Lebanon and Syria Move to Rebuild Economic Ties

Lebanon and Syria are taking steps to revive their economic relationship, with a bilateral investment conference expected to be held in Damascus this autumn.

Lebanon’s Economy and Trade Minister Amer Bisat said the two neighbouring countries are working to rebuild business ties following decades of political tensions and Syria’s former military presence in Lebanon.

Bisat described the renewed cooperation as a “win-win” and said discussions with Syrian President Ahmad Al Shara and Economy Minister Nidal Al Shaar had focused on investment opportunities.

The economic reset will centre on three main areas: strengthening private-sector cooperation, reviewing government agreements and improving logistical arrangements such as visas, transportation, transit procedures and import fees.

A new Lebanese-Syrian Business Council has also been established, bringing together 11 companies — five from Lebanon and six from Syria.

Potential investment opportunities include electricity, construction, ports, tourism, cement and tobacco. Cooperation between the ports of Latakia, Tartus, Tripoli and Beirut is also being considered.

Lebanon, which continues to struggle with the consequences of its 2019 financial crisis, is seeking foreign investment to rebuild its economy. The country’s banking sector remains in severe difficulty, while government finances have been heavily depleted.

Bisat said Lebanon’s economy could contract by about 7 per cent this year amid renewed regional conflict, high energy prices and inflation estimated at between 17 and 19 per cent.

The reconstruction of southern Lebanon alone is estimated to require about $11.5 billion, increasing the country’s need for both public and private investment.

Lebanon is also reviewing more than 40 economic agreements signed with Syria during the Assad era. Some could be renegotiated, rewritten or cancelled, while new agreements may also be introduced.

The Lebanese minister stressed, however, that political stability, an end to the fighting and respect for Lebanon’s sovereignty are necessary conditions for attracting major investment.

He also said reforming Lebanon’s banking sector is essential before the country can attract significant new capital.

The renewed economic cooperation with Syria comes as Lebanon seeks to restore investor confidence and secure the funding needed to rebuild its economy.