Damascus Chamber urges reforms to attract foreign investment

Shafaq News– Damascus

Foreign investors in Syria need legislative updates that ensure operational stability and alignment with free-market standards, a senior official told Shafaq News on Wednesday.

Mohammad Al-Hallaq, a member of the Damascus Chamber of Commerce, said that the current phase requires “serious efforts to rebuild trust between Syria and neighboring countries,” noting that investment interest is directly linked to the availability of a safe environment based on stable and transparent economic legislation that reflects clear future-oriented goals and supports sustainable partnerships.

Existing legislation focuses on addressing past shortcomings and strengthening positive aspects of the business climate, he stated, pointing out that some countries apply internationally recognized standards related to ownership rights, profit and capital transfers, ease of stock market registration, and share trading, factors that enhance investment attractiveness.

Calling for the establishment of clusters or small industrial cities near sources of raw materials and target products for manufacturing and export, he indicated that flexibility in creating such clusters could strengthen Syria’s export capacity.

According to Al-Hallaq, incentive programs for exporters should be based on their needs, with support from export support bodies, and these steps should be followed by medium- and long-term strategies, clear implementation plans, and a sustainable pricing policy that achieves balance.

“The absence of accurate statistics on trade volumes, saying available official data does not reflect the full picture,” he explained, adding that large quantities of goods entered the Syrian market after the fall of the Bashar Al-Assad regime, requiring time to accurately assess needs and indicators.

About Investment in Syria

A recent report by the World Bank estimates Syria’s reconstruction needs at between $140 billion and $345 billion, with a “best estimate” of $216 billion, nearly ten times the country’s 2024 gross domestic product (GDP) of $21.4 billion. According to the report, these figures remain “conservative,” citing uncertainty linked to satellite-based assessments in areas affected by ongoing or recent conflict.

Following the fall of the Al-Assad regime in December 2024, Western countries began easing sanctions and signaling support for foreign investment as part of Syria’s economic re-engagement. Syrian officials said these steps were followed by amendments to investment laws, helping attract an estimated $28 billion in commitments during the first six months after the changes.

Investment activity accelerated in mid-2025. In July, Damascus hosted its first Syria–Saudi Investment Forum, which resulted in 44 agreements valued at around $6 billion. The same month, Syria signed an $800 million deal with Dubai Ports World to upgrade port infrastructure and logistics services.

In August, Damascus concluded memoranda of understanding worth about $14 billion with companies from Qatar, the United Arab Emirates, Italy, and Turkiye, and a $7 billion energy investment signed in May by Turkish, Qatari, and US companies aims to significantly expand electricity generation and improve living conditions for millions across the country.

Among the largest infrastructure projects announced is a multi-phase modernization of Damascus International Airport, led by a consortium of Turkish, Qatari, US, and Syrian partners. The project, estimated at roughly $4 billion, includes new terminals and major rehabilitation works, with plans to increase the airport’s capacity to more than 31 million passengers within the next decade.

Read more: Caesar Act lifted: Syria’s economy reopens, reforms await