Syria opens doors to investment ...Syria

Jana al-Issa | Hassan Ibrahim | Amir Huquq | Zeinab Dawwa

International and regional investors are turning their attention to Syria as it enters a post-conflict phase, following the war that devastated its economy. Before the end of last year, Syria was viewed as a stagnant political file with an unclear horizon.

The fall of the previous regime and the political opportunity recognized by major countries to grant to the new administration in Syria has intensified calls for investment in the country, whether at the international, regional, or local levels.

While the Syrian Minister of Economy and Trade, Mohammad Nidal al-Shaar, estimated during his participation in the Arab Media Summit 2025 in Dubai on May 28 that Syria needs at least one trillion dollars to rebuild its economy, the Syrian government signed agreements worth billions of dollars in energy investment, ports, and industrial cities with major global companies during the same month.

Despite these calls and the strong desire to rely on foreign investment as a cornerstone for driving economic growth in Syria, experts believe that the attractive investment environment is threatened by the absence of clear investment laws, which the government has started to develop to meet the country’s needs.

Enab Baladi attempts in this report to capture the reality of investment in Syria, highlighting the most significant opportunities and available sectors, while also analyzing the motivations and obstacles for investors, along with the incentives and facilities they expect, and reviewing potential scenarios for the future of investment in the country.

Poor developing countries, especially those emerging from years of conflict, cannot be left solely to market forces. Countries emerging from conflict should strive to build an effective state with institutions that enhance confidence in the investment sector without administrative bottlenecks and without trading the well-being of citizens for competition for foreign capital, according to the policy brief on countries emerging from conflicts and foreign investment published by the United Nations University.

Syria is among the countries with numerous economic potentials and natural resources that provide promising investment opportunities, especially in the upcoming reconstruction phase.

Syria combines rich natural resources and a strategic geographical location, making it an important center for commercial communication between the East and the West, enhancing its attractiveness and making it a focus for investors.

Investment opportunities represent a primary element through which economic development can be achieved and the standard of living of the population in any country can be raised, especially under conditions of recovery and reconstruction, as Syria is experiencing. Recently, the lifting of international sanctions that were imposed during the previous regime has further increased its attractiveness.

The executive advisor at the Ministry of Economy and Trade, and economic researcher, Manaf Quman, told Enab Baladi that investment opportunities in Syria are diverse and varied, represented by several key sectors, including:

University professor and economic expert Dr. Majdi al-Jamous clarifies to Enab Baladi that the main investment opportunities in Syria can be summarized into two main axes: the first is “infrastructure” which refers to the fundamental pillars of the national economy, known as “investment infrastructure foundations,” which require major investment companies from around the world.

The second axis is the energy sector, through expanding Syrian productivity in energy, including electricity, oil, and ports, along with free zone areas.

Minister of Energy in Syria, Mohammed al-Bashir, during the inauguration of the Arbeen conversion station – May 6, 2025 (Syrian Ministry of Energy)

Priority sectors

Syria has a diversity in economic sectors, with varying priorities for investment based on the type and impact of each sector on the overall economic movement.

Dr. al-Jamous sees that the most important sectors viewed as primary drivers for investment in Syria today are the real estate sector, followed by the financial and tourism sectors, as expatriate Syrians, Arab businessmen, and others are now increasingly involved in tourism-related investments such as hotels, restaurants, and tourist areas.

He agrees that the agricultural and industrial sectors are fundamental for economic recovery through investment in industrial zones, pointing out that the primary step is the rehabilitation of the destroyed industrial areas.

Al-Jamous considers that all sectors in Syria are in need of investment, as they are nearly collapsed, since the economy under the previous regime reached a state of collapse, primarily relying on maintaining state institutions at their minimum.

All sectors in Syria need investment as they are almost collapsed, as the economy under the previous regime reached a state of collapse, and its strategy was to merely maintain state institutions at their minimum.

Majdi al-Jamous, Economic expert

Good returns

Dr. Abdul Rahman Muhammad, Vice Dean of the Faculty of Economics at Hama University and economic expert, told Enab Baladi that the sectors needing new investments are numerous, and some are more attractive than others based on current economic trends and future needs.

