The UAE is planning to make major investments in Syria, especially in free zones in the country. Syria is rebuilding its economy through foreign partnerships. It is happening as Syria and the UAE have entered a new stage in their relations when it comes to economic issues. According to officials, the two countries are working to implement agreements by turning them into tangible projects.
“We want to implement the ideas discussed and move from talks to real projects,” UAE Minister of State for Foreign Trade Thani Al-Zeyoudi said during the Syrian-UAE Investment Forum in Damascus, which the Syrian Investment Authority organized.
UAE to Invest in Syria’s Free Zones
One of the most interesting areas of cooperation between the UAE and Syria could be the latter’s free zones. In these zones, businesses usually find it easy to operate, invest in the local economy, and do other things. Al-Zeyoudi said that Syria and the UAE are discussing investments into such zones. He added they will reveal all details about the future plans in this field.
“In case there are positive outcomes, we will facilitate signing and implementation of projects, and there will be rapid developments in Syria, which we hope for,” the minister said. Therefore, there may be a number of projects implemented within the next few months. That will be the case if everything goes as planned.
The UAE has a history of investing in free zones that attract international investors thanks to the opportunity to enjoy foreign business ownership and simplified procedures. For Syria, such investments could help the country recover from the war. In addition, it could revive its trade, economic, and industrial sectors.
Big Investments Planned by UAE in Syria
As the UAE and Syria agreed to strengthen cooperation, many projects and memoranda of understanding have been signed. They relate to real estate construction, tourism, ports, energy resources, and other spheres.
Among the most prominent is the plan to make a $50 billion investment into Syria. It is believed that UAE company Eagle Hills plans to invest such an amount in major projects in Syria. In addition, there are plans for $1.5 billion investment in Syria by Al Habtoor Group. There is also an $800 million MoU between DP World and Port of Tartous, and a $22 million stake in Syria’s Latakia International Container Terminal Co. by AD Ports Group.
Also, there is a plan to develop Syria’s gas fields worth $100 million with the participation of the UAE’s Dana Gas Company. As you can see, UAE companies are not just interested in trade but are looking for chances to make significant investments. They want to participate in rebuilding the country.
Syria Seeks Strategic Foreign Partners
According to Syrian officials, the country needs not only foreign investments but also strategic partners that can help it to get back to its previous economic state. “Cooperation can extend far beyond business transactions and can contribute to the sustainable development of the economy,” Syria’s Economy Minister Nedal Al Shaar said. Therefore, such a project can be seen as an attempt to establish strategic relations with Syria.
The Syrian head of the Syrian Investment Authority Talal Al Hilali confirmed that his country is seeking to attract strategic partners as they can help Syria in the process of recovery and reconstruction. For instance, he said that Syria is now working on creating better conditions for investors. In particular, procedures for investors have been facilitated. Furthermore, a new law on investments will be created.
At present, Syria allows 100% foreign ownership without a necessity to create a public or private local partnership. As you see, Syria is trying to create the best conditions to attract foreign investors. The country requires significant financial resources to rebuild its infrastructure and revive industrial sectors.
Traders See More Potential
Trade between the UAE and Syria amounted to $1.3 billion last year, as Al-Zeyoudi told. Besides, there are some 40,000 Syrian companies operating in the UAE. However, despite good relations, business people think that there is potential to improve bilateral trade between Syria and the UAE.
“There is a lot of potential for increasing trade between the two countries,” according to the head of the Federation of Syrian Chambers of Industry Mazen Dirwan. In his opinion, there could be a significant growth in trade if Syria and the UAE decide to cooperate in the sphere of production. This could allow them to export products to other regions.
Key Areas for Cooperation
Some other promising areas of cooperation between the two countries include agriculture, food industry, healthcare, education, technology, telecommunications, and digital transformation.
Tourism, real estate, logistics, services, industry, ports, FinTech, food security, and banking also offer strong investment opportunities. The UAE is already exploring opportunities in tourism and real estate, while several businessmen view Syria as an attractive market for investments in these sectors.
Conclusion
Overall, it is interesting to observe growing cooperation between the UAE and Syria as they are willing to cooperate in order to revive Syria’s economy. There will be many interesting projects related to free zones in Syria and the development of Syrian ports. Moreover, it could help the UAE to establish strategic relations with Syria. That, of course, may positively affect the country.
