Qatar-based Estithmar Holding is preparing to acquire a controlling interest in Syria’s Shahba Bank and a 30% stake in Syrian International Islamic Bank (SIIB), reported Reuters.  

These deals would represent the first foreign investment in Syria’s banking sector since the regime change that ousted Bashar al-Assad. 

The potential acquisitions come after the US lifted sanctions on Syria last year. 

The Syrian central bank has been seeking ways to recapitalise banks following over a decade of conflict and restrictive measures from Western governments. 

Estithmar, which operates under the Doha-based Power International Holding conglomerate led by the Syrian-Qatari brothers Moutaz and Ramez Al-Khayat, will secure a controlling 60% stake in Shahba Bank.  

The stake will be acquired through the purchase of shares owned by Banque Bemo Saudi Fransi and Ahli Trust Bank (ATB), according to sources. 

A source familiar with the bank’s internal discussions quoted by Reuters as saying: “They have a very ambitious plan for the bank by enhancing the capital and facilitating communication with correspondent banks.” 

A 30% stake in SIIB is already held by Qatari investors, the news agency added citing sources.  

Representatives from Bemo, ATB, and SIIB have not responded to requests for comment.  

The proposed deals are awaiting regulatory clearance.  

Central Bank Governor Abdelkader Husrieh stated he could not discuss the transactions, citing confidentiality. 

To Reuters, he said: “That said, the Central Bank welcomes any potential restructuring or market-led initiatives that strengthen the stability, resilience, and sound governance of the banking sector, provided they fully comply with applicable laws and regulatory requirements.” 

Sources told the news agency that proceeds from selling Shahba Bank shares would enable ATB and Bemo to boost their capital reserves.  

Both institutions have faced financial strain due to exposure to Lebanon’s ongoing banking crisis.