Allows establishment of investment banks
25 Jul 2010
On 25 July 2010, the Government issued Law No. 56/2010 allowing the establishment of investment banks in Syria for the first time. The Government has set a relatively high minimum capital requirement of S£20bn (approx. US $426 million), to be paid in full before a bank can start operating. The law does not directly specify the level of foreign ownership allowed, but it does state that a foreign bank's equity stake in a financial institution is normally 25 percent, although this can be raised to 49 percent, and even up to 60 percent, subject to the approval of the Cabinet.
The list of activities that the investment banks will be authorised to conduct include among others: financial, administrative, legal and economic advisory services to both public-sector and private-sector clients; consultancy for developing banking services; mergers and acquisitions advice; project finance, including build-operate-transfer (BOT) schemes and public-private partnerships; trading in securities; investing up to 15 percent of paid-up capital in other companies or funds; opening investment accounts for pension funds."
Type:
-
Entry and establishment (Ownership and control)
Industry:
-
Services (Financial and insurance activities)
Inward FDI:
No
Outward FDI:
No
Sources:
