Rebuilding productive capacity: the role of Syria’s private sector in economic recovery
Rebuilding productive capacity: the role of Syria’s private sector in economic recovery
Introduction
Syria’s economic recovery will require the restoration of productive capacity, sustainable employment, functioning institutions and greater confidence among public authorities, businesses, investors and communities.
The country’s private sector, including micro and small enterprises, traders, farms, workshops, service providers and manufacturers, has continued to support employment, livelihoods and market activity despite prolonged disruption.
UNDP’s February 2026 analysis describes Syria’s private sector as one of the country’s principal recovery assets, noting that enterprises have continued to preserve skills, sustain market activity and support household livelihoods under exceptionally difficult conditions.[1]
The next challenge is to convert this resilience into more structured, responsible and sustainable economic recovery.
Evidence from the 2026 Syrian Private Sector Dialogue
In 2026, the Ministry of Economy and Industry and UNDP convened the Syrian Private Sector Dialogue in Syria.
According to UNDP, the process brought together business representatives from different sectors, locations and enterprise sizes, including SMEs, entrepreneurs, women, young people and representatives of the Syrian diaspora.[2]
The national conference, held in Damascus from 1 to 3 June 2026, focused on issues including:
Rebuilding value chains
UNDP’s analysis of private-sector-led recovery identifies the rebuilding of domestic value chains, regional integration, diaspora engagement and job-rich sectors as important opportunities for economic renewal.[4]
The analysis emphasizes that progress will depend on practical enabling conditions, including:
BDO perspective: priorities for responsible recovery
Clear and predictable regulation
Businesses require transparent and consistently applied procedures relating to:
Access to finance
Businesses may require finance to repair equipment, rebuild inventories, recruit employees and restore production.
In March 2026, UNDP and the Central Bank of Syria announced a cooperation agreement intended to strengthen institutional capacity, supervisory and regulatory frameworks, operational systems and digital infrastructure within the financial sector.[5]
According to UNDP, the cooperation is intended to contribute to a more resilient, transparent and accountable financial system.[5]
Financial-sector reform and enterprise recovery are closely connected. Access to finance will remain constrained unless financial institutions, borrower information, lending processes and enterprise-level financial management improve together.
Enterprise governance
Businesses seeking financing, partnerships or access to international markets will need stronger internal systems, including:
The 2026 Syrian Private Sector Dialogue included dedicated consideration of diaspora capital, expertise, business networks and market connections.[3]
Attracting productive diaspora participation will require clear investment pathways, credible counterparties, transparent governance and appropriate protection of investor rights.
Employment and inclusion
Economic recovery should prioritize investment capable of generating jobs and supporting local production.
Projects should consider:
Any organization considering activities connected to Syria should conduct specific legal and compliance assessments.
The requirements may vary according to the parties, sector, transaction, financing arrangements and jurisdictions involved.
Relevant considerations may include:
Conclusion
Syria’s private sector has demonstrated significant resilience. The objective now is to create conditions under which enterprises can move from survival toward investment, productivity, employment and sustainable growth.
Progress will depend on effective institutions, predictable rules, access to finance, accountable public-private dialogue, responsible investment and stronger enterprise governance.
Sources and references
[1] United Nations Development Programme. (2026, 25 February). Syria’s Economy After the 2024 Transition: Jobs, Enterprise, and a Path Forward. UNDP Syria. Accessed 12 July 2026.
[2] United Nations Development Programme. (2026, 18 January). UNDP Launches the First National Syrian Private Sector Dialogue Initiative in Damascus. UNDP Syria. Accessed 12 July 2026.
[3] United Nations Development Programme. (2026, 1 June). Syria Private Sector National Conference: PSD-2026-Damascus. UNDP Syria. Accessed 12 July 2026.
[4] United Nations Development Programme. (2026, 22 January). Syria’s Private Sector: Strategic Opportunities for Economic Renewal. UNDP Syria. Accessed 12 July 2026.
[5] United Nations Development Programme. (2026, 1 March). UNDP and Central Bank of Syria Join Forces to Bolster Financial Stability and Drive Institutional Reform. UNDP Syria. Accessed 12 July 2026.
Disclaimer
This article is based on publicly available sources and BDO’s professional analysis. Any engagement involving Syria remains subject to applicable legal, sanctions, regulatory, banking and internal risk-acceptance requirements.
The referenced UNDP materials directly support the discussion of private-sector dialogue, value chains, jobs, diaspora engagement, financial-sector reform and institutional capacity. (UNDP)
Syria’s economic recovery will require the restoration of productive capacity, sustainable employment, functioning institutions and greater confidence among public authorities, businesses, investors and communities.
The country’s private sector, including micro and small enterprises, traders, farms, workshops, service providers and manufacturers, has continued to support employment, livelihoods and market activity despite prolonged disruption.
UNDP’s February 2026 analysis describes Syria’s private sector as one of the country’s principal recovery assets, noting that enterprises have continued to preserve skills, sustain market activity and support household livelihoods under exceptionally difficult conditions.[1]
The next challenge is to convert this resilience into more structured, responsible and sustainable economic recovery.
