Damascus – Syria imported the equivalent of US$ 107.6 million from Brazil in the first half of 2009, the main products shipped being sugar and coffee. Two local businessmen answer to a significant share of that flow, and if it is left up to them, the volume tends to grow.
Tarif Akhras, from Homs, and Najib Assaf, from Damascus, are at the head of large entrepreneurial groups that have much in common. Both are family companies, operate in different areas, such as trade of commodities, agroindustry, logistics, real estate and banking, and have grown strongly over the last 10 years, as a consequence of the country’s economic opening. They compete directly among themselves in various sectors.
“We believe in diversification, it provides a foundation to our group and to Syria as well. In this period of transition, the country needs to develop in many different directions. We do not want to be circling around ourselves, operating in just one sector, because there is a potential in several activities,” said Akhras, the owner of a conglomerate that bears his name. “The problem is that in the 1960s, the government nationalized the economy and the country was left ‘in the freezer’ for over 30 years, up until 1999,” added Assaf, who greets people with five business cards, one for each of his companies.
Both underscored that in addition to the Syrian market, their groups also operate in Iraq, Jordan and Lebanon. Akhras also said that Syria has signed an agreement to create a free trade zone with Turkey, which should entail further opening of markets for their companies.
Another similarity between them is the direct link with Brazil in a significant share of their businesses. Assaf owns a 61% share in a sugar refinery in Homs, whose other partners are Cargill, Wellington Marketing, a Dubai-based company, and some local investors. Early on, the Brazilian Crystalsev had a 10% share, which Assaf then purchased. All of the raw sugar used, however, still comes from Brazil.
Along the same lines, Akhras is finishing the construction of its own refinery, which should start operating in November, also using raw material from Brazil. “We have had business with Brazil for a long time, especially in the sugar industry, and two years ago we begun importing equipment for the plant,” he claimed. The factories of both Syrian businessmen were built with machinery and equipment imported from Brazil.
As both groups operate in several different areas, however, there are other business deals with Brazil, some of which are still at an early stage. Akhras, for instance, is starting to import frozen and fresh beef, has already purchased live cattle to sell to the Lebanese market, and is now preparing to bring animals to Syria. This is so because the group is developing a farm in the Homs region that should include a slaughterhouse.
“We seek to promote business with Brazil because we believe that there is much potential,” said Akhras. The businessman also operates in other areas of agribusiness, such as dairy. He owns a soy crushing machine, the material for which comes mostly from the United States, and a mill.
Assaf, in turn, stated that he is willing to study new deals with Brazilian companies, except for imports of sugar refining equipment. According to him, the quality and technology of the machinery used at his plant are lower than he expected, and there are more advanced products available in the international market. “There is no point in buying a cheaper product if it malfunctions after six months. In the long run, it ends up being more expensive,” he said.
Investment
He stated, however, that he is looking into new projects in areas such as energy generation and the steel industry, and would like to discuss partnerships with Brazilian companies. One of his ideas is to manufacture steel in Syria using iron ore from Brazil. “We are ready to negotiate,” he said. Assaf showed interest in the Brazilian ethanol industry and asked many questions about the subject to ANBA.
Akhras, who also works in the civil construction industry, is building a hotel in Homs that was designed by a Brazilian architectural firm. Last year, in partnership with that same firm, he nearly launched a real estate enterprise in Brazil, but as the crisis hindered financing, the project was suspended.
“But we are contemplating investing in the near future, as soon as we find something with potential [in real estate],” said Akhras. “I love Brazil and I am always seeking opportunities to develop business deals with local companies,” he added.
*Translated by Gabriel Pomerancblum
