Syria may delay investment projects due to budget deficit — The National

Syria may postpone some approved investment projects to cover a $1 billion public finance deficit. Syria’s Finance Minister Yisr Barnieh plans to cut spending considered non-essential after expenditures rose amid the conflict in the Middle East, The National reports.

Review of investment spending

Barnieh said the cuts would not affect salaries, healthcare and schools. At the same time, approved investment projects will be reviewed based on their necessity and stage of implementation.

According to Syrian state media, priority will be given to projects related to security, basic services and vital infrastructure. Initiatives whose postponement would not significantly affect service provision or economic activity may be deferred.

According to the minister, the budget cuts are intended to limit non-essential spending, improve the use of available resources and preserve the state budget’s ability to respond to the crisis in the Middle East.

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$1 billion deficit

In the first half of 2026, Syria spent about $3.7 billion, while state revenues amounted to $2.7 billion. Thus, the public finance deficit reached $1 billion. Expenditures increased, in particular, due to higher import costs and salary increases.

Attracting investment has been one of the key directions of Syrian government policy since it came to power in place of Bashar al-Assad’s regime in 2024. Tens of billions of dollars in investment were promised to rebuild the country after 13 years of civil war.

The Gulf countries are named among the main partners. Companies from the UAE are to invest in development projects and the port of Tartus, Qatar supports plans for a new airport in Damascus, and Saudi Arabia helped settle Syria’s debts to the World Bank.