Ahmad Mouhammad Diab Issam Fouda Abdul Kareem Khaleel Dr

Transcription

Ahmad Mouhammad Diab Issam Fouda Abdul Kareem Khaleel Dr
Quarterly magazine published by
the Syrian Investment Agency under
‫اﻻﺳﺘﺜﻤﺎر‬
‫ﻫﻴﺌﺔ‬
the approval of Prime
Minister
No.
1406/D.D21 -4 -2008
General Supervision
Deputy Prime Minister for Economic Affairs
Head of the Board of Directors
Mr. Abdulla
Al-Dardari
MENT AGENCY
SYRIAN INVEST


Editor in Chief
Vice 
Chairman of the Board of
Directors and General Director of the
Editor-in-Chief
Agency
Syrian Investment


B.O.D
Deputy
Chairperson
Dr. Ahmad
Abdul
Aziz



Director General of Syrian Investment Agency
Editing Staff 

Mr. Mohammad
Saif Eddin
Ahmad
Mouhammad
Diab
80
Arab Delegation in Syria
59
Syrian-Saudi
Businessmen
Forum
69

Mr. Nouman
Jablawi
Mr.
Habib
Salman

Dr.
Mohamed Editor
Saleh Ali

Managing
Dr.
Samir
Sarem

Mr. Issam
Kamal Al-Sheikh
Fouda Ali
Mr. Samir Arbash

Ms. Susan
Bashir
    Staff
    
Editorial
Tecnhnical
 Support
 
Kareem
UnitedAbdul
Nations
Development
      Khaleel
 Programme
Programme Officer Ms. Rawd AL-Sayed
           Afsaa
  
Dr.Azdachir
Business for Development Team


















 
National Project
Director
Dr.  Azdachir
Afsaa
Haitham
Moustafa
Project Coordinator Mr. Mahir Simadi

Nouman
Jiblawi
Visit to Qnueitra

LayoutAl
Design:Ali
Kamal
Sheikh
and

Bashar and Usama Jacob
Suzanne Basheer


Art Director & Design
ALSO READ...
The First Meeting of the Strategic Cooperation
Council between Syria and Turkey
72
Visit to Al Sweidaa
67
Strategic cooperation council between
Libya and Syria
55
54
Meeting Cement projects
A Qualitative Conference Entitled “Investment
53
investors
In the Southern Region”
A workshop about “Financing SMEs
Investment projects”
49

United nation Development programme provides the technical support to this magazine
without any responsibility on its contents
Visit to Dara,a
63
67

Health projects investors



83 Issue 6 July
2011
Subscription and Correspondence
Damascus Former
Prime Ministry
Art Director & Design
Headquarter-Sabe Bahrat Square
P.O.Box 31396 Damascus - Syria
‫ﺍﳌﺮﺍﺳﻼﺕ ﻭﺍﻻﺷﺘﺮﺍﻛﺎﺕ‬
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–
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
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Investment
map on the website
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 –
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
Opinions
published by the magazine
www.syriainvestmentmap.org
are‫ﺱ‬.‫ﻝ‬
considered
/٥٠٠٠/ ‫ ﺍﻟﺴﻨﻮﻱ‬personal
‫ﺍﻻﺷﺘﺮﺍﻙ‬


       

٢٠١٠ | ‫« | ﻛﺎﻧﻮن ا�ول‬٥» ‫ | اﻟﻌﺪد‬2
‫ﻫﻴﺌﺔ اﻻﺳﺘﺜﻤﺎر‬
2011 ‫ جوالي‬/ ‫متوز‬













        
  
       
              
                  
European investors Delegation

79 Syria is the ideal country for Investment 


Also read in this issue:
Eng. Khooli
Dr. Khadour & Dr. Haidar
Syrian Economic
Problems of financing small
Miracle
and madium enterprises
66
71
D.r Al Imadi


Specifications of Securities
Exchange Markets and its effect
on growth of investments
Art Director & Design
77
‫ﺍﳌﺮﺍﺳﻼﺕ ﻭﺍﻻﺷﺘﺮﺍﻛﺎﺕ‬
 –


