How Syria Can Rebuild Its Economy: Lessons from the Past and a Vision for the Future

The Syrian economy, once a thriving hub of trade and culture in the Levant, is now in ruins after more than a decade of war. Infrastructure lies in shambles, industries are paralyzed, and millions of Syrians face extreme poverty. Yet, history demonstrates that even in the wake of destruction, economies can be revived and societies rebuilt.

To envision Syria’s recovery, it is crucial to assess the country’s current situation, leverage its domestic resources, and learn from global examples of nations that have risen from similar devastation. Combined with the active involvement of the Syrian diaspora and a commitment to inclusivity, these lessons can chart a path toward rebuilding an economy that serves all Syrians.

Related: Calls for More Funding to Keep Syria’s Farmers in Production

The Current State of Syria’s Economy

Syria’s economy has contracted by more than 60% since 2011, and its GDP per capita is among the lowest in the world. The conflict has caused:

• Widespread destruction: Over 70% of Syria’s infrastructure, including roads, power plants, and schools, is damaged or destroyed.
• Economic isolation: International sanctions have cut Syria off from global markets, limiting its ability to trade and attract foreign investment.
• Unemployment and poverty: Nearly 80% of Syrians live below the poverty line, with unemployment estimated at over 50%.
• Collapse of key sectors: Agriculture, which once contributed significantly to GDP, has been decimated by war, water shortages, and displacement.

Despite these challenges, Syria retains assets that can underpin recovery. Its agricultural heritage, natural resources, cultural history, and human capital remain valuable foundations for rebuilding.

Domestic Resources Could Provide Foundations for Recovery

Syria’s fertile plains, including the Euphrates River Basin, have long been a cornerstone of its economy. Before the war, agriculture accounted for 25% of GDP and employed nearly half the workforce. Reviving irrigation systems, providing seeds and equipment, and empowering smallholder farmers could quickly restore food production and rural livelihoods.

Syria’s oil and gas reserves, although modest compared to regional giants, offer a significant revenue stream. With proper governance and investment, these resources could fund infrastructure development and social programs. However, economist Paul Stevens warns, “Resource wealth must be managed transparently to avoid corruption and conflict.”

Situated at the crossroads of Europe, Asia, and the Middle East, Syria’s geographic location gives it enormous trade potential. Rebuilding ports and transportation networks could position Syria as a logistics hub for regional and international trade.

The Role of the Syrian Diaspora

The Syrian diaspora, numbering over 8 million people, represents a vast reservoir of financial resources, skills, and connections. In 2020, remittances from Syrians abroad were estimated at $1.6 billion, providing a critical lifeline for families.

Potential Contributions of the Diaspora

• Investment: Diaspora-led funds could finance small and medium enterprises (SMEs), a key driver of job creation.
• Knowledge Transfer: Syrian expatriates, particularly those in fields like engineering, healthcare, and technology, could provide expertise to rebuild industries and institutions.
• Advocacy: The diaspora can play a vital role in lobbying for the easing of sanctions and international support for Syria’s recovery.

Examples like India and China, where diasporas significantly contributed to economic growth through remittances and investment, demonstrate the potential impact of engaging Syrians abroad.

Learning from Global Success Stories

1. Turkey: Strategic Investment and Export Growth

In the early 2000s, Turkey faced economic instability. Through structural reforms, investment in infrastructure, and export-oriented policies, Turkey transformed into a major emerging economy. Initiatives like building the Istanbul Airport and focusing on industries like textiles and automotive fueled growth.

2. Rwanda: Unity and Economic Revival

Following the 1994 genocide, Rwanda invested in national reconciliation, agriculture, and tourism. Its commitment to inclusive governance and combating corruption has turned it into one of Africa’s fastest-growing economies. President Paul Kagame’s leadership demonstrates the importance of trust-building in post-conflict recovery.

