A defiant Assad spoke in the opera house in central Damascus, to a packed crowd of chanting supporters.
He called for "foreign countries" to stop "financing armed groups", put an end to "terrorist movements" and "allow refugees to return".
Looking to the future he announced a new national charter.
He said: "The first stage of a political solution would require that regional powers stop funding and arming [the opposition], an end to terrorist operations and controlling the borders
"We will not have dialogue with a puppet made by the West."
Assad spoke of the "suffering that is happening all over Syria" as a "black cloud" of pain.
He added: "Killing innocents kills light in our country".
Assad insisted the opposition were not revolutionaries but "terrorists" and a "bunch of criminals".
He said: "[A revolution] would need thinkers and be based on an idea.
"It needs leadership - who is the leader of this revolution?"
He blamed the rebels for stealing from the people and sabotaging electricity supplies.
"Syria will remain a free and sovereign country", he added.
As Assad left the stage he was mobbed by the crowds as his bodyguards bundled him out.