 –
Dr. Al Kafri

Foreign Dirct Investment
Dr. Ibraheem




www.investinsyria.org
Dr. Dirgham

and its forms



Global Financial
Crisis
syinvest@mail.sy
Administrative reformation
68 

65
74
AGENCY
INVEST MENT
SYRI
AN


www.syriainvestmentmap.org
‫ﺱ‬.‫ ﻝ‬/٥٠٠٠/ ‫ﺍﻻﺷﺘﺮﺍﻙ ﺍﻟﺴﻨﻮﻱ‬
w


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      
  
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2011 ‫)) تــمــوز‬6 (( ‫ العدد‬٢٠١٠
82| ‫« | ﻛﺎﻧﻮن ا�ول‬٥» ‫ﻌﺪد‬
Investment in Syria is in a well Situation
today and tomorrow
It is well known that targeting Syria had different types during the
last period. And today under the pressure of the global financial crisis,
the New Middle East project was supported strongly and in an organized
way. This project which aims at dividing the region and it targeted Syria
because of what it represents by using different tools, the economic one
was the most important.
k
But Syria proved and proves now that it has many strength points , such
as its strong economy and adopted financial and monetary policies. Syria
has no debts , and it has a reserve of foreign currency more than 18
milliard USD . Today , it produces more than three million tons of wheat,
in addition to other important resources, and local and foreign investment,
within an investment environment which is keeping on developing and
growing . During the first half of the current year, more than one hundred
investment projects were licensed as per provisions of decree Nr.8 of 2007
at an approximate value of 40 milliard S.P. And this is very similar to what
has been achieved last year, besides investments in other sectors. Today,
Syria is in front of a new stage which shall be to Syria a qualitative and
exceptional jump, which supports investment environment and make it more
competitive and attractive. It is true that numbers show that investment in
Syria is affected by the current crisis but it is still in well situation, and the
fundamental and comprehensive reformation continues.
Managing Editor
2011 ‫)) تــمــوز‬6 (( ‫ العدد‬62
D.G of SIA heads a delegation to visit Al Deehani Project in Dara,a
Within the framework of the efforts to
visit investment projects, a delegation
of the Syrian Investment Agency,
headed by Mr. Ahmad Diab director
general visited Al Deehani Food Stuffs
company in Dara’a governorate,
owned by the Kuwaiti investor Mr.
Mijuel Eid Al Deehani .
The company is supposed to
produce tomato paste, vegetables
and fruits conserves, natural juice,
pasteurizing and packing of milk. Mr.
Diab supervised work process and the
ready infrastructure ( more than 90%)
In spite of the fact that this project is
licensed since less than a year
63 Issue 6 July
2011
Owner of the project thanked Syrian
Investment Agency for its interest
and clarified that Italian and Swedish
production lines shall be imported
and installed within a month. It is
worth mentioning that the capital of
the project is 250 million S.P and it is
expected to increase up to 500 million
S.P in the future with an initial capacity
of 500 Tons per day of tomato paste,
providing about 200 job opportunities
to be raised in the future.
Arab Investment Court
Aouni Al Homsi
Investment guarantees, privileges
and incentives are the main factors
in investment process, according to
provisions of the legislative decree
Nr.8 of 2007. Which stipulate that
disputes which may arise between
investors and public authorities in
Syria are, settled amicably within three
months period as from submitting a
written notification claiming amicable
settlement by one of the parties.
Otherwise, one of the following
procedures are to be followed:
1-Arbitration.
2-Syrian competent Jurisdiction.
3-Arab Investment Court.
4-The agreement of protection and
guarantee of investment signed
between Syrian Arab Republic
and the investor’s country.
Arab Investment court was established
in 1980, it is affiliated to the Arab
League, aiming at settlement of trade,
economic, and investment disputes
as per provisions of the Unified
Agreement for Investing Arab Capitals
in Arab countries, In spite of the
importance of the court, there is a lack
of legal culture and in the mechanism
of its work. This court did not consider
any case except six cases in 2003, two
of them are settled, one case was not
accepted and the second was out of
its specialization. This court includes a
number of judges five of them at least
to be selected by the Economic and
Social Council of the Arab League.
And the head of the court is one of
them. Provisions of the article /13/
of the Agreement of Development
of Trade Exchange between Arab
Countries are to be applied.
The court is convened on the first of
August each year, and the file of a
case is submitted within a week as
from receiving it.
The dispute to be settled should be
between countries which are parts
of the agreement or between the
government and public institutions
or entities related to other parties,
or between public entities related to
more than one party, and between
Arab investors and the parties which
provide investment guarantees as per
the agreement.
its work mechanism to comply with
establishing the Arab Trade Area, this is
what is confirmed by Mr. Mouhammad
Al Tweijari the Secretary Assistant for
Economic Affairs in the Arab League,
pointing to the necessity of promotion
of this court strongly.
The Arab Investment Court includes
members representing:
Jordan, Tunisia, Sudan, Kuwait,
Lebanon, Libya, Egypt and Syria.
The Arab League is trying to activate
the role of this court and developing
2011 ‫)) تــمــوز‬6 (( ‫ العدد‬64
Administrative Reformation in Syria
… Efforts which are not fruitful yet
Dr.Hussein Ali Ibraheem
Development and reformation of
public administration is a continuous
need for all state organizations and
bodies, to guarantee their ability to
compete, This is why administrative
reformation process is a priority but
in spite of the increasing interest in
this file in development plans and in
media, the results are still humble.
Reformation process is a compound
one which has its economic and social
dimensions, Difficulty stems out of
how to indicate it’s axial factors, by
studying the components which affect
the performance of an entity. Those
factors are:
- The scope of reformation process,
it is specified by two criteria, the
first is the extent of how much
the strategy of reformation is
