Egypt, Syria accelerate economic cooperation at Damascus talks

Government officials from Egypt and Syria have met to discuss means of advancing cooperation and increasing mutual investment and trade, amid what observers describe as a shared interest in the two countries for forging closer relations in the coming period.

The meeting, held in Damascus on 18 September, came under a government cooperation mechanism created by the two countries to enhance their economic ties.

It was the second to be held by officials from the two countries under the same mechanism, the first being held in Cairo in April this year.

Attending the latest meeting in Damascus was a host of officials from the two countries, who represented cooperation files designated as priority ones at this point.

Discussions between these officials during the meeting also focused on means of turning understandings reached in Cairo in April into action.

They also agreed to advance their two countries' cooperation in the same priority sectors, form technical working groups to enhance this cooperation and hold a joint business forum to explore trade and investment opportunities.

They also welcomed the formation of the Joint Egyptian-Syrian Business Council which convened for the first time on the sidelines of the Damascus meeting.

These measures, economists in Cairo said, reflect the presence of a mutual desire by Cairo and Damascus to advance cooperation and chart a new course in the two capitals' economic relations, in general.

Former dean of the College of Economics and Political Science at Cairo University Alia al-Mahdi said she believes economic cooperation chances between Egypt and Syria are huge.

"I think the newly-founded business council will play a big role in advancing their cooperation," professor al-Mahdi said.

Speaking to The New Arab, she added that council members would study the needs of the markets in the two countries and consequently trace the opportunities available in them in the coming period.

Egypt, she said, could offer a lot to Syria to push its post-Bashar al-Assad recovery and development efforts forward.

"Apart from political and diplomatic backing, Egypt can offer Syria its development expertise to help it bring its devastated infrastructure, including its electricity network, cities and roads, back into good shape," she added.

Accelerating pace

Egypt and Syria have been stepping up their economic cooperation since the downfall of al-Assad's regime in December 2024, with Cairo apparently eyeing the economic chances it can have in the new Syria, specialists said.

In 2025, trade exchange between the two countries rose by 29.2%, compared to 2023 (to $422.92 million from $327.43 million).

However, real trade exchange figures can be far higher, more than double this volume, economists said.

Banking SWIFT restrictions imposed on Syria before 2025 meant that most of its trade with other countries, including with Egypt, went to and from it through either Jordan or Turkey in a manner that did not reflect on official trade exchange figures.

The restrictions were removed in August 2026, as part of efforts to reintegrate the new Syria into the international community.

The removal of the same restrictions compounded Syria's removal by the US from the list of state sponsors of terrorism, and came almost three months after the European Union removed key Syrian government institutions from its sanctions list and restored the full application of the EU-Syria Cooperation Agreement.

These developments have made the new authorities in Syria more capable of making business with other countries, including Egypt, economists said.

The same developments have also allowed Egypt to pursue its goal of carving its share of the economic opportunities the post-Assad Syria offers, including in the fields of construction and investment.

Ahmed Ragheb Agha, deputy head of the Syrian side of the Egyptian-Syrian Business Council, said Syria has so many opportunities to offer other countries that want to cooperate with the Syrians.

"The current recovery phase in Syria opens up huge business opportunities for everybody," al-Agha told TNA.

Quoting United Nations figures, he estimated the cost of Syria's reconstruction at $200 billion.

Syria, Al-Agha said, is badly in need of investments in all construction sectors.

Roads, he said, need to be established, electricity plants need to be rebuilt, and water stations need to be constructed.

He also pointed to available investment opportunities in energy, renewable energy and telecommunications.

"The industrial and agricultural sectors are also open for investment, not to mention the tourism sector which needs to come back to life," al-Agha said.

Meanwhile, Syrian investments in Egypt amount to $1 billion, a figure that jumps to billions when unregistered or informal investments are taken into consideration.

These investments are present in the form of hundreds of companies and businesses launched by the Syrians who escaped to Egypt from the civil war raging on in their country between 2011 and 2024.

Egypt boasts a large Syrian community whose members have established their own successful economic models, benefiting from the Arab country's huge consumer market.

At the same time, Egyptian investors appear to look forward to seizing opportunities in specific sectors of the Syrian economy, including infrastructure, energy, real estate and building materials.

This comes as Egypt introduces itself as a reconstruction model for regional states, especially those seeking to recuperate from conflicts, economists said.

Political thaw

Efforts made by Cairo and Damascus to advance their economic, investment and trade cooperation come as the two capitals take measures to improve their political relations.

This happens at a time when Egypt appears to be partly overcoming the initial caution with which it received news of the downfall of the al-Assad regime and the emergence of the Ahmed al-Sharaa government in Syria.

In the past months, the two sides intensified their diplomatic and political contacts, even as they still have a long way to go to reach full political and diplomatic normalisation.

In June this year, Egypt approved Syria's candidate for chargé d’affaires at the Syrian embassy in Cairo, even as the two countries have yet to appoint mutual ambassadors.

The Syrian and Egyptian foreign ministers are also accelerating their contacts, having met last on 7 September to discuss cooperation, including in trade.

When asked about relations with Syria almost ten days later, Egyptian Minister of Information Diaa Rashwan ruled out the presence of differences.

"What appears on the surface doesn't reflect the presence of any differences between the two countries," Minister Rashwan said on the sidelines of the Arab Media Forum in Dubai.

He highlighted Syria strategic importance for Egypt and other Arab states, noting that Syria used to be Egypt's northern front yard when the two countries were in unity.

"Egypt cannot see Syria otherwise," the Egyptian minister said.