Syrian Arab Republic

Sectoral impact:

• Infrastructure and services: The destruction of social and productive infrastructure across Syria remains extensive. Urban centers and former frontline areas have suffered particularly heavy devastation. Accumulated debris continues to obstruct safe access, delay the restoration of services and hamper reconstruction efforts. In addition, critical infrastructure has sustained widespread damage, with 73 per cent of roads, 53 per cent of bridges and culverts, and 63 per cent of water supply networks partially impaired, severely limiting access to essential services and economic recovery.
• Economic strain: Income-expenditure gaps persist across all regions, with household expenses consistently exceeding incomes, even in families with multiple earners. The rising cost of basic needs has left over 82 per cent of communities reporting that income does not cover household expenses. As of 2024, Syria’s GDP has shrunk to less than half its 2010 value. Exports and foreign exchange reserves have also dropped to a fraction of pre-conflict levels, significantly limiting the country’s ability to import essential goods, materials, and equipment. Moreover, prolonged international restrictions and limited engagement with the global economy have deepened these challenges, further weakening the nation’s economic resilience.
• Livelihood challenges: Unemployment, job losses, and limited access to essential services continue to be major obstacles for households in meeting their basic needs. Many families resort to unsustainable coping mechanisms such as borrowing money, selling productive assets, or taking on high-risk or degrading work. These strategies undermine long-term resilience and expose individuals to serious protection risks, including exploitation and abuse. In northern Syria, over 50 per cent of IDPs reported that the lack of employment and livelihood opportunities is the primary barrier preventing their return to their areas of origin. A similar trend is observed among refugees abroad, for whom access to sustainable livelihoods is a critical factor influencing their decisions about returning home. Nationwide, 64 per cent of communities identified the scarcity of employment opportunities as a key concern.
• Market and economic challenges: High supplier costs and rising market prices are limiting vendors’ ability to restock essential goods, especially in newly accessible areas. Stock shortages and reduced credit availability further restrict vendors from meeting consumer demand, intensifying financial pressures on consumers who rely on credit. There is evidence of a growing use of the SYP in Aleppo and Idlib , despite its volatile exchange rate, which continues to challenge broader market operations and complicate cash-based assistance programs. Fuel shortages and elevated prices affect most regions to varying degrees, and with demand continuing to grow nationwide, there is a risk of further price increases. Economic barriers to market access are widespread, with 56 per cent of surveyed vendors across Syria reporting one or more financial constraints impacting customers’ ability to purchase goods.
• Electricity and energy access: Electricity access remains one of the most critical challenges across Syria. Many areas receive only two to six hours of electricity per day, particularly in Dar’a, Lattakia, and Damascus, where up to 75 per cent of communities are affected. The situation is even more severe in other governorates, with the majority of communities reporting less than two hours of electricity daily including Deir-ez-Zor (74 per cent ), Hama (77 per cent ), Homs (62 per cent), and Rural Damascus (69 per cent . According to 81 per cent of key informants, electricity networks or alternative sources have sustained partial damage, and restoring the electricity network is consistently ranked as the top recovery priority. The main source of electricity remains the national grid (43 per cent), followed by solar panels. However, access to electricity continues to be a major concern; 71 per cent of communities report partial or complete network failure, and 68 per cent cited the high cost of solar panels and batteries as a significant barrier.

Immediate needs:

• Infrastructure and services: Comprehensive debris removal and management is essential to enable infrastructure rehabilitation and access to services. Rehabilitation of roads, electrical networks, and public facilities is critical for restoring services and markets. Restoration of municipal services, including electricity, water, and waste management, is vital to stabilize daily life. Access to reliable energy remains critical, with over half of households in some regions lacking access to the main grid.
• Livelihoods and employment: Cash-for-work initiatives for rubble clearing, irrigation rehabilitation, and solid waste management provide immediate employment opportunities. Employment income remains insufficient, leaving many unable to meet basic needs such as shelter, food, and medicine. Planned returns increase the demand for employment, services, and rehabilitation of public and private infrastructure. The inclusion of women in economic activities is crucial for fostering equitable livelihoods.
• Economic recovery and market stabilization: Support for MSMEs is essential to reactivate markets, enhance economic stability, and promote local trade. Market stabilization is needed to facilitate access to basic goods, including winter items. Access to new markets previously inaccessible for some economic actors, offers opportunities for businesses but requires rehabilitation of local markets and warehouses. Activation of industrial workshops and business grants can help protect and revitalize livelihoods for micro and small businesses impacted by recent conflict and economic shocks.
• Social cohesion and community resilience: Social cohesion measures are required to prevent tensions and conflict, especially in areas experiencing IDP returns. Strengthening basic services and facilities in host communities is needed to support increased IDP access and integration. Initiatives to foster community representation and asset protection programs can build trust and resilience.
• Energy and renewable solutions: Providing access to electricity is a critical need for both livelihoods and service provision over the next six months. Solar energy systems for households, businesses, markets, and essential service facilities can mitigate the impact of energy shortages.
• Capacity building and skill development: Capacity building for service providers ensures efficient recovery and long-term sustainability. Programs for technical and vocational training, job placement, MSME support, and value chain development are necessary for sustainable economic growth.

