Syria courts Egypt for post-war reconstruction, economic revival

DAMASCUS –

Syrian President Ahmad al-Sharaa has called for a reset and deepening of relations with Egypt, saying ties between the two countries are “not a luxury, but a duty”, as Damascus seeks closer cooperation with Cairo amid mounting regional challenges and an urgent push for economic recovery.

Speaking during a meeting in Damascus with a delegation from the Federation of Egyptian Chambers of Commerce, Sharaa underscored the historical and strategic importance of Syrian-Egyptian relations, signalling a clear desire to move beyond years of political coolness and towards broader economic and security coordination.

“Throughout history, Syrian-Egyptian integration has been essential to the stability of the region, economically, strategically and in terms of security,” Sharaa said, according to the state news agency SANA. “Our relationship with Egypt is not a matter of choice or prestige; it is an obligation, and it must be placed on the right track.”

His remarks come as Syria, following the lifting of international sanctions and the collapse of Bashar al-Assad’s regime late last year, seeks to attract regional partners and foreign investment to rebuild an economy devastated by more than a decade of conflict.

Sharaa said Syria and Egypt face similar political, economic and security challenges, arguing that closer coordination would benefit not only the two states but the wider Arab world. “When Syria and Egypt move closer, the whole Arab nation grows stronger,” he said.

While acknowledging the scale of destruction across Syria, the president framed reconstruction as an opportunity, stressing that Egyptian companies should play a leading role. He highlighted Egypt’s accumulated expertise in infrastructure and energy development over the past decade, describing it as a valuable asset for Syria’s rebuilding phase.

“Egyptian companies are among the most entitled to contribute to reconstruction,” he said, pointing to opportunities in infrastructure, power generation and energy projects.

Sharaa outlined what he described as a clearer Syrian economic policy focused on security stability and private-sector-led growth. He said the government had begun reducing the role of the state in the market, opening space for both foreign and domestic investors and limiting direct competition from public institutions.

Among the priority sectors identified for cooperation were ports, Mediterranean offshore gas exploration, oil sector rehabilitation, railways and fibre-optic networks intended to link Europe and China through Syrian territory. He also stressed the importance of developing a shared “food basket” with Egypt and Iraq to reduce reliance on costly imports from outside the region.

The president also expressed gratitude to Egypt for hosting Syrian refugees during the war, describing the reception as a reflection of longstanding ties between the two peoples. He added that similarities between the Syrian and Egyptian markets would make commercial cooperation smoother, pledging that Syrian authorities would remove obstacles facing Egyptian investors.

Syria, he said, is once again attracting international interest, with American, European and Gulf companies having launched investments over the past year. He argued that economic interdependence could help create political stability and provide a protective framework for the region amid persistent threats and rivalries.

Sharaa’s comments came ahead of the Syrian-Egyptian Economic Forum, set to take place in Damascus under the patronage of Syria’s Ministry of Economy and Industry. The event, organised jointly by the Syrian and Egyptian chambers of commerce, brings together senior officials and leading business figures from both countries.

The forum is the most significant bilateral economic gathering since the fall of Assad’s government in late 2024 and follows the signing last week of two memoranda of understanding between Cairo and Damascus. The agreements cover cooperation on supplying Egyptian gas to Syria for electricity generation and meeting Syria’s needs for petroleum products.

According to Syrian trade data cited by SANA, around 30,000 Syrian investors currently operate in Egypt, having established more than 16,300 companies and 7,000 factories and workshops, with investments worth billions of dollars. More than 1,400 new Syrian companies were registered in Egypt in the first half of 2025 alone.

Since the overthrow of Assad in December 2024, Syria’s new leadership has sought to normalise regional relations and position the country as an emerging investment destination, betting that economic partnerships, particularly with key Arab states such as Egypt, can help anchor political stability and accelerate reconstruction.