Investing in Syria

Syria has a fragmented investment environment in which formal projects, securities markets and informal financial practices coexist. Investment Law 18/2021, amended by Law 2/2023 and Decree 114/2025, covers the use of capital to establish, expand, develop, finance, own or manage an investment project. Its project regime does not generally cover passive purchases of shares or bonds. Banks, exchange companies, microfinance banks and deposit-taking institutions follow separate rules. A direct project normally starts with an application to the Syrian Investment Authority. The Investor Services Center acts as a one-window point for the relevant sector approvals, after which the authority issues an Investment License. The project then moves from setup into operation under the licensed scope. The formal framework covers productive activities, energy, infrastructure, tourism, reconstruction, specialized zones, development zones and real-estate development. Procedures and timing depend on the sector, location, required approvals and project documents. Decree 114/2025 is officially presented as allowing 100% foreign ownership of investment projects and removing a general local-partner requirement within that project regime. This does not create general freedom for foreign land purchases or portfolio investments. Project land or property may be owned or leased when it is needed for the licensed project, while ownership limits and Council approval can apply. Title, zoning, expropriation, security and access to the site require separate checks. The framework protects project investors against precautionary seizure or receivership without a court decision. Expropriation requires a final judicial ruling and market-value compensation, with formal rules for transferring compensation derived from foreign capital in convertible currency. During the setup period, new procedural or financial burdens generally cannot be added outside environmental and public-health requirements. The authority must give notice, allow a six-month cure period and provide legal remedies before withdrawing an Investment License. Project investors must report the start and cost of the project, maintain insurance, keep accounts using International Accounting Standards, appoint a certified external auditor and pay applicable taxes, fees and other financial charges. They must provide requested information and documents. Transfers of 10% or more require reporting, and sector-specific rules continue to apply. A listed joint-stock company also follows Damascus Securities Exchange rules. The securities market currently centres on shares of Syrian joint-stock companies and government Treasury Bonds. Investment units are legally recognised, while investment funds, Sukuk and crowdfunding rules remain under development. There is no reliable evidence of a broad regulated local ETF or digital-asset market. The Damascus Securities Exchange reopened on 2 June 2025 after an interruption of about six months; the reopening initially covered 18 companies, with later reporting referring to 27 listed companies and eight Treasury Bond issues. The market remains narrow, concentrated and vulnerable to limited trading liquidity. Same-day sale is not permitted under the Stock Exchange Law. Investors buy and sell through brokers licensed by the Syrian Securities and Financial Markets Commission, commonly abbreviated as SCFMS. In 2025, about six licensed service or brokerage firms were reported. A brokerage relationship may be established by contract or electronically through a broker website or application. Licensed brokers can provide intermediation, investment advice, investment management, trusteeship and custody-account management. Unlicensed securities activity is prohibited. The Central Depository is the sole institution for securities registration, ownership transfers, clearing and settlement, and it operates against applicable charges. Internet trading was activated in 2025 for First Global One Financial Investments. Arab and other non-Syrian investors may access the Damascus Securities Exchange with lawfully introduced funds under applicable board rules. Customer identification, the source of funds, foreign-exchange rules, sanctions screening and repatriation arrangements must be checked with the broker, SCFMS and the Central Bank of Syria because the relevant instructions were still being revised in 2025. Re-transfer of capital and profits may be formally available but depends in practice on banking channels, foreign-exchange controls, anti-money-laundering requirements and transaction-specific approvals. Due diligence should cover SCFMS and exchange disclosures, audited financial statements, governance, related persons, ownership and beneficial ownership, sector licenses, property title where relevant, anti-money-laundering and counter-terrorist-financing controls, sanctions and the expected payment and exit channels. At the end of 2025, Syria had 51 public companies, including 45 active companies and 28 listed companies; disclosure and governance reporting remained incomplete. Combining a direct project with listed securities is possible, but the limited range of local instruments does not provide a broadly diversified standard portfolio. Project costs can include licensing and registration fees, taxes, insurance, audits, sector approvals, zone charges and transfer costs. Securities transactions can involve broker, exchange, central-depository, settlement and account charges. No single current fee table reliably covers every investment option. Project timing depends on approvals and implementation, while a securities exit depends on a willing counterparty and available liquidity. Inflation, currency depreciation, convertibility problems, weak banking and payment intermediation, political instability, regional conflict, security conditions, damaged infrastructure, uncertain enforcement, incomplete company data, market interruptions, counterparty risk and beneficial-owner risk can materially affect the result. United States economic sanctions on Syria were broadly ended in 2025, and the Syrian Sanctions Regulations were removed, but targeted measures against Assad-associated actors, human-rights violators, Captagon and terrorist or destabilising actors remain. The European Union also lifted most economic sanctions in 2025 while retaining security restrictions and listings; the relevant list was reported to contain 317 persons and 51 entities, with measures extended until 1 June 2027. Every proposed transaction, investor, company, beneficial owner, bank and intermediary requires an up-to-date sanctions check.