These questions include the economic situation, and the wide opportunities offered by the return of Damascus to the Arab system, at a time when the Syrian economy is suffering severely as a result of years of civil conflict and Western US sanctions, especially the Caesar Act, in addition to the repercussions of the devastating earthquake that struck the country last February. As well as international crises and their various repercussions.
The latest indicators regarding the difficult economic situation in Syria were those referred to by the World Bank last March as follows:
- The country’s GDP is expected to contract by 3.2 percent in 2023.
- The bank noted that last year there was a contraction in GDP of 3.5 percent
- The Bank expects that there will be a contraction in the gross domestic product of 5.5 percent.
- Expectations also indicate an increase in the rate of inflation due to the shortage of available commodities, the increase in the cost of transportation and the increase in the overall demand for reconstruction materials.
“economic optimism” with a return to university
In this context, the deputy head of the Foreign Relations Committee of the Syrian People’s Assembly, Ammar al-Assad, expressed his optimism about the repercussions of Syria’s return to the League of Arab States on the Syrian economy, and said in statements to “Sky News Arabia” that there are many agreements signed at the bilateral level between Syria and Arab countries, and therefore these agreements will work.
He also expressed his hope that the return to the Arab League would be an impetus for more economic agreements between Syria and the Arab countries, especially in light of the clearing of the atmosphere between Damascus and the Arab brothers, especially with regard to the file of the reconstruction of Syria.
Al-Assad stated that the Arab countries are required to put pressure on Western countries in order to advance the file of the reconstruction of Syria, especially on the United States of America, in order to lift the unilateral measures against the Syrian people that punish any company that may come to Syria, which constituted a blockade on The Syrian people, and therefore there could be an Arab grouping that would help lift these economic sanctions with the return of Damascus to the Arab League.
The member of the Syrian People’s Assembly indicated that the joint agreements are signed at the Gulf and Arab levels, and there are agreements on the economic level that were signed before the outbreak of events and unrest in 2011, and they can be described as large agreements, especially with regard to real estate companies, urban development, housing, infrastructure, and other agreements. Economic and administrative cooperation.
Concluding his remarks, he stressed that Syria’s return to the Arab League will constitute an impetus to activate many economic agreements between Damascus and the Arab countries, and it will also constitute a push to conclude new agreements covering all fields, in addition to that there will be an impetus for an Arab move that contributes to lifting Western economic sanctions. On the Syrian state, from which the Syrian people suffered and put it under siege, as he put it.
major hitch
The Caesar Act entered into force in the year 2020, and it is a law prepared by the United States of America.
For his part, the Jordanian economist, Dr. Hussam Ayesh, said in exclusive statements to “Economy Sky News Arabia” that the return of Syria to the Arab League may not extend its impact to all sectors, especially the economic sector, due to the US measures that put some economic caveats. In dealing with Syria, the most important of which is the Caesar Act.
He said, “There may be some things that the United States will not stand against, such as trade exchange with Syria, or Syria being a transit station for trade, and also the electrical linkage project between Egypt and Jordan via Syria may be completed, but other economic transactions may collide with the law.” Caesar, such as large transactions in the energy and oil sector, and Arab economic cooperation with Damascus may initially remain limited to some basic needs of the Syrian people.
Caesar Act
On the other hand, international relations expert Dr. Ayman Samir explained that the Arab countries can greatly help Syria by pumping investments, at least in safe areas or areas that do not suffer from security problems, whether in the east, north-east, or even in the northwest regions. And the rest of the regions around Damascus, the Syrian coast, and the southern region.
He added, in exclusive statements to the “Sky News Arabia Economy” website, that Arab countries can also import from Syria, and imports from Syria have stopped during the last period, and Arab imports from Syria will greatly support the Syrian economy, especially since there are still some products and commodities. Syrian products are in demand in the Arab markets, and they are products known for their quality, noting that there are some industrial areas, such as those in Aleppo, that have been rehabilitated to a large extent and can be exported from.
He explained that Syria participated in some commercial and industrial exhibitions, and on the sidelines of these exhibitions, agreements were signed between the Syrian companies and the participating Arab companies.
Samir pointed out that the Arab countries can import grain, specifically wheat, from Syria if the situation stabilizes, especially in light of the suffering of many Arab countries from grain problems due to the repercussions of the war in Ukraine. It is known that Syria was at one time the Arab food basket, but he confirms At the same time, the issue of reconstruction can be postponed for the time being, because it will require a lot of money.
The second thing is that reconstruction will often be carried out by the private sector, and the latter needs some degrees of safety and avoidance of risk, factors that are not currently available in Syria, but some Arab government companies or government funds can contribute to some efforts in the field of reconstruction, given their ability to Relatively greater risks compared to the private sector.
Reconstruction
In addition, the director of the Gnossos Research Foundation in London, Dr. Ammar Waqf, said that despite the optimistic point of view regarding the return of Syria to the Arab League and the subsequent opening of Arab markets to Syrian products, either through import, export or customs facilities, in a way that activates the Arab economic role in Syria, however, the situation is different when it comes to the file of the reconstruction of Syria, and expectations are not great in light of the US sanctions.
He added, in statements to the “Sky News Arabia Economy” website, that Syria’s return to the Arab League is a step in the direction of the future, stressing that it is certainly just that the Syrians feel that there is a light at the end of the tunnel that may push the Syrians to invest more in their country, and for young people and minds to wait. The Syrian competencies in the matter of immigration are waiting for what is new, and this will have positive repercussions, but it is not expected that there will be a radical revolution in the Syrian economy in the short term.
#return #Damascus #Arab #League #Syrian #economy