In this context, economic partnerships with friendly countries and international bodies stand out as one of the main paths to support the reconstruction process, as their role is not limited to providing financing, but extends to rehabilitating infrastructure, developing the energy, transportation, ports, and water sectors, and stimulating productive activity. Hence, the recent economic agreements with France, especially those concluded in late 2025 and early 2026, have proven to represent a tangible turning point in bilateral cooperation, but their impact on the economic path depends on multiple factors that go beyond official commitments.
According to World Bank reports, the total cost of reconstruction amounted to about $216 billion, while the infrastructure sector alone constitutes about 48% of the total damage, or approximately $104 billion, which makes investments in ports, roads, and renewable energy a strategic priority. As for the agreements with France, which included support for reconstruction efforts and partial easing of sanctions in the energy and transportation sectors, they have not yet gone beyond the experimental stage, as they focused mainly on the port of Latakia, where CMA CGM signed a thirty-year concession agreement worth 230 million euros (about 260 million dollars), which includes an investment of 30 million euros during the first year, and the construction of a new dock at a cost of 200 million euros over four years.
According to the reading of economics and international relations researcher Uday Sultan, the entry of major French companies into infrastructure projects, as in this case, enhances the ability to apply international standards in operation and sustainability, but at the same time raises questions about the level of transparency in the details of contracts. An economic report issued in 2025 indicated that many major deals, including those signed with European companies, suffer from a lack of disclosure. The importance of this engagement lies in the transfer of technology and expertise, especially in the maritime logistics sector, but the actual results will remain linked to the ability to attract additional capital and reduce operational costs in the long term.
The development of the port of Latakia would strengthen Syria’s position in the regional and international trade movement, as it is expected to attract additional investments worth $260 million, while increasing its capacity to receive larger ships and strengthening regional logistical networks. This project comes within a broader framework for reconstruction, supported by European pledges that amounted to 5.8 billion euros during the 2025 Brussels Conference, including 2.5 billion euros from the European Union. However, according to Sultan, the effectiveness of these projects depends on linking them to regional trade corridors, while available data is still limited, given that the full operation of the projects has not yet begun, which makes assessing their economic impacts premature and increases the possibility of delayed realization of their returns.
Syria’s geographical location, as a link between Europe, the Arabian Gulf, and the Middle East, constitutes a strategic opportunity in the field of transportation and trade corridors, especially through the “Central Corridor,” which connects Asia to Europe via a short land route not exceeding 500 kilometers, which may reduce logistical costs by between 30 and 40% compared to traditional sea routes. This location also provides direct access to Mediterranean ports and Saudi and Jordanian markets within less than two days, with the possibility of turning Syria into a land bridge for agricultural and industrial exports. However, benefiting from these advantages, Sultan says, remains conditional on rehabilitating the infrastructure and consolidating political stability, as any security deterioration may limit the achievement of these gains.
According to the opinion of the Syrian economic researcher, the implementation of the economic projects announced between Damascus and Paris faces multiple challenges, most notably the lack of liquidity and weak institutional confidence, as the banking system continues in the phase of reconnecting to the SWIFT network. Limited transparency in deals, coupled with the fragility of the security situation in some areas and internal political concerns, are factors that limit the speed of implementation, despite France’s confirmation of its continued support for reconstruction efforts until March 2025.
Cooperation in the fields of energy, water, and transportation can reflect positively on economic development, as the French-European agreements support the easing of sanctions in the energy sector, including the import of Syrian oil and local production, which may contribute to addressing the electricity crisis that affects industrial and agricultural production. Supporting renewable energy projects can also enhance agricultural exports, while developing the water sector contributes to supporting agriculture as one of the main engines of growth. However, the success of these projects remains dependent on the availability of sufficient funding and avoiding repeating the mistakes of the past. According to the World Bank, energy sector reform represents one of the greatest needs, but requires sustained technical and financial support.
The contribution of international financial institutions, led by the World Bank and the International Monetary Fund, is a decisive factor in financing reconstruction projects, as the settlement of previous debts, amounting to about $15.5 million, in addition to initial lending programmes, including a $146 million program for the energy sector, allowed the opening of new horizons.
Therefore, it can be said, according to Sultan’s reading, that the agreements with France represent a partial shift in Syrian economic policy, especially after the partial easing of US and European sanctions during the year 2025, and France’s contribution to supporting the restructuring of the Central Bank of Syria. The importance of these steps lies in that they open the way for Syria to be reintegrated into the global financial system and attract foreign investments, even though the reforms are still in their early stages and depend largely on transparency and stability. This path also reflects a gradual transition from a centralized economic model to a model that gives the private sector a greater role, despite the continuing implementation challenges.
The partnership with France can contribute to attracting more foreign investments by transferring international standards in port management and infrastructure, as in the Latakia Port project, but its success requires, as Sultan says, the establishment of multilateral investment funds and enhancing levels of transparency in contracts. Until now, foreign direct investments are still limited, with a noticeable concentration of investments coming from the Gulf countries.
Based on the above, these agreements constitute the first step for Syria’s reintegration into the global economy, as it opens the door to re-joining international trade systems and global payment systems, as well as
Reactivating the cooperation agreement with the European Union. However, achieving complete economic integration requires continuing economic reforms and attracting productive investments in industry, agriculture, and infrastructure, instead of being limited to real estate and service investments, as some economic studies have warned. According to the International Monetary Fund, reforms should focus on improving the efficiency of public spending and strengthening financial management, rather than expanding central spending.
Despite the importance of these agreements, the economic risks are still great, most notably the lack of liquidity and the demographic pressure resulting from the presence of more than six million internally displaced people until January 2026, in addition to the security challenges that may impede the flow of investments. Continued inflation and widening infrastructure gaps also pose an additional challenge that may turn investment promises into limited results.
