Damascus, Sept. 4 (SANA) The Small and Medium Enterprises Development Authority, under the Ministry of Economy and Industry, is working to reshape the local business environment by moving beyond traditional service roles toward building an integrated economic system that ensures the sustainability of entrepreneurial initiatives and turns them into productive engines.
SMEs make up more than 80% of Syria’s economic structure, giving them strategic importance as the most impactful and dynamic sector, Director Ihab Zakour told SANA on the sidelines of the Damascus International Fair. He noted that the sector’s short production cycle—sometimes less than a week—means targeted support delivers quick results, unlike large-scale industries that require longer timeframes.
A new business philosophy
Zakour said the authority is fundamentally changing its philosophy to become a comprehensive business ecosystem that guides a project from inception to maturity, with entrepreneurs able to join at any stage.
The process includes: idea incubation with specialized training; business skill development and model refinement; economic feasibility studies; legal structuring; a temporary three-year license through the “Takrim” platform; financing support through banks or organizations; and marketing assistance through the “Souq al-Khair” platform.
Financing models
Financing is divided into two main categories according to Zakour:
Capital financing — For new projects or expansion of existing ones, available through a unified application under the Central Bank of Syria with around 24 partner banks, divided into three tracks:
- Development financing cloud — Managed by local and international organizations, providing zero-cost financing with only nominal fees for follow-up and collection, implemented through partner banks.
- Investment financing cloud — Banks are the primary partner, offering reduced financing costs of 11% to 13%, compared to 17% to 18% market rates.
- Participatory financing cloud — For high-risk projects that banks may avoid, such as agriculture, where investors, donors and chambers of commerce act as true partners in the project rather than lenders.
Working capital financing — Managed through the “Sham al-Khair” platform for goods, services and cash, providing short-term, renewable financing that expands or contracts automatically based on investor commitment and project development, protecting funders’ capital while expanding the beneficiary base.
Partnership with international organizations
On cooperation with international partners, Zakour confirmed broad collaboration in training, financing and guarantees with UN and international organizations including UNDP, UNIDO, the ILO and the Islamic Development Bank, alongside more than 50 to 60 local organizations.
The full launch of the development track is expected to be completed by March 2027, following pilot operations and preparatory openings to avoid implementation issues.
Future vision
“The future ambition of the authority is ‘Building a Constructive Society,'” Zakour said, aiming for citizens to create exportable added value. He stressed that true success is measured by a project’s progression from micro to small to medium to large, with the ability to export, generate good income, create jobs and establish a new productive culture in society.
The 63rd Damascus International Fair concludes Friday at the Damascus Fairgrounds, having drawn large crowds and wide local, Arab and international participation, alongside seminars and panel discussions on economic, cultural and educational topics.
The SME sector is seen as a key driver of Syria’s post-war recovery, with international partners viewing it as a strategic entry point for supporting economic stabilization and job creation.
Kh.A / H.H
