Low No. 7 Promulgates Investment Law No. (10) new

Investment Law No. 10 of 1991

Issued on 4 May 1991
By President Hafez Al-Assad

Out of the desire to direct the surplus of funds towards development and production, and within the framework of making use of all potentials available to the private and joint sectors and encouraging them to build up the economic and development foundation of the country, and in harmony with the attitudes adopted by many countries in the world to create a convenient investment atmosphere that helps attract local and foreign capitals and invest them in channels of production that are bound to yield good and prosperity to the country, the Unified Law of Investment was issued.

It aims at encouraging syrian/" class="auto-internal-link">syrian Arab citizens, both residents and expatriates, and Arab and foreign nationals to invest their funds in development projects in the country, thus contributing to push ahead the economic development march of the country.

Following is the full text of Law No. 10 of 4 May 1991, issued in this regard.

Law No. 10 of 1991

President of the Republic

Recalling the rules of the Constitution and approval by the People’s Assembly in its session held on 25 April 1991, issues:

Article 1 – Scope of Application

This law bears effects on the money invested by Syrian Arab citizens, both residents and expatriates, and citizens of Arab and foreign countries, in investment projects within the framework of the State general socio-economic development plans and the general policy of the State.

Article 2 – Definitions

For the purposes of this Law:

• Council = Higher Council of Investment
• Council Chairman = Chairman of the Higher Council of Investment
• Bureau = Bureau of Investment
• Project = A project undertaken by a natural or legal person with local or foreign capital, or both, and governed by the rules of this Law
• Investor = Natural or legal person who obtains a license to set up a project in accordance with this Law
• Authority in charge = Public authority concerned
• Foreign fund = Fund primarily supplied from abroad by Syrian, Arab or foreign citizens

Chapter I – Fields of Investment

Article 3 – Eligible Fields

Rules of this Law shall apply to economic and social development projects approved by the Council in the following fields:

a) Agricultural projects, both vegetation and livestock, including various agricultural-products manufacturing projects
b) Industrial projects allowed to both private and joint sectors
c) Transport projects
d) Projects approved by the Council to be governed by this Law

Article 4 – Approval Criteria

When approving projects, the following points shall be taken into consideration:

a) Consistency with the aims of the State development plans
b) Use, as much as possible, of local resources available to the national economy
c) Contribution to increasing the gross national product and employment opportunities
d) Increase of exports and rationalization of imports
e) Use of up-to-date machinery and technologies suitable for national-economy needs
f) The stable assets invested in the project—including machinery, tools, equipment, apparatus, means of transport (non-tourist) and all other production means definitively imported for exclusive project use—shall not be less than ten million Syrian pounds.
 This amount may be modified by decision of the Council of Ministers.

Chapter II – The Higher Council of Investment

Article 5 – Establishment of the Council

(a) A Higher Council of Investment shall be founded, comprising:

• The Prime Minister as Chairman
• The Deputy Prime Minister for Economic Affairs as Vice-Chairman
• The Deputy Prime Minister for Services Affairs
• The Minister of Agriculture and Agrarian Reform
• The Minister of Transport
• The Minister of Supply and Internal Trade
• The Minister of Economy and Foreign Trade
• The Minister of Industry
• The Minister of State for Planning Affairs
• The Minister of Finance

All as members, together with the Director of Investment Bureau as a deciding member.

(b) The Chairman may invite experts or other concerned persons to the Council’s meetings; such invitees shall have no voting rights.

Article 6 – Powers of the Council

The Council shall have the following powers:

a) To approve natural and legal persons to initiate development projects governed by this Law; the competent authority shall subsequently issue the relevant licenses.
b) To specify the State’s contribution to the capital of joint-stock companies.
c) To issue licenses for setting up joint-stock, share-holding, and limited-liability companies governed by paragraph (a) of this article, by decision of the Prime Minister.
d) To entrust concerned authorities with preparing preliminary economic-feasibility studies for development projects falling within the fields specified by this Law.
e) To adopt the assessment of foreign funds prepared by the competent authority.

Article 7 – Meetings of the Council

The Council shall convene at the call of its Chairman at least once every two months and whenever necessary.

Article 8 – Investment Bureau

By decision of the Prime Minister, an Investment Bureau affiliated with the Deputy Prime Minister for Economic Affairs shall be set up.
Its duties:

• Prepare and refer to the Council the projects submitted by the concerned authorities.
• Follow up implementation of Council decisions.
• Receive investor complaints and work to settle them.
• Perform any other tasks entrusted by the Council.

Article 9 – Confidentiality of Information

All statements and data offered by investors on their projects shall be confidential and not for publication or circulation.