Syria opens doors: over 500 new investment opportunities in free trade zones!

Syria opens doors: over 500 new investment opportunities in free trade zones!

The Syrian state has announced over 500 new investment opportunities in its free trade zones. Mazen Aloush, Director of Public Relations of the Syrian General Authority for Land and Sea Borders, explained that these measures aim to revive the country's economy after the devastating effects of the past war. The restructuring of the free trade zones is carried out under the supervision of the relevant authority and covers several strategic areas such as Damascus, Adra and Damascus International Airport.

In addition, a new free trade zone will be established in Idlib province, for which a decree has already been issued. The work should begin soon. The most active free trade zones include Adra, Damascus and Damascus Airport. Maintenance and modernization work has begun in the country's largest free trade zone, Al-Muslimiyah, with registration already opened for a quarter of investment opportunities. These developments are part of a broader plan to revitalize Syria's economic potential.

Economic framework conditions

The General Authority for Land and Sea Borders reported brisk trade traffic, with more than 350,000 trucks crossing land borders and 850 cargo ships calling at Syrian ports since December. Monitoring of these activities extends to key border crossings with neighboring Türkiye, Lebanon, Iraq and Jordan, as well as seaports in Tartus, Latakia and Banyas. Despite the positive developments, the situation in Syria remains tense and the business environment is considered unwelcoming due to unstable political conditions and widespread corruption.

Another element of current economic aspirations is the participation of Syrian officials in international summits. Musan Nahas, a Syrian industrialist with government ties, recently appeared at the fourth Arab-French economic summit in Paris. His presence caused a stir among the French public, especially as Syria continues to suffer under EU sanctions. Syrian activists voiced strong criticism of the trip as it could raise hopes of normalizing trade relations between Syria and other countries.

International investments and challenges

The resumption of bilateral trade relations with neighboring Arab countries is in full swing. The heads of the Saudi Arabian and Syrian chambers of commerce have already discussed deals, while Iraqi officials have expressed similar intentions. The Italian Agency for Development Cooperation also announced an agreement with the Syrian Arab Red Crescent. But experts are skeptical about whether extensive international cooperation and investment in Syria is possible, especially in view of ongoing Western sanctions.

Although some EU companies have relaxed their restraint and are conducting business indirectly in Syria, the business environment is still characterized by uncertainty. Political considerations such as containing Iranian influence and stabilizing the country could influence future investments by Gulf states, especially if Western sanctions are eased.

While the US Congress plans to pass the Anti Normalization Act, which could increase sanctions, the international community remains uncertain about possible economic developments in Syria. Nevertheless, EU foreign policy chief Josep Borrell expressed his commitment to exploring ways to improve the situation in Syria and to following developments closely.

These steps respond to the clear needs of the Syrian market and its potential, but the challenges, particularly at the international level, remain significant.