Syria flips the script. It’s an island of calm in the stormy Middle East.

While the rest of the Middle East is once again seized by uncertainty and eruptions of tit-for-tat rocket and drone strikes in the U.S.-Iran war, Syrians are experiencing a calm hope.

Some are even calling it a “revival.”

Water is plentiful, electricity is around the clock. At night, the capital city and surrounding countryside are largely lit up, a far cry from the dark expanse that engulfed greater Damascus a few months ago.

Why We Wrote This

Decades of dictatorship culminated in 15 years of war and turmoil in Syria, making the country a focal point of hardship in the Middle East. But with the region torn asunder by the U.S.-Iran war, a relatively peaceful Syria is now an outpost of progress and hope.

The airport is busy once more. Ride-hailing apps summon Gen Z Syrian drivers at the wheel of brand-new luxury Chinese cars with refreshing air conditioning.

Western goods flood the market. Young people talk of starting businesses, and new restaurants, gas stations, shopping malls, and private schools are opening up.

The expressions of hope notwithstanding, Syria faces growing pains, including inflationary pressures, an unequal distribution of opportunity, and the legacy of decades of dictatorship that culminated in civil war. Yet after 15 years of conflict and chaos that made Syria an island of acute turmoil in a regional sea of relative calm, Syrians are now living a Middle East in reverse.

“For the first time, we feel more safe than other countries in the Middle East,” says Israa, a government worker from the Damascus countryside. “People from Dubai are coming here to escape war while we are leaving our fears behind.”

“We are not enjoying schadenfreude at there being war elsewhere in the region,” says Dia Dakkak, a trader and shop manager. “But after years of suffering and being patient, it is now our turn in Syria to develop, progress, and step toward a better future.

“Most importantly, this time, the war doesn’t involve us.”

Taylor Luck

Dia Dakkak, a trader, shopkeeper, and would-be entrepreneur stands in his shop in northwest Damascus, Syria, June 3, 2026. Mr. Dakkak remains positive about the country’s opening to the world after four decades of dictatorship, but notes rising inequality in the country’s recovery.

Economic challenges

Ahmed is one of many bullish Syrian investors; he has opened three business and a factory within the past six months.

“After decades of being terrorized and stymied by the criminal, mafia regime, business is booming,” he says.

Despite such buoyancy, steep economic challenges remain. Job creation is sluggish, and large-scale reconstruction has yet to begin. Gulf countries have signed off on billions of dollars of investment, but help from Western governments has yet to arrive.

“The economy may be improving statistically while ordinary citizens experience little immediate improvement in their daily lives,” says Yasser al-Mishal, vice dean of the Faculty of Economics at Damascus University, describing it as a “troubling paradox.”

Multiple officials and analysts note that Syrians have so far shown patience, but it is unclear how long it will last.

The Syrian government has passed an investment law enacting sweeping incentives for foreign and local investors, strengthened its central bank, and is auditing its financial system to identify and fix compliance gaps. A new Parliament, indirectly elected, is to convene this month.

In the meantime, Syria faces an array of challenges that could limit its potential for growth:

The U.S. Congress has yet to drop Syria’s designation in 1979 as a state sponsor of terrorism during the autocratic rule of Hafez al-Assad. These sanctions, combined with a large gray, cash-run economy, are scaring away most Western investors and are leading banks and financial institutions to classify the country as “high risk.”

Wild fluctuations in the Syrian lira’s exchange rate prevent many young people from opening small businesses.

At a high-level U.N.-sponsored conference last week – the Syrian Private Sector Dialogue – no Western investor or U.S. official attended, to the disappointment of Syrian business and industry leaders.

Nevertheless, Syrians are looking positively toward the future.

“A year and a half ago, we would get two hours of electricity per day, now we get 24 hours of electricity,” says Mr. Dakkak, the shop manager. “We are connected to the world. As the next generation, we are optimistic about our future.”

Taylor Luck

Vegetable seller Samira Ebo stands by her produce stand in the Barzeh neighborhood of Damascus, June 3, 2026. While the cost of living is rising, Ms. Ebo, like many residents of the Syrian capital, remains positive about the country’s future.

Rising cost of living

Still, the optimism and economic growth create their own inflationary pressures.

With the return of state-provided electricity, the government has raised electricity rates by as much as 6,000%.

Electronics and other foreign products are flooding a market th…