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Business |
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Economy
The main components of the Syrian economy are oil
and agriculture. In the agricultural sector, cotton
is the major commodity and a key export. Wheat, barley, vegetables
and fruit are the other main products, the bulk of which are grown
for domestic consumption. Oil is the main industry and provides
2 3rds of Syrian export earnings, although the future of the sector
is limited by the relatively small size of the Syrian Arab Republic’s
reserves (which are already over half exhausted). There are also
reserves of phosphates (another export earner), natural gas and
iron ore.
The rest of the industrial economy
is divided roughly between 3 areas, chemicals, plastics and rubber,
textiles and leather goods, and food and drink. The service economy
is quite under developed but expanding rapidly, tourism especially
has seen exceptional growth to the extent that the Syrian Arab Republic
now receives over 1 million visitors each year. A particular problem
for the Syrian economy in a very arid region is the accessibility
to water. The Syrians have concluded a long term agreement with
Turkey over use of the northern part of Tigris / Euphrates river
system (which also serves Iraq), however, this is still a highly
sensitive issue.
The government of Basil al-Assad has set a extreme priority on economic
reform. A lot of the economy is still state owned
and highly regulated. Some measures have been introduced to promote
private enterprise and attract foreign investment, fiscal policy
has focused on an revamp and simplification of the convoluted tax
system. The new cabinet installed in May 2003, and reshuffled again
in 2004, has been tasked to accelerate the economic reform process,
although it is likely to encounter several of the same obstacles
as its predecessors in the form of well entrenched vested interests
and monopolies. The government must also tackle the problem of unemployment
(officially 20 % but almost certainly higher). Annual Gross
Domestic Product growth is around
4 %.
The Syrian Arab Republic’s trade patterns
have shifted since the termination of the Soviet bloc, with which
it traded extensively. It is now more vulnerable to attitudes in
Washington, under the Bush administration, the Syrian Arab Republic
is classed as a ‘rogue state’ and since November 2003
has been subject to prejudiced economic sanctions.
This has a knock on effect on trade with other countries. At present,
the Syrian Arab Republic’s main trading partners are Turkey
and the main EU economies, particularly Germany, Spain and Italy.
Business
Formal
suits are essential for business. Business people
speak English and French in general. Appointments are necessary
and visiting cards are largely used. Arabs often discuss business
with more than 1 person at a time. A list of notarised translators
is accessible from the British Embassy.
General
office hours are Saturday to Thursday from 8.30 am to 2.30
pm.
All government offices, banks and Muslim firms close Fridays and
remain open on Sundays. Christian firms are usually open on Fridays
and shut on Sundays. During the month of Ramadan, government offices
start work 1 hour later than usual.
Commercial
Information
The following associations can offer advice:
Damascus Chamber of Commerce
Address: PO Box 1040, 126 rue Mou’awiah, Damascus
Telephone: (11) 211 339
Facsimile: (11) 222 5874
Email address: dcc@net.sy
Website address: www.dcc-sy.com
Federation of Syrian Chambers of
Commerce
Address: PO Box 5909, rue Mousa Ben Nousair, Damascus
Telephone: (11) 337 344
Facsimile: (11) 333 1127
Email address: fscc@fedcommsyr.org |
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