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Investimento estrangeiro direto na Síria

FDI in Figures

Before entering a political crisis in 2011, Syria was determined to gradually open its economy, moving from a closed and centralized approach to a model close to the market economy. Indeed, between 2000 and 2010, the Syrian legal corpus underwent profound changes. Structural reforms, such as the renovation of the commercial code (2007), the code of the sea (2008), the finance law (2004) and the bank law of 2004, made it possible to phase out the model of the planned economy in effect for decades. The Investment Law greatly encouraged foreign investment, with measures such as the legalization of full business ownership, the importation of machinery, and exemption from customs duties on transport and raw materials. Private investors benefited from a five-year tax holiday (which has been extended to seven years in the case of a joint venture with 25% public sector participation). The establishment of a private banking system and private insurance companies (national or foreign), the opening of the local market with the liberalization of imports (gradual removal of tariff barriers to market access and reorganization of the customs administration with the help of the European Union) were tangible results of the modernization of the country's legislative and fiscal framework. Syria had also created a number of industrial zones providing a favourable framework for foreign companies wishing to set up in the country. However, the civil war which has torn the country apart since 2011 has caused a serious humanitarian and economic crisis that has triggered a fall in investment. The country is subject to sanctions from the United States and the EU, which limits its potential. The U.S. Caesar Syria Civilian Protection Act that came into force in June 2020 dissuades any investor from participating in Syria’s reconstruction. Furthermore, in early 2024, the U.S. House of Representatives approved the Assad Regime Anti-Normalization Act which further bolsters the sanctions outlined in the Caesar Act, set to expire in 2024, until 2032.

No reliable international data has been published on FDI inflows into Syria since 2012. According to UNCTAD's World Investment Report 2023, the stock of FDI in Syria amounted to USD 10.7 billion in 2022. Data collected by the Syrian Investment Agency on the stock of FDI between 2008 and 2014 shows that Russia was by far the largest investor in the country (75.8%), followed by Germany with 19.7%; whereas the majority of investments were directed towards the telecommunications, financial intermediation, and electricity sectors. Regarding FDI inflows into the country in the first half of 2016 (latest data available), the total amount was SYP 17 billion (around USD 33 million - Syrian Investment Agency).
The Minister of Economy claimed that the Syrian Investment Authority issued 32 investment licenses between the enactment of Investment Law No. 18 in May 2021 and June 2022. The assets of these investment projects totalled approximately SYP 1,357 billion.
Syria is not ranked on the 2023 Index of Economic Freedom.

Foreign Direct Investment 202020212022
FDI Stock (million USD) 10,74310,74310,743
Number of Greenfield Investments* 000
Value of Greenfield Investments (million USD) 000

Source: UNCTAD, Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

Country Comparison For the Protection of Investors Syria Middle East & North Africa Estados Unidos Alemanha
Index of Transaction Transparency* 7.0 6.4 7.0 5.0
Index of Manager’s Responsibility** 5.0 4.8 9.0 5.0
Index of Shareholders’ Power*** 3.0 4.7 9.0 5.0

Source: Doing Business, Latest available data

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.

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What to consider if you invest in Syria

Strong Points
Syria's main strong points are:
- The highly skilled workforce in traditional industries such as textiles and clothing manufacture;
- The appreciation of new activities, mainly in training, counseling and knowledge transfer;
- Its engagement for the liberalization of its economy;
- A low level of debt:
- A tourism sector in full development;
- The establishment of a system more favorable to trade: removal of exclusive rights to import agents, reduction of customs duties on raw materials and the establishment of a harmonized system of nomenclature (HSN);
- The advancement in the banking sector, through the authorization of accounts in foreign currencies.
Weak Points
 Syria's main weak points are:
- A strong demographic pressure (36% of the population under 15 years, 50% under 21 years and 250,000 new comers into the job market);
- A per capita income that progresses too slowly: 30% of the population still lives with less than USD 2 per day;
- The erosion of budgetary income and the degradation of the terms of the energy balance;
- A high rate of inflation, aggravated by a year of particularly severe drought;
- The absence of any refinancing instrument for Syrian banks and the explosion of credit in the private sector;
- The prices of real estate which have almost doubled in Damascus since 2006;
- A tax avoidance that is very difficult to repress and that undermines income and fiscal reforms;
- The lack of diversification in investments, especially targeting  the real estate sector (high quality residences, hotel complexes or shopping centers).
Government Measures to Motivate or Restrict FDI
Syria has profoundly changed its legislative and legal base in order to attract foreign investment. The country has set up seven free zones which allow different production activities and services in the industrial zones. The government has also favored the development of industrial cities. It has created four new towns where an industrial complex is back to back with a residential area. These centers are intended to occupy the space between ancient and traditional urban areas. Syria has abandoned the first investment decree n°10 of the nineties to the benefit of decree n°8 which is much more favorable to FDI (land ownership, repatriation of profits...). This law has allowed the access of private investors into the industry sector.
Bilateral investment conventions signed by Syria
Syria has signed many bilateral agreements with the United States, Germany, Pakistan, China, Indonesia, Russia, Belarus, Iran, Libya, Tunisia and Lebanon.

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