Supporting Syria's entrepreneurs a regional responsibility

Arab News

2 days ago

https://arab.news/b58yx
Six months after the fall of the Assad regime, and weeks after the formal lifting of US sanctions, there is now an open door for a potential economic and social revival that could reshape Syria's future. But the path ahead remains fraught with challenges, competing interests and proxy battles — and the question of how Syria rebuilds, and which stakeholders lead that process, is more urgent than ever.
At the heart of Syria's recovery is its youth — more than half of the population is under 25, a generation defined by years of conflict and deprivation but also incredible resilience. Traditional employment opportunities have collapsed, pushing many young Syrians to seek alternative livelihoods. Entrepreneurship has become not only a means of survival but a vital response to soaring unemployment and widespread poverty.
The entrepreneurial spirit among Syrians is unmistakable. In a survey conducted in 2024 by Ahmad Sufian Bayram, a general partner at Blackbox and advocate for entrepreneurship in conflict zones, more than 80 percent of Syrians described entrepreneurship as 'extremely important.' This is a dramatic rise from just 26 percent in 2015. However, only 3 to 5 percent are actively involved in starting or running businesses — a participation rate well below international norms and one that highlights an enormous gap between ambition and opportunity.
Despite these challenges, a remarkable wave of startups has emerged, reflecting the urgent needs of Syrian society. Fintech companies like Cashi are revolutionizing digital payments in a cash-strapped economy. Educational technology firms such as Quizat are expanding access to learning in a country where schools have been devastated. E-commerce platforms like Tajir.Store are connecting local merchants with customers, fostering commerce in a fractured market.
Entrepreneurship has become not only a means of survival but a vital response to soaring unemployment and widespread poverty
Khalid Abdulla-Janahi
In addition to these sectors, entrepreneurship in agriculture, healthcare and energy is critical. The destruction of infrastructure has left food security, basic health services and energy supply in urgent need of innovation and investment. Startups addressing these challenges not only create jobs but also lay the groundwork for rebuilding essential services.
Yet the obstacles are immense. Syria's economy has shrunk to less than half its preconflict size. Nine out of every 10 Syrians live in poverty and unemployment has tripled since the onset of war. Infrastructure remains severely damaged, regulatory environments are complex and often opaque, and logistics chains are fragile.
Most pressingly, international sanctions and funding constraints have severely limited access to capital. Many foreign investors and support organizations are either unable or unwilling to send funds into Syria, choking off growth opportunities for startups and limiting their ability to scale.
Although the easing of some EU restrictions in February and the partial lifting of US sanctions have sparked cautious optimism, the financing gap remains vast. While some startups have secured small investments — ranging from $5,000 to $100,000 — these amounts fall far short of the capital required for scaling and sustaining businesses in a difficult environment.
In a report titled 'The Impact of the Conflict in Syria' issued in February, the UN Development Programme estimated that Syria's economy would need to grow between 5 and 13.9 percent annually to recover to preconflict levels within a reasonable time frame. At current rates, some projections suggest Syria may not regain its pre-war gross domestic product until well into the latter half of the century. Political instability, fragmented governance and ongoing security risks further complicate the investment landscape and business operations.
In this challenging context, grassroots initiatives like startup bootcamps, hackathons and mentorship programs — including organizations such as Sanad ScaleUp and Takween — have been critical in nurturing entrepreneurial talent and fostering resilience. The involvement of the Syrian diaspora and international impact investors is also increasingly being recognized as vital to supporting ecosystem growth.
Yet, for the rebuilding effort to be truly sustainable, leadership and investment must come from within the region. While international partners play a valuable role, regional actors have the greatest stake in Syria's success. Efforts led by the Arab world — backed by private capital and focused on creating jobs that strengthen local economies — offer the best chance of sustainable recovery. There are roles for both the private sector and state capital to play, particularly in the case of the Gulf Cooperation Council states that are supporting the interim government.
For the rebuilding effort to be truly sustainable, leadership and investment must come from within the region
Khalid Abdulla-Janahi
While the Gulf states are seeking confidence-building measures, they are also well placed, not only in terms of capital but also in terms of technical assistance, to lend expertise and intellectual capital from their vibrant community of innovators and diverse ecosystem of corporate sponsors, startups and investors who have been developing 'Silicon Wadis' in the Gulf for years.
Examples include the Misk Accelerator, the King Abdullah University for Science and Technology Entrepreneurship Center and Flat6Labs in Saudi Arabia, Hub71 in Abu Dhabi, Area 2071 in Dubai and the Fazaa Center for Business Incubators and Accelerators across the UAE, and Tamkeen in Bahrain. The establishment of dedicated funds with sovereign and state-owned companies and the support they can offer can also benefit Syria's entrepreneur cohorts.
The Arab world has a responsibility that extends beyond economic opportunity. Supporting Syrian entrepreneurs is a strategic imperative for regional stability and peace. While the sanctions were removed on Syria from the outside, the solutions for the future must come from within both Syria and the wider region. The entrepreneurial generation represents Syria's most promising resource for creating inclusive growth, social cohesion and resilience in a postconflict society.
Moreover, entrepreneurship serves as an incubator for responsible leadership and bootstrapping in business. It nurtures individuals who are proactive, adaptable and capable of addressing the complex challenges facing Syria. These qualities are essential for guiding the nation through its next chapter. The future of Syria rests with its next generation — and now is the time for those in positions of leadership across the region to empower them to build that future.