The Governorate Roundabout in downtown Damascus, a city looking toward economic renewal and institutional reform.The convening of Syria’s first parliament following the victory of the revolution is a landmark event unmatched by any legislative milestone since the French withdrawal in April 1946 and the election of the country’s first post-independence parliament in 1947 consisting of 131 members and presided over by Faris al-Khoury. That parliamentary experience, however, was short-lived as it was interrupted by Husni al-Za’im’s military coup in August 1949.
Today, Syria has a historic opportunity as it builds its Third Republic and opens a new chapter in its history. This moment offers the chance to reform the economic legislation that has undermined Syrians’ livelihoods and crippled the country’s economy for generations. The first package of legislative-economic reforms should therefore focus on amending and enacting laws that facilitate economic activity, elevating Syria to the standards of emerging economies, and addressing the legislative deficiencies that have burdened Syrians for decades.
The foremost priority should be a comprehensive revision of Labor Law No. 17 of 2010. Rather than adhering to the philosophy of “protecting the job,” the new law should focus on protecting the worker while encouraging job creation. Its new framework should rest on five guiding principles: flexibility, worker protection, competitiveness, digitalization, and investment attraction, recognizing that investment is the primary engine of employment.
“The goal is no longer to protect jobs; it is to protect workers while creating more opportunities.”
Dr. Osama Kadi
This reform will require no fewer than thirty amendments. Among the most important are modernizing employment contracts by recognizing new forms of work, including remote work, hybrid work, freelance employment, platform-based work, seasonal employment, part-time work, job-sharing, flexible working hours, and electronic employment contracts. The law should also grant full legal recognition to electronic signatures authenticated through digital identity systems or other certified electronic signature methods, making digitally signed contracts fully enforceable.
Bureaucratic procedures should be significantly reduced by eliminating the requirement for labor directorate approval for many routine administrative matters and replacing prior authorization with electronic registration and notification wherever appropriate. Employment termination rules should become more flexible by replacing vague compensation formulas with a transparent system based on length of service, advance notice, and clearly defined severance compensation, while protecting employees against arbitrary dismissal through judicial review or arbitration.
The probationary period should be extended from three to six months for specialized technical and managerial positions. In addition, companies engaged with foreign firms should be permitted to pay salaries in foreign currencies.
The Labor Law should also introduce modern incentive systems that link compensation to productivity, profitability, performance, and equity participation. Employee stock ownership plans should be made available, particularly for start-ups. The law should regulate remote work and the growing platform economy, including ride-hailing drivers, delivery service providers, and independent contractors.
Additional reforms should include stronger protection of corporate confidentiality, intellectual property, and reasonable non-compete agreements; the establishment of specialized labor courts capable of resolving disputes within a maximum of ninety days; and the digitalization of the labor market through a national platform integrating employment contracts, social insurance, payroll, work permits, and termination procedures.
The revised Labor Law should also regulate foreign labor, especially as Syria prepares for a significant influx of international companies, which under Investment Law No. 114 are permitted to employ up to 40 percent non-Syrian workers. The minimum wage should be redefined and linked to inflation, productivity, and the cost of living.
Furthermore, mandatory vocational training should be institutionalized by requiring companies to allocate a percentage of payroll expenditures to employee training and professional development. Youth employment should be encouraged through tax incentives for companies hiring recent graduates, while promoting employment opportunities for persons with disabilities. The law should strengthen equal opportunity and anti-discrimination protections, integrate social insurance registration directly with electronic employment contracts, facilitate labor mobility, simplify labor inspections and apprenticeship agreements, introduce more flexible leave policies—including maternity leave, emergency leave, and family-friendly work arrangements—and enhance occupational health and safety standards, data protection, and the regulation of Syrians working remotely for foreign employers. Finally, the scope of the Labor Law and its exempted categories should be reviewed to ensure compliance with the standards of the International Labour Organization (ILO).
If Syria aspires to become a major regional financial center capable of attracting Arab and international banks, Parliament must fundamentally reform the country’s banking legislation, including Private Banking Law No. 28 of 2001, Central Bank of Syria Law No. 23 of 2002, and Legislative Decree No. 34 of 2005.
A modern banking law should begin by liberalizing the banking sector. Rather than relying on licensing procedures subject to multiple executive decisions, licenses should be granted according to transparent and objective criteria established by the Central Bank, with applications decided within a maximum period of ninety days. The law should permit 100 percent foreign ownership of banks, allow global financial institutions to establish branches directly in Syria, actively encourage their entry to improve the country’s underdeveloped banking services, and facilitate mergers and acquisitions within the banking sector.
“A competitive banking sector is built on openness, transparency, and global integration.”
Dr. Osama Kadi
The legislation should also authorize fully digital banks operating without traditional branch networks, permit investment banks and specialized financial institutions, and modernize banking secrecy rules to strike an appropriate balance between protecting customer privacy, combating money laundering and corruption, and facilitating international judicial cooperation.
A key feature of the new banking framework should be the explicit adoption of Basel III and Basel IV standards, requiring compliance with internationally recognized capital adequacy, liquidity, stress testing, and risk management requirements. Anti-money laundering legislation should also be aligned with the recommendations of the Financial Action Task Force (FATF) while ensuring that compliance obligations remain efficient and do not impose unnecessary burdens on legitimate businesses. Disclosure requirements should be modernized, alongside electronic banking services, digital identity verification, online account opening, electronic signatures, and mobile banking.
The law should provide comprehensive protections for foreign investors by explicitly guaranteeing the free transfer of profits and capital and recognizing international arbitration mechanisms. It should also authorize innovative financial services, regulate financial technology (FinTech), establish legal frameworks for central bank digital currencies (CBDCs), tokenized digital assets, and, if approved by the legislature, regulated crypto-assets within clearly defined legal safeguards. In addition, regulatory sandboxes should be established under Central Bank supervision to support financial technology start-ups.
“Investor confidence begins with legal certainty, financial innovation, and the free movement of capital.”
Dr. Osama Kadi
The legislation should further encourage green finance, Islamic finance, including sukuk and investment endowments (waqf), as well as green Islamic finance. It should facilitate the international expansion of Syrian banks by allowing them to establish overseas branches, subsidiaries, and representative offices. Equally important is guaranteeing the independence of the Central Bank with respect to banking supervision, monetary policy, licensing, and regulatory enforcement.
Deposit protection should be strengthened through the establishment of a Syrian Deposit Insurance Corporation. The law should also encourage consolidation, particularly among smaller banks, to enhance competitiveness, prevent excessive market concentration, and regulate cross-border banking services provided by international institutions operating in Syria.
Many Syrians aspire for their country to become the “Switzerland of the East” in banking and finance. To achieve that vision, Syria could adopt an ambitious strategic roadmap extending to 2035, with objectives such as attracting at least twenty foreign banks, offering incentives for major international financial institutions to establish regional headquarters in Syria, expanding banking sector assets to exceed $100 billion, and ensuring that 90 percent of all payments are conducted digitally, significantly reducing reliance on cash transactions.
