docAhmad Mouhammad Diab Issam Fouda Abdul Kareem Khaleel Dr
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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 Tel: +963114410448/ 4412039 – www.investinsyria.org [email protected] Investment map on the website www.syriainvestmentmap.org – Annual Subscription Fees: SYP 5000 www.investinsyria.org International Subscription: € 100 Price: SYP 50 [email protected] 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 [email protected] Administrative reformation 68 65 74 AGENCY INVEST MENT SYRI AN www.syriainvestmentmap.org ﺱ. ﻝ/٥٠٠٠/ ﺍﻻﺷﺘﺮﺍﻙ ﺍﻟﺴﻨﻮﻱ w 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. ΔϳΩΎμΘϗϻϡϮϠόϟΔϴόϤΟ ƮºȈƷ ƢŹǁƗńƛƆȏȂǏȁ ƩơǂǨdzơȃǂůǺǷǶǯ ÏÍ-ÎÍȅǃơȂȇƾǠƥȄǴǟ)DZƢǸǯȂƦdzơńƛDzƷƢLjdzơǺǷƾƬǸȈǧňƢưdzơǖŬơƢǷƗ ƨºǴƷǁǺºǷǃǂǐƬź) ƨȈǫƿȐdzơȁƢŹǁƗśƥƢǸȈǧ (%ÖÍŅơȂƷǀȈǨǼƬdzơƨƦLjǻ) ƆƢƦȇǂǬƫDŽƴǼŭơƾȇƾŪơǪȇǂǘdzơȄǴǟƽƢǸƬǟȏơǺǰŻ 73 Issue 6 July 2011 .(ǁȏȁƽǹȂȈǴǷ ÐÍÍƣǁƢǬƫǾƬǨǴǰƫȁǶǯ ÖÕ ǾdzȂǗǦǐǼdzơńƛƤǴƷ-ƨȈǫƿȐdzơ ƨȇǁȂLJ ǩƢǧȉƩƢƷǂƬǬǷ -ʼnǃƘƫǵƗƨǷǃƗ :ƨȈŭƢǠdzơƨȈdzƢŭơƨǷǃȋơ ƨdzƢƸƬLJơƾǯƘƫȁ .(ƧƾƸƬŭơƩƢȇȏȂdzơ) ƨȈdzƢũƗǂdzơǺȇǂǟĿƨǫȂƦLjǷŚǣƩơǁƢȈĔƢƥǒǠƦdzơƘƳƢǨƫ ƨȈdzƢƬƬŭơ ǩơȂLJȋơƩơǁƢNjƛǶǣǁ 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
