Syria is undergoing a profound transformation, marked by significant political shifts and an ambitious economic reform agenda that is capturing global attention and attracting international investors. International leaders and diplomats are rushing to Damascus en masse hoping to bag a deal with the new reformed government led by Ahmed al-Sharaa, previously known by his nom de guerre Abu Mohammad al-Jolani. This seeming transition over a matter of weeks from khaki-wearing post-revolutionary to bespoke suit president has been astounding – and many around the world have taken note.

The country's political landscape underwent a dramatic change in November 2024, when opposition groups launched a major offensive against Bashar al-Assad’s regime forces. By December 8, opposition forces had entered Damascus, leading to Assad's resignation and departure to the United Arab Emirates and then Moscow, according to bnm IntelliNews’ previous reports. Al-Sharaa, the former leader of Hayat Tahrir al-Sham (HTS), was declared the country's interim president on January 29, and with a new government in the place that hasn’t stopped global diplomats and politicians rushing to meet with him. British diplomats were in first to sit with the new leader, quickly followed by the Turks and French, including visits by the head of the Turkish intelligence agency before diplomats, which was quite telling.

The transition from Baathist rule to quickly-developing Islamist-Secular mishmash since Assad’s departure is very interesting. This political transformation from the ancien regime to the formerly wanted terrorist with a bounty on his head hasn’t been missed either. The transition has coincided with an equally ambitious economic restructuring. Syria is rapidly repositioning itself as an attractive investment destination, breaking away from decades of isolationist policies and state-controlled socialism. Prices are cheap, property needs rebuilding and the Turks are leading the charge, with their cement trucks hurriedly crossing the border to fill the gap left by the Iranians and Russians. On the Russians, despite a visit from a Russian official at the end of January, talks appear to have failed and have only increased the pressure on Moscow to remove its remaining assets from Tartus, where it enjoyed its only Mediterranean base.

On February 2, Saudi Arabia has emerged as a key player in Syria's reintegration into the global scene. Crown Prince Mohammed bin Salman (MbS) welcomed Interim President Ahmed al-Sharaa in Riyadh, marking a significant diplomatic milestone. "During our lengthy meeting today, we sensed and heard a genuine desire to support Syria in building its future," al-Sharaa stated following their discussions. Al-Sharaa’s visit to Saudi Arabia holds significant regional implications. It marks Syria’s reintegration into Arab relations after years of strained ties between Damascus and Arab capitals, and potentially huge investment badly needed in the country from Riyadh. The visit by the new Syrian leader is his first international trip after several regional neighbours and foreign countries met with him in Damascus. 

"During our lengthy meeting today, we sensed and heard a genuine desire to support Syria in building its future, and keenness to support the Syrian people's will and the unity and integrity of their territory," al-Sharaa said in a statement following his meeting with the de facto Saudi leader.

At a landmark economic forum in Damascus, Syria's Minister of Internal Trade and Consumer Protection, Maher Khalil Al-Hassan, outlined an ambitious free market vision. "A competitive free market economy represents a fundamental pillar for achieving sustainable economic growth," he declared, emphasising a system where supply and demand determine prices with minimal government intervention. The minister highlighted a comprehensive approach to economic transformation, including encouraging foreign investment, developing infrastructure, strengthening the financial system, enhancing workforce education and training and establishing consumer protection legislation to prevent monopolistic practices.

The new minister’s comments come as Syria continues to struggle with the post-war environment and dwindling reserves of cash due to years of conflict in the country, which led to the ousting of the former al-Assad regime after more than 50 years in power.

 

International investment interest

Qatar and Turkey have emerged as early movers in Syria's emerging investment market. The two nations have committed to critical infrastructure projects, including the deployment of electricity-generating ships to address chronic power shortages.

Ahmed Rahman, a Middle East economic analyst based in Doha, noted: "This is more than just infrastructure investment. It represents a strategic repositioning by regional powers seeking to capitalise on Syria's potential economic rebirth." British and European Union investors are also showing increasing interest. "We will judge them on their actions," UK Foreign Secretary David Lammy told the BBC following the first meeting. "We want to see a representative government, an inclusive government in Syria." He added that securing chemical weapons stockpiles and preventing further violence were key priorities for British engagement.

 Foreign Minister Asaad al-Shaibani spoke of the importance of creating a transparent investment environment, stating at the Davos World Economic Forum: "There needs to be law, and there need to be clear messages to open the way for foreign investors." Despite the enthusiasm, analysts warn of significant challenges. “Hamed Anoun”, a geopolitical risk consultant in London, cautioned: "While the momentum is promising, investors must approach with measured optimism. The potential is significant, but so are the complexities," he said to bnm IntelliNews.  The legacy of conflict, legal uncertainties and bureaucratic integration “pose potential risks”, he added. However, the government's willingness to ease investment barriers and address Western sanctions has begun to reshape international perceptions “very quickly”, the expert noted.

 

International implications

The transformation extends beyond Syria's borders. Royal Jordanian Airlines has resumed flights to Damascus for the first time in 13 years, initially operating four weekly flights with plans to increase daily services from April. The first civilian flight from Damascus arrived at Deir ez-Zor airport, marking another step in the country's recovery efforts. The international investment community is watching closely. Several more are occurring across the region, including Damascus, with Turkish and Qatar Airways resuming flights immediately. 

However, Syria's ability to maintain its momentum and create a transparent, investor-friendly environment will determine its long-term economic prospects. Still, it already has an ongoing issue with offering security guarantees, especially following the recent car bomb in the north of the country in the primarily Kurdish city of Manbij on February 3, which killed at least 20 people in a potential sign that the post-war lull is already coming apart. The incident in the north of the country could potentially be some internal struggle between Kurdish separatists reviled by the new regime in Damascus and Ankara, equally or far worse, the next chapter in the long, sorry story of the Syrian civil war.