Can economic interests push forward Egypt-Syria reconciliation?

Syrian President Ahmed al-Sharaa has signalled a strong desire to deepen ties with Egypt, describing bilateral relations as “not a luxury, but a duty” essential for regional stability, security, and Arab solidarity.

During a high-profile meeting in Damascus on 11 January with a delegation from the Federation of Egyptian Chambers of Commerce, the Syrian president explicitly pledged that Egyptian companies would receive priority in Syria's massive post-war reconstruction efforts.

He highlighted Egypt's proven expertise in infrastructure, energy, and development over the past decade, framing it as a valuable model for rebuilding Syria's devastated economy, ports, oil sector, power generation, and other key areas.

The meeting came only hours after the Syrian-Egyptian Economic Forum convened in the Syrian capital, for the first time since the downfall of the Bashar al-Assad regime.

Co-organised by the two countries' Chambers of Commerce, the forum aimed to explore trade, economic, and investment cooperation opportunities between the two countries.

The Egyptian delegation consisted of 26 businesspeople and officials from the Federation of Egyptian Chambers of Commerce, who represented companies operating across a wide range of sectors, including electricity, oil and gas, infrastructure, construction materials, industry, agriculture, transport, and logistics.

Federation Chairman and delegation head Ahmed al-Wakeel cited the mission's deeper purpose.

Speaking ahead of the visit, he highlighted that the delegation aimed to assess Syria's needs across all sectors directly.

"We want to gain first-hand insight into what we can genuinely offer this brotherly Arab nation," al-Wakeel told Egyptian media.

He expressed optimism that the forum would mark the start of forging "robust and effective partnerships" between Egypt's and Syria's private sectors in the months and years ahead.

The encounter of the Egyptian and Syrian businesspeople in Damascus came amid Syria's push for reconstruction and economic revival, following years of conflict and devastation.

Turning a page

The forum's convening comes as Cairo and Damascus soften their rhetoric toward each other.

This development is part of the emergence of a new regional landscape in which regional states backing the change in Syria apparently want to ensure that the new Syria will not be left out and, consequently, push others to embrace the exact change, observers said.

Egypt did not welcome the changes that happened in Syria in December last year, ones that forced al-Assad out and al-Sharaa in.

Cairo, a staunch campaigner against political Islam, could not reconcile itself with the Islamist affiliations of the new Syrian president.

It also repeatedly expressed reservations against the way the new authorities in Syria initially handled conflicts in some parts of the fellow Arab state, especially in its south-western part.

It also called for ensuring that all Syrian minorities are represented in the legislative bodies that would be formed in the country.

Such apathy was evident in Damascus, where al-Sharaa once expressed a lack of admiration for the Egyptian development model compared with those of countries such as Saudi Arabia, the United Arab Emirates, and Qatar.

Now, however, the tone is changing in both Cairo and Damascus. Egyptian Foreign Minister Badr Abdelatty, who once described the new government in Syria as a "de facto" one, said his country extends its best wishes to the Syrian people and the current government.

"We can't forget history or its depth," Minister Abdelatty said. "We can't forget that Egypt and Syria were one country in the past," he added in an interview with the Saudi television channel, MBC Masr.

During his meeting with the members of the Egyptian trade delegation, al-Sharaa referred to the same history.

Egypt and Syria, he said, were consistently strong when they were in communion.

He even referred to his father, who harboured Nasserite political affiliations.

This softening of rhetoric, Syrian analysts said, offers insight into a shared desire for better relations in the future.

"This shared desire can be easily traced in the remarks made by officials on both sides in the past period," Syrian political analyst Tayseer al-Najjar told The New Arab.

The Syrians, he added, cannot do without the Egyptians as they try to rebuild their country after the devastating war that swept through their country.

"Political relations between states are always full of change, but at the end, these states prioritise their interests," al-Najjar said.

However, the calm in the rhetoric of the two countries towards each other raises questions about whether economic interests can override political differences.

Al-Najjar said the ball is now in Egypt's court, especially after the Syrian president welcomed Egypt's economic involvement in his country and invited Egyptian companies to participate in Syria's reconstruction.

High hopes

There is hope that economic cooperation can serve as the basis for the hoped-for thaw in relations between the two countries.

Al-Sharaa stipulated just that during his meeting with the members of the Egyptian trade delegation visiting the Syrian capital.

Economic cooperation, he hoped, would drive improvements in other fields.

The meeting came only a few days after Egypt signed two memoranda of understanding to supply Syria with natural gas to address its severe electricity shortages.

Formalised in Cairo on 5 January, these MoUs align with broader efforts to rehabilitate Syria's devastated infrastructure under the new leadership.

Nonetheless, Egypt appears to be targeting more than just the supply of gas to Syria.

The current trade volume between the two countries is $1 billion, underscoring the work they need to do to capitalise on their full economic potential, according to specialists.

With Syria's reconstruction estimated to cost between $140 billion and $345 billion, according to the World Bank, Egypt aspires to secure a slice of this large pie, they added.

Egypt has been positioning itself as a reconstruction hub in its region and across the continent, leveraging the expertise its companies have acquired over the past years, both domestically and internationally.

Egyptian construction companies have been instrumental in delivering numerous projects across the country, including a new administrative capital in the Egyptian desert and a series of smart cities in various parts of Egypt.

The same companies have undertaken numerous infrastructure, construction, and development projects in neighbouring countries, including Libya, where Egyptian companies are implementing road projects, power plants, and flyovers, particularly in eastern Libya.

Egypt also has an abundant production of building materials, including cement and construction steel.

This track record and this production, Egyptian analysts said, qualify Egypt to play an essential role in the reconstruction of neighbouring countries, especially in Syria.

"Egyptian companies have accumulated experiences that make them fit for implementing the projects needed for Syria's reconstruction," leading Egyptian economist Alia al-Mahdi said.

Speaking to TNA, she noted the participation of local companies in development projects across several regional states.

"This record adds to Egypt's appeal as a development partner for fellow states in the region, especially Syria, which is badly in need of real support," al-Mahdi added.