President Assad Receives Message from Iranian Counterpart

President Bashar al-Assad received Iranian Vice-President Dr. Hussein Dahqan at the People's Palace on 21/12.

Dr. Dahqan handed President Assad a message from President Mahmoud Ahmadinejad of Iran on the situation in the region and the bilateral relations between the two countries.

Talks during the meeting dealt with the latest developments in the region and the cooperation between the two friendly countries and means of enhancing them in all domains. The meeting was attended by Foreign Minister Farouk al-Shara.

Presidents Assad and Mubarak’s summit.

 President Bashar al-Assad has returned back on 20/12 evening to Syria after a short work visit to Egypt in which he held talks with Egyptian President Hosni Mubark.

President Assad conversations during the one-day visit were first bilateral with President Mubarak and continued later at the lunch banquet held to honor President Assad and attended besides President Murabark by the Egyptian premier, two foreign ministers of Syria and Egypt, the Egyptian minister of defense as well as the Arab League Secretary General Amr Moussa.

President Mubarak had seen off President Assad at the airport as well the Egyptian foreign minister and Syria’s ambassador in Cairo.

The  joint press conference of Mr. al-Shara and Egyptian Foreign Minister.

Foreign Minister Farouk al-Shara, stated that President al-Assad’s visit and talks with President Mubarak in Cairo come in the framework of consultation between the two countries on developments in the region. ‏

In a joint press conference with Egyptian Foreign Minister Ahmad Abul Ghait, al-Shara indicated that Syria positively contributed in the last weeks and months to improving the climate not only in Syria and Lebanon, but also in the region at large. He pointed out that what Syria has totally done was met with satisfaction particularly in Syria, and generally in the region and in the international arena, with regard to the way of Syria’s dealing with the International Investigation Commission (IIC). ‏

The Foreign Minister added that the general evaluation was positive with regard to the way of dealing with the IIC, which will continue in the coming weeks and months, to confirm that the IIC must reach a result in its investigations, that is to reach the truth and not anything else nor dispersing this goal. ‏

On accusations levelled against Syria whenever a blast occurs in Lebanon, al-Shara said it is not reasonable to accuse somebody in particular, pointing out that there are no essential disagreements between the Syrian and Lebanese peoples. In the end, we belong to one nation. Nothing will be true but the truth. ‏

He pointed out that most of the anti-Syrian campaigns come from out-side, and naturally there are local tools which are exploited in this issue to achieve narrow visions, sometimes for domestic political issues. He added that Syria endures these pressures and accusations, but the time will come when our brothers in Lebanon, the Syrian people in particular and the Arab people in general, discover that these accusations are false, baseless and lacking solid ground. The evidence is that the report which was submitted to the UN Security Council has no solid ground to rely on so as to be able to direct accusations against Syria. But they suspect some issues which are not related to the truth. ‏

The Foreign Minister indicated that the tense atmosphere in Lebanon, following the withdrawal of the Syrian forces, has created a state of polarization that is seemingly responsible for what is going on, in addition to foreign contacts with the Lebanese interior, or foreign interference in the Lebanese interior. No doubt, you are aware of this and how things go there. ‏

We don’t want to accuse anybody, but we say that the situation in Lebanon concerns us. It is Syria’s concern to see brothers in Lebanon at ease, their security is secured, and the Syrian-Lebanese relations be better. This is a popular demand for all the Lebanese people. The evidence is that the Lebanese opposition which claims of being an opposition to the Syrian presence in Lebanon, has been for a long time the most closest allies to Syria. Therefore, this coup process which occurred did not reach the firm end, in order to judge decisively the issues there. ‏

He confirmed that we and Lebanon are one, and will continue improving these relations up to the maximum degree. ‏

Regarding the Syrian plan in dealing with the Lebanese issue, al-Shara said that the chairman of the IIC was changed with a new one and Syria decided to deal with him seriously and constructively and will extend every possible help to him for reaching the truth, hoping that the new judge will see by himself the volume of support that Syria will offer. ‏

Al-Shara added that this doesn’t mean raising any doubts regarding the work of the previous investigation although it contained false testimonies of some unfair people who were running behind narrow interests and did not serve the investigation. ‏         He pointed out that the new chairman of the investigation commission is welcome to visit Syria. ‏