comprehensive regarding the
ingredients which affects the
65 Issue 6 July
2011
performance, such as wages and
salaries and the second is the
extent of horizontal expansion of
the process .
- The source and parties of
change.
- The extent of crystallization,
initiatives and planning .
- The extent of depending upon
experiences of other countries so it
is essential to study the conditions
, indicating (SWOT), putting a
strategic vision for reformation into
targets then policies , programs to
be implemented . If we go back
to the reformation process within
the tenth five- years- plan in Syria
we find that what was achieved
was very limited because of the
wide scope of the plan, weakness
of balance and linkage between
adopted plans and strategies
and the proposed programmes,
lack of institutional framework
and the absence of a structure
that is responsible for leading the
process with necessary authorities
to coordinate with related
parties, removing obstacles and
evaluation of results. As a result
we find out that their should be
competent experiences to from
strategies such as graduates
of the National School of the
Public Administration in France
,Tunisia and Morocco , and
Leaders Preparation Institute
in Egypt and the Institute of
Public Administration in Jordan
and others, And in Syria a lot
of support is requested to the
National Institute of Public
Administration INA . As well as the
political support to administrative
reformation process, in addition to
forming an institutional structure to
be responsible for this process.
The Syrian economic miracle
Eng.Yaseen Al Khooli
Economists find that when an oriented
economic system is transferred into
market system, big opportunities of
profits become available.
This what happened in Russia and
in China due to the growth of private
sector.
And in Syria the gradual transformation
is very similar to that in China, as
many laws and legislations were
promulgated to encourage investment
and many laws which impede it were
cancelled, laws of trade, leasing
and renting and appropriation were
amended. And many important sectors
such as transport and medicaments
industry, banks, insurance and money
exchange, were opened in front of the
private sectors.
Syria was not affected by the financial
crisis of 2008, and investment grew at
70% in 2009 while it retreated all over
the world at 15% . And it grew in Saudi
Arabia, Qatar and Lebanon at the rate
of 57, 43, and 32 consequently.
Syrian economy grew at 6.5%showing
a good economic performance.
In addition to that many Syrian
businessmen abroad began coming
back to their country with their
experiences , and deposits in Syrian
private and public banks increased a
30% in 2009 .
Investment in tourism sector is growing
at a high rate of 60% during the last
decade which makes it the best in
the world , by virtue of the geographic
location of Syria and its natural
privileges ‫ و‬as the cradle of civilizations.
The second important sector which
is not invested in a sufficient way, is
medical therapy services. And Syria
is very well qualified for this sort of
investments because of the selectee
of physicians. Also to activate the
two previous sectors it is necessary
to profit from the competencies and
experience of Syrian expatriates by
encouraging them to come and invest
in Syria , by removing bureaucracy
to achieve the economic miracle with
Syrian residents which could match
the Turkish and Chinese experiences.
How great it would be if a competent
entity is established to encourage
those expatriates to invest in Syria
by providing periodical publications
to advise them of business climate
and new investment privileges and
incentives as well as discussing with
them their problems , remarks and
obstacles and to inform competent
authorities about their complaints
and claims . Thus , supporting such
economic sectors shall contribute to
the sustainable development of the
country to make its economy as a best
example for best emerging economic
tigers .
2011 ‫)) تــمــوز‬6 (( ‫ العدد‬66
Cement projects problems
A meeting was held in the Syrian
Investment Agency on 5 / 7 / 2011,
with cement investments to discus
problems and reasons behind the
stoppage of some projects. The
meeting was headed by the State
Minister for Investment Affairs Mr.
Hassan Al Sari and Mr. Ahmad Diab
D.G of the Syrian Investment Agency,
who stated that cement projects
licensed as per investment laws are
25 projects, 22 one of them produce
black Portland cement, and two
produce white cement and one which
produce all types. Two projects only of
the above are producing cements.
Problems of investors were related
to land ownership, administrative
procedures and Syrian market
dumping with cement from neighboring
countries, with a surplus of 60%, and
it is sold to importers in lower prices.
It was pointed to the necessity of
the inspection made by the Ministry
of Industry on cement production
in compliance with the Syrian
specifications, so that specifications
are written clearly on bags, and
inspecting product when arriving to
border outlets and prohibiting free
cement.
Investment projects in the health sector
Investors urged for treating the real estates issues , such as numbers of
floors in hospitals and the necessity
of finding financing channels through
banks without a guarantee .
A meeting in the Syrian Investment
Agency was held on 21 / 6 / 2011 to
discus investment projects in health
sector. Director general of Syrian
Investment Agency Mr. Ahmad Diab
confirmed that number of projects
in the health sector reached up to
109 projects, 65 of them are for the
67 Issue 6 July
2011
production of medicaments and 44 are
hospitals. Few of those projects are
implemented. Obstacles which impede
projects, procedures and unequal
competitiveness, setting measures
for controlling imported medical
products mainly raw materials, all
were discussed in the meeting.
Dr. Talal Bakfaluni director of planning
in the ministry of health clarified that
there is a need for new hospitals in
certain cities and in the countryside.
Foreign Direct Investment and its forms
Dr.Moustafa El Abdallah El Kafri
Due to the important role of FDI
in providing required financing of
investment projects and in transferring
technology, creation of job opportunities
and supporting import and export
principles, countries began preparation
of attractive investment environments,
