Transcript syrian german business council (sgbc)

SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
INVESTMENT CLIMATE
AND REFORMS IN SYRIA
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
SYRIA
Population: 21 million
Area: 185,180 km2
GDP: 46 billion US $
GDP Growth rate: 5,8%
GDP per capita: 2190 $
Strategic location at the crossroads
of Europe and the Middle East, between
Turkey, Irak, Jordan and Saudi-Arabia
Rich cultural heritage
Religious diversity
(Sunni Muslim 72%; Alawi Muslim 14%;
Christian 12%; Shia Muslim and Druze
minorities)
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
DEVELOPMENT OF THE
SYRIAN ECONOMY
AND INVESTMENT CLIMATE
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
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The gradual liberalisation of the centrally planned economy
under deputy prime minister for economic affairs, Abdullah alDardari, has caused a boom of the private sector (in 2008, 65%
of GDP generated by private companies)
The10th 5 year-plan for 2006-2010 comprises important reforms
for creating a social market economy which is explicitly oriented
on the German concept of “Soziale Marktwirtschaft”
→ already numerous positive results
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For the 11th 5 year plan, the government plans to increase its
spending to reach $50 billion in various areas related to
developing the Syrian infrastructure, developing highways,
seaports, dry ports, public services.... etc.
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SYRIAN GERMAN BUSINESS
COUNCIL (SGBC)
For the 11th 5 year plan, the government plans to 
increase its spending to reach $50 billion in various
areas related to developing the Syrian infrastructure,
developing highways, seaports, dry ports, public
services.... etc.
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
Most important results of the Syrian reform process:
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Fiscal reforms (competitive ratios, tax incentives(
Standardization of exchange rates and pegging of the
Syrian Pound to the Special Drawing Rights (SDR) of
the IMF
Reduction of custom duties (to levels required by the
EU Association Agreement)
Integration into GAFTA (Greater Arab Free Trade Area)
Issuing of a Competition Law and Investement Laws
Launching of the Damascene stock exchange in
03/2009
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
Improvement of the logistics sector
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Involvement of private investors in the management of Syria’s two
main ports (ICTSI / Philippines in Tartous, CMA-CGM / France in
Latakia).
World Bank logistics ranking 2010(based on customs clearance;
quality of infrastructure; ease of arranging international shipments;
competence of officials; tracking and tracing and timeliness):
→ Syria moved from position 80 (in 2007) to 55 (out of 155
countries)
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Starting 05/2010 weekly RO/PAX-connection Venezia -Tartous (SY) –
Alexandria (EG) for goods and passengers by Venezia Logistics;
Venezia – Tartous 68h
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
Banking sector
To meet the new requirements of an open market economy, and the
need for competitive business environment at both micro & macro
levels, the Syrian government adopted measures to improve the
financial sector and to attract more inflows of FDI by:
A. Licensing private banks (including Islamic banks), private
insurance companies and financial services companies in
2000; since 2010, foreign operators can acquire up to 60% of
Syrian banks (before 49%).
B. Reviving the Monetary Council.
C. Modernizing public banks to enable competition in the
banking sector.
D. Establishing and launching the Damascus stock exchange in
March 2009.
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
Energy sector
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Energy consumption +8% / year due to ecomonic development
and population growth
Need for more power stations and alternative energy sources
→ Opening up of the sector to foreign companies
Two major new power projects:
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450 mw extension to the Jandar power station (built by Mitsubishi Heavy
Industries of Japan) in central Syria, bringing its total capacity to 1,150 mw;
contract value around €280 million.
600 mw-extension to the Zara Power Plant near Homs for € 400million.
Wind farm project (BOO or BOT) near Palmyra with capacity
of 50-100 mw.
Objective: to generate up to 2,500 mw of power from wind by
2030.
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
Business Environment - Laws & Legislations
Issued Laws:
1. Anti dumping law.
4. Investment decree no 8.
13. Decree of exemption certificates of
origin belonging to the national origin of
goods imported from the Greater Arab
Free
Trade Area
of
consulate
ratification.
5. Investment Agency establishing decree
no 9.
14. Establishing Exports Development and
Promotion Agency law.
6. Islamic banks decree.
15. Digital Signature law, law on Electronic
Communications.
2. Domestic production protection law.
3. Intellectual property law.
7. Insurance and reinsurance companies
decree.
16. Competition and Anti-Monopoly law.
8. Money laundering law.
17. Companies law.
9. Stock exchange board creation decree.
18. Food law.
10. Trade law.
19. Registration for the branches and
agents of foreign companies law.
11. Free zones
decrees.
and
industrial
cities
20. Real estate development law.
12. Provisions of the confidentiality banking
profession decree.
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
Business Environment - Laws & Legislations
Laws and legislations to be issued in the near future:
1. Patent law.
2. Electronic trade law.
3. Establishing fund for merchants retirement.
4. Improvement of Export / Import Procedures.
5. Facilitating SME’s licensing law.
6. Enforcement of Contracts and Property Rights.
7. Training of Commercial Lawyers and Establishment of Commercial Courts.
8. Reform of commercial Courts.
9. Anti fraud law.
10. Labor law.
11. Public private partnership law.
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Holdings
Establishing a number of Holdings in Syria:
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Cham Holding
Souria Holding
Syrian-Qatari Holding Company
Construction Products Holding Company (CPC)
Bahraini-Syrian Holding Company (unnamed until now)
Kuwaiti United Company for Investment
Kuwaiti Syrian Holding Company
Castle Invest Holding
Al-Mashrek-Fund
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
Bilateral Free Trade Agreements and other Trade Protocols
Eastern EU
EU
Russia
Turkey
Iran
Arab World
Malaysia
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
FOREIGN INVESTMENT IN
SYRIA
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
Foreign Direct Investment
 50% of total FDI inflow to Syria has been attracted to
tourism, 17% to oil exploration/production, and 13% to
banking
 Investors
mainly from Gulf countries and Turkey
(industrial projects in and around Aleppo)
 German investors: Henkel, Knauf
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
Investment promotion
Decrees No. 8 & 9 relative to investment have created an
investment-friendly legislative and administrative
framework, by way of the following reforms :
1. Allowing foreign investors to transfer their profits
abroad.
