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2930 Hannah Fe Salminao Country Report 28334 119476811

The document discusses foreign direct investment in Syria. It notes that Syria has a lower middle income economy and its GDP has been decreasing in the past decade due to conflict. The civil war has devastated Syria's economy, increasing unemployment and costs of reconstruction are estimated to exceed $1 trillion. Foreign direct investment in Syria is low due to threats of terrorism and economic instability from the ongoing conflict. Syria aims to rebuild its economy by constructing infrastructure and developing banking and finance sectors but faces significant challenges.

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62 views2 pages

2930 Hannah Fe Salminao Country Report 28334 119476811

The document discusses foreign direct investment in Syria. It notes that Syria has a lower middle income economy and its GDP has been decreasing in the past decade due to conflict. The civil war has devastated Syria's economy, increasing unemployment and costs of reconstruction are estimated to exceed $1 trillion. Foreign direct investment in Syria is low due to threats of terrorism and economic instability from the ongoing conflict. Syria aims to rebuild its economy by constructing infrastructure and developing banking and finance sectors but faces significant challenges.

Uploaded by

Hella Mae Rambunay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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COURSE

COORDINATOR:
ROY B. GACUS

NAME:
HANNAH FE C.
SALMINAO
A COUNTRY 3 BS ACCTY A

REPORT OF
SYRIA
Foreign Direct Investment in Syria

The economy of Syria has been categorized by the World Bank within the region of Middle East
and North America as being a lower middle income level. Banking institutions in this country is composed
of a Central Bank and six government banks which is not enough to cover all the needs of the people that
results to opening of private banks. At the present time, most banking association of Syria is privately-
owned banks, even trade businesses are owned privately by wealthy merchants. These private
businesses constitute upgrading the economy of Syria to rise despite that it is considered as one of the
poor countries in the world.

In 2009, the World Bank stated that services in Syria is composed of about 47 percent of the
country’s gross domestic product. The researchers found that GDP in Syria is decreasing last decade,
according to the estimate of MEED, in 2010 its GDP is 57 billion USD, 46 in 2011 and 33 in 2012. In
addition, MEED estimates that the growth of GDP in 2011 was -6 and in 2012 was -12 which is
unfavorable. Up until now, its GDP is still low due to the fact that increasing Syrian conflict affected its
investment in other countries, and its domestic investment. Investment is put to hold considering the
unstable economic condition of the country.

Syria economy has been devastated because of the continuous civil war. The Syrian conflict
greatly left a profound impact to the economy that results to increase in unemployment. According to the
data, economic cost of the war is almost exceeding 1 trillion dollars, without the economic effect of the
current pandemic. Also, the Gross Domestic Product of the country was vanishingly lost as a result of
conflict and future reconstruction cost. Syria is now in the stage of developing certain challenges as it
aims to recover the lost income and occupation of workers.

Investment in Syria is quite affected as activities in international trade and investment has been
discouraged by the global market officials. According to the article, Syrian economy is collapsed because
of mismanagement of political officials, corruption of governments funds, and instability and cruelty of
powers. The article also points out that acquiring guns and fire arms are the main priority of the
government. Economic conditions of the country are now at the verge of sinking since loss of property on
various infrastructures, buildings and bridges are all damaged. Even school institutions, hospitals, water
and sewage systems, and agriculture are greatly damaged and at risk.

Foreign direct investment inflow of this country is low due to threats of terrorism in some parts of
Syria. Investing is difficult to influence by potential investors because of unsecured stability of current
economic conditions. Currently, Syrian government is planning to start a new state through the
construction of buildings, bridges, and roads. Investment banks, lending and finance companies and
insurance firms is also part of their plan in order to build a new strong country and starting to increase its
economic development.

Benefits of inflow and outflow of FDI in this country is no longer happens. The position of Syria in
Global Market is now placed at the bottom. The European union, Iraq, United Arab Emirates and China as
being the main trade partner of Syria left causing for the downfall of the economy of Syria. Although, Syria
is rich in mineral oil and gases, it’s not enough to cover all the losses encountered by it.

Exporting of oils is the main investment of Syria to foreign countries. Last 2010, gas national
reserves of Syria are too much that it became the net importer of natural gas across borders. Up until
now, mineral oil is the source of income of Syria. Though it is strictly restricted to access this to other
countries the fact that the concept of export is present, it is easily accessible to open market. Electricity
also contributes income to Syria.

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