance. Situated at the intersection of the eastern Mediterranean, the Gulf and Mesopotamia, the country shares borders with Turkey, Iraq, Jordan, Lebanon and Israel, and provides a potential overland link between the Mediterranean and wider regional markets. Its agricultural land, ports, energy resources, historic cities and sizeable human capital offer foundations for recovery. At the same time, damaged infrastructure, electricity shortages, fragmented institutions, displaced populations and continuing security challenges mean that reconstruction will be a long-term process.
The country’s recovery is therefore likely to depend both on rebuilding physical infrastructure as well as on restoring confidence in public institutions, strengthening the financial system and creating employment opportunities for Syrian citizens. By 2026, almost 2m internally displaced Syrians had returned to their areas of origin or preferred destinations, while more than 1.3m refugees had returned from countries of asylum since the December 2024 political transition. As Syria moves from conflict towards reconstruction, the challenge will be to convert this opening into a durable process of economic and institutional renewal.
Population
The Syrian population comprises a range of ethnic and religious backgrounds – Kurds, Armenians, Assyrians, Christians, Druze, Alawites, Shias and Arab Sunnis, with the last of which making up a majority of the population. However, Syria’s demographic profile has been transformed by conflict and displacement. The World Bank estimates the country’s population at approximately 25.6m in 2025, although population estimates are complicated by displacement and the return of refugees. The population remains relatively young, providing a potentially significant labour force for reconstruction, but this demographic advantage is accompanied by substantial pressure on employment, housing, education and public services.
Displacement remains one of the defining characteristics of contemporary Syrian society. As of the end of 2025, approximately 4.9m refugees remained outside Syria, after an estimated 1.5m returned since the end of 2024. The return of displaced Syrians could provide an important source of human capital for reconstruction, particularly given the large Syrian diaspora and the skills and financial resources accumulated abroad. However, sustainable returns will depend on the availability of housing, employment, public services and security. The scale and geographical distribution of return movements will therefore influence further infrastructure requirements and the future development of Syria’s major urban centres after the capital, Aleppo, Homs, Tartous and Latakia, all located in the north-west part of the country.
Language
The sole official language is Arabic, which is spoken throughout the country with regional accents and variations. The ancient language of Aramaic is still spoken in some Christian areas surrounding Damascus, while other minority languages – such as Kurdish, Armenian and Circassian – are also present in different parts of the country. Syrian Arabic is one of several widely understood varieties of Arabic, while Damascus has established itself as an internationally renowned centre for Arabic language instruction. Some Syrians speak either English or French as a second language.
Geography
Syria encompasses 185,180 sq km of plains, mountains and desert areas, including the Golan Heights, which is now occupied by Israel but not recognised as a part of it by the international community. The country has 183 km of coastline on the Mediterranean Sea, stretching from the Turkish border in the north to Lebanon in the south.
The country shares 845 km of land borders with Turkey to the north, 596 km with Iraq to the east, 359 km with Lebanon to the west, 356 km with Jordan to the south and a remaining 74 km with Israel to the south-west. The country’s waterways are of vital importance to the development of the agricultural sector, which remains a major earner, accounting for an estimated 17% of GDP in 2010. The longest and most important rivers in Syria are the Euphrates and the Orontes, which provide water for intensive farming in the central plains region. However, most of the greenest and most agriculturally rich areas are located near the Mediterranean shores, around the cities of Latakia, Tartous, Hama and Aleppo. The mountainous border between Syria and Lebanon rises to 2814 metres on Jebel al Sheikh, giving way to the Sahl Akkar plain in the south. Towards the east, the land transforms to plains and predominantly arid plateaus and deserts. Aside from the western coastal part of the country, which generally receives high levels of precipitation, much of Syria is facing increasing water shortages, increasingly contributing to the drying of rivers that once ran freely through the major cities.
Climate
Temperatures in Syria are generally pleasant, although they vary by region and season, and are determined by the sea and desert climates. On the Mediterranean coast, the average temperatures fluctuate between lows of 7°C in the heart of winter and highs of 35°C in the peak of summer. In Damascus, temperatures range between 4°C in January and 38°C in August, while temperatures can easily exceed 45°C in central and eastern parts of the country. Although winters are generally mild (above 0°C) and dry in the central parts of the country, it is not unusual for the cities of Damascus and Aleppo to receive snowfall during the winter. The annual rainfall is around 760 mm along the coast and in the mountain areas, which drops when moving east.
History
Following the First World War and the dissolution of the Ottoman Empire, the League of Nations divided the region in 1922 between the UK, which received the mandates for Trans-Jordan and Palestine, and France, which received the mandate for what are now Syria and Lebanon. Strong resistance emerged under the French occupation, and after negotiations held in 1936 a treaty of independence was signed. Hashim Al Atassi was elected the first president of what would eventually become Syria. France went back on its word, ratifying the treaty but continuing occupation until it fell under German rule in 1940 during the Second World War. Syria was then ruled by the Vichy government until British and Free French forces occupied the country in July 1941. British forces remained in Syria alongside the Free French until the final withdrawal of French troops in 1946. Syria once again gained independence, but it was not recognised as a country until January 1, 1944.
In April 1946 French troops were evacuated from Syria in response to pressures from nationalist groups, paving the way for the formation of a republican government. From 1958 to 1961, Syria united with Egypt, but an army coup restored independence before the Ba’ath Party took control in 1963. Bashar Al Assad became president following the death of his father in 2000.
Syria’s political trajectory changed fundamentally in 2011, when protests against the government developed into a prolonged armed conflict. The ensuing war drew in numerous domestic and foreign actors, fragmented territorial control and resulted in extensive damage to infrastructure and productive capacity. The conflict also produced one of the world’s largest displacement crises, with millions of Syrians seeking refuge abroad and millions more displaced within the country. By the end of 2024 the country was facing severe economic contraction, damaged public infrastructure and weakened state institutions as a result of the conflict.
