As the Arab Spring blossomed two years ago, a heady breeze brought hopes of democracy, human rights and a better life to countries across the Middle East and North Africa, including Syria.

But while dictatorships fell in Tunisia, Egypt, Yemen and Libya, President Bashar Assad clung to power in Damascus, unleashing a brutal crackdown on what began as a peaceful pro-reform movement.

Rebel groups including the jihadist Al-Nusra Front have set up a religious council to administer affairs in the east of Syria which is mostly under their control, a rights watchdog said on Sunday.

"God commanded the Islamic battalions to form a religious council in the east to administer the affairs of the people and fill a security gap," the groups said in a statement distributed by the Syrian Observatory for Human Rights.

Syria insurgents launched a surprise dawn raid Sunday to retake a key district of the central city of Homs, as Islamists set up a religious council to administer rebel-held areas of the oil-rich east.

Activists said the raid sparked fierce fighting on the ground and saw President Bashar Assad's forces call in air strikes in a bid to repulse the rebel fighters.

The Philippine government on Sunday welcomed the release of its 21 U.N. peacekeepers after they were freed by Syrian rebels and crossed into Jordan, where officials waited to receive them.

The troops, members of a U.N. force monitoring a 1974 ceasefire between Syria and Israel, were abducted on Wednesday.

President Michel Suleiman stressed on Saturday that any stance taken by government officials, in particular, the Foreign Minister should reflect the state's dissociation policy.

“Stances taken by government officials and ministers, in particular the FM, in international forums should reflect (the dissociation policy) without any confusion,” Suleiman said after talks with FM Adnan Mansour at the Baabda Palace.

Finance Minister Mohammed al-Safadi denied on Saturday that Saudi investors pulled deposits from Lebanese banks.

“The Lebanese banking system guarantees the free movement of capital and confidentiality, therefor, investors have the right to manage their money however they like,” Safadi said.

Clashes raged on Saturday between Syrian troops and rebels in Daraa in the south, the Syrian Observatory for Human Rights said, adding that loud blasts were heard in Damascus province.

Meanwhile, government forces used heavy artillery against rebel positions in the eastern city of Deir Ezzor, it added.

Lebanese Forces leader Samir Geagea stated that his party is “playing a complicated political game” over the parliamentary electoral law, reported the Kuwaiti al-Anba daily Saturday.

He said: “Some of our allies did not understand our stance, but I will soon hold a press conference to discuss at length the details of the discussions over the new law.”

The United Nations welcomed the release on Saturday of 21 Filipino peacekeepers, who had been seized by Syrian rebels on the Golan Heights, as they crossed to freedom in Jordan after a three-day ordeal.

Philippine authorities also expressed relief at the release of the 21 members of the U.N. Disengagement Observer Force (UNDOF).

French President Francois Hollande on Friday lamented the deadlock over Syria, lashing out at Russia for not pressuring President Bashar Assad to step down and allow for a political transition in the conflict-torn country.

Hollande said that although he will try to convince the Syrian opposition to negotiate with others than the Syrian leader, "the Russians still need to reach out and convince Bashar Assad to stand aside".