Egyptian developer Sodic will buy a 50 percent stake worth $40.5 million in Syrian real estate developer Palmyra, adding to a growing list of Egyptian firms interested in Syria.

Syria has been attracting attention as the authorities have taken cautious steps toward economic liberalisation including opening up the banking sector to more foreign investment.

"The company (Sodic) will carry out investments worth $40.5 million to acquire 50 percent of Palmyra," Egypt's stock exchange said in a statement.

Among recent Egyptian entrants, investment bank EFG-Hermes said in March it would launch a $250 million to $300 million private equity fund in Syria to take advantage of the government's recent efforts to liberalise the economy.

Egypt's El Sewedy Cables runs a factory in Syria, and mobile firm Orascom Telecom's chairman said this month he was interested in returning to the Syrian market, which he had previously exited.

State-owned Bank Misr said this month it has received approval to open in Syria. Sodic is Egypt's fourth largest developer by market value. It sells mostly high-end residential and commercial property on the outskirts of Cairo. - Reuters