Two fundamental principles must be considered when addressing the rapidly evolving developments in the Syrian investment environment in general, and in the regulations governing Special Economic Zones in particular, given the anticipated effects that are expected to transcend national borders and extend their impact to the regional investment environment in the foreseeable future.
The first of these fundamental principles is that the investment environment of any country does not develop in isolation from the international context. Rather, it is affected, to varying degrees, by the balance of international interests and by the choices of influential actors within the global economic system. By its very nature, investment interacts with international political dynamics, whether they are visibly influenced by Eastern or Western orientations. It is also shaped by global economic conditions and by the unique characteristics of each society, including its social and cultural structures, the level of institutional stability, and the ability to provide a reliable legal and regulatory environment. Therefore, the development of an investment environment must be understood not only in light of legislative provisions, but also within the broader framework of interactions governing the movement of capital and investment at the international level.
The second fundamental principle is that the economic transformations experienced by states – whether arising from domestic initiatives or occurring within the context of external interactions – inevitably reflect the influence of international power dynamics and often embody an intersection between internal development considerations and the requirements of integration into the global economic system. In this regard, economic reforms may be introduced within national government policy programs as essential tools to stimulate investment and foster growth; however, such reforms ultimately remain contingent upon their ability to strike a balance between the imperatives of national development on the one hand, and the pressures and challenges posed by the international economic environment on the other.
Building upon these two fundamental principles, and in light of the prevailing “excessive absurdity” in both thought and practice, as well as considering the economic, geographic, and historical ties – resistant to distortion – that bind Syria and Lebanon, regardless of the extent of “international political temptations,” the importance of monitoring the transformations occurring within the legal framework governing investment in Syria becomes evident. This is especially true with respect to the system of Special Economic Zones, established under Law No. 18 of 2021 and subsequent legislation, most notably Decree No. 114 dated June 24, 2025, and Resolution No. 1 issued by the Supreme Council for Economic Development on November 4, 2025.
A preliminary review of these provisions reveals that the Syrian legislator is moving toward adopting the model of Special Economic Zones as an institutional tool aimed at reorganizing the investment environment, providing more flexible legal and regulatory frameworks, and thereby attracting investments, stimulating economic activity, and creating more favorable conditions for growth and production. This approach is intended to facilitate a systematic transition toward a “calm” shore of the desired societal welfare. Such orientation reflects an increasing awareness of the potential role these zones can play in enhancing the national economy’s competitiveness and opening new horizons for regional economic integration.
Within this context, developments in the Syrian investment landscape acquire particular significance for the Lebanese investment environment, given the existing economic interdependence between the two countries and the potential direct and indirect effects that renewed investment activity in Syria may exert on trade and investment flows throughout the region. Accordingly, the importance of studying the legal framework governing Syrian Special Economic Zones is not limited to its national dimension; rather, its extends to the regional sphere, including the opportunities such zones may offer and the challenges they may pose for economic actors in neighboring countries.
Accordingly, in Parts (Two) and (Three) of this study, we seek to highlight the most significant legal and regulatory provisions governing the Special Economic Zones in Syria and to analyze their objectives and operational mechanisms. This serves as a foundation for drawing conclusions regarding the potential implications and effects these zones may have on the regional investment environment – particularly on the Lebanese investment environment, which remains steadfast amid international anticipation – in light of the requirements of economic integration and the necessities of joint development.