Lebanon and Syria reconnect: Investors eye a promising market amid political shifts

Business Tech 09-02-2026 | 15:34

Lebanon and Syria reconnect: Investors eye a promising market amid political shifts

Lebanon has relied on Syrian agricultural, industrial, and raw materials imports worth an average of $117 million annually over the past decade.
Lebanon and Syria reconnect: Investors eye a promising market amid political shifts
Signing of a judicial agreement between Lebanon and Syria at the Government Palace (Nabil Ismail)
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Lebanese-Syrian relations have never required special attention, deep dialogue, and serious coordination in political, economic, and security matters more than they do today, due to the interconnection of concerns and files and the accumulation of political and security residues from the previous regime.

 

While the partial step in addressing the file of Syrian detainees in Lebanese prisons is the first sign of serious cooperation beneficial to both sides and could open the way for full cooperation, the urgent priority remains addressing transit obstacles, controlling borders and smuggling, organizing trade and labor exchange, and keeping pace with the momentum of the Lebanese private sector, which is "eager" to enter the Syrian market.

 

Official sources confirmed to Annahar that a visit by a Lebanese ministerial delegation to Damascus had been scheduled recently but was postponed until the Syrian detainees file was addressed, prompting the Prime Minister to include it on the cabinet agenda.

 

The recent decision regarding the Syrian detainees sent a clear signal of Lebanon’s desire to remove one of the largest obstacles that arose after the change of rule in Syria and provided an opportunity to reactivate channels of cooperation between Beirut and Damascus, while several countries and global companies prepare to secure an early role and share in the promising Syrian market.

 

The bilateral relationship between the two countries goes beyond traditional frameworks, as Syria occupies a pivotal geopolitical position for Lebanon. It is the only land outlet to the Arab world and the mandatory route for Lebanese land exports to Iraq, Jordan, and Gulf countries.

 

This geographic reality gives Syria the ability to control transport and transit from Lebanon, including determining costs, transport conditions, tolls, and organizing export truck passage. These are issues that require extensive understanding, agreement, and legal frameworks to eliminate the culture of control and arbitrariness practiced by the previous Syrian regime and to build joint cooperation that serves the export of Lebanese agricultural and industrial products.

 

In numbers, Lebanon imports agricultural and industrial products and raw materials from Syria, at an annual average of about 117,464,000 dollars over the past ten years. Conversely, Lebanon exports food products, bananas, and citrus according to the needs of both markets, with the annual average of Lebanese exports to Syria during the past ten years reaching about 172,464,000 dollars.

 

However, the figures above do not reflect the actual trade exchange between the two countries. Officials in both countries are aware that smuggling through illegal crossings and channels, though recently reduced, still constitutes a significant portion of imports and exports to and from both countries.

 

The private sector’s movement and role

Alongside the official track, the private sector is moving at a faster pace. Mohamed Choucair, head of the economic associations, confirmed to An-Nahar that more than 500 new Lebanese companies had registered in Syria, indicating an open investment appetite among Lebanese businessmen across various sectors.

 

This momentum does not come from nowhere, as Syria has become a regional attraction, with several countries seeking early positions in reconstruction projects. While Lebanese investors race to enter first, they are divided into three groups: one sees the opportunity as unique, another cautious group awaits clearer political and economic indicators, and a third is wary, considering the uncertainty still high.

 

Nonetheless, this has not prevented continued exploratory visits to Damascus to assess the stability of the investment environment and the potential for long-term development.

 

This is happening alongside a Syrian initiative to update investment legislation, simplify procedures, and expand incentives, reinforcing the impression that the country is preparing for a new economic phase aligned with the Arab world’s renewed openness to Syria.

 

Choucair sees that "demand in the Syrian market includes most vital sectors," noting that "Syria represents one of the few opportunities available to the Lebanese private sector, but benefiting from it requires closer official coordination, clear legal guarantees, and diplomatic and economic measures that protect Lebanese investors and prevent individual initiatives from becoming poorly planned steps."

 

However, the Lebanese private sector’s rush toward Syria remains linked to political stability and the development of financial and banking systems, according to Choucair, who emphasizes that "economic relations between the two countries have not completely stopped over the past years. Lebanese businessmen operate in Syria across various sectors, and Syrian businessmen are active in Lebanon in multiple areas, but it has remained below the expected level."

 

He explains that "despite limited capabilities and the inability to implement billion-dollar projects in sectors like electricity, water, and telecommunications, there can be a key role in Syria’s economic recovery, whether through expertise, companies, or its position as a commercial and financial hub. Hence, the importance of reorganizing the official relationship between the two countries to translate this role into tangible economic gains."


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