Newsletter, Issue #1

Aita Consulting — Tue, 25 Nov 2025 10:15:45 +0000

Syrian Business Outlook – Issue #1

The Syrian authorities are moving ahead with tax and compliance reforms that aim to simplify income and corporate taxation, increase thresholds, and gradually introduce digital filing.
Sanctions relief remains partial: some reconstruction and humanitarian activities benefit from exemptions or licences, but a large part of the financial and banking framework is still restricted.
The Public–Private Partnership (PPP) Law remains the core legal basis for PPPs, enabling long-term concessions and joint projects with foreign investors under a dedicated PPP Council.

Several ministries and public entities are publishing tenders for energy, utilities, transport and infrastructure, including smart meters, grid rehabilitation, and equipment supply.
Interested foreign SMEs must carefully review tender documents for performance bonds, payment currency, dispute-resolution clauses and sanction-compliance wording.
Local representation or a reliable Syrian partner is increasingly important to handle on-the-ground site visits, clarifications and bid submissions.

The authorities continue to promote large-scale infrastructure and transport projects under investment or PPP schemes, including airports, ports, logistics hubs and public-service concessions.
While headline investment figures are significant, the actual implementation pace varies by sector and depends on financing, security and technical capacity.
For foreign investors, robust risk-mitigation structures (local SPV, strong contracts, step-in rights, political-risk insurance where available) are key to bankability.

Energy and electricity remain top priorities: rehabilitation of generation units, transmission networks, and distribution systems are central to economic recovery.
Transport and logistics corridors (roads, ports, potential rail links) are gaining strategic importance for regional trade and reconstruction supply chains.
Selective customs and tax incentives are being used to attract capital and technology into priority zones and projects, especially in coastal and industrial regions.

Risk & compliance: Even amid partial sanctions easing, rigorous due diligence is essential. Investors must verify licence scope, beneficial ownership, banking channels and end-users.
Entry timing: With incentives emerging and flagship projects announced, there is a first-mover advantage for well-prepared SMEs that enter early with strong compliance frameworks.
Partners inside Syria: Local legal, accounting, logistics and technical partners are critical to convert opportunity into executable projects and to navigate administrative procedures.
Procurement windows: Active tenders in utilities, infrastructure and services offer concrete entry points for companies with relevant technology or operational know-how.
PPP readiness: For PPP-style projects, proper structuring—local SPV, clear risk allocation, realistic timelines, and exit options—is key to protecting capital and ensuring long-term viability.

Finalisation of new or revised legislation affecting energy, investment and PPP frameworks.
Gradual re-opening and upgrade of logistics corridors, ports and airports, which will shape supply chains and project feasibility.
Increased focus by multilateral and regional actors on reconstruction finance, potentially opening blended-finance structures.
New housing and real-estate reconstruction tenders, including opportunities targeted at the Syrian diaspora and foreign partners.