In reply to a question regarding the demarcation of borders between Syria and Lebanon, al-Shara indicated that there is no need for rush in the agenda of the bilateral relations and although this issue enjoys importance yet there are more important and pressing points which are connected with improving that atmosphere of the Syrian-Lebanese relations so that the demarcation of the borders will be carried out in a healthy and brotherly atmosphere, and Syria will work on this issue. ‏

Regarding the situation in Iraq, al-Shara indicated that the Iraqi situation is improving, describing the latest Iraqi elections as a turning point toward the improvement of the security situation breaking away from the ghost of civil war, and also to improve the Iraqi relations with Arab countries in general and with the neighbouring countries in particular. ‏

For his part, Abul-Ghait said that the talks of the summit between Presidents al-Assad and Mubarak came in the framework of regular consultations and focused on bilateral and regional issues, particularly the recent Security Council resolution on the investigation into the assassination of former Lebanese Prime Minister Rafik Hariri, and how Syria is cooperating, in addition to the Syrian-Lebanese relations and ways of boosting them. ‏

He added that the talks also dealt with bilateral relations, expressing satisfaction over their development. ‏

Cabinet Gives Primary Approval to Exchange Offices

The cabinet approved primarily on Tuesday a draft bill organizing licenses for the non-banking companies to open exchange offices as well organize their work according to the Central Bank of Syria regulations.

“ The cabinet gave the primary approval of the draft bill to be returned to the Central Bank of Syria as to reword it,” a spokesman said.

The cabinet approved on the other hand, the agreement of naval transportation singed between Syria and the government of Cuba.

“ The agreement is aimed to develop trade ties between the two countries as well to boost cooperation in field of navigation on bases of equality, mutual interests and aviation freedom in framework of international accords related to naval rules and regulations,” spokesman said.

Syria Increases Interests on Deposits

Syrian Loan Bank increases interests on deposits in a step to encourage Syrians to depose their money inside their country where interests and reassurance are bigger taking into consideration Syria's strong and stable economy.

"Increasing interests on deposits encouraged depositors to lodge their money inside Syria the matter which has increased amounts of deposits in our bank from S.P 440 million to nearly billion Syrian bounds," General Manager of Syrian Public Loan Bank Abdulrazzak Hassani ..

The GM underlined that deposits for a month, three months, six months or a year with interests range between 7,5 % to 9,5 % enables the bank to have stable deposits the matter which leads it to expand its long-term loans.

"The bank is coordinating with Central Bank of Syria to give the final touches on issuing certificates of deposits starting from 500 S.P and ending at 50 million S.P with due dates range from a year to three years," the GM said, indicating that these certificates of deposits will be put into circulation exactly at the beginning of year 2006 with interests range from 9% to 10 %.

Syria Signs Memo of Understanding to Buy Oil Equipment from China

The Syrian Petroleum Company signed a memo of understanding with the China Petroleum Technology and Development Corporation to buy seven deep diggers, four diggers for rehabilitation of oil wells and two cement pump units.

The Chinese company will supply some oil equipment and diggers according to the technical specifications as an implementation of the recent negotiations with the Chinese company. China according to the memo would offer Syria a USD 65-miilion loan to import the equipment and diggers to the Syrian company.

The Minister of Petroleum and Mineral Resources Dr. Ibrahim Haddad, who attended the ceremony of signing the memo, said that these Chinese equipment are very important and have a big role in developing the oil industry in Syria.

He added that such equipment constitute a major factor in the excavation of oil in Syria, and an important step in boosting the cooperation between Syria and China.

Chinese Ambassador in Damascus Mrs. Zhou Xiuhua said that the agreement will boost the standing cooperation between Syria and China and will expand prospects of the cooperation, particularly in the oil field to achieve the joint interest for both friendly countries.

Syria-China cooperation enhanced

Syria-China relations of friendship and cooperation are notably growing. The country has recently been frequented by several Chinese trade, education, information, business, investment and tourism delegations. ‏

They met with different Syrian officials and discussed with them current and future cooperation and means of strengthening ties in all domains with a view to serving common concern and achieving interests of peoples in the two friendly countries. ‏

Among the programmes of cooperation projects recently agreed between the Syrian and Chinese officials are to reactivate trade and economic exchange, develop education, higher education and school sport ties, hold joint exhibitions on promoting both countries products and enhance joint investment and tourism activities. ‏

- Some Chinese companies have won bids of several oil, telecommunication and postal projects. ‏

