The Legal and Economic Environment of Investment in Syria

In May 2021, Syria enacted a new Investment Law (No. 18/2021) replacing the 2007 decree, creating a more competitive framework, with an intention to overhaul its investment regime to attract foreign capital.. The law, together with its executive regulations, provides broad incentives for both local and foreign investors. For example, projects in priority industries benefit from multi-year tax holidays and customs exemptions, while farmers and tourism developers enjoy full exemptions from certain taxes and duties. Foreign investors may open local bank accounts, obtain credit in foreign and local currency, and freely transfer profits abroad – rights that were previously restricted. A one-stop “Investors’ Service Centre” was established to process applications, overseen by a Supreme Investment Council chaired by the Prime Minister, which commits to licensing approved projects within 15 days. Moreover, licensed projects are protected: their terms remain stable unless the investor is notified and given 90 days to remedy any breach, and disputes are settled through a dedicated arbitration forum. These legal guarantees and incentives reflect a clear policy to build “a more flexible and attractive investment environment” as emphasized by the Investment Authority.

The general economic environment still poses challenges. Years of conflict and sanctions have left infrastructure weakened and public finances strained. Reliable energy supplies and security remain uneven, and the Syrian pound has fluctuated sharply. Analysts note that lack of stable power, currency volatility and security concerns have been key obstacles to foreign investment. The government has begun addressing these issues: it is rehabilitating infrastructure and stabilizing regulations to create a “fertile investment environment” once basic needs (like energy and the rule of law) are met. Notably, international sanctions have begun to ease in 2025, further improving prospects. Indeed, recent high-level meetings with Turkish and Gulf business delegations highlight growing confidence. In August 2025, Syrian officials showcased an “investment map” of projects in manufacturing, real estate, and services, and invited Turkish firms to invest in housing, energy and power. Syrian ministers publicly pledged to keep modernizing laws and simplifying procedures to sustain an “attractive investment climate”. Gulf partners, especially Saudi Arabia, have also taken major steps: for instance, a Saudi-Syrian investment fund is being established, and Riyadh has committed over $6.4 billion in new deals covering infrastructure and industry. The 2025 Saudi-Syrian Investment Protection Agreement explicitly aims “to create an attractive legal and investment environment… and to facilitate capital flows” into key sectors like industry, infrastructure and energy.

Industrial Sector Opportunities

Investors will find promising opportunities in Syria’s industrial sector. The country’s pre-war industrial base included textiles, food processing, cement, steel and pharmaceuticals; many factories are now being rehabilitated. The government and private sector have launched initiatives to support industrialists: damaged plants (especially in cement, concrete and building materials) are being rebuilt, and tax exemptions or soft loans are offered to companies that contribute to reconstruction These measures are already bearing fruit – media reports indicate hundreds of factories have resumed output and some 1,500 facilities reactivated in late 2025. Of particular note, Gulf investors have targeted the building-materials industries: Saudi firms, for example, have acquired significant stakes in Syria’s cement and concrete sectors, which are “vital” to the reconstruction effort. Through its new Investment Law and administrative incentives, Syria allows 100% foreign ownership in many sectors (subject to compliance with local partner and capital requirements), and offers scalable incentives for job creation and export growth. In practice, an industrial project that meets the national interest (in size, employment or exports) can be fast-tracked and granted exemption from up to 75% of corporate income tax for 5–10 years, plus duty-free imports of machinery

A professional legal framework backs these incentives. Licensed industrial projects enjoy legal stability: government attachment of assets is restricted to court orders, and all investors (Gulf or Turkish alike) can obtain residence permits for themselves and their key staff. The one-stop regulatory process means that once an investor secures an industrial investment license, almost all other approvals and site permits are consolidated under it. In sum, Syria is positioning its industrial zones – including newly established or expanded free zones – as priority areas for infrastructure, manufacturing and logistics investment.

Energy Sector Opportunities

The energy sector is a top priority and offers diverse opportunities in oil, gas, electricity and renewables. Syria’s remaining oil and gas fields (mostly in the northeast) have been underdeveloped since the war, so the government is keen to partner with experienced international oil companies for exploration and production. In parallel, rebuilding the power grid and generation capacity is urgent: years of damage caused major blackouts, and thermal power plants need upgrading. The government has opened bidding for new power projects and sought foreign technical know-how. Notably, at an October 2025 investment forum, the Energy Minister highlighted plans to “rehabilitate critical infrastructure and expand renewable energy projects” to ensure long-term supply. He affirmed that private and foreign investment is “a cornerstone” of rebuilding Syria’s energy production, and that investors have shown strong interest in strategic oil, gas and electricity projects.

Investments in renewable energy (solar and wind) are also encouraged. Syria enjoys abundant sunlight and windy regions, and the Investment Law even grants special benefits to green industries. For instance, solar power plants are typically treated as “industrial” under the law and qualify for the same tax reliefs – up to 75% tax reduction for 10 years Importantly, the new legal framework explicitly allows profit repatriation and guarantees against arbitrary license revocation, giving foreign energy investors confidence. In policy terms, officials have pledged to streamline regulations (e.g. simplifying energy project permits) and to implement all memoranda of understanding signed with Gulf and Turkish partners. Saudi Arabia’s recent $6.4 billion in energy and infrastructure deals includes electricity generation, and Turkish companies have long supplied equipment and may now expand presence given new incentives. In short, the energy sector stands as a key growth area – for oil/gas development, grid expansion, renewable installations and petrochemical projects.

Conclusion

Syria is actively rebuilding its investment climate to lure Gulf and Turkish capital, especially in manufacturing and energy. The legal framework now offers competitive incentives, strong investor protections and one-stop administrative procedures. Economic reforms and infrastructure projects are underway to create stability and growth. International partners are responding – Saudi-Syrian and Syrian-Turkish committees are organizing major investment conferences, and comprehensive investment guarantees have been negotiated.

For more detailed advice or to explore opportunities in Syria, interested investors are encouraged to contact Sultans Law Firm. We regularly publish legal insights on investment topics – subscribe to our blog or follow us on social media for updates. Feel free to reach out to our team for personalized consultation.