These sectors represent promising opportunities for investors looking to achieve good returns and contribute to sustainable economic development in Syria.

One of the most notable sectors, according to expert Abdul Rahman Muhammad, is the technology and communications sector, which includes areas such as artificial intelligence, financial technologies, cybersecurity, along with the health sector, which entails the establishment of hospitals, clinics, and specialized health centers. With the increasing demand for healthcare services, this sector is one of the vital areas that require significant investments, in addition to the education sector.

To ensure the best results in investing in priority sectors in Syria, various steps should be followed:

Ensuring optimal results in investment requires proper planning, understanding of the landscape, and collaboration with local entities.

Dr. Abdul Rahman Muhammad, Economic expert

Urgent opportunities

In a country like Syria, where most of the infrastructure of key sectors has been destroyed, investment needs to reactivate several urgent sectors to open wide the door for major investments.

Here, the need to restore sectors that are key to reconstruction, economic development, and achieving economic stability becomes evident.

Economic expert Majdi al-Jamous suggests that the reality of Syrian investment needs what is called an “economic lever,” meaning that the success of investment in one sector can lead to the success and activation of productivity in all sectors, as they are all fragile.

The investment opportunities that Syria needs today to resume investment activity and activate economic recovery, according to the expert, are represented in:

Soap factory resumes operations in Homs – May 23, 2025 (Syrian Ministry of Economy)

The fall of the Assad regime, subsequent government steps, and the lifting of Western sanctions on Syria have marked the beginning of investment in a country where Assad and his associates once held a tight grip on its resources and economy. Today, it can again be an investment destination and opportunity to enter its markets for several reasons, including the abundance of natural and human resources, the low cost of investment, the availability of labor, and the ability to acquire land and facilities at competitive prices. The doors of investment have opened in various sectors and fields.

The prevailing conditions in countries emerging from conflicts make them largely attractive only for certain forms of foreign direct investment with limited transformative potential. Poorer countries rarely attract multinational corporations seeking markets and profits unless those countries boast abundant natural resources, according to a policy brief on countries emerging from conflicts and foreign investment published by the United Nations University.

For example, the oil and gas sector has suffered from rampant consumption and investment, sustaining significant damage in recent years due to the ongoing multiplicity of controlling forces over Syrian territories. These damages have affected fields, facilities, and transport lines, where there are 106 oil and gas fields in Syria.

The oil and gas sector remains the most critical economic sector likely to be the first economic lever for Syria during the reconstruction phase in the coming years, especially if the new Syrian administration succeeds in restoring oil and gas production to its pre-2011 levels. This requires seeking effective cooperation and investment opportunities, which must be preceded by security and political stability.

Economic researcher at the Omran Center for Strategic Studies, Manaf Quman, believes that the motivations for investors to enter Syria arise from the lifting of sanctions, which has marked a significant turning point. Syria today needs reconstruction, which entails projects worth billions in infrastructure, housing, energy, and transport, along with the potential opportunities in agriculture, industry, and logistics services.

It is no secret that the relatively cheap and available labor force in Syria creates a competitive advantage for investors. Additionally, Syria’s strategic geographic location as a land gateway between the Gulf and Europe allows it to become a transit and industrial aggregation hub.

Manaf Quman, Economic researcher

Quman told Enab Baladi that one of the key motivations for investment lies in the new government’s desire to adopt a free market model supported by legal reforms and an attractive investment climate.

Field visit to assess oil wells in Deir Ezzor fields – May 25, 2025 (Syrian Ministry of Energy)

Legal, security, and administrative challenges

Despite lifting sanctions, several obstacles and challenges still hinder investors in Syria. Karam Shaar, director of the Syrian Program at the Syrian Observatory of Political and Economic Networks, deemed the licensing that lifts US sanctions a positive step, but remarked that the exception or exemption from the Caesar Act (180 days) is short-lived and does not inspire confidence among investors in Syria. Consequently, investment activity may not commence, with expectations of an interest or willingness from Arab countries to invest in Syria primarily, followed by European countries.

