Technology Transfer & Industrial Capacity Building

The digital sector in Syria represents fertile ground for joint investments with China, especially in developing free zones and smart industrial cities, supporting startups, e-commerce, fintech and digital currencies. Syria has young and creative human resources, political will for digital transformation, a stimulating legislative environment under the new investment law, and effective institutional frameworks such as the Syrian-Chinese Business Council and developed free zones.

First: Key Investment Opportunity Areas

1

Smart Free Zone Development

A strategic agreement was signed with Chinese company Fidi Contracting to invest in free zones covering over one million square meters, distributed between Hassia Free Zone (850,000 sqm for an integrated industrial zone) and Adra Free Zone (300,000 sqm for commercial and service projects), with a 20-year contract period.

These projects represent a qualitative shift in the concept of free zones, transforming them into integrated digital platforms relying on the latest ICT technologies for operations management, goods tracking and trade facilitation. These zones can play a pivotal role in attracting additional technology investments, providing a suitable environment for startups, and creating jobs for young Syrian talent.

2

Smart Industrial Cities

The Syrian-Chinese Business Council signed an MoU with Sujoland Group, specialized in smart industrial city management with 20 years of experience cooperating with Germany. The MoU includes:

Twinning programs between Syrian and Chinese industrial cities.

Implementing projects for planning and operating industrial cities using latest technologies.

Exchanging delegations between industrialists and investors to strengthen productive partnerships.

Transferring industrial digital transformation services, especially in using AI and IoT to improve production efficiency and resource management.

This MoU represents a golden opportunity to benefit from leading international experiences in industrial city management, and twinning programs can contribute to transferring practical knowledge and building sustainable relationships between Syrian and Chinese companies.

3

Supporting Startups and Tech Innovation

There are over 200 active startups in Syria and more than 300 community initiatives supporting entrepreneurship activities.

The Syria HiTech exhibition in Damascus showcased promising Syrian startup models, most notably:

Robot Fathi: An electronic educational platform enabling children and youth to learn programming, robotics and AI skills. The company launched the annual Robot League where participants presented prototypes for distinguished projects like the plant care robot.

Platform Plus: An innovative crowdfunding platform supporting athletic entrepreneurs through a revolving fund model, with specialized consulting sessions in law, marketing and management.

These models demonstrate Syrian youth's ability to innovate in advanced technology fields, and what these companies need is a supportive environment and smart international partnerships.

4

Sharing Economy Model

Syrian experts propose the sharing economy model as a practical alternative to traditional investments. This model is based on:

Leveraging resources available to individuals rather than building complex infrastructure.

Developing smart technology platforms (mobile apps) at low cost.

Enabling individuals to offer their services through the platform and share profits.

This model opens wide horizons for cooperation with Chinese technology companies specialized in developing smart platforms and applications, especially in logistics services. The sharing economy is characterized by its flexibility and ability to adapt to different conditions, and it does not require massive capital investments.

5

Cross-Border E-commerce

Chinese investments in free zones represent an important opportunity to develop infrastructure needed for e-commerce, especially with plans to transform Syria into a regional transport and logistics hub. These zones can host:

Regional e-commerce distribution centers.

Smart warehouses equipped with modern storage and tracking systems.

Packaging facilities for export products.

Syrian experts advise startups to pursue export-oriented e-commerce projects, leveraging the competitive strength of Syrian products.

Partnership with China can facilitate Syrian products reaching Asian markets through giant Chinese e-commerce platforms, especially with Arab communities in China that can form an important commercial bridge.

6

Fintech and Digital Currencies

Syria doesn't need to build a digital system from scratch, but can leverage the Chinese network covering 200 countries, through a "start where others left off" model instead of repeating their experiences. Experts propose the Syrian Central Bank adopt a strategy of:

Strengthening partnership with China as a bridge to integrate into the global digital financial system.

Developing a hybrid digital currency model (hybrid digital lira) instead of building a complete digital currency from scratch.

Second: Cooperation Mechanisms and Partnership Models

The possible forms of partnership between both sides in the digital sector are diverse:

Joint ventures: Establishing companies combining Syrian local market knowledge with Chinese technologies.

Technology transfer and capacity building: Designing training and qualification programs for Syrian personnel alongside investment projects, ensuring genuine knowledge transfer.

Partnership with local startups: Creating cooperation programs with Syrian tech startups, leveraging their local market knowledge and experience in adapting to different conditions.

Industrial city twinning: Transferring smart city management expertise through mutual visits and training programs.

Third: Favorable Investment Environment

The new Syrian Investment Law 2025 offers important advantages and incentives including:

Tax exemptions for investment projects.

Allowing recruitment of non-Syrian personnel to facilitate expertise transfer.

Simplified administrative procedures and licensing through unified windows.

The developed free zones in cooperation with Chinese companies (in Adra and Hassia) also provide additional incentives, advanced infrastructure, and simplified procedures, making them an ideal environment for digital investments.

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