meed-logo

line1 line2 line3
SIGN IN / REGISTER

Who will fund Syria’s $1tn rebuild?

11 June 2025

 

Following the end of its brutal civil war in December, Syria now faces an enormous task to rebuild its economy and society. More than half of Syrians are thought to have been displaced, either moving within the country or fleeing abroad; 90% of those still there live in poverty, according to the UN.

The World Bank has estimated that Syria’s GDP shrank by more than half from 2010 to 2020 and it has continued falling since. Just how far it might have dropped is hard to know, given the lack of reliable data. IMF spokesperson Julie Kozack said on 22 May the Syrian authorities need to rebuild basic economic institutions “including the ability to produce economic statistics”.

The cost of turning the economy around is another imponderable. One widely touted estimate is it will take $400bn to rebuild or replace everything broken, but Economy and Industry Minister Mohammad Nidal Al-Shaar has put the figure far higher. He told the Arab Media Summit in Dubai in May: “We need at least $1tn to reconstruct and rebuild a new Syria.”

For now, the sums coming in are relatively modest, given what is needed. In March, international donors pledged $6.5bn in aid, some of which will be handed out over several years.

“We don't know if the money's going to pour in, but, if it is going to, it isn't pouring in yet,” says Christopher Phillips, professor of international relations at Queen Mary University of London.

Commercial deals are being signed, however. The Ministry of Economy and Industry issued 345 industrial licences in the first quarter of 2025, in sectors such as food processing, chemicals and textiles, creating an estimated 4,242 jobs.

Larger projects are meanwhile generally still in the form of memoranda of understanding (MoUs), rather than definite contracts. In mid-May, for example, Dubai’s DP World signed an $800m MoU to develop and operate a terminal at Tartous Port. Later that month, a consortium led by Qatar’s UCC Holding signed a $7bn MoU to develop five power plants.

Such agreements have been made possible by the removal of many, though not all, international sanctions. On 23 May, the US lifted most of its trade restrictions on Syria. Ten days earlier, President Donald Trump had pledged to remove the sanctions, following lobbying by Saudi Arabia and Turkey.

European Union, UK and Japanese sanctions are also being eased.

On a trip to Damascus in late May, Saudi Foreign Minister Prince Faisal Bin Farhan said the easing of sanctions would help in “reactivating the Syrian economy”.

Commerce resumes

Trade is slowly building up. Phosphates are being shipped from Tartous Port to Romania and more traffic has been passing through the Nassib border crossing with Jordan – in early June, Amman lifted import bans on some Syrian goods.

There have been other positive signs too. The Damascus Securities Exchange reopened on 2 June, after a six-month pause, and the country is expected to rejoin the Swift international banking network soon.

Passenger traffic is building up at Damascus International airport, which now has direct links to Turkey, Jordan, the UAE and Qatar. In May, Flydubai became the first UAE carrier to land at Damascus in almost 12 years; Emirates is due to follow by mid-July. Turkish Airlines subsidiary AJet will start flying to the Syrian capital in mid-June.

However, serious domestic problems remain. In late April, there were armed clashes between Druze factions and government forces in southern Damascus. In early May, government security forces clashed with pro-Assad fighters in the northwest. More than 1,000 people were killed in these incidents.

President Ahmed Al-Sharaa included a wide range of voices in the cabinet he announced on 29 March, with representatives from the Alawite, Christian, Druze and other minority groups. However, the most important roles went to his former colleagues in Hayat Tahrir al-Sham (HTS) and it is clear he favours a strong, central government with little autonomy given to different groups or regions. Given the government does not control the whole country, that may be a difficult stance to maintain.

There have also been cross-border issues with Israel, which is occupying a swathe of territory in southern Syria beyond the 1974 ceasefire line and has conducted hundreds of airstrikes on Syria since December. Among the more recent incidents, on 30 May Israel struck what it claimed were missile storage facilities in the coastal cities of Latakia and Tartous. Israeli officials also claimed on 3 June that two projectiles had been launched from Syria towards its territory.

Riyadh has positioned itself as a guarantor and has led the way in re-engaging with Damascus
Nanar Hawach, International Crisis Group

Restoring regional relations

Wider international relations hold the key to the Syrian economy’s prospects. In particular, Gulf countries are a potential source of investment that Al-Sharaa is keen to exploit. Qatar and Saudi Arabia have been making the running, while the UAE has been more cautious, not least because of its opposition to Islamist groups gaining political power.