-The Syrian-Chinese al-Kawkab Joint Company which was founded in 2004, has a great work to do in the Kbeibeh oil field in Hasska where the production of oil has increased from 6,000 Barrels Per Day to 10,000. ‏ The company plans to increase its production to 120,000 bpd during 2007. ‏

There are four contracts with the al-Kawkab Company for developing Kbeibeh, Audeh, Tishreen and al-Sheikh Mansur oil fields in the north eastern region. ‏ It is expected that the production will increase from 30,000 tones per year to some one million tones in the next three years. ‏

- The government has signed in Damascus a memorandum of understanding with a Chinese company to set up a refinery in Deir Ez-Zour to produce of 70,000 bpd. ‏

- Another memo was signed in Beijing to establish a Syrian-Chinese company to produce chemical materials. The firm, called the Syrian Joint Stock Company for Chemicals, will be set up in the industrial town of Hassya (near Homs). China ,Blue Star Company, has 25% share of the new joint stock capital. ‏

- A project is underway to set up a cement factory in Syria with a capital of USD.200 mln and production capacity of 1,8 mln tons a year. ‏

- The Chinese company (ZTE) won the bid on the Intelligent Network Project. This Project connects many telephone exchange centers in the governorates with international networks and provides technological services such as pre-paid card, virtual network, private number, integrated number, free of charge phone-calls, discount for subscribers, vivid or registered (IAD), poll survey, combined service for exchanging messages including voice mail and private subscriber dial-up number. ‏ The Project is a new structure for developing activities of the Next Generation Network (NGN) which provides wide communications with a new vision and rich data. ‏ The Chinese ZTE Company`s investment in Syria has reached to USD.13 million. ‏It will provide the country with other free of charge services in future. ‏

- The Syrian Post General Establishment is studying with the Chinese BOCO company an agreement to gain valuable experiences in various fields of postal services such as exchanging international postal remittances, serving postal current and saving accounts and maintaining contacts with world postal networks. ‏

BOCO promised to supply the Establishment with all its needs connected with technical services especially in developing postal technology services, introducing computer networks and new programs working according to international standards and training employees on the new technology programs. ‏

- A Chinese commercial city will be established in Hassya. The city will contain 170 commercial bureaus for Chinese companies. The officials of the city allocate a wide area for these Chinese companies to build their various constructions. ‏ This new city will introduce new Chinese companies for manufacturing products in Syria and exporting them to other markets. ‏

An agreement was earlier discussed between the Syrian and Chinese officials on enhancing, bilateral tourism cooperation and in making Syria top the list of Chinese tourists’ destinations. ‏

The Syrian-Chinese cooperation projects are promising for a good future in Syria and create a climate of investments encouraging countries allover the world. ‏

Arab Investors to Launch a Project on Hermoun Mount

A group of Syrian, Saudi and Kuwaiti investors are planning to launch a big USD.15 billion real-estate development project in Mount Hermon (Jabal al-Sheikh) region, southwest of Damascus.

Director of the Investment Bureau Mustafa al-Kafari said in a recent interview to "Al-Sharq al-Awsat" newspaper that the government had given initial approval to establish the project, which is the biggest among other projects approved in Syria. ‏ The concerned authorities are currently preparing schemes and studying the economic feasibility of the proposed project prior to giving the final license," Kafari added. ‏

The 15-year project aims to build an integrated city which will comprise hotels, commercial malls, sport facilities, skiing centers, cable cars in addition to educational, medical, tourist and housing complexes. ‏

Kafari evaluated 2005 as a year of big investments in Syria, saying that the licensed projects would offer some 50,000 job opportunities. ‏ He voiced hope that the real-estate projects, which target the Syrian market will push the development process forward similar to what has been carried out in Dubai and China. ‏ "The real-estate investment helps in developing industries such as cement, iron, wood and building materials," he stressed. ‏

Kafari made clear that the government will soon establish a committee in charge of supervising investment in line with amendment of the Investment Law No.10 due at the beginning of 2006. ‏

Kuwait`s AREF Group to launch $2bln investment project

The Kuwaiti AREF Investment Group has recently said some Kuwaiti firms are finalizing the last phase of an agreement to launch an USD.2 bln real-estate investment and service project west of Damascus. ‏

The project, called the "City of Investment and Development", will comprise the construction of three integrated quarters for "money and business", "technology" and "healthcare services". ‏