Defining a suitable investment climate

According to the definition of the Arab Investment and Export Credit Guarantee Corporation, the term “investment climate” refers to the overall conditions and circumstances surrounding the investment process and the impact of these conditions—both negative and positive—on the potential success of investment projects, and thus on investment movement and trends.

These conditions include the political, economic, social, and security situations, as well as the legal circumstances and administrative regulations in the country. These elements mutually influence one another, creating new conditions with different data that translate into either attraction or repulsion factors for capital.

Economic researcher Manaf Quman noted that even with the lifting of sanctions, significant challenges remain in attracting investors, such as the absence of an updated and attractive legal framework. The legal environment still requires substantial reforms to ensure investors’ rights and facilitate procedures.

He added that Syria suffers from a weak judicial infrastructure and dispute resolution mechanisms, which makes investors cautious in the absence of confidence in contract enforcement. There is also the persistent administrative and procedural corruption that requires careful handling.

The researcher noted that among the challenges are the fragility of the banking system and the concerns related to security complexities and the incomplete political stability in certain areas.

Regarding the impact of the damaged infrastructure on investors’ decisions, Quman believes that a state cannot operate factories or distribute goods without stable electricity, effective roads and ports, and functional communication and financial services.

On the influence of the local market size and citizens’ purchasing power on the viability of investment projects, Quman thinks that the Syrian market is relatively small in terms of current purchasing power due to the decline in individual income and the rise in poverty rates. However, the presence of Syrians abroad constitutes an additional purchasing power when incentivizing investments in the remittances, real estate, and education sectors.

Visit of the advisor to the Minister of Communications, Abdullah al-Olabi, to the Mekset Complex in Turkey – May 13, 2025 (Syrian Ministry of Communications and Technology)

Certain incentives can attract capital to an environment that remains inadequately suited for investment, such as the Syrian situation.

Countries emerging from conflicts often experience a disproportionate drop in levels of private investment in infrastructure and vital sectors. Large investors tend to hesitate to enter, and when they do, they focus almost exclusively on the more profitable and easily accessible sub-sectors. Hence, attracting sustainable investments is a significant challenge facing policymakers in post-conflict countries.

According to a recent research paper on “Attracting and Stimulating Direct Investments in Post-Conflict Countries: An Analytical Study in the Syrian Context,” attracting investment requires addressing several issues that the state can secure, thereby dispelling investors’ fears about the overall undesirable investment climate.

The research paper discussed on May 21, within the “Second International Bab Congress” at Aleppo University, which Enab Baladi obtained a copy of, states that attracting investment necessitates clear and transparent laws that protect investors’ rights, in addition to an independent judiciary and a fair and reliable judicial system.

The lecturer at the Faculty of Economics at Gaziantep University, Salah al-Din al-Jassim, one of the co-authors of the research paper, told Enab Baladi that there are several motivating factors that investors are waiting for in this context, relying on the field study that the research paper was based on, which gathered the opinions of several businessmen, experts, academics, and non-governmental organizations active in this regard.

Among the encouraging investment incentives are tax exemptions, simplifying licensing procedures, and designating special industrial zones, which have proven effective, as seen in Bosnia’s post-war experience.

Additionally, the state of the infrastructure plays a significant role in attracting investments. Enhancing networks of roads, energy, and telecommunications facilitates production and distribution processes for investors.

Moreover, the presence of an effective and secure financial and banking system enhances investors’ confidence in the economic environment and facilitates the movement of capital.

In this context, the role of the international community cannot be overlooked, as international aid and grants from donor countries and global financial institutions can contribute to stimulating investment, whether through funding major infrastructure projects or providing guarantees to investors, thus enhancing the attractiveness of the investment environment in the post-conflict stage.

Which cities are most attractive for investment in Syria

According to a research paper discussed at Aleppo University in May 2025 regarding investment in Syria, the cities of Damascus and its countryside have emerged as the most attractive areas for investment, as they enjoy a high population density and good infrastructure, making them suitable for investment in commercial, service, and real estate sectors.

