World Bank says it will cost hundreds of billions to rebuild Syria

(MENAFN) The World Bank has projected that rebuilding war-ravaged Syria will require between $140 billion and $345 billion, with a conservative estimate of around $216 billion.

According to the development organization’s report The Syrian Conflict: Physical Damage and Reconstruction Assessment (2011–2024), the 13-year civil war caused approximately $108 billion in physical destruction — roughly one-third of the country’s total gross capital stock (GCS).

Infrastructure sustained the heaviest losses, accounting for 48% of total damage (about $52 billion), followed by residential properties at $33 billion and non-residential buildings at $23 billion. The governorates of Aleppo, Rif Dimashq, and Homs experienced the most widespread devastation.

"The damage and reconstruction cost estimates are presented in the context of an already dire macroeconomic situation," the report stated.

Syria’s gross domestic product (GDP) has shrunk by 53% from 2010 to 2022. In nominal terms, GDP dropped from an expected $67.5 billion in 2011 to $21.4 billion in 2024. The World Bank noted that the estimated reconstruction costs are roughly ten times higher than Syria’s current GDP, reflecting the combined toll of widespread destruction and years of economic decline.

The country’s financial outlook remains constrained by international sanctions, war-related disruptions, and a growing dependence on imports. Foreign reserves have been largely depleted, and public investment remains minimal — with capital spending in 2024 standing at only 11% of its 2010 level.

"These conditions further constrain Syria’s macroeconomic and fiscal capacity to be able to respond to the magnitude of reconstruction costs," the report emphasized.

Syrian Finance Minister Yisr Barnieh described the assessment as a crucial reference point for understanding the scope of rebuilding efforts. “Now, more than ever, it is imperative for the international community to mobilize support and partnership to help Syria restore essential infrastructure, revitalize communities, and lay the foundation for a more resilient future for its people," Barnieh said, according to reports.

The civil war officially ended last December after former President Bashar al-Assad fled to Russia, marking the fall of the Baath Party’s decades-long rule.

Since the formation of a new administration under President Ahmed Al-Sharaa, Syria has been pursuing political and economic reforms aimed at restoring stability, strengthening social unity, and rebuilding ties with regional and international partners. The government has also begun implementing fiscal and structural reforms to encourage foreign investment and accelerate reconstruction.

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