Reviving Syria’s energy sector: Arab partnerships, anti-corruption, and operational reform
As Syria approaches its one-year anniversary of the fall of the Assad regime, the country faces a two-fold challenge: rebuilding a shattered energy sector and reclaiming its place on the region’s energy map.
Energy Minister Mohammad al-Bashir’s series of meetings with officials from friendly and allied nations signals a strategy that links internal reform to attracting foreign expertise and investment. The message is clear: economic recovery cannot be achieved in isolation.
Prior to the war, the electricity, oil, and water sectors were the main pillars of the Syrian economy.
Oil contributed significantly to the state budget and exports. From 2011 to 2024, the war caused ongoing damage and disruptions. Fuel shortages, coupled with international sanctions and weak foreign relations, led to a collapse in production.
These factors also hampered opportunities for technical support and foreign investment. These issues revealed the fragility of institutions and widespread corruption, highlighting the urgent need for sector reform alongside the physical reconstruction of infrastructure. Today, the new government is focusing on restarting networks, reviving infrastructure, developing power stations, and increasing reliance on renewable energy sources. Simultaneously, the government is seeking to rebuild foreign relations and stimulate investment, thereby strengthening the sector's ability to meet local needs and restore the confidence of local and international investors.
Regional cooperation remains a cornerstone of stability in the energy sector, as the government acknowledges that domestic energy security is inseparable from regional stability and economic integration. Such partnerships will help diversify energy sources, reduce reliance on damaged infrastructure, and open new economic opportunities through deeper regional connectivity.
According to economists Abdel Sattar Dimashqieh and Ibrahim Qushji, Syria's vast natural resources could form the basis of its economic recovery. For instance, redeveloping oil fields could boost production to 100,000 barrels per day, and improving phosphate mines could generate an estimated $1 billion in annual revenue. Furthermore, strategic investment in these resources alongside regional partnerships would help to rebalance the economy, finance infrastructure projects and provide long-term support for the national energy grid.
It should be noted that the Ministry of Energy was formed following the merger of three key ministries: Electricity, Oil and Mineral Resources, and Water Resources. This new entity is responsible for overseeing the management of this vital sector within the government of President Ahmed Al-Sharaa. This merger involves more than just administrative restructuring; it is also a strategic step to achieve greater efficiency in resource management, reduce fragmentation, and link the sector to national development plans. This will enhance political and social stability, as well as encouraging international investors to engage in vital projects.
The government's ability to create a stable political environment, control internal security, and complete the transitional justice process remains central to Syria’s economic future. Analyses indicate that positioning the energy sector as the engine of reconstruction is inseparable from fighting corruption, rebuilding trust, and revitalizing essential sectors. Estimates also suggest that a strategy blending internal reform with regional cooperation offers the strongest path toward rebuilding Syria on sustainable foundations. Yet despite these efforts, one question persists: to what extent can Syria turn the challenges of its energy sector into an opening for economic growth and regional stability?