Syria Expects Over $1 Billion in Foreign Investments to Establish New Banks
Governor of the Central Bank of Syria anticipates an influx of foreign investments to establish new banks, backed by legal guarantees.
Translated by Qiyas from الجريدة — Original source
Mohammed Safwat Rusal, Governor of the Central Bank of Syria, predicted that foreign capital inflows for establishing new banks in Syria would exceed $1 billion in the near future. This projection is part of a package of objectives set by the central bank to encourage investment in the country, protect customer rights, and open secure remittance channels through official channels.
Rusal stated on Sunday that regarding admission and licensing criteria, there are existing standards and executive instructions governing the licensing of both Islamic and conventional banks. The most important of these criteria include the applicants’ experience, reputation, and the financial solvency of the founders, as well as the requirement for a strategic banking partner to hold a stake of no less than 10% in the newly established bank.
He added that the timeframe for granting licenses generally depends on applicants providing the central bank with the required documents and meeting the stipulated conditions. He emphasized that the bank attaches great importance to this matter and is working diligently to ensure that the initial license issuance period does not exceed three to four months from the moment all requirements are received, according to the Syrian Arab News Agency (SANA).
Rusal affirmed that there are no financial risks, as the law allows foreign investors to retain 60% of the paid-up capital in foreign currency. He also noted that profits and their repatriation are safeguarded, pointing out that all restrictions on buying, selling, or transferring foreign currencies have been lifted. Consequently, there are no financial risks for investors in this regard.
Regarding regulatory risks, Rusal clarified that the Central Bank of Syria issues its regulatory and supervisory decisions in accordance with international standards concerning both risks and accounting. Therefore, investors will not find any difference between what is applied in their home countries and what is applied in Syria.
On the resumption of money transfer services via MoneyGram between Jordanian and Syrian banks, the Central Bank Governor stated that the service was suspended briefly for settlement reasons and has since been resolved in cooperation with one of the Jordanian banks. He also noted that several Jordanian banks have expressed interest in investing in Syria.
Regarding the mechanism for delivering remittances and the exchange rate, Rusal revealed the central bank’s intention to require financial institutions providing international transfer services to deliver remittances to beneficiaries exclusively in foreign currency. This measure is taken because many beneficiaries prefer not to convert the funds immediately, aligning with the bank’s efforts to protect customer rights and maximize their benefits.
Rusal explained that the central bank is working to allow and encourage all international transfer service providers to enter the market through Syrian financial institutions, thereby opening secure remittance channels for Syrians and foreigners while protecting their rights and interests.