3. South Korea: Education and Industrial Policy

South Korea’s post-war recovery relied on strategic investments in education and manufacturing. By supporting industries like electronics and shipping, South Korea became an economic powerhouse. Development economist Ha-Joon Chang emphasizes, “A skilled population is the cornerstone of long-term growth.”

4. Germany: The Marshall Plan

After World War II, Germany leveraged U.S. aid through the Marshall Plan to rebuild infrastructure and industrial capacity. Transparency and efficiency in using funds played a crucial role in Germany’s rapid economic revival.

Steps to Rebuild Syria’s Economy

Restoring roads, power grids, and water systems is essential to kickstart the economy. Public-private partnerships can finance these projects, with international donors providing technical expertise. Economist Hernando de Soto notes, “Infrastructure enables the mobility of people, goods, and ideas—the lifeblood of any economy.”

Immediate investments in irrigation, seeds, and equipment can revive agricultural production. Encouraging cooperatives and supporting rural women, who often lead farming households, will ensure inclusivity.

Small businesses, particularly in manufacturing and services, can drive job creation. Microfinance programs, tax incentives, and simplified regulations will foster entrepreneurship.

Developing Syria’s oil and gas sector under transparent governance can generate revenue for reconstruction. Lessons from Norway, which reinvests oil wealth into public services, highlight the importance of responsible resource management.

Syria’s cultural heritage, including ancient cities like Palmyra and Aleppo, holds immense tourism potential. Rebuilding historic sites and promoting cultural tourism can attract international visitors and generate revenue.

Syria’s neighbors, including Turkey, Lebanon, and Jordan, have a stake in its stability. Regional trade agreements and shared infrastructure projects could drive mutual growth. Easing sanctions while ensuring accountability would enable Syria to access global markets.

Rebuilding trust among Syria’s diverse communities is critical. Policies that ensure equal representation and address past grievances will lay the foundation for long-term peace.

Prophetic Wisdom on Rebuilding Societies

Prophet Muhammad’s (peace be upon him) leadership during times of crisis provides timeless guidance:

• Unity: Establishing a brotherhood (Mu’akhah) in Madinah fostered cooperation and resource-sharing, a model for Syria’s divided communities.
• Economic Ethics: The Prophet emphasized fair trade and transparency, principles that must guide Syria’s recovery.
• Agriculture: Encouraging sustainable farming reflects the Prophet’s belief in the importance of self-reliance and community well-being.

Rebuilding Syria will be neither quick nor easy. The lessons of Turkey, Rwanda, South Korea, and Germany, paired with Syria’s own domestic strengths, offer a blueprint for recovery. By investing in infrastructure, agriculture, and education, engaging the diaspora, and prioritizing inclusivity, Syria can rise from its ruins.

Economist Amartya Sen once wrote, “Development is freedom.” For Syria, freedom from poverty, division, and isolation will come through a united effort to rebuild—not just an economy, but a nation. The path is steep, but history shows that resilience when paired with vision, can overcome even the greatest challenges.

Developing Special Economic Zones: A Catalyst for Economic Revival

Special Economic Zones (SEZs) have proven to be transformative tools for countries seeking to accelerate economic recovery and growth. For Syria, establishing SEZs near its borders with friendly neighbors, particularly Turkey and Jordan, could serve as a powerful strategy to boost trade, attract investment, and create jobs.

Why SEZs Are Vital for Syria

SEZs offer economic incentives such as tax breaks, streamlined regulations, and improved infrastructure, attracting businesses and fostering industrial growth. For Syria, SEZs could:

1. Revive Cross-Border Trade:
   Proximity to Turkey, a major trade and industrial hub, offers immense potential. By creating SEZs near the Turkish border, Syria can tap into established supply chains and attract Turkish companies to invest in manufacturing, logistics, and agriculture.

2. Encourage Regional Cooperation:
   Collaborative SEZ projects with Jordan, Iraq, and Lebanon could foster regional economic integration. Shared industrial zones would promote cross-border partnerships and mutual growth.