Al-Sharaa’s pragmatic political approach has brought some useful gains already. The World Bank is planning to restart operations in Syria, after the country’s debts to its International Development Association arm were paid by Saudi Arabia and Qatar. Those two countries are also helping to pay Syrian public sector salaries.

Saudi Arabia may prove to be the most important Gulf partner going forward, according to some analysts.

“Saudi Arabia remains the key player shaping the regional response to Syria. Riyadh has positioned itself as a guarantor and has led the way in re-engaging with Damascus,” says Nanar Hawach, a senior analyst covering Syria at the International Crisis Group. “Saudi Arabia sets the tone for how the region deals with Syria.”

But Syrian officials have also been keen to engage potential investors from further afield, including Turkey, the EU, the US and China.

“How Al-Sharaa has behaved so far has actually been quite cautious internationally,” says Phillips. “Not trying to align with any one camp or the other, not shutting off avenues. What we're seeing from Syria, is a quite pragmatic approach to foreign affairs.”

Syrians will be hoping that approach pays off economically before too long.

https://image.digitalinsightresearch.in/uploads/NewsArticle/14041047/main.gif
Dominic Dudley

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • State-backed spending cushions UAE construction slowdown

    13 October 2026

     

    The UAE projects market is undergoing a structural realignment. Following a surge in private real estate investment after the Covid-19 pandemic, activity in the commercial and residential segments has softened amid regional geopolitical uncertainty.

    Rather than allowing the market to contract, state and government-related entities (GREs) – particularly in Dubai – have stepped in to offset the shortfall, deploying balance-sheet capital countercyclically into strategic infrastructure, cultural and tourism projects.

    Dubai recalibrates

    Dubai’s construction sector has remained resilient at a headline level. On-site work continues, and major international contractors are securing new work.

    A clear indicator of this stability came in September, when China State Construction Engineering Corporation secured an AED5bn ($1.3bn) contract from Dubai Holding for the developer’s new headquarters and the Jumeirah Residences Emirates Towers scheme.

    Beneath this headline stability, however, procurement drivers have shifted dramatically. Private real estate activity, which supported the market’s post-pandemic resurgence, cooled following the onset of regional conflict at the end of February. Off-plan residential sales declined from a monthly peak of $9bn in February to $4bn in August.

    Monthly contract awards for residential projects mirrored this contraction, dropping from $3bn to $306m over the same period as private developers deferred new project launches and conserved capital.

    Government and government-related clients have absorbed much of the resulting shortfall. Dubai awarded $52.6bn of contracts in 2025, of which state-backed clients accounted for $26bn, or about 49%.

    In 2026 to date, government and GRE procurement has reached $22.4bn of the $34.6bn in contracts awarded, representing almost two-thirds of total market activity.

    The shift towards sovereign-backed spending appears intended to support construction activity and limit pressure on the supply chain during a period of private sector retrenchment.

    This state intervention is underpinned by an unawarded projects pipeline of $530bn in Dubai, according to MEED Projects data.

    The city’s future construction pipeline remains heavily weighted towards housing and integrated urban developments. Unawarded construction projects in the emirate total about $144.5bn, with residential and mixed-use developments accounting for almost 89% of the total value.

    Planned residential schemes account for $66.5bn, or 46%, of the pipeline, followed by large-scale mixed-use developments at $62bn, or 42.7%. The remainder comprises hospitality projects ($5bn), commercial offices ($4.8bn), telecommunications ($2bn) and retail ($2bn), alongside smaller allocations for education and civic facilities.

    Abu Dhabi accelerates

    A similar dynamic is evident in Abu Dhabi, where sovereign-backed entities continue to shape construction procurement. Unlike Dubai, which has historically relied more heavily on private developers, Abu Dhabi’s market is largely led by state-affiliated master developers.

    Entities such as Aldar Properties and Modon Holding remain the primary engines of the emirate’s residential and mixed-use pipeline, progressing vast masterplans across Saadiyat Island, Yas Island and Hudayriyat Island.

    At the same time, Abu Dhabi is directing public capital expenditure towards entertainment, culture and hospitality as it pursues the objectives of its Tourism Strategy 2030.

    Rather than moderating capital deployment amid regional geopolitical strains, state-backed entities are accelerating destination developments designed to expand visitor capacity and build long-term economic resilience.

    Leisure developer Miral has already confirmed plans to invest more than AED12bn ($3.2bn) across Yas Island over the next five years. The investment will fund new attractions and expand hotel capacity, separate from the planned Disney development.

