Tiffany Vidonish, Feng Wang, Austin Windsor, Emily Waugh

Over the past few years, the overall economy of Syria has been slowly growing. In 2007, the GDP was 90.37 billion dollars.

The GDP growth rate was 3.3 percent and they have an inflation rate of 5 percent.

The total labor force in the country is 5.12 million workers.

Syria has an unemployment rate of about 30 percent.

The government’s goal is to create a 7 percent growth rate to tackle the country’s poverty and unemployment levels.

Syria needs 12 million dollars in investments each year and needs to create 250,000 jobs a year to guarantee the 7 percent growth rate.

As President, he has allowed more freedoms in the areas of expression and press.

One of his goals as President is to modernize the economy which previously had been mostly government controlled and heavily reliant on oil production.

The United States currently has sanctions imposed on Syria by former President George W. Bush.

The most comprehensive sanction called the Syria Accountability Act (SAA) of 2004 prohibits the export of most goods containing more than 10 percent of United States manufactured component parts to Syria.

The United States Patriot Act was levied specifically against the commercial bank of Syria in 2006.

The first sanctions imposed in 2004 were mainly because of Damascus’ alleged support of terrorists groups Hezbollah and Hamas.

The sanctions were also imposed due to Syria’s resistance to Israel and from them occupying the Golan Heights.

Syria is also suspected of being involved in the assassination of the Lebanon Prime Minister in 2005.

Due to this event, the United States removed its ambassador in Syria.

With its recent move out of liberalization, Syria has been compared to countries like the Czech Republic, Poland, and Hungary.

The Czech Republic’s communist government came to an end in 1989, and there has been a constant upward trend in the economy since.

The three sectors that relate to the Czech Republic GDP are industry, services, and agriculture.

Unlike Syria, the Czech government encourages privatization at a maximum so their private sector accounts for 80 percent of their GDP.

The main countries leading in foreign investments in the Czech Republic are Germany, Holland, and the United States.

Since 1998, 14 foreign banks and 9 foreign branches of banks have been opened in the Czech Republic.

In the Republic, Citibank is the most prominent foreign bank.

They now fund 10 private commercial banks with restrictions that allow Syrians to only transfer up to 1000 dollars in foreign currency each month.

With the liberalization of private insurance companies and other financial services since 2005, there have been declarations that this capital will transform Syria from “a socialist to a social market economy”.

While the ownership of foreign investors in banks has grown from 49 to 60 percent, there has been controversy over the amount that an investor must have to own the majority of the bank.

This act may result in more banks and more investors being interested in entering the Syrian banking sector.

When Bashar al-Assad became president of Syria in 2000, new economic reforms began, trying to transform the old planned economy into a new social market economy.

This will represent a dramatic turnaround in short period of time

Basically, this new social market is modernizing Syria’s economy, making it more market.

The disruptive drought during these years brought about tremendous loss for Syria’s farmer, and also their GDP.

In August, 2009, Syria’s cabinet agreed with a draft law that would provide tax incentives for companies if they invest in the undeveloped eastern region.

Besides, this draft law made clear that investment projects located in the eastern region of Syria would exempt taxes and fees for 10 years.

Damascus Securities Exchange was opened in March 2009. More than 15 companies were listed by the end of 2009.

Syria regards it as a key milestone in the President’s pledge to transform the state-dominated economy into a socialist market economy.

Though the state-owned insurance company continues to hold the majority share with 41% of the market, the share has declined steadily

In February, 2009, the Syrian government set up a new minimum price requirements for clothing imports, reduced fuel and electricity prices, and raised tariffs on imported cotton.

Tariffs have been reduced several times in recent years; the average tariff fell to 14.5%, down from 20%.

In February, 2009, the EU’s external relations commissioner told reporters that the long-stalled agreement with Syria stands a good chance of being passed by the middle of this year.

Syria took steps to contact with EU from other countries.

