UAE interested in Syrian banking sector

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The UAE is keen to invest in Syria's untapped and promising banking sector, said Abdul Aziz Al Ghurair, President of the UAE Federal National Council.

He was speaking after leading a delegation on an official visit to the country at the invitation of the Syrian parliament.

He said the UAE had the largest banking industry in the Arab World – but it has not yet explored the financial sector in Syria.

"We would like to benefit from such an opportunity," he said.

"We invite investors to explore this sector and help push forward the Syrian economy and meet the needs of the country's companies and businessmen.

"We call on Syria to expedite procedures as the formalities are the main hurdle for UAE investors wishing to go to Syria," he said.

During talks with Syrian President Bashar Al Assad, Al Ghurair discussed issues hampering efforts by UAE investors to explore the Syrian market.

"The president showed an interest in hearing about these problems and promised to find prompt solutions. He will personally deal with the UAE Government on these issues," he said.

Al Assad welcomed the setting up of small- and medium-size enterprises (SMEs) by both sides. "UAE and Syrian investors are invited to set up SMEs in one another's countries," he said.

"Our relations with Syria are not based only on giant projects but on SMEs as well. We should grab the opportunity of having close ties and an open-door policy from the Syrian side and explore the promising Syrian market," said Al Ghurair.

The two countries are to promote the establishment of SMEs at an investment conference to be held in Damascus by the UAE-Syria Joint Committee on November 10. The event will be preceded by a meeting between Sultan Al Mansouri, UAE's Minister of Economy, and Dr Mohammed Al Husain, Syria's Finance Minister.

"We are working to execute the close relations and visions of the two countries' leaders and make them a reality," said Al Ghurair.

The issue of recruiting Syrians to work in the UAE was discussed. The president was briefed on obstacles that delay this process, which include a ban on advertising of vacancies in Syrian newspapers and restrictions that mean the UAE Government can recruit Syrians only through the embassy in Abu Dhabi.

The president promised to look into these problems.

"We would like to have more Syrians in the UAE as there are currently only 100,000.

"President Al Assad showed keen interest in increasing the number of Syrians in the UAE as they would be able to eventually return to their home country with the experience needed for development," he said.

"The president, who listened to the issues raised by the FNC delegation for an hour-and-a-half, said he would follow up our remarks about property inheritance as this is a major concern among UAE nationals who own or are interested in owning properties in Syria," said Al Ghurair.

Investment in the energy and water sectors emerged as the top priority of the Syrian Government during a meeting between the delegation and Naji Otri, the Syrian Prime Minister.

"We have issued a law allowing the private sector to invest in these fields and a conference on partnership with the government will be held on October 30," said Otri. "We are also seeking to attract investments of other Arab government funds and their private sectors in these sectors."

Syria is planning a $2 billion (Dh7.3bn) project at Dijla to pump 1.25 billion cubic metres of water to irrigate 150,000 acres of wasteland. Turkey and Iraq have signed an agreement to use the water. The project will start by the year end, said Otri. Another project will involve carrying water from the Euphrates river to Homos and Hamah. And third involves building a dam on the Euphrates to produce 1,000MW of electricity.

"Syria is facing a big challenge as the population doubles every 20 years.

"These projects are necessary just to meet the current needs. Governments and the private sector in other countries are invited to invest in these sectors," said Otri.

Syria to adopt open-sky policy
Syria will soon adopt an open-sky policy to help boost trade and the movement of passengers to and from the UAE, according to Abdul Aziz Al Ghurair, President of the UAE Federal National Council.

He received a promise from Syrian President Bashar Al Assad that such a policy would be implemented to allow quick and low-cost air transport.

Syrian Prime Minister Naji Otri assured Al Ghurair that such a policy was being studied and agreements, to be signed by the transport authorities of the two countries, were under consideration.

"Although Syria will soon have 14 aircraft in addition to its existing fleet of five, we still need to adopt an open-sky policy with the UAE to boost traffic movement between the two countries," prime minister Otri said.

"Besides the international airport at Damascus, we have airports at Aleppo, Latacia, Al Hasaka and Al Kameshli, which are ready to receive passenger and cargo flights.

"We need the UAE to operate flights to cities other than Damscus to boost business in those areas," he said.

By Eman Al Baik

© Emirates Business 24/7 2009