The number of contracts signed in Syria’s free zones has reached 800, with between 500 and 600 additional contracts expected to be signed by the end of 2026, Abdul Razzaq Qantar, investment director at the General Establishment for Free Zones, told Enab Baladi.

Qantar expects the number of investors in the free zones to exceed 1,000 by the end of this year.

He explained that the main obstacle to expanding investment is that buildings offered for investment within the free zones are approaching full occupancy, while the opportunities currently available are concentrated in land plots designated for construction.

He said most of the expected investments on these plots will be industrial and long term.

Qantar added that investors are seeking to operate in some free zones that are already fully occupied, including the Damascus Free Zone, which has reached 100% occupancy.

He explained that the Damascus Free Zone is primarily designated for service activities, rather than industrial or commercial activities.

Investors are also seeking ready built facilities in other areas, such as the Latakia Free Zone (western Syria), but it is also fully occupied, according to Qantar.

He noted that most ready built facilities are currently fully occupied, with activities divided among industrial, commercial and service sectors, while commercial activities account for the largest share.

According to Qantar, 90% of ready built facilities across Syria’s free zones are currently occupied.

Lower Occupancy in Aleppo

By contrast, Qantar said occupancy rates in some other free zones, including Aleppo, remain lower, attributing this to incomplete infrastructure rehabilitation, as is also the case in other free zones, because of the scale of destruction they sustained during the years of the revolution.

He added that these areas still require restoration and rehabilitation work, although investor interest is gradually increasing despite these conditions.

Shift Toward Full Scale Manufacturing

Addressing criticism that most industrial investment in the free zones has focused on assembly and basic packaging operations, Qantar said manufacturers had previously tended toward assembly or the production of semi finished goods because such activities were easier.

Interest in investing in the free zones, however, is now beginning to shift toward full scale manufacturing, according to Qantar.

As an example, he pointed to several factories currently under construction on plots designated for development, including facilities intended for textile manufacturing.

He also noted demand for industries related to petroleum derivatives within the free zones, alongside efforts to support these types of heavy and specialized industries in the coming period.

Qantar added that work is underway on a new investment framework that seeks to offer incentives for industries that do not currently exist in Syria, with the aim of establishing new industries in the country.

Idlib Free Zone

Abdul Razzaq Qantar, investment director at the General Establishment for Free Zones, also discussed plans to activate a previously announced free zone in Idlib (northwestern Syria) in several stages.

He said the first phase will involve activating the dry port in Idlib, which he expects to be completed by the end of April 2027.

The second phase is expected to include offering a portion of the plots as available, investment ready opportunities for investors by the end of 2027.

Qantar added that the Idlib Free Zone is planned to be fully completed during 2028.

Differences in Procedures and Costs

Asked whether local investors receive advantages over foreign investors in Syria’s free zones, Qantar explained that foreign companies seeking to establish branches in Syria face additional costs and must complete further procedures before their applications are approved and they can begin investing in the free zones.

By comparison, procedures are simpler and faster for Syrian investors, whether they seek to operate directly in the free zones or establish a Syrian company. Establishment costs are also lower than those foreign investors or companies are required to pay.

Qantar added that Syrian and foreign investors are both regarded as partners. However, he said the local investor is a “son of the country,” is more familiar with Syria’s economic challenges and is better able to withstand them.

He also pointed to a greater level of understanding between government authorities and local traders and industrialists because they are more familiar with procedures and better able to navigate them than foreign investors.

Banking Transaction Challenges

Banking transactions are among the most significant challenges facing both local and foreign investors in Syria, raising questions about what facilities could be provided to investors operating in the free zones.

Qantar said that despite challenges related to Syria’s banking sector, there is strong interest from Arab and foreign investors, who are trying to find their own solutions to facilitate their business operations and sustain their investments.

Qantar expects Syria’s banking system to be connected to the international banking system in the coming period, which he said would significantly facilitate financial transfers.

He also noted that banks in neighboring countries have announced that they have reached the final stages of procedures to open branches in Syria.

Concluding his remarks, Qantar said he expects these challenges to be addressed and financial transfers to become easier for investors in the coming period.