2. Giving foreign investors the right to own the land
and means of production as needed during the
entire period of operation.
3. Tax exemptions for project requirements including
non-tourism and public transport projects.
4. Shifting all tax concessions to decree no 51
(dynamic tax system).
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
Investment promotion
Tax and fiscal reforms
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Tax and fiscal reforms spurred growth of the private
sector investments (34 new laws and decrees since
2003).
Decree No 51 of 2006 supported the business sector
in general: maximum income tax was reduced from
about 90% to 63% and then from 35% to reach 28%:
o Competitive and low tax ratios 0 – 28%
(individuals and companies)
o Tax incentives
o Dynamic tax deduction
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
Investment promotion
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Legislative Decree No. 9 for the Year 2000 delineated
the role and tasks of the Syrian Investment Agency
and its independence, and introduced the One-StopShop at the Investment Promotion Commission.
Launch of an investment map on 20/12/2008.
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
Investment promotion
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Decree No. 57 of 2004 concerning the establishment of
industrial cities
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Consist of industrial and residential zones and offer all professional,
educational, cultural and social infrastructures / services
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Damascus / Adra www.a-ic.org/introduction.html
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Aleppo www.aic.org.sy
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Homs http://eng.ic-homs.sy/
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Deir Zzour
Offer several incentives such as reduced charges for electricity
One-stop-shop on-site where the investor can execute all
administrative procedures
Establishment of Free Zones (see http://www.freezones-sy.com/english/)
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Renewable Energies and Electricity
in Syria
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Renewable Energies and Electricity in Syria
• Syria has a considerable potential for the use of renewable
energies, specially in solar and wind energy.
• In 2003 the government created the National Energy Research
Center (NERC) to support research in the field of energy and to
assist the government propose renewable energy projects. The
center has been conducting researches and propsing mid-sized
projects to the government in coordination with UNDP, GTZ, JIACA
and other active international bodies.
• The state policy opened up to a gradual involvement of private
investors in the energy sector. There are several power houses in
construction by foreign consortiums, which will also run them
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Renewable Energies and Electricity in Syria
• Syria has an electricity agreement with Jordan, Libanon and Irak. A
connection between Syria and Turkey to complete the supply is in
planning stage. In the long run Syria will play an important role also
in supplying the region with electricity
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
SYRIAN GERMAN BUSINESS COUNCIL
(SGBC)
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
The Syrian German Business Council
• is a non-profit organization;
• was created in December 2009 on the basis of decree no.
3023, issued by the Syrian Minister of Economy and Trade;
• was launched in Damascus on the 23rd of February
2010 in the presence of Dr. Bernd Pfaffenbach, State
Secretary at the German Federal Ministry of Economics
&Technology, Dr. Abdullah Al-Dardari, Syrian Deputy Prime
Minister for Economic Affairs, as well as prominent Syrian
and German Businessmen and high-ranking officials;
• strives to promote the economic relations between the
two countries;
• offers exclusive services to its members.
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
SGBC services
1. Business development services
• Customized identification of suppliers and potential customers
• Information research in order to evaluate your products’ or
services' potential in the Syrian or German market and to
familiarize with the market’s business practices
• Support in creating target-specific marketing material
• Assistance in preparing your participation in international trade
fairs
• Support in finding financial resources and joint venture partners
for investment projects
• Establishing contacts with Chambers of Commerce, Business
Associations and Professional Organizations in Germany and
Syria
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
SGBC services
2. Networking services
• You have innovative products or services with good market
potential, but that need the backing of government bodies and/or
a change in legislation, mentality, habits? We will get you in
touch with the right persons to talk to!
• You are planning to attend an exhibition in or to do a business
trip to Germany or Syria? We will contact potential business
partners and organize meetings with them!
• You are looking for the right partner to realize a project or do
business with? As SGBC member, the high-level business
delegations, meetings and seminars we host will give you plenty
of opportunity for efficient and effective networking!
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
SGBC services
3. Activities and events
• For its members, the SGBC organizes at least two business
delegations per year to Germany.
• For every German business delegation to Syria, the SGBC
organizes b2b meetings and an official reception and/or dinner.
• With the aim of fostering economic cooperation between
Germany and Syria, the SGBC organizes in cooperation with
German organizations (GTZ, KfW, German Ministry of Economy,
Ghorfa, Numov, DIHK, BDI etc.) conferences and seminars.
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
Our services – exclusive for SGBC members
The SGBC is your privileged partner for developing business
in Germany and Syria. As SGBC member, you are entitled to
a panoply of specialized services tailored to meet your
individual needs. Are you interested? Then get in touch with
us – we would be glad to discuss with you in which way we
can support you!
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SYRIAN GERMAN BUSINESS COUNCIL (SGBC)
THANK YOU FOR YOUR ATTENTION
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