Introduction
Following the political transition of December 2024, Syria has moved aggressively to position itself as a destination for foreign capital, presenting its reconstruction needs — estimated by various accounts at hundreds of billions of dollars — as an opportunity for early-mover investors. At the center of this effort is a significantly amended legal framework governing investment, paired with sweeping sanctions relief from the United States and the European Union through 2025. For foreign investors, understanding this framework — and its current limitations — is essential before committing capital.
The Legal Backbone: Investment Law No. 18 of 2021, as Amended
Syria's modern investment regime is built on Investment Law No. 18 of 2021, which was substantially amended through Presidential Decree No. 114 of 2025. The amendments restructured how investment is governed at the institutional level and expanded the rights available to investors. Key guarantees under the current framework include:
- Up to 100% foreign ownership of qualifying enterprises, without a requirement for a Syrian partner in most sectors.
- Full repatriation rights for profits and invested capital, including, under the amended framework, salary repatriation for expatriate staff.
- Protection against expropriation — licensed investment enterprises cannot be seized or nationalized except for public purposes and against immediate, fair compensation reflecting the enterprise's value.
- Tax and customs exemptions, including full exemption for qualifying agricultural and medical sector projects, and exemptions of up to 80% for manufacturers that export a significant share of their production.
- The right to international arbitration in disputes with the Syrian state arising from a licensed investment — a major shift intended to reassure foreign investors who might otherwise be wary of Syrian court jurisdiction.
- Land and real estate use rights — licensed investors may possess or lease land needed for their enterprise even beyond the ownership ceilings that would normally apply, provided the land is used exclusively for the licensed activity.
Who Runs the System: SIA and the Supreme Council
Decree 114 of 2025 placed the Syrian Investment Agency (SIA) and a newly created Supreme Council for Economic Development, chaired by the President, at the center of investment governance, replacing the previous ministry-led structure. In practice, this means investment licensing decisions — particularly for larger or strategic projects — are now more centralized than before. While this has been promoted by Syrian officials as providing "legal firmness" and faster decision-making, independent analysts have also noted that it concentrates considerable discretion in the executive branch, which investors should factor into their risk assessment, particularly for projects in strategic sectors or those requiring access to state-owned land.
Two additional institutions, the Development Fund and the Syrian Sovereign Fund, were also established in 2025 to channel reconstruction financing and manage state investment activity.
Sanctions: What Has Actually Changed
A major part of Syria's renewed investment pitch rests on sanctions relief. Effective July 2025, the United States terminated the national emergency underlying its principal Syria sanctions program, and the European Union has likewise eased restrictions, with the EU pledging substantial financial assistance for reconstruction. That said, targeted sanctions remain in place against specific individuals and entities — including persons linked to the former regime, human rights abusers, and groups such as ISIS-affiliated networks — and Syria remains on the Financial Action Task Force's grey list for anti-money-laundering concerns, which continues to affect international banking relationships. Investors should conduct careful due diligence on local partners and counterparties, and should not assume that all historical restrictions have been lifted simply because general sanctions relief has occurred.
Priority Sectors
The Syrian government has signaled particular interest in attracting investment into agriculture (including Syria's traditional strengths in cotton and premium wheat), industrial manufacturing, technology and digital services, energy and electricity, tourism, healthcare, and reconstruction-related real estate and infrastructure. Several of these sectors carry the most generous incentive packages under the amended Investment Law.
How to Secure an Investment License
Obtaining the protections of the Investment Law generally requires a formal application to the SIA, including a business plan, proof of capital, and details of the proposed enterprise. Once approved, the project is registered and benefits from the law's guarantees; this is distinct from, and in addition to, the standard company registration process at the Commercial Registry. Many investors pursue both in parallel with experienced local counsel, since registering a company without also securing an investment license can mean missing out on tax exemptions and other guarantees the law provides.
Practical Example
A European manufacturer specializing in irrigation equipment evaluated entering the Syrian market to serve the agricultural reconstruction effort. Working with local counsel, the company registered a wholly foreign-owned LLC, then separately applied for and obtained an SIA investment license for the agricultural-equipment sector, securing full customs exemption on imported machinery components and confirming, in writing, its right to repatriate 100% of future profits. The company also negotiated an arbitration clause referring any future dispute with state counterparties to international arbitration rather than relying solely on Syrian courts — a protection now expressly available under the amended Investment Law.
Frequently Asked Questions
Can a foreign company own 100% of a business in Syria? In most sectors, yes, under both ordinary company law for an LLC and the enhanced protections of the amended Investment Law for a licensed investment project.
Are profits earned in Syria freely transferable abroad? Under the amended Investment Law, licensed investors benefit from full repatriation rights for profits and capital, though banking and currency-transfer practicalities — including the gradual restoration of international banking connections — should be confirmed with your bank and legal counsel at the time of transfer.
Is it safe to invest in Syria given ongoing political transition? Significant legal and institutional reforms have been made to attract investment, including arbitration rights and expropriation protections, but the political and regulatory environment remains in transition. A thorough legal and risk review, supported by experienced local counsel, is essential before committing capital.
Do I need a Syrian Investment Agency license, or is company registration enough? Company registration alone makes you a legally operating business but does not automatically grant you the Investment Law's tax exemptions, repatriation guarantees, or arbitration rights. An SIA license is generally required to access those specific protections.
Conclusion
Syria's amended investment framework offers real, legally guaranteed incentives that did not previously exist in this form — but navigating institutional centralization, sanctions due diligence, and the dual-track licensing process requires experienced legal guidance. Maher & Momen Law Office advises foreign investors and Syrian diaspora capital on structuring, licensing, and protecting investments in Syria.
Contact us today through damascuslawyer.com to discuss your investment plans.