Damascus – The government of Syria recently approved a plan that forecasts public investment of US$ 45 billion over the next five years, said on Tuesday (30) the country’s deputy prime minister for Economic Affairs, Abdallah Dardari, at the Brazil-Syria Business Forum, in Damascus. Of the total, US$ 30 billion will be turned to the area of infrastructure, in enterprises like highways, railways, airports and generation of energy.
Dardari added that the program also forecasts investment in education, social protection, reduction of poverty, agricultural production and irrigation. "The plan is very close to the interests of Brazilian companies," he said to an audience of businessmen, diplomats and representatives of both governments. The idea is for companies from Brazil to make use of the business opportunities created by the plan.
The visit to Damascus is the first phase of the trade delegation to the Middle East, organized by the Ministry of Development, Industry and Foreign Trade, and led by minister Miguel Jorge. "There are possibilities for great partnerships between [Brazilian and Syrian] businessmen," said Dardari.
He added that, apart from public investment, Syria hopes to attract US$ 50 billion in private investment, national and foreign, in coming years.
Free trade
Jorge pointed out that more business may be generated with the establishment of a free trade agreement between Syria and the Mercosur. The theme was discussed during the visit of Syrian president Bashar Al Assad to Brazil, in July. The Brazilian minister pointed out that a framework agreement, to officially start negotiations, should be signed on December 16th. He also said that the intention is to close negotiations in six months.
Dardari said to ANBA that he finds it possible to complete the agreement within schedule, as there are good political and cultural relations between both sides, and the free trade agreement between the Mercosur and Egypt was signed in just nine months after the start of negotiations. He added that there should be no resistance of the Syrian private sector due to competition with blocks from South America.
"We opened our economy to Arab, Turkish and Iranian products and noticed that we may compete. We see no problem in opening the market [to the Mercosur] if the markets there are also open," said the deputy prime minister. In the same line, Jorge pointed out that Brazil is prepared to "greatly expand" imports from Syria.
According to the president at the Arab Brazilian Chamber of Commerce, Salim Taufic Schahin, Brazilian exports to Syria should reach US$ 500 million this year, whereas imports of products from Syria should total just US$ 5 million.
"The [free trade] agreement should establish opportunities to greatly expand [the trade balance]," said Jorge. "Syria will have privileged access to the markets in the Mercosur," added the ambassador of Brazil to Damascus, Edgard Casciano.
Schahin added that the governments of both countries are defining the routes for greater bilateral economic relations, and businessmen now need to do their part "to follow this route". Despite the growing trade in recent years, he pointed out that "there is no news" regarding reciprocal investment and that public-private partnerships in the area of infrastructure may be a way to generate that. "We must seek opportunities for business cooperation," he said.
The theme was discussed earlier in a meeting between Jorge, Schahin and Casciano with the Syrian president. Schahin added that Assad is interested in strengthening relations with Brazil in several areas and that Syria may serve as a route for Brazil to reach other countries in the Middle East, especially Iraq. "There are many opportunities in the area of infrastructure and president [Assad] would like Brazilian companies to bring their know-how, technology and financing. In the agricultural sector too," he added.
Another topic discussed with Assad, according to Jorge, was the elimination of the need for visas between both countries, starting with businessmen.
Council
At the seminar, the minutes establishing the Brazil-Syria Business Council were also signed. On the Brazilian side, the council will be presided by Schahin, and on the Syrian side, by Tarif Akhras. Akhras recalled that, in April 2011, there will be a Mercosur-Syria Business Council.
After the seminar, there were business roundtables between businesses from both countries. Around 70 Brazilian companies are in the ministry’s delegation, and 130 Syrian enterprises participated in the event.
On Monday night, Dardari offered a dinner to the Brazilian delegation at Khan Asad Pacha, a hostel opened in 1749 by the Ottoman governor of Damascus, Asad Al Azem. The special lighting, music, spinning dervishes and folk presentations granted the event a One Thousand and One Nights ambience. The Brazilian delegation should travel to Kuwait on Tuesday. It should then head to Qatar, Saudi Arabia and Abu Dhabi, in the United Arab Emirates.
*Translated by Mark Ament