Priority activities:

• Infrastructure and services: Removal and management of debris from former frontline villages in Northwest Syria after mine action services are completed; Rehabilitation of roads, markets, warehouses, productive infrastructure and water stations.
• Energy and renewable solutions: Solar kits or cash support to provide electricity access for households in areas affected by electricity loss, including newly displaced populations. Installation of solar micro-grids in market areas and facilities serving vulnerable communities impacted by electricity infrastructure damage; Rehabilitation of electrical networks.
• Livelihoods and employment: Creation of immediate income opportunities through short-term cash-for-work programs, including repairing public infrastructure such as street cleaning and water systems; Vocational training, job placement, and start-up support to help households generate sustainable incomes and reduce reliance on negative coping mechanisms; Emergency business grants to protect livelihoods, restore assets, stabilize income, and support supply chain continuity, including funding for solar systems for power-dependent businesses.
• Economic recovery and market stabilization: Provision of support and grants to MSMEs to help businesses meet market demands and restock supplies; Support for existing Village Savings and Loan Associations (VSLAs) to bolster financial inclusion.
• Social cohesion and community resilience: Launch of social cohesion initiatives to strengthen relationships between host communities, nearby IDP sites, and returnees.
• Capacity building and planning: Capacity-building workshops to guide community representatives in developing localized early recovery plans as a foundation for future development and reconstruction efforts; Capacity-building initiatives to enhance the delivery of quality public services.

Response Strategy:

The ERL Sector works to address root causes of vulnerability by strengthening self-reliance, improving well-being at individual, household, and community levels, and reducing reliance on external aid. By supporting sustainable livelihoods and improving access to essential services, ERL fosters resilience and creates conditions for recovery and long-term development. As households shift from emergency aid to recovery, the sector is promoting approaches that combine livelihoods support, coaching, financial inclusion, and social protection to build economic independence.

The sector is focusing on:

• Immediate and high-impact interventions, including preserving livelihoods during periods of heightened economic volatility by improving access to electricity and supporting sustainable income opportunities for vulnerable households and addressing critical service gaps by repairing essential infrastructure.
• Locally led recovery and capacity building, including empowering communities to lead early recovery processes, the development of locally led recovery plans and area-based approaches, and capacity-building of line ministries and local authorities to enhance their ability to coordinate, plan, and implement recovery and reconstruction activities.
• Transitioning to development and reconstruction, including laying the foundation for locally-led efforts that can meet needs at scale and ensure long-term sustainability, and strengthening graduation support and market-based interventions to enable households to transition from dependence on humanitarian aid to sustainable livelihoods.

ERL coordinates closely with FSL, CWG, and Protection to integrate multi-purpose cash, ensure inclusivity, and address risks such as EO, child labor, and GBV. It also collaborates with Shelter, WASH, and Protection sectors to support durable solutions for IDPs and returnees. Delivery modalities include cash-for-work, in-kind support, emergency business grants, and solar systems for power-dependent businesses. Programming is inclusive and conflict-sensitive, prioritizing support for vulnerable groups and aiming to reduce negative coping strategies. The sector is also exploring mechanisms to mitigate exchange rate volatility impacts on both vendors and households, in coordination with CWG and financial actors, to protect the real value of cash-based assistance and preserve market functionality. Monitoring is complemented by field assessments and feedback mechanisms to ensure accountability and adaptive programming.