Syria’s transitional president, Ahmad al-Sharaa, issued a decree , Wednesday, July 9, establishing a sovereign wealth fund.

Decree No. 113 states that an economic institution called the “Sovereign Fund” shall be established in the Syrian Arab Republic. It will have legal personality and financial and administrative independence, headquartered in Damascus, and linked directly to the Presidency, according to the official Syrian news agency (SANA).

The decree explained that the fund aims to:

• Implement direct developmental and productive projects.
• Optimize investment of human resources, material assets, and technical expertise from all specialties.
• Stimulate the national economy through studied and diversified investments.
• Convert inactive government assets into tools for production and development.

The fund will operate under a strict and transparent governance system, including quarterly and annual reports submitted to the Presidency, financial auditing by independent bodies external to the fund, and real-time monitoring and correction of errors before they occur.

The fund will be managed by a Board of Directors and a General Manager. The Board will be composed of:

• Chairman of the Board (President)
• General Manager (Vice President and member)
• Assistant General Manager (member)
• One director from within the fund (member)
• Three expert members

Both the Board members and the General Manager are appointed by presidential decree. The General Manager acts as the contracting officer, responsible for financial disbursement and settlements., and payment officer, and represents the fund legally.

Board meetings are only legal with the attendance of the majority of members including the chairman, or in his absence, the vice chairman presides.

Decisions are made by majority vote; in case of a tie, the chairman’s vote prevails.

The General Manager is accountable to the Board and the Presidency for the proper conduct of the fund’s operations and performs duties as outlined in the fund’s internal regulations.

The fund’s financial resources include:

• State allocations and funds designated for it
• Revenues from the fund’s activities
• The value of fixed assets in the council and its private investments
• Grants, donations, and gifts accepted according to applicable laws and regulations

The fund’s internal regulations are issued by decision of the General Manager, while its organizational structure and staffing levels are issued by presidential decree.

Dr. Karam Shaar, director of the Syrian program at the “Political and Economic Networks Observatory,” criticized the decree, arguing that it allows the Presidency to manage public sector assets and investments without oversight from ministries or the legislative authority.

Given the complex administrative and legal status of the transitional phase, the decree can be understood as a product of the transitional period. However, since the “Sovereign Fund” is accountable only to the Presidency and its financial reports are not publicly transparent, it is seen as unfair and lacking accountability to Syrians whose money helped build the public sector, according to Shaar.

The decree establishing the “Sovereign Fund” comes amid the Syrian administration under President Ahmad al-Sharaa leadership seeking to lay new foundations for restructuring and revitalizing the Syrian economy after years of conflict and economic deterioration.