and the competitions is increased. As
per the directory of preparing statistics
payment balance issued by the IMF in
1993. the FDI is defined as:
The international investment which
reflected the obtaining of a permanent
interest by a resident entity ( company,
institution or a bank ). It is referred to the
resident entity as the “direct investor“
and the institution is the establishment
of direct investment. The permanent
interest implies upon a long term
relationship between the investor and
the establishment. In addition to that
the investor enjoys great authority in
the administration. The relationship
includes all dealings between them
and between establishments whether
shareholding or not. This definition
complies to that of the UNCTAD and
of the OECD.
3-Multi - nationalities companies.
FDI Establishment: It is a shareholding
or non shareholding establishment in
which the resident investor owns 10% or
more of normal shares in shareholding
establishments or what equals that in
case of non- shareholding companies.
They have three types:
1- Affiliated establishments where
the non – resident investor owns
more than 50% of normal shares
or voting power.
2- Colleague establishments: The
resident investor owns 10% to
50% of normal shares or voting
power .
3- Branches: Non shareholding
owned fully or by partnership
directly or in indirectly with a third
non - resident party .
Foreign Investor: The investor might
be an individual or a private or public
establishment shareholding or non shareholding or group of individuals
or establishments which behave
as one entity or state agencies, or
institutions which own a part of the
direct investment establishments
in a state other than that where the
investor lives .
Capital of the FDI :
The main ingredients of the FDI flow :
- Equity capital .
- Reinvested earnings .
- Capitals related to debts dealings
between companies ( Intra –
company lawns).
FDI investments lead to increase of
social capital. law production coasts,
new markets for exports of host
states.
There are many traditional opinions
which confirm that FDIs, in general
should not be encouraged while
others invite to attract more FDIs , in
spite of the fact that it is integral to
local investments.
Forms of FDI:
1- Joint investments ( local and
foreign ).
2-Projects owned fully by foreign
companies in the hosting
economy.
2011 ‫)) تــمــوز‬6 (( ‫ العدد‬68
Meeting investors
and businessmen
and visiting projects in Al Quneitra
A delegation headed by the Minister of
State for Investment Affairs Mr. Hassan
Al Sari, and Mr. Ahmad Diab director
general of the Syrian Investment
Agency visited Al Quneitra governorate
on the 25th of May 2011 .
The purpose of the tour , was to meet
businessmen and investors and to
control work process in the Agency’s
branch.
In a meeting in the office of the
governor in the presence, of secretary
of Al Ba’ath party, incentives and
privileges of investment in Al Quneitra
was previewed. Referring to that the
number of licensed projects in the
governorate is 18 one six of them
are implemented and five of them
are under implementation. Director
general of SIA affirmed that the
coming stage shall concentrate on
increasing number of projects by
taking a bnanch of procedures such
as reconsidering the decree Nr. 8
of 2007, and increasing the role of
representatives of ministries in the
one -stop-shop from the view point
of accomplishing licensing measures
as soon as possible . Governor of
Al Quneitra asserted the importance
of supporting investment in this
governorate , and the necessity to find
solutions to problems and obstacles
which face investors .
69 Issue 6 July
2011
Secretary of Al Ba’ath party affirmed
that Syrian economy is not affected
by the current crisis due to the wise
leadership of his Excellency President
Bashar Al Assad . During the visit
problems and concerns of investors
were previewed and SIA’s delegation
promised to find solutions to all
problems and to impede obstacles as
possible .
of having a credit when submitting
guarantees to be borne by the
enterprise . As well as bearing in mind
the risks of currency exchange prices
fluctuations and the lack of experience
suffered by SMEs from the view point
of administration of marketing , and
problems of exporting which could be
solved by usage of new technologies
and internet websites , as export
provides a basket of currencies to
commissions or agencies to develop
them such as KOSGEB in Turkey or
SIRIM in Malaysia . In USA an entity
named Small Business Administration
was established to provide state
resources and services for such
projects .
are not able to provide required
guarantees for financing.
- Obtaining short – terms credits
to purchase raw materials for
medium – terms credits for spare
parts or for manufacturing is
a long process surrounded by
According to sources of the Islamic
bureaucracy and waste for efforts
Development Bank, SMEs contribute
and time.
in more than 60% in the GDP in the
countries members in the Bank .
In Syria SMEs becomes an available
option preferred by youths mainly new
graduates .
Micro finance is one of the means of
supporting SMEs ., by providing micro
credits .
settle banking obligations and then to
be put in a good classification by banks
, other wise banks shall be exposed to
the risk of possible loss .
Finally , and taking into consideration
the aforementioned problems , comes
the role of governments to support
SMEs, mainly when such enterprises
get into a crisis .
Mainly if the credit is to be provided
through public banks due to red – tape
procedures.
SMEs suffer from the multiplicity of
documents required by banks.
Banks concentrate upon granting
short and medium terms credits, while
in establishing stage, SMEs need long
Financing obstacles faced by SMEs:
– terms credits, in addition to high
Many countries established public
interest rates, and non - existence of
financing funds but they were not so
credits guarantees institutions. We
successful in Arab countries, SMEs
should not forget the increase of cost
2011 ‫)) تــمــوز‬6 (( ‫ العدد‬70
Problems of financing small and medium enterprises
(SMEs)
Dr.Rislan Khadoor
Dr.Nihad Haidar
Syrian economy like other economics
of developing countries is distinguished
with domination of SMEs, as they
contribute to GDP, creation of job
opportunities and employment and
those projects face many problems
