Syria received its first foreign investment in a startup on Monday, with $10 million for the Labbay platform, in a step to reactivate its technological ecosystem.
A service application named Labbay has achieved what seemed impossible: attracting foreign capital to a Syrian startup. The operation, announced on Monday in Damascus, amounts to $10 million and is backed by investors from Saudi Arabia and the United Arab Emirates.
The event took place at the historic Khan Suleiman Pasha, in the Old City of Damascus, under the patronage of the Ministry of Telecommunications and Information Technologies. Minister Abdul Salam Heikal described the operation as “a significant milestone” for the country’s digital economy.
The initiative is part of the National Agenda for Tech Startups, promoted by the ministry to encourage innovation and attract investments. According to Heikal, Syria has been sidelined from venture capital for about fifteen years, and this operation marks the beginning of a new phase.
Labbay, the platform aiming to be the Syrian superapp
The founder of Labbay, Mahmoud Fawz, explained that the application will be the first of its kind in Syria. In its initial phase, it will offer taxi-like transport services and food delivery, and later will incorporate the delivery of grocery products and other everyday services.
Fawz described the investment as the largest made so far in a Syrian startup. The name Labbay, according to the promoters, refers to the speed in responding to users' needs. The launch is expected in the coming weeks.
Investor Amer Al-Zoubi stated that the decision to support the project stems from confidence in the capabilities of Syrian programmers. For local entrepreneurs, this capital injection represents a boost and an opportunity to access new markets.
A regulatory framework under construction for the entrepreneurial ecosystem
Minister Heikal noted that his department is working on creating a regulatory and administrative framework that facilitates the establishment and expansion of startups. Digital transformation, he said, does not only depend on large infrastructure projects but also on innovative applications and services.
The president of the Syrian Scientific Association of Computer Science, Sinan Hatahet, considered the announcement a positive signal for the market. He highlighted the symbolism of holding the event at Khan Suleiman Pasha, a space linked to trade in Damascus, as a bridge between commercial legacy and the digital economy.
The investment comes months after the ministry launched, on April 14, the National Agenda for Emerging Companies, a strategy to coordinate public policies and transform innovation into employment for young Syrians. For readers interested in the entrepreneurial ecosystem in the Middle East, this move indicates that foreign capital is beginning to look at Syria despite years of conflict.
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