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Syria: Stretching the economic horizon

By Ghayth Armanazi

Tuesday, 22 September 2009 18:16

In the past few months Syria has enjoyed a considerable upswing in its fortunes. Until recently perceived as a pariah state, Syria is now a country courted by many, including a number of those who formerly advocated its isolation. Not only have France, the UK and even lately the US all come around to recognising the need to turn a new page in their relations with Damascus, but also Arab powers that had previously given Syria the cold-shoulder - notably Saudi Arabia - have now become actively engaged in regional fence-mending.

In tandem with this increasingly favourable political climate, Syria is gradually redefining its strategic economic horizons through the creation of bilateral and multilateral alliances within a new neighbourhood grouping of Turkey, Armenia and Azerbajian (as well as Greece and Iraq). A series of high-level exchange visits, the latest being Syrian President Bashar Assad's trip to Azerbaijan in July, have underlined Syria's energetic bid to become a regional hub effectively linking the Caspian, Black and Mediterranean seas with Arabia and the Gulf. This evolving economic community will have at its heart a collaboration on energy and transport and will require major investment in pipelines, roads, railways and ancillary areas of communication and trade.

Syria's ambitious programme of regional repositioning will necessitate a serious upgrade of domestic infrastructure if the country hopes to meet the demands of its new role as an economic hub. According to official figures, Syria will require $50 billion in investment to rehabilitate its infrastructure by the year 2015. In order to attract such resources, the government has introduced the concept of Public-Private Partnership (PPP), which aims to ally private finances and expertise with 'public' projects, into its economic blueprint for the future. This will require new legislation along with a marketing campaign highlighting the opportunities that Syria presents to leading international investors as it develops its long-term potential toward becoming a regional and intercontinental hub.

An international conference will be held in Damascus at the end of October to discuss the issues, benefits and challenges arising from PPP with respect to three specific sectors: energy, transport and housing. Organised by the British Syrian Society at the invitation of the Syrian Government, and under the patronage of President Assad himself, the conference will examine other countries' experiences with PPP schemes; meanwhile, Syrian ministers will be given the opportunity to promote the advantages of PPP as they apply to their own sectors. Leading international practitioners in the field of PPP will address the conference, as will senior representatives from foreign governments and public and private investment agencies.

Many problems still face Syria in a region where issues of security and conflict resolution - not least of which is the continuing impasse with Israel over Palestine and the occupation of the Golan Heights - remain vibrant. However, it can be said with much confidence that the economic potential of the country is assuming new dimensions.

Global Arab Network

By Ghayth Armanazi, Arab Media Watch adviser and executive director of the British Syrian Society, this article appeared in The Diplomat magazine