most of which is financing which
necessitates more care mainly
in unstable economic conditions,
increase of inflation role, bureaucracy
and during transitional stages SMEs
enjoy privileges so that they play a
vital role in economic growth in any
country. Most of their features are:
mobilization of local savings .
- Achieving local and regional
development.
- They do not need big funds or
complex techniques .
- Simple administrative systems
which make staff training and
rehabilitation more quick .
- Providing job opportunities .
SMEs form 95% of the total number
of projects in the world, providing 55%
to 80% of job opportunities volume.
For examples number of enterprise
in the EU is 18.89 million, the SMEs
form 79% of which employing 69% of
the work force, contributing at 58% in
the GDP.
- Creation of new projects encouraging
Even in developed countries, the role of
those enterprises develops according
to the need of national economy, by
producing equipment of big industries
as feeder ones.
In Japan SMEs provide 79% of the
requirements of electric industries .
Integration between different production
branches and those projects is one of
the criteria of economic competence.
This was behind the growth witnessed
in American economy during last two
decades which led to emerging of
what is known by the New Economy .
And as unemployment is one of the
great challenges which is faced by
Syrian economy, supporting SMEs
is very important, by establishing
71 Issue 6 July
2011
A tour visit to
Al Sweidaa
Minister of State for Investment Affaires
and Development of Southern Region,
Mr. Hassan Al Sari accompanied with
Mr. Ahmad Diab director general of
Syrian Investment Agency and some
of the concerned staff , paid a visit to
Al Sweidaa governorate on 11.5.2011,
in a field tour to investment projects
and to meet economic activities and
investors to discus their problems and
the obstacles which face their projects.
And to supervise the work process in
the Agency’s branch their.
The meeting was attended by the
governor and the Secretary of Al
Ba’ath party branch. Director general
of the Syrian Investment Agency
stated that total number of licensed
projects in Al Sweida is 75 projects
31 of them are implemented and 18 of
them are under implementation and the
agency aims at increasing the number
of projects throughout
certain
procedures
such as reconsidering
legislative decree Nr. 8
of 2007 , activating the
role of the one – stop –
shop and the following
– up directorate and to
perform procedures as
soon as possible . In
addition to restudying
agreements signed with
countries in the region
which led to entering
commodities to Syria
to compete with national industry .
As well as decentralization by giving
branches necessary authorities to
license investment projects .
The governor of al Sweidaa confirmed
that proper solutions were formed for
some problems faced by investors
referring to that the Minister of
Agriculture and Agrarian Reformation
authorized governors
lately to grant approvals
upon exception of vital
projects from being
subject to classification
of lands, asserting that
the governorate is
keeping on providing
suitable environment
for investment and
supporting investors by removing
obstacles and streamlining measures
to avoid routine. Secretary of Al Ba’ath
party confirmed the importance of
investment taking into consideration
the importance of national economy,
and the economic, political and social
and judicial reformations in Syria .
The State Minister of Investment Affairs
promised to inform the government of
all obstacles facing investment to find
solutions serving national interest , with
reference to that the fuel prices and
the mechanism of supporting framers
are all being studied, and providing
wells with energy and electricity. The
delegation visited the branch of Syrian
Investment Agency and investment
projects in the governorate .
2011 ‫)) تــمــوز‬6 (( ‫ العدد‬72
The total length of the two lines is
2000 k.m
- Planning for real estate projects
in the Euphrates region and to
prepare the river for navigation.
- It is suggested to have two
international lines one from
the north borders to the south
in Al Sweidaa the southern exit
into Gulf region to shorten the
distance and to activate the
region . The second line extends
ϡΎϏέΩΪϳέΩ
from the coast
to Al.ΩBoukamal.
This project could provide enough
areas for three railways two roads
with 20 meters width for each,
networking in the areas and later
on investing in it, in addition to
the possibility to have a railway
to the Gulf integrating with Suez
channel with the Mediterranean
, and the vertical line shall pave
the way for religious and normal
tourism to Mecca ( pilgrims can
perform rituals and come back in
the same day).
The north and eastern regions shall
be revived, a lot of job opportunities
shall be provided, the transit service
away from residential complexes
shall contribute to accelerating
transport. Thus, we invite for a
dialogue concerning the scenarios
which are suitable for us as middle
eastern countries, striving for
economic integration. And to look
for adequate economic project
with being just in distributing
resources, governance and suitable
legal infrastructure.
ΔϳΩΎμΘϗϻ΍ϡϮϠόϟ΍ΔϴόϤΟ
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73 Issue 6 July 2011
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Global ơȄǬƦȇDžƢLJȋơȁ
Financial Crisis
ƣǂǤdzơǒǧǁǁơǂǸƬLJƢƥȁ .ƨȈǠǴLjdzơȁƨȈǬȈǬūơƨȈǷƾŬơƩȏƽƢƦƬdz
ȆǬȈǬūơƽƢǐƬǫȏơǺǟDZDŽǠŠ ŅƢŭơȂǸǼdzơǁơǂǸƬLJơ
Dr. Doraeed Dirgham
for ǾƟ
Syrian
Prospects ǾǧơǂƬǟơȁ ǾƬnjȈǠǷȃȂƬLjǷǒȈǨţ
ƨǷǃȋơDZȂƸƬƬLJ
ȃǂƻȋơƣȂǠnjdzơȁƨǷƽƢǬdzơSuggestions
DZƢȈƳȋơƣƢLjƷȄǴǟ
ƢƻǁǁơǂǸƬLJơƨdzƢƸƬLJƢƥ
In spite of the frequent signs of countries which found openness
ƨȈǴƦǬƬLjǷmarkets,
ƩƢǿȂȇǁƢǼȈLJ
ȄǴǟwere
DŽȈǯǂƬdzơǺǷƢŮƾƥȏȁƢȀȈ
ǴǟƨǷǃȋơǂƯƗDzȈǴŢ
ǺǷƨȇǁȂLjdzƾƥȏǺȇǂƻȉƢƥƧȂLJƗ
.ƨǬǬŰƨƯǁƢǯńƛ
some
astonished an invitation
to imports
and to
by unprecedented collapses in the ignore export. Thus in this essay
.ǁƢǸưƬLJȏƢƥƨȇȂdzȁȋơƩơƿƩƢǟƢǘǬdzơƽƾŢ
lair of capitalism (USA), and it was we shall concentrate on analyzing
confirmed that financial growth economic and social constraints.
ǂǿƾdzơǽƾLjǧƗƢǷǁƢǘǠdzơƶǴǐȇȏ :ƨȈŭƢǠdzơƨǷǃȋơ
shall not continue away from real
From the economic point view, the
ȅǀdzơȂǿǵƢƴLjǻȏơơǀǿȁƤǴǘdzơȁǑǂǠdzơȁƨLjǧƢǼŭơȁƨȇƽǂǨdzơƨƸǴǐŭơśƥǵƢƴLjǻȏơǺǟǶƴǼƫƨȈǨŬơƾȈdzơƽƢǐƬǫȏơǶǴǟĿ
economy and real services and
low living level and productivity
commodities exchange.
ǾƬȈǘǤƫǑǂƬǨŭơ)ƾǬǼdzơ ƤǴǬƫńƛǾdzȐƬƻơȅƽƚȇȅǀdzơǵƢƴLjǻȏơ
ơǀǿĿƆ
ơǁȁƽƾǬǼdzơƤǠǴƫȁ
.ǞǸƬĐơƽǁơȂǷǞȇǃȂƫǺǸǔȇ
and tax evasion
andƢȇȂȈƷƆ
in spite
of
And if the West insists on refusing to the efforts it was depended upon
ƤǿǀdzơƤ
ȇǂLjƬƥƢǿǁȁƽ ƨȈǨŬơƾȈdzơƤǠǴƫDzǴƻȅƗƾǼǟȁ .(ƩơƾǼLjdzơȁƗœǼƳȋơǞǘǬdzơŐǟǂNjƢƦǷŚǣȁƗǂNjƢƦǷDzǰnjƥƆƢƦǿƿ
decrease living level and to admit that subterranean resources and public Syria has to make a balance between
it is impossible to live in prosperity sector and the legal infrastructure many
available trends, here are
...ƽơŚƬLJȏơǒǨƻȁƗǶƼǔƬdzơȁƗ
regardless of coming generations which is able to attract interior and some suggestions, such as: Syria
ƨȈǘǤƬdzơǺǷƆ
ƨȈLjȈƟǂdzơƩȐǸǠdzơǁ
ƗƪȈƦưƬ
ƢLJƢLJƗ ȅattention
ƽƢǐƬǫȏơƔơƽȋơ
ƩơǂNjƚǷƩƾǸƬǟơ
shall
be dzƆ
andȏƾƥ
other
nations, the crisisƢǠLJ
needsÎÖÔÎ
a longǵƢǟ
termƩȐǸǠdzơʼnȂǠƫ
projects with ǞǷ
the
exterior
was disregarded
a true catastrophe. Syria like others relatively and the private sector following components : connection
.ƨȈǨŬơƾȈdzơ Ǟǘǫńƛ ƩơǂNjƚŭơǮǴƫƨȈǫơƾǐǷƣƢȈǣ ȃƽƘǧ .ƨȈƦǿǀdzơ
should analyze the impact of crisis did not show its real numbers of coast with the mountains and the
ȂŶDzȇȂǸƬdz
ƽơǃconcentrate
(ƩƢȈǼȈǠLjƬdzơonĿ)ǩơȂLJȋơȁƧǁƢƴƬdzơǂȇǂŢ
ƾȇơDŽƫȁƨȇȂȈLJȉơǁȂǸǼdzơǁƢǿƽǃơȁ
ƨȈǟȂȈnjdzơ
ǁƢȈĔơƾǠƥ
onƣǂǤdzơ
it andǑơǂƬǫơ
it should
communication
and deposits or investments
in interior to simplify
future scenario which indicate prior neighboring countries. Socially between people.
ƨƦLjǻǑƢǨŵơ
ƨȈƥǂǤdzơDZȁƾdzơǶǜǠǷƩơƔƢǐƷƛśƦƫȁ .ǺȇǂƻȉơƣƢLjƷȄǴǟǽƢǧǂdzơǪȈǬƸƬdz DZƢŭơŃƢǟĿ ǾǸǜǠǷ ǩȂƦLjǷŚǣ
investment sectors.
high birth rates, unemployment - Syria should also provide
ŅƢŦƛDzǏȁ
ƆƢǬƥƢLJisƣǂǤdzơƢǿŐƬǟơŖdzơƤLjǼdzơƩ
ǃȁƢšƧŚǘƻƩƢƦƬǟńƛ
from countryside ƨȈƳǁƢŬơǹȂȇƾdzơƨƦLjǻƧƽƢȇǃȁ
The!ǂǘƻǂNjƚǷ
Global Crisis
not enough and the influx
adequate infrastructureǁƢƻƽȏơ
pro into
cities
with
the
problem
of
to explain the crisis of developed
iting from geographic loc DZȁƾdzơǺǷƾȇƾǠdzơĿƢǿǃȁƢš
ȁ
ƧƾƸƬŭơƩƢȇȏȂdzơĿ
%
ÎÍÍ
ŅơȂƷ
ńƛ
(
ŅƢŦȍơȆǴƄơƲƫƢǼdzơ
ńƛƨƦLjǻ)ȆƳǁƢŬơǺȇƾdzơ
lack
of
water
and
weakness
of
tion and of inward coming
countries. But it increased
unemployment and inflation in education and judicial systems. So
:(ƧƾƸƬŭơƨǰǴǸŭƢǯĿǂǐŭơȁŅƢŭơǽǁȁƽƤƦLjƥǒǠƦdzơƨȈǻȂȇƾǷƧƽƢȇǃǚƷȐȇƮȈƷ
) workforce.
ŅƢƬdzơǖǘƼŭơǂȀǜȇƢǸǯƨǷƾǬƬŭơ
ÏÍÎÎ\Ó\ÎÑǪnjǷƽ
́ Ϧϣ ˺ ΔΤϔλ
2011 ‫)) تــمــوز‬6 (( ‫ العدد‬74
Venezuelan Delegation visits Syria together with some
South Korean companies
A Venezuelan Delegation headed by
Messrs, Hussein Al Mahamoud
Azam, George Ameed Bshara,
Jouhn Hobak, fullfield the
invitation of the Syrian Investment
Agency, to visit Syria, in order to
get acknowledged with investment
climate and the facilitations granted
to investors and businessmen.
During a meeting in the, SIA, Mr
Hussein Al Mahmoud Azam,
admired the hospitality of Syrian
People, and welcomed the South
Korean investor. Mr. John Hobak
clarified that he came to Syria
within the framework of an official
visit to Al Sweidaa. Mr. George
Bshara confirmed that he has the
75 Issue 6 July
2011
honor to bring foreign companies
to invest in Syria, and among them
Korean companies which have
mega investments in America and
Japan, all to participate in making
Syria a more developed country.
Referring to that Korean investors
can moderate the aggressive
reactions towards Syria, by
establishing projects which may
outmatch European ones to
enforce and reactivate relations
between countries. Mr. John, is
the agent of the biggest company
in South Korea which has mega
investments abroad, he reviewed
the investment opportunities,
in the fields of electricity and
construction in Syria. Activities of
this company were reviewed by a
presentation made by the Korean
investor.
Director general of SIA wished the
delegation good residence in Syria
and confirmed that the Agency is
ready for any cooperation and
help .
intensified to deepen the trust of Arab
investors in our markets to achieve
consistence between what is applied in
Syria and the international standards .
We believe that public, private and
Islamic banks in our country are able
to attract Arab and foreign investments
mainly because their ownership and
even their administration are found
in Arab and some foreign countries.
Damascus Securities Exchange
market (DSE) finalized its systems
since 1985 and in joint agricultural
foreigners are welcomed with freedom
companies since 1986 .. Laws /10/ of
to insert and repatriate their money
1991 and decree /8/ of 2007 supported
and their revenues.
investment in all fields This is for direct
It is worth mentioning that international
and Arab Shareholding in our banks
in insurance companies, form more
than 30% of their capitals Efforts are
investment , and as for investments in
financial services and mediation and
in securities, as per laws Arabs and
and institutions and twenty companies
are listed in the market with the
value of 71.074. 584.999 S.P till 31/
3 / 2011 and with a nominal value of
62.536.381.500 S.P and their market
value reached up to more than 109
milliard S.P And the market’s indicator
raised from 1000 up to 1233.42 till
the end of the year, which asserts the
profitability in markets transactions
2011 ‫)) تــمــوز‬6 (( ‫ العدد‬76
Specifications of securities exchange markets and
its effect on growth of investments
Dr. Mouhammad Al Emadi
Securities exchange markets are
supposed to achieve certain economic
targets for clients and for national
economy. And if we want to clarify
the role of those markets we can
mention the following: Accumulation of
savings of individuals and institutions,
shareholding companies, finding
necessary financing to provide
capitals of shareholding, accrediting
for shareholding companies or
for the government, orientation of
economic resources towards more
profitable projects, the expansion of
the ownership base. In addition to that
transformation of saving and liquid
funds into investments leads to high
productivity, and the exchange market
indicates the prices of securities in a
realistic and just way.
Also , the exchange market contributes
to diversification of risks.
So securities exchange markets have
their vital role in national economy
from the view point of funding projects,
providing job opportunities and income
for those who saved their money to
invest them in those markets. As for
Syria, we have the Syrian Commission
of Financial Markets & Securities which
monitors and supervises procedures
