These issues include the economic situation and the broad opportunities offered by Damascus’ return to the Arab system, at a time when the Syrian economy is suffering badly from years of civil conflict and Western American sanctions, in particular the Caesar Act, in plus 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 mentioned by the World Bank last March as follows:
The country’s gross domestic product is expected to contract by 3.2% in 2023. The bank said there was a contraction in gross domestic product of 3.5% last year. that there is a contraction in gross domestic product of 5.5%. percent. Expectations also point to 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 Syrian People’s Assembly’s Foreign Relations Committee, 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 give impetus to more economic agreements between Syria and Arab countries, especially in light of the easing of the atmosphere between Damascus and the Arab brothers, especially with regard to the file of the reconstruction of Syria.
Al-Assad said that Arab countries are required to put pressure on Western countries in order to advance the file of the reconstruction of Syria, in particular on the United States of America, in order to lift the unilateral measures against the Syrian people who are punishing any business that might come into Syria, which was a blockade on the Syrian people, and so there might be an Arab grouping that would help lift those 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 that there are agreements at the economic level that were signed before the outbreak of events and unrest in 2011, and that they can be described as great agreements. , in particular with regard to real estate companies, urban development, housing, infrastructure and other agreements Economic and administrative cooperation.
Concluding his remarks, he pointed out that Syria’s return to the Arab League will be an impetus to activate many economic agreements between Damascus and the Arab countries, and it will also be an impetus to conclude new agreements covering all areas. , in addition to this there will be an impetus for an Arab initiative that contributes to the lifting of Western economic sanctions on the Syrian state, which the Syrian people have suffered and besieged, as he said.
major hitch
The Caesar Act came into force in 2020, and it is a law prepared by the United States of America.
For his part, Jordanian economist Dr. Hussam Ayesh said in exclusive statements to “Economy Sky News Arabia” that Syria’s return to the Arab League may not extend its impact to all sectors, especially the economic sector, due to the US measures that impose economic warnings, with regard to Syria, the most important of which is the Caesar Act.
He said: “There may be some things that the United States will not oppose, such as trade with Syria, or Syria being a transit station for trade, and also the proposed link electricity between Egypt and Jordan via Syria can be completed, but other economic transactions may conflict with the law. Caesar, like major energy and oil deals, and Arab economic cooperation with Damascus may initially remain limited to some basic needs of the Syrian people.
Caesar Act
On the other hand, the international relations expert, Dr. Ayman Samir, explained that 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, northeast 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” site, that Arab countries can also import from Syria, and imports from Syria have stopped in the last period, and Arab imports from Syria will greatly support the country. Syrian economy, especially since there are still products and raw materials, Syrian products are in demand in Arab markets, and these are products known for their quality, noting that there are certain industrial areas, like those of Aleppo, which have been rehabilitated to a large extent and can be exported from.
He explained that Syria has participated in some trade and industrial exhibitions, and that on the sidelines of these exhibitions, agreements have been signed between Syrian companies and participating Arab companies.
Samir pointed out that Arab countries can import grain, especially wheat, from Syria if the situation stabilizes, especially in light of the suffering of many Arab countries due to grain problems due to the repercussions of the war in Ukraine. at one time the Arab food basket, but it confirms At the same time, the question of reconstruction can be postponed for the time being, since it will require a lot of money.
The second thing is that the reconstruction will often be done by the private sector, and the latter needs a certain degree of security and risk avoidance, factors that are not currently available in Syria, but some Arab public companies or government funds can contribute to some reconstruction efforts, given their ability to take relatively greater risks compared to the private sector.
reconstruction
Furthermore, the director of the Gnossos Research Foundation in London, Dr Ammar Waqf, said that despite the optimistic view regarding Syria’s return 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 not great in light of 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 right for Syrians to feel that there is a light at the end of the tunnel that can push Syrians to invest more in their country, and that young people and minds are waiting for. Syrian immigration skills are waiting for novelty, and this will have positive repercussions, but it is not expecting there to be a radical revolution in the Syrian economy in the short term.
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