Latakia and Tartus, thanks to their strategic coastal location, offer significant opportunities in transport, trade, and tourism.

Aleppo, despite the destruction it faced, remains an important industrial center in Syria and was once considered the industrial capital, particularly in textiles and foodstuffs. With the region’s need for reconstruction, opportunities for investment in these sectors are opening up.

The eastern region, including Deir Ezzor and al-Hasakah, possesses rich natural resources, especially in oil and gas, making it promising for investments in the energy sector.

On the other hand, areas such as Idlib and northern Syria hold investment opportunities in the agricultural sector due to the presence of fertile land and the ability to produce diverse crops.

Meanwhile, the Syrian Jazira region is considered a crucial agricultural area due to the availability of water and fertile lands, enhancing its attractiveness for investment in this sector.

Umm al-Samra beach in Latakia – April 20, 2025 (Latakia governorate)

Investment laws play a pivotal role in supporting the national economy, as they help create job opportunities, transfer technology, and develop infrastructure. The clearer and more transparent the laws are, the more likely they are to attract foreign investors.

The anticipated investment law will represent the legislative framework that defines investment mechanisms, legal guarantees, and incentives provided by the state, in addition to the procedures related to establishing projects and registering companies in Syria. A clear and developed investment law is considered one of the main factors sought after by any international investor.

Dr. Hassan Hazouri, a professor at the Faculty of Economics at the Aleppo University, told Enab Baladi that the expected investment law to be issued in Syria soon will improve the investment climate by unifying references and procedures through the establishment of a single central investment authority, the Syrian Investment Authority, which will facilitate and simplify procedures. This will include providing incentives and guarantees such as tax exemptions and customs duties and ensuring that nationalization or confiscation only occurs by a court ruling.

Hazouri also indicated that the law is expected to improve the legal environment by giving foreign investors equal rights with local investors and ensuring the freedom to transfer profits and capital.

The law will encourage investment in strategic sectors such as industry and energy, especially renewable energies, agriculture, and technology, by allocating additional benefits for projects in these areas.

For his part, Dr. Abdul Rahman Muhammad, Vice Dean of the Faculty of Economics for Administrative and Student Affairs at Hama University, explained to Enab Baladi that the new investment law is expected to simplify procedures by digitizing transactions and establishing a unified platform for submitting applications, which will reduce time and costs.

He mentioned that the investment law should provide tax and customs incentives through exemptions for projects in the energy, tourism, and industry sectors and improve the investment environment by encouraging partnerships between the public and private sectors through models such as “build-operate-transfer” and activating management contracts for troubled government enterprises.

Scenarios for investment success

The Syrian economy has suffered significant losses over the past years in various sectors, characterized by a lack of a clear developmental vision, fluctuating economic models, and a scarcity of investments, especially after sanctions.

The changing conditions today can positively reflect on the Syrian economy in several aspects, including stimulating overall economic growth by attracting new capital that contributes to raising production rates, according to Dr. Hassan Hazouri.

Hazouri pointed out that stimulating economic growth will create job opportunities, as the influx of investments leads to the establishment of new projects and the expansion of existing ones, which will create more job opportunities.

He noted the idea of increasing public revenues resulting from abundant production, which will lead to a surplus in the tax base, meaning more revenue for the public treasury, transferring technology and knowledge, especially through direct foreign investments that help digitize the economy and shift towards an e-government that provides most of its services through digital transformation, and activating exports by establishing industrial and agricultural projects targeting foreign markets.

In contrast, Dr. Abdul Rahman Muhammad believes that the issuance of the investment law will positively reflect on the Syrian economy due to increased productivity in vital sectors such as energy and industry, while reducing unemployment rates by providing direct and indirect job opportunities.

The most critical aspect is ensuring currency stability resulting from the influx of foreign currency, which in turn supports the Syrian pound and reduces inflation, according to Muhammad.

Syria opens doors to investment Enab Baladi.

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