to protect rights of Securities
Exchange Markets, it puts and applies
measures which guarantee transport
and high performance of exchange,
throughout developed mechanism
and the attraction of Arab and foreign
investments.
Regarding
Arab
and
Foreign
investments, Syria have signed many
agreements in this concern such as
the Unified Agreement for Investing
Arab Capitals and others . Syria
participated in the capital of many
Arab companies such as the Arab
Company for the Development of
Animal Livestock and the Arab Center
for Combating Desertification and
Dry Lands. In addition to concluding
agreements to establish Syrian –
Saudi company for Agricultural and
Industrial Investments, the Libyan –
Syrian company for Agricultural and
Industrial Investments, the Syrian
Arab company for Hotels and Tourism,
the
United
Kuwaiti
Investment
Company and with many Islamic and
Arab funds. Syria joined MIGA and
ICSID, Arab and foreign investors are
allowed to invest in the tourism sector
77 Issue 6 July
2011
investors in addition to the strategic
geographic location of Syria. Romanian
businessman, Mr. Gabriel Grassem
affirmed that Syria is a wonderful
country and its People is very friendly
and kind, and that his future project in
Syria shall be in the field of protection
and security systems .
While the Italian investor Mr. Juda
Deco , saw that Syria is developing
quickly and it needs new technologies
concerning power generation . And
he said that he started finalizing
documents of his project in the
field of environment and building of
enterprises with insulated walls, which
also save electric power and to replace
it with solar energy . Also Mr. Joseph
Fontanella, an Italian businessman
who has a plant to produce cheese,
stated that he has the dream to
establish a branch of his company
in Syria and he had replies upon his
inquiries , such as the availability of
having loans from Syria banks , such
as Italian ones . And he added that
establishing his project in Syria is
related to the facilitations which shall
be provided by the Syrian government
to him .
2011 ‫)) تــمــوز‬6 (( ‫ العدد‬78
European businessmen and investors in Syria
On the twelfth of July 2011 , a European
delegation visited Syrian Investment
Agency within the framework of a
visit to Syria. The delegation included
47 businessmen and investors from
Italy, Romania, Sweden, Britain and
Switzerland, representing companies
which work in the fields of alternative
energy, hospitals and tourism.
Chairperson of Syrian Investment
Agency, Minister of Economy and
Trade Mr. Mouhammad Nidal Al Sha’ar,
asserted that economic relations with
Europe go back to many years , there
should be by separation of economy
from policy . And this is why restraints
on partnership should be impeded
and investment opportunities should
be provided , mainly because Syria is
a promising country with an economy
which is open in front of investments ,
with skilled work force .Mr. Al Sha’ar
79 Issue 6 July
2011
pointed to some obstacles regarding
existing guarantees which
shall
all be considered in the coming
new investment law as well as tax
exemptions .Mr. Ahmad Diab director
general of SIA, affirmed also that
energy projects shall be considered
as priorities in the new law as well as
strategic projects which may enjoy
tax exemptions without forgetting the
privileges and guarantees according
to the current law such as the right
to own and rent - real estate, and
the services rendered by the onestop-shop in the Agency. Mr. Diab
referred to that there are about 232
investment opportunities, and SIA
shall receive soon 110 feasibility
studies for investment projects. And
he confirmed that the stability of the
exchange rate of the Syrian pound ,
and the inflation rate which does not
exceed 2.8% and the unemployment
rate of 10.9% , and that there are 454
enterprises in the four industrial cities
which succeeded with an investment
volume of 480 milliard S.P, all are
factors of progress.
Members of the European delegation
, stated that they have confirmed the
impression they already have about
Syria, showing admiration of the
investment climate in Syria and the
privileges and facilitations granted to
President Bashar al Assad discusses Arab investments
in Syria , confirming its promising future
Mr. Bashar Al Assad President of Syrian
Arab Republic received on 21th of May
a delegation of Arab businessmen .
Discussions concentrated on Arab
investments in Syria and their future
in the light of the comprehensive
reformations witnessed in Syria , and
the role of investments in supporting
national economy and in development
process and stability . His Excellency
Mr. Assad expressed his appreciation
of Arab investors who increase
their investment in Syria , in spite
of all conditions and confirmed that
a promising future is waiting those
investment . In their turn, the investors
admired the set of reformation adopted
in Syria which are reflected positively
upon investment climate in general.
Mr. Mansour Amer the chairperson of
the B.O.D of the Egyptian Amer Group
stated that the meeting with president
Assad , pointed to all hindrances which
faced the work of investors, and to
the necessity of setting, mechanisms
to facilitate the process of approvals
and permits, to achieve growth rates
which provide more job opportunities .
Members of the delegation highlighted
the aspiration of president Al Assad
to perform reformations and meeting
investors to discuss their problems .
Businessmen asserted that they have
the intent to invest in Syria and to have
new projects , and that they feel that
they have a role in this stage , and
that they have confidence in Syria
as a country to invest their capitals
in , mainly with coming reformations.
President Al Assad added, that a
periodical meeting shall be convened
to meet Arab investors .
The executive manager of the
Investment Group in Syria Mr.Al
Kizbari, affirmed that the meeting
with president Al Assad made Arab
and Gulf investors in particular more
confident in Syrian economy and
investment , and in economic policy.
Referring to that investment in Syria
shall have qualitative jump , providing
job opportunities . Businessman Mr.
Mouafak Qadah , said that President Al
Assad asked investors to put a future
vision to expand investments and to
increase projects which are feasible to
support national economy .
2011 ‫)) تــمــوز‬6 (( ‫ العدد‬80
  
