Syria's Sharaa says working to keep country out of regional war, grow economy

Syrian President Ahmed al-Sharaa said Friday he is working to keep his country away from conflict, against the backdrop of the US-Israeli war on Iran, stressing that his government is on good terms with all regional countries.

In a speech delivered after the Eid al-Fitr prayer in the presidential palace in Damascus, Sharaa said: "We are calculating our steps with extreme precision and working to keep Syria away from any conflict."

"It is important to remember that Syria has always been an arena of conflict and strife during the past 15 years and before that, but today it is in harmony with all neighbouring countries regionally and internationally," he said.

He added that Syria stood "in full solidarity with the Arab states".

War in the Middle East erupted after the United States and Israel launched strikes on Iran on 28 February, to which Tehran responded by targeting Israel and carrying out attacks on US embassies and interests, as well as energy facilities and civilian targets in Gulf states.

The war spread to Lebanon, Syria's neighbour, with Israel conducting large-scale strikes in response to attacks by Hezbollah, and to Iraq, where bases of Iran-aligned Iraqi armed factions have been hit by air raids.

After Syria had been, for all the years of the conflict that ravaged it, an arena of competition for international powers, the country has thus far remained at a distance from the regional escalation.

Syrians are seeing the war from afar, while Israel intercepts Iranian missiles passing through the skies overhead.

Still, Syria is not entirely free from violence. On Friday, Israel's military said it had struck Syrian army camps in response for what it called attacks against the Druze community in the southern Suweida province.

Syrian state media did not mention the clashes or the Israeli airstrikes.

2026 budget

Sharaa also announced the state's 2026 budget, which was set at around $10.5 billion, nearly triple last year's level, according to state media.

He said GDP is estimated to reach $60 billion-$65 billion this year, adding the economy could return to 2010 levels and improve services.

Sharaa said the government will prioritise ending displacement camps and enabling returns, with funds allocated to rebuilding infrastructure in hard-hit areas including Idlib and Aleppo, where rival armed factions have clashed in recent months.

He said government spending rose to about $3.5 billion in 2025, while GDP reached around $32 billion after growth of 30 percent to 35 percent, with the budget recording a surplus for the first time. He added that a dedicated infrastructure fund of at least $3 billion would be financed from government spending.

Sharaa said additional funds would go to eastern regions such as Deir az-Zour, Hasaka and Raqqa - areas heavily damaged during the war against Islamic State - focusing on services, while about 40 percent of the 2026 budget will be spent on health and education.

He said territory retaken by the government had returned key resources to state control, supporting the economy, but acknowledged rebuilding will take time.

The country has attracted growing foreign investment as it rebuilds, with Gulf states among key backers, including Saudi Arabia's involvement in major infrastructure projects worth billions of dollars, and the UAE's DP World signing an $800 million ports deal.