3. Boost Exports:
   SEZs focusing on export-oriented industries, such as textiles, food processing, and light manufacturing, could revitalize Syria’s role as a trading nation. Turkey’s thriving textile industry, for example, offers a blueprint for similar success.

4. Create Jobs:
   SEZs can provide much-needed employment opportunities for displaced Syrians and returning refugees, contributing to social stability and economic resilience.

Examples of SEZ Success Stories

1. China’s SEZs:
   Cities like Shenzhen transformed from fishing villages into global economic powerhouses through SEZs. These zones attracted foreign direct investment (FDI) and served as incubators for technological innovation.

2. India’s SEZs:
   India leveraged SEZs to develop export-driven industries such as IT services and pharmaceuticals. Simplified regulations and tax incentives made these zones magnets for foreign investment.

3. Turkey’s Organized Industrial Zones (OIZs):
   Turkey has over 300 OIZs that integrate manufacturing, logistics, and research facilities. These zones account for a significant portion of Turkey’s exports and industrial growth.

4. Rwanda’s Kigali Special Economic Zone:
   Rwanda’s SEZ focused on light manufacturing and agro-processing, creating jobs and enhancing exports while maintaining environmental sustainability.

Strategic Locations for SEZs in Syria

1. Near the Turkish Border (Aleppo and Idlib):
   These regions were once industrial hubs and could regain their status through SEZ development. Proximity to Turkish industrial zones and ports enhances their logistical advantage.

2. Southern Syria (Daraa and Sweida):
   SEZs near Jordan could leverage access to Gulf markets, fostering trade and industrial cooperation with Jordanian partners.

3. Eastern Syria (Deir ez-Zor and Al-Hasakah):
   Rich in natural resources, these areas could host energy-focused SEZs for oil and gas refining, attracting investment from regional and international energy firms.

4. Coastal Regions (Latakia and Tartus):
   Ports in these areas could host SEZs focused on maritime trade and logistics, reviving Syria’s role as a Mediterranean trading hub.

What Syria Needs to Develop Successful SEZs

1. Policy and Regulatory Reforms:
   Clear legal frameworks, investor-friendly policies, and efficient customs processes are critical to attracting businesses.

2. Infrastructure Investment:
   Roads, ports, and power facilities must be rebuilt and expanded to support SEZ operations. Public-private partnerships can play a key role here.

3. Collaborations with Neighbors:
   Turkey’s experience with OIZs can provide technical expertise and investment partnerships. Joint SEZs with Jordan and Iraq can facilitate regional integration.

4. Focus on Key Industries:

   • Textiles and Light Manufacturing: Leveraging Syria’s historical expertise in textiles.
   • Agriculture and Food Processing: Reviving agricultural output and processing it for export.
   • Renewable Energy Projects: Partnering with international firms to establish clean energy SEZs.

Potential Challenges and Solutions

1. Political Instability:
   SEZs must be located in regions with relative security and stability to attract investors. Collaborative governance models with local stakeholders can enhance trust and security.

2. Sanctions:
   While international sanctions pose challenges, SEZs can focus on industries that comply with global trade regulations and avoid restricted sectors.

3. Corruption and Bureaucracy:
   Independent oversight bodies and transparent operational models will be essential to prevent corruption and ensure efficiency.

Economic and Social Impact

Developing SEZs can:

• Accelerate economic recovery by attracting investment.
• Create sustainable employment for displaced populations.
• Foster regional cooperation, reducing tensions with neighboring countries.
• Strengthen Syria’s integration into global markets.

A Vision for SEZ-Led Recovery

For Syria, SEZs represent more than just economic zones; they symbolize hope for renewal. By focusing on strategic locations, leveraging its proximity to Turkey and other neighbors, and learning from global success stories, Syria can rebuild its economy and lay the foundation for long-term prosperity.

As economist Jeffrey Sachs aptly states, “Economic zones are not just about geography—they are about creating a vision for the future.” For Syria, that vision must be one of unity, resilience, and shared progress.