Syria is sending “all the right signals” that it is open for business but must offer predictability and bankable projects to attract more international investments, a former Jordanian minister has said.
The country has attracted a surge in interest from foreign investors as it rebuilds its economy, with countries such as the UAE and Saudi Arabia already committing to develop major projects.
“There is a lot of interest in investing in Syria regionally, internationally, and in being part of the rebuilding and reconstruction of Syria,” Wissam Rabadi, former Jordanian minister of planning and international co-operation, told The National at the Syria Private Sector Dialogue event on Monday.
“However, for investors to actually come and put their money [in], there are certain requirements. Number one, and the most important thing for any investor, is predictability. You need to have laws, regulations that are clear, [ensure] that there is transparency and predictability in the legislation, and in the rules of the game.”
Investors from across the Gulf nations are rushing to Syria to help grab early opportunities to re-establish the war-battered economy of the country.
The US has removed its Syria sanctions programme by executive order, and Congress repealed the Caesar Act in December, paving the way for investment in the country. The European Union also removed economic sanctions in May last year, and last month restored full trade and diplomatic ties with Damascus.
However, Syria continues to grapple with challenges such as damaged infrastructure, widespread poverty and high inflation.
Investors look at risk and return, Mr Rabadi said. “They're willing to take some risk, for sure, but they ask for a higher return for that risk. So the more you reduce the risk for the investors, the more likely they will make these investments.
“You need a strong investment promotion function in the country that talks to investors and tries to promote investment in the country, with a clear pipeline of bankable projects.”
It is not merely about infrastructure, such as roads and electricity grids, but also the building of strong institutions, which is key, he stressed.
Speaking at the same event on Monday, Manhal Al Faris, director general of the Syrian Production and Export Development Authority, said the government in Damascus was keen to “listen to the private sector: what it wants, where it intends to go and what its vision is for the Syrian economy in the coming period”.
The Syrian government, under President Ahmad Al Shara, is key to promoting a “guided free-market economy”, in which the “private sector takes the lead, while being guided”, he said.
“This means when there are deviations or departures from certain economic principles or from the country’s industrial strategy, the government intervenes to correct those imbalances,” Mr Al Faris added.
The government is hoping to boost domestic production and exports, taking advantage of its geographical location.
Sectors of interest
Syria is currently at a stage where it needs rebuilding and restructuring across the board, creating opportunities for investors in several sectors, Mr Rabadi said. He highlighted banking, energy and artificial intelligence among the most promising. “There is a lot of opportunity in a lot of sectors, from infrastructure to manufacturing to finance,” Mr Rabadi added.
The country has already attracted investment in sectors such as real estate and aviation.
Last month, the UAE and Syria convened their first bilateral business forum in the Syrian capital, with a large UAE delegation of officials and businessmen arriving for the first time since the fall of Bashar Al Assad in December 2024. UAE businessman and Emaar founder Mohamed Alabbar said he was planning to invest as much as $18 billion in Syria. In February, Saudi Arabia also announced a major investment package spanning energy, aviation, property and telecoms. The kingdom also launched an investment fund committing 7.5 billion Saudi riyals ($2 billion) to develop two airports in Aleppo.
Meanwhile, the Central Bank of Syria is now pursuing a sovereign credit rating for the first time, as it seeks to tap into global capital markets and build growth momentum.
“I think Syria can benefit a lot from the Jordanian experience. We are neighbours … both countries can be a centre for logistics, trade and supply chains,” Mr Rabadi said.
“Jordan has a good experience over the past tens of years in dealing with these situations, building institutions and regulations, and it's a very similar situation from a demographic and political economy point of view to Syria. So I think there is a lot of co-operation that will be beneficial for both sides to collaborate.”
