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After more than a decade of severe economic contraction and systemic collapse, 2025 represents a historic pivot point for the Syrian economy, marking the first instance of positive growth since 2010. According to a comprehensive annual report by Be In Invest and Rekaz for Economic Studies, the nation has shifted from a deep recession to a modest 1.2% growth in real GDP. While the recovery remains fragile and uneven, the data suggests a stabilization of macroeconomic indicators, driven by improved security, a surge in foreign direct investment, and a significant decline in hyperinflation.
A Macroeconomic Pivot
The shift in Syria’s economic trajectory is statistically stark. Following a sharp contraction of 1.8% in 2024, the economy rebounded to post 1.2% growth in 2025, a relative improvement of 300 basis points year-over-year. Perhaps the most critical achievement for the stabilizing market has been the containment of hyperinflation. The inflation rate plummeted from a staggering 175% at the end of 2024 to approximately 36% by the close of 2025.
This monetary stabilization was achieved through a tight monetary policy adopted by the Central Bank of Syria, which included restricting the growth of the money supply to 10-15% (down from 50-100% previously) and raising interest rates to 20-25%. Consequently, the exchange rate of the Syrian pound settled relatively stably around 11,500–11,600 SYP to the US dollar, significantly narrowing the gap with the parallel market rate.
The FDI Surge and Regional Reintegration
A major catalyst for this turnaround has been an unprecedented influx of Foreign Direct Investment (FDI). The report estimates that Syria attracted nearly $30 billion in FDI during 2025. This capital inflow has been instrumental in shoring up the balance of payments and stabilizing the local currency.
The composition of these investments signals a shift in regional economic diplomacy. Gulf Cooperation Council (GCC) nations—specifically Saudi Arabia, the UAE, Qatar, and Kuwait—accounted for 40% of the total investments, followed by Turkey at 25%. Sectorally, this capital is heavily concentrated in energy (40%) and infrastructure (30%), addressing the country’s most debilitating bottlenecks.
Sectoral Resurgence: Energy and Industry
The tangible impact of this investment is most visible in the energy sector, which contributed 50% of the recorded economic growth. Power availability, a critical metric for industrial and tech operations, improved from a mere 4 hours per day at the start of the year to 10–12 hours by year-end. Furthermore, industrial cities in Damascus, Aleppo, and Latakia now receive 24/7 electricity, sparking a resurgence in manufacturing.
The industrial sector has begun a slow recovery, with the number of operating factories rising from roughly 800 in 2024 to 1,200 in 2025. In Aleppo, the Sheikh Najjar Industrial City has seen rehabilitation efforts supported by $500 million in infrastructure spending, leading to the reactivation of approximately 50 factories. However, the sector still operates at a fraction of its pre-crisis capacity, with manufacturing contributing only about 8% to the total growth.
The Human Capital Crisis
Despite these macroeconomic improvements, the social indicators present a sobering reality for founders and businesses looking to enter the market. Poverty rates remain alarmingly high, with 88% to 92% of the population living under the poverty line. Unemployment is estimated between 45% and 55%, indicating that nearly half the workforce is idle despite the economic uptick.
The labor market is currently facing a “pressure paradox.” While unemployment is high, the return of approximately 3.2 million refugees and internally displaced persons (IDPs) in 2025 has expanded the labor supply and consumer demand. However, creating jobs for these returnees requires a sustained growth rate of 6% to 8% for at least a decade, far above the current 1.2% trajectory.
Governance and Financial Infrastructure
For the tech and investment ecosystem, the banking sector remains the “weakest link”. The system suffers from a severe lack of liquidity, eroded capital, and a high ratio of non-performing loans. While deposits have begun to return gradually, the lack of effective financial intermediation hampers the growth of SMEs and startups.
Governance issues also persist as a formidable barrier. The report highlights that corruption remains deeply entrenched, and the informal economy is estimated to constitute 40–50% of total economic activity. Future growth scenarios heavily depend on the government’s ability to implement deep structural reforms, digitize financial services, and transition from a consumption-based spending model to an investment-driven one.
Full Report: Here
About Be In Invest
Be In Invest is a comprehensive investment ecosystem based in Damascus that connects Arab, regional, and international companies. The firm specializes in financial consulting, startup foundational services, and strategic partnerships, aiming to transform challenges into sustainable economic growth through advanced analysis and institutional empowerment.
Source: Be In Invest
