Global Arab Network | Syria: Holding companies invest $ 6.22 billion in industrial and agricultural projects

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Syria: Holding companies invest $ 6.22 billion in industrial and agricultural projects

Global Arab Network - - Maha Karim

Monday, 16 August 2010 08:01

Syria (Damascus) – Ten companies' invest $ 6.22 billion in several large projects in Syria. State-run Syrian news agency reports that the openness and expansion of Syria's national economy called for large investments and projects in industry and agriculture, and since these endeavors require companies with large capitals, holding companies emerged in the Syrian economic scene and increased in numbers and capitals during recent years.

There are currently ten strong companies in Syria competing for the various investment projects proposed by the government:
-Syrian-Qatari Holding (SYP 250 billion capital).
-Cham Holding (SYP 18 billion capital).
- Kuwait Syrian Holding Company (SYP 10 billion capital).
-Syria Holding Company (SYP 4 billion capital).
-Mashreq Investment Fund (SYP 4 billion capital).
-Mawad al-Iimar (SYP 2.17 billion capital).
-Al-Ufuq Investments (SYP 1.25 billion capital).
-Al-Zaiim (SYP 1 billion capital).
-Castle Invest (SYP 1 billion capital).
-Insha Holding Company (SYP 1 billion capital).

The ten companies' combined capitals amounts to $ 6.2196 billion (SYP 292.4 billion.

A study conducted by the Syrian Economic Center underlined the various reasons that cause investors to establish holding companies, mainly their desire to unify their companies as a single entity, which entails presenting the smaller companies' budgets as a single merged capital in terms of accounting. The holding company will only manage the owned companies, without conducting any actual business or commercial transactions.

There is also a commercial side which is about earning more reputation by owning more companies and capitals, which in turn will facilitate the process of acquiring new projects, contracts and ownership of other companies through mergers and acquisitions.

A holding company is a big corporation that manages and controls other sub-companies, even those in a different field of specialization. Those sub-companies are called subsidiaries.

Holding companies might own companies in other countries, resulting in what is called a multinational corporation (MNC) or transnational corporation (TNC).
(SANA)

Global Arab Network

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Last Updated on Monday, 16 August 2010 08:04

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