    Work is already under way on a 63,000-square-metre phase-two expansion of Warner Bros World Yas Island, featuring a Harry Potter-themed zone.

    Major civic entertainment venues are also moving to construction. In May, Alec Engineering & Contracting received the letter of award for the $1.7bn Sphere Abu Dhabi project on Yas Island. The venue is being developed by the Department of Culture and Tourism–Abu Dhabi (DCT Abu Dhabi) in partnership with US-based Sphere Entertainment, and is scheduled to be completed in the third quarter of fiscal year 2029.

    On neighbouring Saadiyat Island, DCT Abu Dhabi has broken ground on Dar Al-Funoon, a performing arts venue designed by the late Frank Gehry. The project is planned to accommodate more than 6,000 people across a 2,000-seat multipurpose hall, an open-air amphitheatre, a studio theatre and a jazz venue. Main contract bids are currently under evaluation ahead of an imminent award and a 2030 opening.

    Abu Dhabi’s unawarded projects pipeline is led by mixed-use and residential developments, which together account for about $51.3bn, or 54% of the roughly $95bn total shown.

    Telecommunications and data infrastructure forms the single largest individual segment at $33.4bn (35%). Subsequent phases of the estimated $40bn Stargate project represent the bulk of the emirate’s planned data-centre capacity. The planned artificial intelligence infrastructure initiative is designed to strengthen Abu Dhabi’s position as a regional data and connectivity hub, with construction on phase one already under way.

    Hospitality accounts for a further $7.6bn (8%) of the pipeline. The remaining balance of roughly $2.6bn is distributed across retail, culture, leisure, healthcare, public facilities, commercial offices, earthworks and education.

    Along with Dubai’s $79.6bn in near-term tenders, the combined $116bn in active procurement confirms that sovereign liquidity will continue to insulate the UAE construction market from broader private sector volatility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20536766/main.gif
    Yasir Iqbal
  • Consortium signs EPC contract for Rabigh 2 IPP expansion

    13 October 2026

    A consortium comprising PowerChina, Egypt’s Elsewedy Electric and Beijing-headquartered Sinohydro has signed an engineering, procurement and construction (EPC) contract for Saudi Arabia’s Rabigh 2 combined-cycle gas-turbine (CCGT) independent power project (IPP) expansion.

    The signing ceremony took place in Riyadh on 12 October and the contract involves the plant’s design, procurement, installation, construction, commissioning, grid connection and performance testing.

    MEED previously reported that construction works had commenced, with Elsewedy Electric and Sinohydro carrying out works on the project.

    The signing follows the project’s financial close earlier this month, after it secured SR9.69bn ($2.58bn) in long-term financing.

    The financing has a tenor of approximately 34 years and was provided by a consortium of local, regional and international lenders.

    The project is being developed by Al-Morjan Two Electricity Company, in which Acwa and Saudi Energy, formerly Saudi Electricity Company, each hold a 40% stake.

    In April, MEED reported that Acwa and Saudi Energy had signed a 31-year power purchase agreement (PPA) with Saudi Power Procurement Company (SPPC) for the project.

    The agreement is valued at SR11.5bn ($3.07bn) and covers the development of a CCGT plant in the Mecca region under a build, own and operate arrangement. The project also includes the development and expansion of a 380kV electrical substation. The plant is designed to be ready for the future installation of carbon-capture technology.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20535598/main3026.jpg
    Mark Dowdall
  • Contractors submit Riyadh road scheme bids

    13 October 2026

     

    Register for MEED’s 14-day trial access 

    Contractors submitted bids in the first week of October to upgrade a section of the Al-Urubah Road axis leading to Prince Bandar Bin Abdulaziz Road in Riyadh.

    The project scope involves upgrading about 15.5 kilometres of the road to increase capacity to about 200,000 vehicles a day.

    MEED understands that the bidders include:

    • Al-Ayuni Investment & Contracting
    • Al-Rashid Trading & Contracting
    • China Civil Engineering Construction Corporation / Al-Omaeir Trading & Contracting
    • Mofarreh Alharbi & Partners
    • Nesma & Partners

    The project aims to increase traffic capacity, streamline vehicular movements and eliminate conflict points along the corridor.

    The US-based engineering firm Parsons is overseeing the project’s implementation after winning a $53m contract from the Royal Commission for Riyadh City (RCRC) in 2024.

    The contract includes project management services for RCRC’s main and ring roads programme.