Chairman of AREF Group Ali Fahd al-Zumei` said that in cooperation with other firms the Group will begin implementation of the first approved stage to build the money and business quarter at an estimated value of USD.500 mln, after the country`s official authorities approve the establishment of Islamic banks. ‏

The quarter will comprise an Islamic Bank with a capital of USD. 100 mln, a stock market "the Damascus Bourse", several consultative establishments, a center for banking studies and researches and a compound for conferences and exhibitions. ‏

"Our project is the beginning of coming investments in Syria, especially if the economic reform policy being adopted by the country continues", al-Zumei` said. ‏

"We hope that the private sector will achieve what politicians have failed to achieve i.e integration between Arab countries," he added. ‏

The quarter of healthcare services will include the establishment of modern hospitals with up-to-date equipment and technologies; while the quarter of technology will include an academy for technology and training to build and develop human resources. ‏

AREF Group and Syrian government are holding consultations about details of constructing these two quarters. ‏

The 21 participating Kuwaiti firms are specialized in banking, real-estate, health, education and technology services. ‏

AREF Investment Group, established in 1975, is a Kuwaiti shareholding company with a paid up capital of USD.137 mln. AREF leads a group of diversified affiliates and owns companies operating mainly through direct investments in different sectors including real-estate, education, health services and information technology. ‏

UAE al-Futtaim Group to launch a tourism project in Damascus

The Dubai-based "al-Futtaim Group" has recently unveiled its plan to launch a USD. 1 billion tourism resort project near Damascus. ‏

The project, one hundred percent owned by the Group, includes the establishment of a comprehensive tourist village which will comprise hotels, commercial malls, villas and playgrounds. The village will be located along the highway from Damascus to the Lebanese border. ‏

Al-Futtaim Group, established in 1952 in the United Arab Emirates , has diversified activities in automotive, electronics, retail, services, insurance, industries and real estate sectors. ‏

Figures show that the value of investments in the tourism sector reached to USD.700 millon by October this year, twice the value of last year that stood at USD.300 mln. It is as well expected that this figure will increase as 21 new tourist projects are planned to be launched before the end of this year in Aleppo, Lattakia and Dara`a. ‏

It is noticeable that Arab Gulf investments, especially the Saudis, have gained a big share in the country`s tourism sector this year. ‏

Prince Walid bin Talal has contributed by 65% to the USD.59 million Four Seasons Hotel in Damascus which has recently begun receiving hosts. ‏

Saudi "Bin Laden Group" has also important investments in Syria`s tourism sector, including a USD.20 million al-Nakhil (Palm) village project. There is as well a USD.30 mln "Sofitel Aphamea" project at the shores of Lattakia which is expected to be completed within the coming four months. ‏

 Private banks mull the financial market

As international pressures on Syria continue to grow, Damascus sends positive signs, affirming the openness of its banking sector and financial market to private banks. ‏

The countrys banking activity, which is subject to challenges and foreign pressures is tantamount to a test regarding the liberalization of economy. Hence, the government pins hopes on private banks’role in attracting investments and reactivating financial deposits and the economy. ‏

Under a strategy to develop the economy, a package of measures and decisions has been taken in favour of the banking sector. ‏

While bankers see the recent banking and monetary legislation as the basis of a new stage that aims to bring investments into the country, observers say that financial laws are insufficient to make investment a profitable activity. ‏

How can we make Syria’s policy capable of attracting capital and creating new investments? ‏

Rateb al-Shallah, Chairman of the Federation of Syrian Commerce Chambers, told a local daily in a recent statement that the monetary and banking decisions do not aim at reactivating deposits only, but at bringing further money from inside and outside as well and employ it in investment activities with the purpose of ensuring job opportunities to the great number of new-comers into the market. ‏

He pointed out that Syria would have been in a better position, had it not suffered from political pressures, noting that large amounts of money came into Syria for carrying out investment activities over the past years. The prices of real estates and lands have soared early this year to 90%. ‏

Furthermore, more private banks and insurance companies have shown the desire to invest in the Syrian market which they consider as one of the most important ones in the region. ‏

Shallah referred to the recent conference on investment and stock market which demonstrates the desire of private banks and insurance companies to invest in the country, despite on-going international pressures. ‏