 
 


  
 



  

  
 








  
   



‫ﻫﻴﺌﺔ اﻻﺳﺘﺜﻤﺎر‬
President Bashar Al Assad meets a delegation
of Kuwaiti investors
‫ﻋﺸﺮ ﺳﻨﻮات ﻣﻦ ا�ﺻﻼح اﻟﺘﺸﺮﻳﻌﻲ‬
‫واﻟﻤﺎﻟﻲ واﻻﻗﺘﺼﺎدي‬
‫ﺳﻮرﻳﺔ ﻣﻼذ آﻣﻦ وﻓﺮﺻﺔ ﻣﻀﻤﻮﻧﺔ ﻟﻠﻤﺴﺘﺜﻤﺮﻳﻦ‬
ّ ‫ وﺟﻪ اﻟﺴﻴﺪ اﻟﺮﺋﻴﺲ‬. ٢٠٠٠ ‫ﻣﻨﺬ وﻻﻳﺘﻪ اﻟﺪﺳﺘﻮرﻳﺔ ا�وﻟﻰ ﻋﺎم‬
‫ ﺑﺈﻃﻼق ﺟﻤﻠﺔ ﻣﻦ ا�ﺻﻼﺣﺎت‬،‫ﺑﺸﺎر ا�ﺳﺪ‬
ّ ‫ اﻟﺘﻲ‬،‫اﻻﻗﺘﺼﺎدﻳﺔ اﻟﻬﺎﻣﺔ‬
ً
ً ‫ﻣﻼذا‬
،‫آﻣﻨﺎ‬
،‫ ﺑﺎﺗﺖ ﺳﻮرﻳﺔ ﻣﻦ ﺧﻼﻟﻬﺎ‬،‫وﻓﺮت ﻋﻠﻰ ﻣﺪى اﻟﺴﻨﻮات اﻟﻤﺎﺿﻴﺔ ﺑﻴﺌﺔ اﺳﺘﺜﻤﺎرﻳﺔ‬
. ‫ �ﻗﺎﻣﺔ اﻟﻤﺸﺎرﻳﻊ اﻻﺳﺘﺜﻤﺎرﻳﺔ ﻓﻲ ﺷﺘﻰ اﻟﻤﺠﺎﻻت‬،‫ﻳﺠﺬب رؤوس ا�ﻣﻮال اﻟﻤﺤﻠﻴﺔ واﻟﻌﺮﺑﻴﺔ وا�ﺟﻨﺒﻴﺔ‬
their expansion in all sectors , were all
in Syria . Members of the Kuwaiti
discussed . President Assad confirmed
delegation asserted their intent to
that reformations adopted by Syria
develop new investments and to
mainly on economic level shall improve
profit from the developed and suitable
investment climate in general and
investment climate .
shall attract more new investments .
His Excellency president Bashar Al
Assad met on 19 th of May 2011, the
٢٠١٠ | ‫« | ﺗﺸﺮﻳﻦ ا�ول‬٤» ‫ | اﻟﻌﺪد‬4
delegation of the Kuwaiti Investors
Council headed by Mr. Mahmoud Al
Nouri. During the meeting Kuwaiti
investments in Syria and prospects of
81 Issue 6 July
2011
Mr. President appreciated Kuwaiti
Investors for the confidence they have
in Syrian Investment climate and for
their interest to keep on enforcing
fraternal relationships between Syria
and Kuwait by increasing investments
Investment in Syria
is in a well situation
k During last years, investment in Syria achieved a big success, in all sectors mainly in finance and banking
sectors, which contributed to financing projects, also in the field of mediation, insurance, stock markets,
education and private universities. We should not forget achievements in tourism and industry sectors, embodied
by the successful experience of industrial. cities and the strategic projects which supported national economy
and employed work force. With less successes in agriculture and agricultural industries. All those achievements
made investment and national economy a main target of conspiracy against leadership and People of Syria by
shaking confidence in components of national economy.
But conspirators forgot that Syria is strong by its national unity, and the insistence of its People on the strong
relationship between Syria citizens and their leader.
Syria surmounted the conspiracy and Syrian economy and investment remained in their well condition, and
applications for investment, profiting from advantages and privileges of investment laws , kept being submitted
to related entities and agencies as before. In addition to foreign “ friend“economic delegations from the north
and from the south west of Asia and from American continent ( Russia ,China, Korea and Venezuela,Italy,
Romania, Sweden Switzerland and Britain).
Those official and non - official delegations confirm interest in investing in Syria in all sectors as per agendas
and schedules asserting that they come to Syria with full confidence in it as a country and in its leader and
People, bearing in mind ideas and investment projects, to strengthen cooperation and to express the interest in
supporting Syria as faithful friends.
We should refer to the great interest by Arab and especially Gulf investors in investment in Syria.
Economic conditions are good in general and investment is in a well situation in particular. Syria is committed
to the initiative of redistribution of participation in economic and investment activities among real partners
and true friends. Here we recite the saying of his Excellency President Bashar Al Assad: “Syria is well“ and
our choice is to look forward to the future and to make it, instead of letting events make it.
Editor - in - Chief
2011 ‫)) تــمــوز‬6 (( ‫ العدد‬84