1. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Investment Climate
and Reforms in Syria

2. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
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)

3. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Structure of Syrian GDP

4. And investment climate
SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Development of the
Syrian economy
And investment climate

5. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
The gradual liberalisation of the centrally planned economy under deputy prime minister for economic affairs, Abdullah al- Dardari, has caused a boom of the private sector (in 2008, 65% of GDP generated by private companies)
The10th 5 year-plan for comprises important reforms for creating a social market economy which is explicitly oriented on the German concept of “Soziale Marktwirtschaft”
→ already numerous positive results
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.

6. 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.

7. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Most important results of the Syrian reform process:
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

8. Improvement of the logistics sector
SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Improvement of the logistics sector
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 countries)
Starting 05/2010 weekly RO/PAX-connection Venezia -Tartous (SY) – Alexandria (EG) for goods and passengers by Venezia Logistics; Venezia – Tartous 68h

9. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
GDP Growth Rate
Average annual GPD growth of 5.2% between
Estimated GDP growth of 5.8 % for 2009.

10. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Inflation
Inflation during the period was relatively high, but in 2008 it increased sharply due to domestic and global conditions (drought, increase in food & fuel prices).
In 2009, figures show significant depreciation in inflation.

11. 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:
Licensing private banks (including Islamic banks), private insurance companies and financial services companies in ; since 2010, foreign operators can acquire up to 60% of Syrian banks (before 49%).
Reviving the Monetary Council.
Modernizing public banks to enable competition in the banking sector.
Establishing and launching the Damascus stock exchange in March 2009.

12. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Energy sector
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:
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 mw.
Objective: to generate up to 2,500 mw of power from wind by

13. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Business Environment - Laws & Legislations
Issued Laws:
Anti dumping law.
Decree of exemption certificates of origin belonging to the national origin of goods imported from the Greater Arab Free Trade Area of consulate ratification.
Domestic production protection law.
Intellectual property law.
Investment decree no 8.
Investment Agency establishing decree no 9.
Establishing Exports Development and Promotion Agency law.
Islamic banks decree.
Digital Signature law, law on Electronic Communications.
Insurance and reinsurance companies decree.
Competition and Anti-Monopoly law.
Money laundering law.
Companies law.
Stock exchange board creation decree.
Food law.
Trade law.
Registration for the branches and agents of foreign companies law.
Free zones and industrial cities decrees.
Real estate development law.
Provisions of the confidentiality banking profession decree.

14. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Business Environment - Laws & Legislations
Laws and legislations to be issued in the near future:
Patent law.
Electronic trade law.
Establishing fund for merchants retirement.
Improvement of Export / Import Procedures.
Facilitating SME’s licensing law.
Enforcement of Contracts and Property Rights.
Training of Commercial Lawyers and Establishment of Commercial Courts.
Reform of commercial Courts.
Anti fraud law.
Labor law.
Public private partnership law.

15. Holdings Establishing a number of Holdings in Syria: 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

16. Bilateral Free Trade Agreements and other Trade Protocols
SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Bilateral Free Trade Agreements and other Trade Protocols
Eastern EU
Russia
Turkey EU
Iran
Arab World
Malaysia

17. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Foreign Trade
(Billion USD)
2000 – 2009
Overall Syrian exports grew by nearly three times (3.2 times).
Overall Syrian imports grew by more than four times (4.7 times).

18. Syrian Exports 2008 (mainly agricultural / food products and textiles)
Arab Countries (especially Iraq) 40%
Others 12%
America 3%

19. Syrian Exports 2008 (in million USD)
SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Syrian Exports (in million USD)
Material
2005
2006
2007
2008
Growth rate
fuel
366
4604
4429
4773
9,2%
Animals & vegetables
710
693
641
1040
42%
Manufactured goods
360
394
1222
1529
62,1%
Manufactured materials
190
240
1270
1467
99,2%
Non- manufact. goods
2110
25534
761
978
-22,6%
Chemical materials 90
202
538
625
92,6%
Machines
260
382
519
586
117%
Raw non edible materials
299
332
-7,6%
Drinks and tobacco 60 67 69
110
23,3%
Total Exports
9.224
10.979
12.588
14.699
16,8%

20. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Syrian Imports 2008
Arab Countries 20%
Other Countries 16%
Asia18%
America 5%
EU Countries 25%
Eastern EU 17%

21. Syrian Imports 2008 (in million USD)
SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Syrian Imports (in million USD)
Material
2005
2006
2007
2008
Growth rate
Fuel
527
2688
3129
4906
110%
Animals & vegetables
1953
2321
2428
3216
18%
Manufactured goods
1814
2165
2450
2562
12%
Manufactured materials
1065
1284
1297
1704
17%
Non- manufactured goods
996
994
1236
1496
14%
Chemical materials
412
483
465
559
11%
Machines
199
204
202
200
0,1%
Raw non edible materials 72 82
117
17,3%
Drinks and tobacco
531
444
161 5
-95,6%
Total Imports
10.921
11.551
14.882
18.711
19,6%

22. Syrian-German Bilateral Economic relations

23. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Syrian-German Trade
German exports to and imports from Syria in Mrd. €

24. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Syrian German Trade

25. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Foreign investment In
Syria

26. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Foreign Direct Investment
FDI into Syria has significantly increased during the period

27. 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

28. 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 :
Allowing foreign investors to transfer their profits abroad.
Giving foreign investors the right to own the land and means of production as needed during the entire period of operation.
Tax exemptions for project requirements including non-tourism and public transport projects.
Shifting all tax concessions to decree no 51 (dynamic tax system).

29. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Investment promotion
Tax and fiscal reforms
Tax and fiscal reforms spurred growth of the private sector investments (34 new laws and decrees since ).
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%:
Competitive and low tax ratios 0 – 28% (individuals and companies)
Tax incentives
Dynamic tax deduction

30. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Investment promotion
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-Stop- Shop at the Investment Promotion Commission.
Launch of an investment map on 20/12/2008.

31. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Investment promotion
Decree No. 57 of 2004 concerning the establishment of industrial cities
Consist of industrial and residential zones and offer all professional, educational, cultural and social infrastructures / services
Damascus / Adra
Aleppo
Homs
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

32. Renewable Energies and Electricity in Syria

33. 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

34. 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

35. Investment opportunities
SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Investment opportunities
In Syria

36. Investment Opportunities
SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Investment Opportunities
Agriculture
Tourism
Technology & Communication
Education
Health
Oil & Minerals
Transportation
Finance & Banking
Industry
Target Sectors
Power Generation
§          Agriculture
§          Food Industry
§          Tourism
§          Electricity
§          Oil and Minerals
§          Textile Industry
§          Communication
§          Maritime, air, land and railway transport
§          Non-metal industry
§          Chemical Industry
§          Training field
§          Technology & educational
§          Metal Industry
§          Financial and banking field
§          Health

37. SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Planned Investments
The Syrian Government’s long term strategic goals for the period are:
GDP growth rate 9 % in average.
Unemployment rate 7 % in average (4 % in 2015 ).
Inflation rate less than 5 %.
Gradual reform of the economic sectors (increase the share of the manufacturing industry).
Continue sustainable economic growth and social equity (Distribution equity, living standard, health, education, science research).

38. Projected Investments 2009 - 2015
SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Projected Investments

39. Distribution of private investments 2009-2015
SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Distribution of private investments
(according to economic sectors)
Agriculture
Mining
Manufacturing
Electricity
Construction
Insurance & Finance
Trade &Tourism
Transportation

40. Syrian German business council
SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Syrian German business council
(sgbc)

41. 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 , issued by the Syrian Minister of Economy and Trade;
was launched in Damascus on the 23rd of February 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.

42. 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

43. 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!

44. 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.

45. 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!

46. Thank you for your attention
SYRIAN GERMAN BUSINESS COUNCIL (sgbc)
Thank you for your attention