Signs of Shifting Compositions in Company Registrations 

Following the Assad regime’s collapse on 8 December 2024, Syria has seen a modest rise in formal company formation—suggesting continued economic stagnation. As of 26 March 2025 (the latest date for which data is currently available), 97 new companies—all Limited Liability Companies (LLCs) formed under Legislative Decree 29 of 2011 on Companies Law—have been registered and published in Syria’s Official Gazette. This publication is required only for companies governed by the Companies Law and excludes broader economic activity, such as individual traders registered under Law 33 of 2007 on the Commercial Code. It also excludes informal workers, which include roaming vendors, manual laborers, and small craftsmen, who operate on a much smaller scale by nature.

The preliminary data presented here is drawn from official company bylaws published in the Official Gazette. The exclusive use of the LLC structure—favored for its simple registration process, low capital requirements, and shield against business debt and liability—suggests a continued preference for regulatory simplicity and risk reduction. Other corporate forms permitted under Syrian law, such as Private and Public Joint-Stock Companies and Holding Companies, have yet to appear in the post-Assad business landscape.

According to the Official Gazette, no new companies were registered between 8 December 2024 and 2 February 2025. The reason remains unclear, as the Ministry of Economy issued no official decision suspending or resuming registrations. The halt was likely due to broader disruptions in state functions following the Assad regime’s collapse. Registrations resumed in February, with 50 companies established that month and 47 more between 1 and 26 March 2025. Additional companies formed before 26 March may still appear in later Gazette issues due to processing delays, though these are expected to be few. By comparison, 88 companies were established in all of February and March 2024.

A defining feature of the new companies is the dominance of trading and import-export enterprises. Roughly 80% list import-export among their business activities, while sectors such as cleaning, manufacturing, construction, and IT are far less represented. The near-absence of industrial and agricultural firms suggests that Syria’s new economy is, for now, driven by low-capital, fast-turnover commercial ventures rather than substantial domestic production. Most companies registered with the legal minimum capital of SYP 50 million (~USD 5,000 at the time of writing); only four exceeded that threshold. However, declared capital often reflects statutory requirements rather than actual resources, meaning some firms may be better funded than filings indicate.

Geographically, Damascus and its surrounding countryside remain the epicenter of business registration. Of the 97 companies, 55 are based in Damascus, 21 in Rural Damascus, and the rest are spread across Aleppo (9), Daraa (7), Homs (3), Latakia (1), and Idlib (1). This distribution largely mirrors 2024 trends, when Damascus and Rural Damascus accounted for 83.1% of all new registrations. However, notable shifts are emerging: Tartous and Latakia—home to 6.4% of new companies in 2024—are now absent, while Daraa, which saw just one company registration last year, has already recorded seven in two months. While it is too early to draw firm conclusions, the decline may reflect that the security situations in Tartous and Latakia—once among the safest areas prior to 8 December 2024—are no longer conducive to business registration.

Syrian and Foreign Ownership

Preliminary data indicates that most newly established companies are owned by Syrian nationals. This likely reflects a mix of factors: unclear property rights, the impact of ongoing international sanctions on cross-border capital flows, the banking sector collapse, inflation, and the overall volatility of the early post-Assad period—conditions unfavorable to foreign investors. 

Since 8 December 2024, about 90% of newly formed companies have been fully Syrian-owned, while roughly 10% include at least one foreign shareholder. Notably, six are entirely foreign-owned, though legally Syrian entities. In comparison, foreign ownership was significantly higher in the pre-conflict period: in 2010, about 18% of companies had foreign shareholders. By contrast, fewer than 1% of companies in 2024 had foreign ownership. While foreign participation remains limited, this suggests a modest post-Assad reopening to foreign company shareholders.

If political and economic stability take hold, Syria could become more attractive to foreign capital, including from the diaspora. The only Western investors identified to date are Canadians with Arabic names—likely members of the diaspora.

Foreign participation, though still limited, is on the rise. Of the 220 shareholders across the 97 companies, 22 are foreign nationals. The most common investors are Canadians and Jordanians (five each), followed by Emiratis and Turks (three each). By comparison, only 16 foreign nationals were involved in company formations during the same period last year, including three Iranians and two Chinese nationals, according to primary data collected by Karam Shaar Advisory Ltd. This shift suggests a broader reconfiguration of influence in Syria. Turkish actors are re-entering Syria’s sphere following Assad’s downfall—particularly in former regime-held areas—after years of prior disengagement. Turkish investment is particularly noteworthy. Between 2013 and 2024, when official Syrian-Turkish relations were largely frozen, only 16 Turkish nationals participated in Syrian company registrations.

In addition to the 97 Syrian-registered firms, one foreign company—Ajel International Trade Company, a Turkish firm—has been established since the regime’s fall. The company’s bylaws cover a wide range of sectors, including food industries, engineering, contracting, logistics, tourism, consultancy, fuel stations, import-export, and tenders under Syrian law. Registered with a capital of TRY 20 million (~USD 520,000), Ajel International’s capitalization is equivalent in dollar terms to the combined declared capital of all 97 Syrian companies. This marks the first Turkish firm to open a branch in a formerly-held Assad regime area since 2011. Ajel International is headquartered in Fatih, Istanbul’s Syrian diaspora hub, suggesting potential diaspora ties. The company’s Syrian branch is managed by a Syrian director, with a Saudi national serving as vice-manager, according to the Official Gazette viewed by Karam Shaar Advisory. Between 2020 and 2024, only 28 foreign companies were registered in Syria, including ten Russian, three Iranian, and three Emirati firms. This contrasts sharply with the pre-uprising period (2006–2010), when 133 foreign companies were established. While foreign participation is crucial for the country’s recovery, early signs show promise but remain insufficient to significantly impact economic activity.