With a population of over 20 million and steady, average GDP growth rates of 4.1% over the past three years, the Syrian economy has remained relatively robust despite the global economic downturn. Consumer demand is expected to remain strong with average population growth at 2.5% per annum over the next five years and more than a third of the population under the age of 14. Syria’s underdeveloped private sector is also in need of significant amounts of capital across all its major industries.

The Damascus office will offer EFG Hermes’ full range of investment banking, private equity, brokerage and asset management services. EFG Hermes’ Syria Fund will target multiple sectors within the Syrian economy, providing growth capital for established businesses as well as greenfield investments. EFG Hermes will contribute 10% of the fund’s total commitments.

Hassan Heikal, CEO of EFG Hermes, said: “The recent reforms undertaken by the Syrian government to liberalize the economy and facilitate the business environment have made Syria a compelling investment opportunity. Having a direct presence in Syria was the next logical step for the firm as we continue to implement our regional expansion strategy.”

Yasser El-Mallawany, CEO of EFG Hermes, noted that EFG Hermes Private Equity has raised approximately $1.2bn over nine funds and invested in 34 companies across sectors including oil and gas, real estate, food and agribusiness, and construction and building materials.

Firas Tlass, who will be acting as chairman of EFG-Hermes Syria, said: “I figured that a partnership with the leading investment bank in the Arab world along side with the establishment of the Syrian Private Equity Fund would probably be one of the best ways to develop investment in the Syrian economy, prepare the companies to enter into the financial market and push up the level of trading in order to bring Damascus Securities Exchange up to the regional level.”

EFG-Hermes has appointed Hazem Badran as CEO of EFG-Hermes Syria. He has been with the firm for over 6 years and was most recently a MD of the investment banking division.

EFG Hermes Syria is a partnership between EFG Hermes (70%) and Syrian businessman Firas Tlass (30%).