Passes a new leasing law
22 Oct 2010
The Government of Syria has taken new steps in its programme of modernising financial services through the passage of a law covering the establishment of leasing companies. The President signed law No. 88 on 2 October, which specifies minimum capital requirements of S£500m (US $10.8 million) for conventional leasing companies and S£750m for Islamic ijara leasing firms. In both cases, non-Syrians may not own more than 60 percent of the equity.
The law also allows foreign leasing companies or ijara firms to set up wholly owned branches in Syria, subject to their obtaining a licence from the Central Bank of Syria. The activities of leasing firms will be supervised by the central bank in all sectors other than real estate, which is regulated by the recently established Mortgage Finance Supervisory Authority. Leasing firms will have the discretion to raise finance through borrowing from local or foreign banks or through issuing bonds or sukuk (Islamic fixed-income securities). The introduction of leasing is expected to benefit the construction and goods distribution sectors in particular, as it will give local contractors and trading companies a wider range of options for managing their costs through leasing equipment and vehicles."
Type:
-
Entry and establishment (Ownership and control)
Industry:
-
Services (Financial and insurance activities)
Inward FDI:
No
Outward FDI:
No
Sources:
