President al-Assad issues the new investment law.. It aims to create a competitive investment environment that attracts capital

Damascus - SANA

Today, President Bashar al-Assad issued the new investment law No. (18) for the year 2021, which aims to create a competitive investment environment to attract capital, benefit from various expertise and specializations, expand the production base, increase job opportunities, and raise economic growth rates, which will reflect positively on increasing income. country, leading to comprehensive and sustainable development.

The following is the text of the law:

Law No. (18)

The President of the Republic

Based on the provisions of the Constitution.

And based on what the People’s Assembly approved in its session held on 9-7-1442 AH corresponding to 4-19-2021.

Issues the following:

Chapter one

Tariffs

Article 1 -

The words and expressions mentioned in this law shall have the meaning indicated next to each of them:

Chapter Two

The objectives of the law

Article 2 -

This law aims to create a competitive investment environment to attract capital, benefit from various expertise and specializations, to expand the production base with the aim of increasing job opportunities and raising economic growth rates, which will reflect positively on increasing national income, leading to comprehensive and sustainable development.

Chapter Three

The scope of application of the law

Article 3 -

The provisions of this law apply to:

a- The project that the investor establishes on his own, or through joint venture companies with any of the public sector entities and has obtained an investment license, with the exception of all types of banks, exchange companies, microfinance banks and all financial institutions that accept deposits.

B- The project that takes place based on the public authorities offering their private properties to invest with the private sector and is not subject to the partnership law.

Chapter four

Investment principles and guarantees

Article 4 -

Investment in the Syrian Arab Republic is governed by the following principles:

Article 5 -

Investment guarantees:

a- It is impermissible to place precautionary attachment on the project or impose custody on it except by virtue of a judicial decision.

B- Not to expropriate the project except for the public benefit and with compensation equal to the real value of the project, according to the prevailing price on the date of expropriation. The investor is allowed to re-transfer the amount of compensation resulting from the external money that he brought in for the purpose of financing the investment, abroad, in a convertible currency.

c- The project shall not be subjected to any new procedural burdens resulting from decisions, circulars and communications issued by any public entity, not included in the applicable procedural guide on the date of submitting the application for an investment license, except for those related to the environment and public health.

d- Not subjecting the project to any new financial burdens that are not mentioned in the applicable procedural guide on the date of submitting the application for an investment license, during the incorporation phase.

E- Not to cancel the investment license except after warning the investor of the violations attributed to him in relation to the project and giving him a period of ninety days to remove the violation, starting from the day following the notification of the warning. The cancellation decision shall be justified.

Chapter Five

Institutional organization

Article 6 -

a- A council called the “Supreme Council for Investment” is established, consisting of:

b- The two experts will be named by a decision of the Prime Minister based on the Minister's proposal.

c- The council meets at the invitation of its president at least once every three months or whenever the need arises, and the meeting is legal with the presence of two-thirds of the members, and decisions are taken by an absolute majority, and when the votes are equal, the side of the president is preponderant.

D- The board sets the rules and provisions related to organizing meetings, and these are issued by a decision of its chairman.

e- The chairman of the board may invite whoever he deems appropriate to attend the meetings without having the right to vote.

Article 7 -

The Council undertakes the following duties:

A- Approving general strategies and plans related to investment, enhancing competitiveness and the business environment in the Syrian economy, in a manner consistent with national developmental directions and goals.

b- Approving the general map for investment in the Syrian Arab Republic, including development areas and sectors targeted for development, in a manner consistent with regional development plans.

C- Creation of special economic zones.

D- Studying investment-related legislation and regulations and taking the necessary actions in this regard.

e- Approving public authorities to establish joint venture companies with the private sector to implement investment projects in accordance with the provisions of this law, and approving the contributions of those bodies to the capital of these companies.

f- Approving the rental fees for private state property for the purposes of this law based on the proposal of the concerned authority.

g- Determining the minimum value of fixed assets or capital for investment projects in each special economic zone or in each sector, as necessary.

h- Determine the fee for the services provided by the Authority to investors, and the outcome of these fees.

i- Approve what is necessary to address the difficulties and obstacles facing the investment environment and investors.

j- Studying the reports on tracking the implementation of general investment plans, and approving what is necessary in this regard.

K- Follow up on the implementation of the strategies and plans approved by the Council.

l- Approval of the Commission's contracting with experts to perform specific tasks, according to controls set by the Board.

m- Discussing issues raised by the Board of Directors and approving what is necessary in this regard.

Article 8 -

A public body of an administrative nature called the “Syrian Investment Commission” is created, and it replaces the commission created by Legislative Decree No. /9/ of 2007 with its rights and obligations, and it enjoys legal personality and financial and administrative independence, and it is linked to the minister, and its headquarters is Damascus, and it may establish branches in the governorates or offices by a decision of the Board of Directors.

Article 9 -

The Authority charges fees for the services it provides to investors.

Article 10 -

The Authority undertakes the following tasks:

a- Executing the investment plans approved by the Board.

b- Studying investment-related proposals received from other entities.

c- Propose amendment of legislation necessary to develop and modernize the investment environment.

D- Preparing and updating the private investment map in coordination with the concerned authorities, and in accordance with the provisions of this law.

e- Granting the investment license, after obtaining all necessary licenses and approvals for the implementation of the project, according to the approved procedures guides.

f- Providing services to investors, studying their requests and taking the necessary actions in this regard.

g- Providing advice and providing information to investors.

H- Carrying out all promotional activities to attract investment.

I- Following up the implementation of projects that have obtained an investment license and addressing issues facing investors.

j- Issuing procedures manuals.

k- Preparing a database for investment projects.

Article 11 -

The Authority shall be managed by:

a- The Board of Directors.

B- The General Manager.

Article 12 -

a- The Board of Directors consists of:

B- The members of the Board of Directors shall be named by a decision of the Prime Minister based on the proposal of the Minister, in coordination with the concerned authorities, provided that the rank of the representatives of the public authorities shall not be lower. On behalf of a manager, and representatives of the federations on behalf of a board member.

c- The board of directors meets at the invitation of its chairman at least once every two months, or whenever the need arises, and the meeting is legal with the presence of two-thirds of the members, and decisions are taken by an absolute majority, and when the votes are equal, the side of the chairman is preponderant.

D- The Board of Directors sets the rules and provisions related to organizing meetings, and these are issued by a decision of the Chairman of the Board of Directors.

e- The Chairman of the Board of Directors shall invite whoever he deems appropriate to attend the meetings without having the right to vote.

f- The Chairman of the Board of Directors shall nominate a secretary from among the Authority's employees based on the proposal of the Director General.

G- The remuneration of the members of the Board of Directors and the Secretary shall be determined by a decision of the Prime Minister based on the proposal of the Minister.

Article 13 -

In addition to what is stated in this law, the Board of Directors undertakes the following tasks:

A- Studying investment proposals and approving what is necessary in this regard.

B- Submitting proposals for developing the legislative environment for investment to the Council.

c- Taking decisions to deal with cases related to investors' problems.

D- Proposing the creation of special economic zones after coordination with the concerned authorities.

e- Studying and approving the procedures manuals.

f- Studying and updating project licensing mechanisms in coordination with the concerned authorities.

g- Cancellation of exemptions, privileges or facilities granted to the project in accordance with the provisions of this law.

H- Approving the investor to re-transfer the external money that was entered to finance the project in accordance with the provisions of this law.

i- Approval of the regulations related to the Authority's work in accordance with the laws and regulations in force.

j- Approval of the Commission's work plans and programmes.

K- Approving the establishment of branches or representative offices for the Authority.

l- Examining the reports submitted by the Commission, and approving what is necessary in this regard.

M- Approval of the Commission's annual budget, its annual closing accounts, and its annual report.

n- Accepting grants, gifts and donations in accordance with the laws and regulations in force.

Q- Propose fees for the services provided by the Authority.

P- Suggesting the Authority's incentives system.

Article 14 -

The general manager shall be appointed by a decree, in which his wages and compensations shall be determined, based on the proposal of the minister, and he shall be responsible before the board of directors and represent the authority before the judiciary and third parties, and he shall be the contracting party for the maintenance and order the liquidation and disbursement of the authority.

Article 15 -

The General Manager shall undertake the following tasks:

a- Manage the Commission's business and supervise its affairs.

B- Supervising the proper implementation of the decisions issued by the Board and the Board of Directors.

c- Preparing the Authority's work plans and programs and its annual budget and submitting them to the Board of Directors.

D- Granting bonuses and imposing penalties on the Authority's employees in accordance with the laws and regulations in force.

E- Contracting with experts when needed based on the approval of the Council.

f- Exercising the right of appointment, promotion, transfer and delegation within the limits of the laws and regulations in force.

G- Any other tasks assigned to him by the Minister or the Board of Directors.

Chapter Six

Investors Services Center and Licensing Mechanism

Article 16 -

In each of the Authority and its branches and in the development and specialized areas, a center called the “Investors Services Center” shall be created. It includes representatives of all public agencies concerned with investment, and it works as a single window for investment. .

Article 17 -

In addition to the tasks specified in the bylaws, the “Investor Services Center” undertakes the following tasks:

a- Receiving and studying investor requests to obtain an investment license.

B- Obtaining all necessary licenses and approvals to start the project in coordination with all concerned authorities in accordance with the procedures manual for each investment sector.

C- Granting an investment license, so that this license is a permission to start implementing the investment project in accordance with the provisions of this law. The body of the license specifies all rights, obligations and benefits related to investment.

D- Provide technical support, advice, data and information necessary for the investor throughout the life of the project.

e- Registering companies and issuing records with the concerned authorities.

Article 18 -

Public authorities are committed to the deadlines specified in the Procedures Manual, provided that the deadline for deciding whether to grant an investment license, including all licenses and approvals, shall not exceed a period of thirty days starting from the day following the completion of the applicant’s submission of the papers specified in the Procedures Manual, and the payment of the financial costs incurred therefrom.

