From being ravaged by conflict to becoming a possible land of global opportunity, investors are cautiously turning their attention to Syria. While those working within the Gulf real estate sector are optimistic; other financiers are understandably worried about political stability.
After 13 years of civil war and the collapse of the Assad dictatorship, Syria is open for business once again with the interim Islamic HTS government setting out its intentions to attract Foreign Direct Investment.
In August, Syria signed investment deals worth $14 billion as part of its push for redevelopment of infrastructure, with money earmarked for a new airport in Damascus along with a subway network throughout the capital. While these deals were mainly made with the Middle East, there is growing interest from investors globally.
It’s not just the country’s infrastructure that needs rebuilding; if Syria is going to thrive once more, attention must be paid to real estate. Since the civil war began, more than 14 million Syrians have been forced to flee their homes in search of safety. Around 7 million of these refugees are displaced within Syria where humanitarian aid is urgently needed.
It’s estimated 328,000 homes were destroyed during the civil war, with entire communities reduced to rubble. For those refugees living in countries surrounding Syria or further afield wishing to return to their homeland, until we see the rebuilding of homes and towns this is not a viable option.
The development of Basillia in Damascas, previously known as Marota City , with its luxury apartments, commercial centre, amenities and green spaces is the first major project of its kind in a city that desperately needs modern housing solutions. Back in 2012, legislation was passed mandating its construction, but it was targeted during the revolution and politicised during the fight to take down Assad’s regime.
It’s estimated the construction of Basillia will generate 110,000 job opportunities, along with 27,000 permanent positions once the project is complete. Critics argue that this new luxury city will mainly benefit a small elite of wealthy people. However, its completion would be a major success and would pave the way for more development and investment throughout Syria.
The project became embroiled in controversy under attack from anti regime forces during the civil war, but now that the war is over those attacks are likely to subside and it is hoped it might fulfil its potential.
Given the widespread nature of the conflict that has devastated Syria, every sector needs funding to get back on its feet. This means there are opportunities for both local and foreign investors, regardless of their interests, as well as scope for Syrian businesses to maximise their potential and help boost the economy.
In order to support the rebuilding of this war ravaged country, organisations such as Syria Gateway have started to appear, offering assistance to potential investors deciding how to spend their money in the real estate, agriculture, industry, education, commerce, tourism, and healthcare sectors.
In another promising sign of Syria rising from the ground, the IMF and World Bank have returned to the country. Saudi Arabia and Qatar settled Syria’s US$15.5 million debt, which enabled the World Bank to grant a US$146 million loan, earmarked for the reconstruction of the national grid infrastructure.
It also looks promising that the United States will join the UK and European Union in lifting sanctions imposed on Syria and some individual business leaders during the conflict, which will help drive foreign investment forward.
For Syrian refugees across the world, the rebuilding of their country cannot come soon enough. Since the conflict began in 2011, they have witnessed the destruction of their homes and livelihoods and seen the life they once knew obliterated. At least, for now, the outlook is more positive.
