Qatar’s Estithmar Holding to acquire 49% of Syria’s Shahba bank

Syria’s banking sector just landed its first post-war foreign investment: Qatar-listed Estithmar Holding has secured a foothold in Syria’s banking sector after signing an agreement to acquire 49% of Syria’s Shahba Bank. The deal will see Estithmar Holding unit Masaref buy Shahba Bank equity held by two other Syria-based players: Bemo Saudi Fransi Bank and Ahli Trust Bank. Estithmar Holding is led by Syrian-Qatari investors Moutaz Al Khayyat (chairman) and Ramez Al Khayyat (vice chairman).

Why it matters: “The significance lies in the signal: The market is open enough for Gulf capital to move from MoUs to equity. And this could inspire more confidence in the banking sector more broadly, and perhaps more specifically among Qatari investors, who may see this as a credible entry point and a familiar channel for deploying capital,” Benjamin Fève, senior researcher at Karam Shaar Advisory, tells EnterpriseAM.

The Syrian government has been ramping up efforts to de-risk its banking sector and has enlisted Oliver Wyman and the World Bank to conduct assessments and provide advice on needed reforms in the Central Bank of Syria and the wider financial sector.

About Shahba Bank: The bank’s origins trace back to Lebanon when Byblos Bank founded it as a Syria branch in 2005. Syrian investors took over the bank afterward, but it is among a number of Syrian institutions with a similar origin story and exposure to the crumbling Lebanese financial system. Syrian banks had some USD 4.9 bn in deposits as of 2024, out of which USD 1.6 are Lebanon-exposed, Asharq Al Awsat reported last year.

The pattern

The profile of interested investors is in line with an overall trend we’re seeing across other post-war markets: First movers tend to be players that are able to take on and mitigate the associated risks. They’re usually state-backed players — whether openly state-owned or big private ones with the right connections — from nations that have a clear political stake in post-conflict markets. In Syria, that means a lot of Turkish, Qatari, UAE, and Saudi interest. And in Libya, we’ve seen Egyptian and Turkish outfits (and to a lesser extent, Italian and Greek companies) make the first moves.

Case in point: Saudi Arabia launched the Elaf Investment Fund earlier this year to lead on investments in Syria, earmarking SAR 7.5 bn for airport projects. Saudi telecom major STC said it would invest SAR 3 bn to develop Syria’s fiber-optic backbone, data centers, subsea links, and internet connectivity under the Silk Link project. Meanwhile, Qatar’s UCC Holding is co-investing USD 4 bn alongside Turkish construction companies in the rehabilitation of the Damascus Airport, and Turkish players are going all in on zones and rail projects. The UAE also made moves on the Syrian market in 2025, securing a foothold in Syrian ports, cement manufacturing, and aviation.

What’s next

Will others follow? Turkish players — like state-owned Ziraat Bank and private lender Aktifbank — are also circling Syria and are reportedly in advanced talks with the regulator there to open shop as early as this year. Meanwhile, Etisthmar Holding was also tied to the Syrian International Islamic Bank, with reports suggesting a 30% equity uptake could be in the works.

There are two pathways for foreign players wishing to enter the Syrian banking sector — buy stakes in existing banks or partner up with a local player to launch something new. Foreign ownership of Syrian banks is capped at 49% under the rules today, but that could go up to 60% for investors designated by the government as “strategic partners,” Fève tells us.