A groundbreaking report by Rekaz for Economic Studies and Research has exposed a critical disconnect between the capital requirements for Syria’s post-conflict reconstruction and the actual foreign direct investment (FDI) entering the country. The study, supervised by Dr. Yasser Al-Mashal, reveals that while the nation’s reconstruction needs are estimated at $250 billion, actual foreign investment in the first year following the previous regime’s collapse reached only $28 billion—covering a mere 11.2% of the necessary funding. This massive $222 billion gap underscores the significant barriers still preventing high-quality, long-term capital from entering the Syrian market.
The Rise of Parasitic Versus Constructive Investments
The research introduces a “False Investment Trap Model” to explain the current economic landscape in Syria. According to the report, the country is primarily attracting “parasitic investments”—short-term ventures focused on trade, speculation, and resource extraction that seek high annual returns of 30-50%. These stand in stark contrast to “constructive investments,” which target infrastructure, industry, and education with long-term horizons of 10-20 years. Currently, only 19% of foreign investment is directed toward the industrial sector, and much of that is limited to light industries.
Identifying the Real Barriers to Entry
While government officials often cite international sanctions as the primary hurdle, the report argues that sanctions have become a “convenient lie” used to mask internal systemic failures. The study identifies the “real monster” as a bloated Syrian bureaucracy where processes that should take three months often stretch to a year. Investors face exorbitant hidden costs, ranging from $500,000 to $1 million in delays and administrative fees. Furthermore, a lack of legal clarity and a volatile exchange rate—with the Syrian Pound trading at 12,250 per USD as of January 2026—create an environment of “moving ground” that deters rational investors.
Lessons from International Success Stories
To provide a roadmap for recovery, the report analyzes the economic trajectories of Rwanda, Colombia, and Vietnam. Rwanda is highlighted for its “zero tolerance” policy toward corruption and its focus on political stability as a prerequisite for investment. Vietnam’s “Doi Moi” reforms are cited as a successful model for gradual, calculated opening of the economy through Special Economic Zones. The study emphasizes that while these nations committed to deep, painful reforms, Syria currently only “talks” about them.
Proposed Revolutionary Solutions for Growth
Dr. Al-Mashal and Rekaz propose several “revolutionary” measures to bridge the funding gap:
- Conditional Investment Model: Linking the release of invested funds to specific government benchmarks, such as improving corruption indices or increasing electricity availability.
- Transparency Shock: Launching a blockchain-based portal to track every dollar of international aid and foreign investment, and mandating the digital publication of all government contracts exceeding $10,000.
- International Commercial Courts: Establishing independent courts in Damascus and Aleppo that utilize English Common Law and international judges to bypass the local judicial system’s perceived weaknesses.
- Human Capital Bank: Creating a national training fund, supported by 1% of foreign company profits, to retrain 100,000 workers in high-demand skills like programming and renewable energy.
About Be In Invest
Be In Invest is a comprehensive investment ecosystem founded in 2025 and headquartered in Damascus. The firm brings together Arab, regional, and international companies to transform economic ideas into sustainable entities. Specializing in financial consulting, real estate investment, and foundational services for startups, Be In Invest acts as a bridge between capital and talent to drive long-term economic and social change in the region.
Source: Be In Invest