    The programme includes 500km of new roads and upgrade works in and around Riyadh. 

    In 2021, Saudi Arabia’s Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud said Riyadh’s population would double to 15-20 million people by 2030. 

    He directed government entities to work closely with the RCRC to prepare the city’s development strategy.

    The RCRC’s major projects include Riyadh Metro, Riyadh Art, Sports Boulevard, King Salman International Park, Green Riyadh and several road development projects in the capital.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20533695/main.jpg
    Yasir Iqbal
  • Contractor groups prequalify for Dubai Metro Gold Line

    13 October 2026

     

    Six contracting groups submitted prequalification statements on 9 October for the contract to build Dubai Metro’s new Gold Line.

    The Roads & Transport Authority (RTA) issued the request for qualification notice for the project in June, as MEED exclusively reported.

    The consortiums formed to bid for the main contract are:

    • Alstom / China Railway Engineering Corporation / National Projects Construction / Dogus Construction (France/China/local/Turkiye)
    • CRRC / Limak / Mapa Group (China/Turkiye/Turkiye)
    • Hitachi / China Harbour Engineering Company / China State Construction Engineering Corporation (Japan/China/China)
    • Siemens / Petrojet / Concord Engineering & Contracting / Rowad Modern Engineering (Germany/Egypt/Egypt/Egypt)
    • Hassan Allam / IC Ictas / Siemens (Egypt/Turkiye/Germany)
    • Larsen & Toubro / Powerchina / Wade Adams (India/China/local)

    Dubai officially announced the Gold Line in April.

    In a post on social media site X, Sheikh Mohammed Bin Rashid Al-Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, said the project would cost about AED34bn ($9.2bn).

    The Gold Line will increase the Dubai Metro network’s total length by 35%. The project is scheduled to be completed in September 2032.

    The fully underground line will extend for more than 42 kilometres and include 18 stations. It will pass through 15 areas of Dubai and serve 1.5 million residents.

    The project is expected to connect more than 55 under-construction real estate developments.

    The Gold Line will begin at Al-Ghubaiba in Bur Dubai and terminate at Jumeirah Golf Estates. It will connect with the existing Red and Green lines and integrate with the Etihad Rail passenger network.

    The contractor will be responsible for the design and construction of all civil works, electromechanical equipment, rolling stock and rail systems. The selected contractor will also be required to support systems maintenance and operations during an initial three-year period.

    In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the Dubai Metro Gold Line project.

    Stage one covers concept design; stage two, preliminary design; stage three, tender-document preparation; stage four, construction supervision; and stage five, the defects-liability period.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20531469/main.png
    Yasir Iqbal
  • Egypt discusses technology cooperation with SLB

    13 October 2026

    Egypt is in talks with US-based oilfield services company SLB to expand technical cooperation in the country’s oil and gas sector, according to a statement from the Ministry of Petroleum & Mineral Resources.

    Egyptian Minister of Petroleum and Mineral Resources Karim Badawi met SLB chief executive Olivier Le Peuch in Riyadh, the ministry said.

    During the meeting, they discussed ways to strengthen their strategic partnership and expand cooperation in technology and digital transformation.

    They also discussed how SLB could support exploration and production activities, with the aim of increasing output and attracting further investment in Egypt’s oil and gas sector.

    Badawi emphasised the importance of extending the existing partnership with SLB, including its role in technology transfer and the development of technical capabilities in Egypt’s oil sector, according to the statement.

    He said Egypt should build on existing areas of cooperation and deploy advanced technological solutions to reduce exploration risk, increase recovery and production rates from existing fields, and improve operational efficiency.

    Badawi and Le Peuch also discussed progress on a seismic survey project being undertaken by SLB in partnership with France-based Viridien.

    The project includes an ocean-bottom node seismic survey covering about 95,000 square kilometres of Egypt’s eastern Mediterranean waters.

    The discussion focused on the data processing and analysis schedule, the steps required to prepare and release preliminary results, and the drilling schedule.

    Badawi and Le Peuch also discussed expanding the use of horizontal drilling technologies in Egypt. This would involve identifying suitable locations and developing a commercial and contractual model for their deployment.

    The Ministry of Petroleum & Mineral Resources and SLB are also exploring opportunities to expand the use of artificial intelligence in reservoir management and production optimisation.

    This work is being explored in partnership with the Egyptian General Petroleum Corporation and Egyptian Natural Gas Holding Company.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20517735/main.jpg
    Wil Crisp