Evidence from the 2026 Syrian Private Sector Dialogue
In 2026, the Ministry of Economy and Industry and UNDP convened the Syrian Private Sector Dialogue in Syria.
According to UNDP, the process brought together business representatives from different sectors, locations and enterprise sizes, including SMEs, entrepreneurs, women, young people and representatives of the Syrian diaspora.[2]
The national conference, held in Damascus from 1 to 3 June 2026, focused on issues including:
- The legal and regulatory environment.
- Taxation and financing.
- Trade and production.
- Market access.
- Technical skills and knowledge.
- Employment and innovation.
- Investment conditions.
- Private-sector participation in economic recovery.[3]
Rebuilding value chains
UNDP’s analysis of private-sector-led recovery identifies the rebuilding of domestic value chains, regional integration, diaspora engagement and job-rich sectors as important opportunities for economic renewal.[4]
The analysis emphasizes that progress will depend on practical enabling conditions, including:
- Clear and predictable rules.
- Fair competition.
- Inclusive public-private dialogue.
- Productive investment.
- Employment creation.
- Stronger economic governance.[4]
BDO perspective: priorities for responsible recovery
Clear and predictable regulation
Businesses require transparent and consistently applied procedures relating to:
- Registration.
- Licensing.
- Taxation.
- Land access.
- Customs.
- Imports and exports.
- Investment approvals.
Access to finance
Businesses may require finance to repair equipment, rebuild inventories, recruit employees and restore production.
In March 2026, UNDP and the Central Bank of Syria announced a cooperation agreement intended to strengthen institutional capacity, supervisory and regulatory frameworks, operational systems and digital infrastructure within the financial sector.[5]
According to UNDP, the cooperation is intended to contribute to a more resilient, transparent and accountable financial system.[5]
Financial-sector reform and enterprise recovery are closely connected. Access to finance will remain constrained unless financial institutions, borrower information, lending processes and enterprise-level financial management improve together.
Enterprise governance
Businesses seeking financing, partnerships or access to international markets will need stronger internal systems, including:
- Reliable accounting records.
- Transparent ownership.
- Internal controls.
- Tax compliance.
- Procurement procedures.
- Workforce policies.
- Risk management.
- Environmental and social safeguards.
- Defined governance arrangements.
The 2026 Syrian Private Sector Dialogue included dedicated consideration of diaspora capital, expertise, business networks and market connections.[3]
Attracting productive diaspora participation will require clear investment pathways, credible counterparties, transparent governance and appropriate protection of investor rights.
Employment and inclusion
Economic recovery should prioritize investment capable of generating jobs and supporting local production.
Projects should consider:
- Local supplier participation.
- Workforce development.
- Women’s economic participation.
- Youth employment.
- Geographic inclusion.
- Responsible labor practices.
- Efficient use of water and energy.
- Environmental impact.
Any organization considering activities connected to Syria should conduct specific legal and compliance assessments.
The requirements may vary according to the parties, sector, transaction, financing arrangements and jurisdictions involved.
Relevant considerations may include:
- Applicable sanctions and restrictions.
- Export controls.
- Banking and payment requirements.
- Beneficial ownership.
- Anti-money-laundering obligations.
- Counterparty integrity.
- Responsible procurement.
Conclusion
Syria’s private sector has demonstrated significant resilience. The objective now is to create conditions under which enterprises can move from survival toward investment, productivity, employment and sustainable growth.
Progress will depend on effective institutions, predictable rules, access to finance, accountable public-private dialogue, responsible investment and stronger enterprise governance.
Sources and references
[1] United Nations Development Programme. (2026, 25 February). Syria’s Economy After the 2024 Transition: Jobs, Enterprise, and a Path Forward. UNDP Syria. Accessed 12 July 2026.
[2] United Nations Development Programme. (2026, 18 January). UNDP Launches the First National Syrian Private Sector Dialogue Initiative in Damascus. UNDP Syria. Accessed 12 July 2026.
[3] United Nations Development Programme. (2026, 1 June). Syria Private Sector National Conference: PSD-2026-Damascus. UNDP Syria. Accessed 12 July 2026.
[4] United Nations Development Programme. (2026, 22 January). Syria’s Private Sector: Strategic Opportunities for Economic Renewal. UNDP Syria. Accessed 12 July 2026.
[5] United Nations Development Programme. (2026, 1 March). UNDP and Central Bank of Syria Join Forces to Bolster Financial Stability and Drive Institutional Reform. UNDP Syria. Accessed 12 July 2026.
Disclaimer
This article is based on publicly available sources and BDO’s professional analysis. Any engagement involving Syria remains subject to applicable legal, sanctions, regulatory, banking and internal risk-acceptance requirements.
The referenced UNDP materials directly support the discussion of private-sector dialogue, value chains, jobs, diaspora engagement, financial-sector reform and institutional capacity. (UNDP)