Turkey: Syria already signed a free-trade agreement with Turkey as a way of improving investor relations and gaining broader access to the EU market in 2007.

Iran: They established a free-trade zone and have used its relationship with the embattled country to boost its profile with the West as a possible go-between in the nuclear dispute.

In financial industry, Syria is opening to foreign banking investors currently.

Reported by Yahoo news, Syria is offering foreign investors a majority stake in its private banks.

This policy will definitely decrease the obstacle for foreigners whose interest is in investing Syria’s private banks.

Syria continues to plan on expanding irrigation facilities, in particularly in the western part of the country and along the Mediterranean coast.

There are also efforts to coordinate action with international organizations to provide relief for farmers and to preserve livestock herds.

This investment will have significant influence on the production of fruits and vegetables, which benefit to agricultural field.

Syria is a country that has unique historic and cultural legacy.

UNESCO’s World Heritage List already consists of 6 sites in Syria, and other meaningful sites are underway.

President Bashar implemented a new program for tourism: By the end of 2020, tourism is expected to contribute some $10 billion to Syrian GDP and provide around a million new jobs.

Syria plans to join WTO by the end of 2010.

It also plans to develop new

electricity utilities based on solar power and other alternative energies.

Investors who are interested in producing and distributing electricity are welcomed.

With the development of economic growth, more problems emerge, such as inflation and budget constraints.

Syria continues to attract healthy levels of investment from the Gulf and elsewhere during the global economic slowdown.

These investments will certainly support the economic reform, increase tax revenue, and broaden the government’s income base.

Syria must shift away from oil. The government must also develop and promote industries such as tourism to achieve stronger economic growth in the medium to long term.

Syria must also deal well with corruption, and take a deliberate approach to modernizing its economy.

Syria continues to attract healthy levels of investment from the Gulf and elsewhere during the global economic slowdown.

Investment from foreigners will support the economic reform, increase tax revenue, and broaden the government’s income base.

Syria must also shift away from oil. The government must also develop and promote the tourism industry to achieve stronger economic growth in the long run/

Syria must deal well with corruption, and take a deliberate approach to modernizing its economy.

Malaysia is interested in creating commercial relations by increasing the volume of trade exchange.

They already have large investment projects in the works.

The Philippines believe working with Syria will enhance their economic and investment relations.

They are working on a joint partnership with Syria to manufacture car parts.

Indonesia is looking to boost trade with Syria.

Turkey is looking into investing in the Eastern and Northern areas.

In addition to the 10 private banks already opened, 5 more have applied to open and are waiting on the green light.

Iranian projects range from car manufacturing and a proposed $2 billion industrial zone for Iranian businesses to plans to overhaul urban transportation systems.

Reason: American exports to Syria have been banned.

Iran has invested over $3 billion and foresee billions more in the future.

U.S. International Investment Group is comprising 5 projects worth $40 million.

These include: Food Engineering and chemical industries Fodder factory; creating 700 job

opportunities.

U.S. needs to lift sanctions on Syria to create a better relationship for investors.

Lifting the sanctions would allow for more goods to be imported into Syria; more commerce.

Allow travelling to Syria and may help tourism.

Work on conflict between Syria and Israel dealing with Golan Heights.

Involve more investors to help Syria emerge as an influential nation.

Try to limit influence from potentially harmful countries like Iran.

U.S. should look into getting a branch of Citibank into Syria to not only help their economy, but ours as well.

Have these new banks be involved to an extent in Syria’s government securities and foreign exchange like in the Czech Republic.

Elect a new ambassador to reside in Syria.

Investing in Syria would be useful because:

They can own a majority share in banks.

U.S. investors can earn a profit due to the Syrian governments goal to improve the economy.

By the U.S. investing, more companies will be listed on the Damascus Securities Exchange

A lift in the sanctions will allow Americans to be able to invest in these companies, improve Syrian’s economy and give Americans a return on their investments.