A New Beginning
A decisive political shift came in December 2024, when opposition forces entered Damascus and Al Assad left the country, bringing over five decades of Assad family rule to an end. The new authorities declared a transitional period, with Ahmed Al Sharaa appointed interim president in January 2025. The former constitution and Parliament were dissolved, while a transitional government was established with the stated objective of rebuilding state institutions and eventually holding elections. A constitutional declaration issued in March 2025 provided a legal framework for the transition, although questions remained over the concentration of executive authority and the mechanisms for establishing longer-term political representation.
The transition has consequently involved a balance between the need to restore functioning government institutions and the demands for an inclusive political settlement capable of representing Syria’s diverse ethnic, religious and regional communities. The UN has emphasised the importance of an inclusive, Syrian-led process, rule of law and the protection of the rights of all communities.
The transition has also created a new international environment. In May 2025 the EU lifted its economic sanctions on Syria, while retaining measures based on security grounds and targeted sanctions against individuals associated with the former regime. The US subsequently terminated its Syria sanctions programme in June 2025, removing many restrictions on economic activity while retaining measures targeting former regime officials and other destabilising actors. In August 2026 the US also removed Syria from its State Sponsors of Terrorism list, ending a designation that had been in place since 1979. The move removed restrictions affecting foreign assistance, defence exports, dual-use goods and certain financial transactions, potentially further reducing barriers to international investment and financial integration. These moves have been accompanied by renewed international engagement and the gradual restoration of trade and diplomatic links.
Natural Resources
Syria’s resource base remains an important component of its economic potential, although hydrocarbons production has been transformed by conflict and years of underinvestment. Oil production fell sharply during the war as fields changed hands and infrastructure deteriorated. The sector nevertheless retains strategic importance, both as a source of export earnings and as an input into domestic energy generation. Developments since the political transition have begun to alter the outlook. In February 2026, the transitional authorities regained control of key oil and gas-producing areas, raising their share of national oil production from approximately 20% in2025 to 88%. Restoring production will require investment in fields, pipelines, refineries and power infrastructure, while longer-term development will depend on the country’s ability to attract international technical expertise and capital.
Agriculture is similarly important to Syria’s recovery, supporting rural livelihoods and contributing to food security. However, years of conflict, damaged irrigation networks, population displacement and water shortages have reduced agricultural productivity. The sector also remains vulnerable to climatic conditions: the 2025 drought affected production, while improved rainfall in 2026 has provided some relief. Rehabilitation of irrigation systems, improved water management and investment in higher-value agricultural production could therefore form part of the country’s broader reconstruction agenda.
Reconstruction & Recovery
Syria’s reconstruction challenge is substantial. More than a decade of conflict damaged housing, transport and energy infrastructure, water systems, schools, hospitals and productive assets. A World Bank assessment published in 2025 estimated physical reconstruction needs at $216bn, with Aleppo and Rif Dimashq expected to require the largest investments. Nearly one-third of Syria’s pre-conflict gross capital stock was estimated to have been damaged.
Reconstruction is therefore likely to extend well beyond the repair of buildings and roads. Restoring reliable electricity and water supplies, rehabilitating transport links, and rebuilding health and education systems will be important for enabling displaced populations to return and for encouraging private-sector activity. In August 2025 the World Bank approved a $146m grant for an emergency electricity project, its first project in Syria in nearly four decades. The initiative aims to boost the electricity supply and support socio-economic activity in key sectors such as utilities, health care, agriculture and housing. The recovery agenda also presents an opportunity to modernise infrastructure rather than rebuild previous infrastructure that was lost. Digital connectivity, renewable energy, more efficient water management and upgraded transport networks could form part of a longer-term investment programme. At the same time, reconstruction will require transparent procurement, effective public financial management and mechanisms capable of attracting private capital. Given the scale of financing required relative to domestic fiscal resources, international development institutions, regional investors and the Syrian diaspora are likely to have important roles. Economic stabilisation represents a parallel priority. The conflict severely reduced productive capacity, weakened the banking system and encouraged informality, while sanctions restricted access to international finance and trade. According to the World Bank, real GDP contracted by more than half between 2010 and 2022, while gross national income per capita fell to $830 in 2024 from a pre-war peak baseline of $1840. Extreme poverty affected approximately one-quarter of the population by 2022, highlighting the extent to which economic reconstruction will most likely be accompanied by measures to restore household purchasing power and employment. There are nevertheless early signs of improvement. The IMF stated in an August 2026 report that real GDP growth is expected to strengthen to over 10% in 2026. Improved external connectivity, including increased air and port traffic, and greater access to international markets have supported the recovery.
Institutional Rebuilding
Reconstruction will require a substantial rebuilding of Syria’s fiscal and administrative capacity. Years of conflict reduced the government’s ability to collect revenue and deliver public services. The World Bank estimates that government revenue fell from close to 20% of GDP pre-conflict to less than 5% in 2026, leaving limited fiscal space when reconstruction demands are greatest. In March 2026 the World Bank approved a $20m programme to strengthen public financial management and procurement, including the development of an integrated financial management information system. Such reforms are intended to improve budget controls and governance while creating the institutional foundations needed to manage external assistance and future investment.
The rebuilding of government capacity is likely to be as important as physical reconstruction. Stronger tax collection, Customs administration, procurement systems and public-sector governance could improve the ability to finance services while providing greater confidence to international donors and investors. The challenge will be to establish these systems while managing constrained public finances and competing demands for growing expenditure.
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