Syrian Investment Agency Issues Regulations for Real Estate Development Firms

At the end of July 2024, the Syrian Investment Agency (SIA) announced the completion of the rules regulating the activity of real estate development and investment, the procedural guidelines and specific forms for licensing real estate development and investment companies, as well as the operations of branches of Arab and foreign companies specialising in this field. These are in accordance with the provisions of Investment Law No. 18 of 2021, as amended by Law No. 2 of 2023, and its executive instructions.

The SIA has called upon investors with real estate development and investment companies licensed under the now-repealed Real Estate Development and Investment Law No. 15 of 2008 to review their situation in order to comply with the provisions of Laws No. 18 of 2021 and 2 of 2023. Real estate expert, now prime minister, Mohamed Al-Jalali, in a conversation with the semi-official Al-Watan newspaper on August 18 (prior to his appointment as PM), explained that licensing real estate development and investment companies under Law No. 18 would lead to further tax and customs exemptions. However, companies must first align their status with the practices of the SIA, in line with Laws No. 18 and No. 2.

The SIA, which enjoys financial and administrative independence, is affiliated with the Minister of Economy and Foreign Trade. Its headquarters are in Damascus, according to Law No. 18. However, under Law No. 2, it was also given the tasks and powers of the Real Estate Development and Investment Commission, which had previously been established under the now-repealed Law No. 15 of 2008. In other words, Investment Law No. 18 granted the SIA the authority to also supervise and regulate the real estate investment and development sector.

The rules regulating real estate development and investment activity provide the legal framework governing the licensing of real estate development and investment companies and the process for granting them the status of “real estate developer” under clear and defined standards and regulations. The SIA had previously issued the first version of these rules in April 2024, explaining that they include simplified and transparent procedures designed to pave the way for local, Arab, and foreign capital to enter the real estate development and investment sector through companies licensed in accordance with the mechanisms and requirements the SIA outlines. The rules cover the types of real estate development and investment companies, licensing procedures, cancellations, procedures for approving and revoking company management, as well as the duties of real estate developers and investors after obtaining a licence.

The procedural guidelines are a set of steps required for those wishing to establish real estate development and investment companies. While the specific forms for licensing these companies and branches of Arab and foreign companies specialising in the sector include templates for the articles of association for a limited liability company, a private joint-stock company, and a public joint-stock company, as well as forms for company reconciliation and registration requests, and requests for establishing branches of Arab or foreign companies.

Nada Laeeqah, the Director of the SIA, told the semi-official Al-Watan newspaper on August 1 that completing these rules, guidelines, and forms is part of a broader effort to “simplify procedures and provide services to investors” and is aligned with “transparent mechanisms and regulations tailored to the real estate development sector.” This work is being carried out in collaboration with the Ministry of Domestic Trade and Consumer Protection, the Ministry of Public Works and Housing, the General Commission for Taxes and Fees. According to Mrs Laeeqah, the rules, procedural guidelines, and forms streamline the processes that had been in place under Law No. 15, reducing the licensing process to a single stage, and easing the restrictions and requirements for granting licences. This is expected to help attract more local, Arab, and foreign investments, which are critical to the reconstruction process and achieving sustainable economic development.

In another interview with the official Al-Thawra newspaper on August 18, Mrs Laeeqah stated that these rules, guidelines, and forms are clear and transparent, making it easier for investors to establish and implement their real estate projects while enabling the authorities and public bodies to monitor projects at every stage. She described these rules, guidelines, and forms as “new legislation for real estate investment and development,” which include incentives such as exempting the import of building materials and vehicles used in real estate projects from all customs duties, financial taxes, and other fees.