Global" report on Syria`s monetary policy

The International Investment House "Global" has recently issued a report on the economic strategy, future vision of the monetary policy and inflation in the Syria. ‏          The report said the Syrian monetary authorities have taken several drastic measures as regards the monetary policy aimed at achieving more flexibility and more compliance with conditions of the market and its requirements. ‏

The measures were manifested through launching banking deposit certificates with interest rate at 9% for the first time in a bid to encourage deposits and savings in national currency and through allowing Syrian citizens to open accounts in hard currency in order to put an end to decades-long government`s domination on money exchanging operations. ‏

The report said there are also two prices for the local currency: One is fixed and belongs to the public sector operations and the other is flexible and attributed to the private sector activities. The monetary authorities, the report added, control the currencies` supply and demand regulations and amend economic tools and orientations according to requirements of the market. Such steps, the report pointed out, support the Syrian Pound and help bring hard currency to Syrian banks and the country in general with a view to increasing financial reserves. ‏

Banks are currently able to put the money exchange rates within limits determined by the Central Bank of Syria. Meanwhile, local banks have become able to issue credits for various import-export operations covering about 950 items of products in a list which involves almost a quarter of the entire Syrian trade activities. ‏

The report referred to the notable growth annually recorded by monetary offers of types (M1) and (M2) and to the increase of the value of deposits between 2000 and 2004. The offers have recorded a growth of about 15% for a total amount of SP.601.7 billion. Different kinds of banking deposits in local currency reached to about SP.700 billion while in hard currency they jumped to SP.60 billion. ‏

But the "Global" report said the country`s monetary system is characterized with absence of financial markets such as stock exchange, the movement of capital and a market for government securities and private sector shareholdings. ‏

Regarding inflation, the report noted that Syria has witnessed a growing inflation throughout the past years. 2003 and 2004 were an exception as the increase of consumer prices reached a rate of 4.8%. Consumer expenditure on basic needs like education, housing, medicine, health treatment, transport, communications, electricity, water, culture and fuel has also sharply increased between 2001 and 2004. ‏

The report expected the Syrian government to adopt a new monetary policy that can curb inflation and help draw the surplus of moneys resulted from the country`s monetary system so as inflation rate retreats in 2006 and the price of the US dollar will be relatively stable; thereby having positive impact on the decrease of the price of local currency on imported products. ‏

Conference on combatting money-laundering and terrorism financing

The Middle East and North Africa Regional Conference on developing effective system to combat money-laundering and terrorism-financing was opened in al-Cham Hotel, Damascus. ‏

The Central Bank of Syria (CBS) cooperation with the Financial Action Group at the Middle East and North Africa, the International Monetary Fund and the World Bank organized the two-day conference. ‏

The CBS Governor Adeeb Mayyala said that Syria has attached special attention to boosting the financial systems role in combatting money laundering. ‏

Syria is one of the establishing countries for the Financial Action Group. It has also joined the international agreement to combat terrorism financing. ‏

Mayyala referred that the national committee in charge of combatting money laundering and terrorism financing works hard to protect the Syrian banking sector from illegal money. ‏ The committee has issued several decisions in this regard including checking the identity of a client and the suspected operations, the Governor added. ‏ Mayyala asserted that the main factor in this system is to habituate a qualified staff that follow up the latest developments in combatting money laundering. ‏

The Executive Secretary of the Financial Action Group Adel al-Quleish said the terrorism financing and money laundering are two crimes that threaten international security at the time of globalization phenomenon. ‏

Secretary of the Commission of Combatting Money Laundering and Terrorism Financing in Syria Imad Uaweid outlined the development of the law legislations for combatting money laundering and terrorism financing. ‏

Uaweid elucidated the organization structure of the commission and the tasks of the commission's management committee, chief and secretary and the role played by the commission on the international level. ‏

Syria Lunches Project to Progress Tourism

Syria has launched the main plan for tourism prepared by the German company of Gato for improvement of tourism services quality in the country, a source at Ministry of Tourism said today.

“ This plan must adopt to the tenth five-year plan of development in field of tourism,” Minister of Tourism Sadallah Aga al-Qalaa quoted as saying.

The German company representative has pointed out that the one-year plan would put down a feasibility study for some tourist sites to develop the tourist product through the teamwork action of the company and representatives of the ministry of tourism.

The project is a grant offered by Qatar to boost tourism in Syria, an official at the ministry said.