Article 19 -

Chapter Seven

Investment incentives and advantages

Article 20 -

Customs incentives:

a- Imports of machinery, equipment, production lines, and non-tourist service means of transport for projects that obtain an investment license are exempted from all customs and financial fees and non-custom additions, provided that they are used exclusively for the purposes of the project, and the investor must pay all these obligations in the event that they are used for purposes other than the purposes of the project or Assigning it to a third party before the end of its useful life specified in accordance with international accounting standards.

b- Imports of building materials, tools, equipment, machinery, non-tourist service means of transport, and furniture necessary for the establishment, preparation, furnishing, and operation of tourist complexes, hotels, and tourist overnight establishments of the international level, of the first and second class, restaurants, entertainment facilities, and tourism services in which they are invested, with the exception of commercial shops, are exempted. From all customs and financial duties and non-tariff additions, provided that the value of imports does not exceed:

Article 21 -

tax incentives:

Article 22 -

Non-tax incentives:

Article 23 -

The council has the right to allocate lands for investors to implement projects on, provided that the council issues a regulation that includes the principles for using real estate owned by the state for the purpose of investing in it according to the provisions of this law.

Article 24 -

In the event that the investor violates the provisions of this law, or changes the objective, scope of work and outputs of the project without the prior approval of the Authority, the incentives granted to the project shall be canceled by a decision justifying the project and the investor shall be required to pay all the financial burdens from which he was exempted or deducted in the same year in which the violation was committed. Unless he has force majeure circumstances accepted by the Board of Directors.

Chapter Eight

Special Economic Zones

Article 25 -

Article 26 -

Chapter Nine

Investor rights

Article 27 -

The investor has the right to own and lease the lands and real estate necessary to establish or expand the project within the limits of the project's need after obtaining the approval of the Council in the event that the ownership ceiling is exceeded.

Article 28 -

The investor has the right to:

Article 29 -

The investor has the right, in the event that the investment license is not issued within the deadlines specified in the procedures guide, or in the event that the project is not implemented for reasons beyond his control, to re-transfer the external money that was entered to finance the project through banks operating in the Syrian Arab Republic.

Article 30 -

The investor has the right throughout the project period:

Article 31 -

The investor has the right to enter the supplies and equipment necessary for the installation and testing of the fixed assets of the project, which are not considered part of it as a temporary entry during the project establishment period.

Chapter Ten

Obligations of the investor

Article 32 -

The investor is committed to the following:

Chapter Eleven

dispute resolution

Article 33 -

The investment disputes arising from the application of the provisions of this law shall be settled according to the following methods:

Article 34 -

In internal arbitration:

Article 35 -

External arbitration:

Article 36 -

The cases before the courts regarding investment disputes according to the provisions of Law No. /10/ of 1991, Legislative Decree No. /8/ of 2007, and Legislative Decree No. /9/ of 2007 remain within the jurisdiction of those courts.

Chapter twelve

General provisions

Article 37 -

Article 38 -

The following provisions apply when the project is canceled or liquidated:

Article 39 -

In the event that the ownership of the project is transferred to a third party, in whole or in part, the new investor shall replace the previous investor in terms of the rights and obligations arising from him in accordance with the provisions of this law.

Article 40 -

Article 41 -

Non-Syrian workers, experts and technicians have the right to transfer fifty percent of their wages and monthly compensation, in addition to the full end-of-service compensation abroad, through a bank operating in the Syrian Arab Republic.

Article 42 -

With due regard to what was stated in Article (30/ of this law), the provisions of the labor law in force and its executive instructions shall be applied with regard to the procedures for recruiting and employing non-Syrian experts, technicians and workers, granting them licenses, and collecting allowances and cash guarantees.

Article 43 -

Without prejudice to the provisions of this law, trade, corporate, competition and anti-monopoly laws apply to the project.

Article 44 - In applying this law, the provisions of bilateral and multilateral international agreements related to investment and guaranteeing investment, which are in force in the Syrian Arab Republic and signed with other countries or with Arab and international organizations, shall be observed.

Article 45 -

All the permanent employees of the authority created by Legislative Decree No. (9) of 2007 are de jure transferred with their vacancies to the authority on the date this law goes into effect, with the same conditions, categories, and wages, and they retain their job progress that is eligible for promotion, and the delegated, temporary, contracted, seasonal, and casual workers continue with their current statuses in accordance with the laws and regulations in force .

Article 46 -

The Authority's employees are subject to the provisions of the Basic Law for State Workers and its amendments.

Article 47 -

The Authority shall have a special incentive system issued by a decision of the Council of Ministers in coordination with the Minister of Finance, based on the proposal of the Board of Directors.

Article 48 -

The Authority shall issue detailed procedures manuals, in coordination with the concerned public authorities, within a period of six months from the date of entry into force of this law.

Article 49 -

The executive instructions for the provisions of this law shall be issued by a decision of the Council.

Article 50 -

Subject to the provisions of Paragraph (a) of Article (40) of this law:

Article 51 -

This law shall be published in the Official Gazette.

Damascus on 10-7-1442 AH corresponding to 5-19-2021 AD

The President of the Republic

Bashar al-Assad