Syria

MARKET OF SYRIA

SYRIA'S MARKET OVERVIEW

Syria is located in West Asia, north of the Arabian Peninsula in the Middle East‎. Syria earns millions of dollars annually through its ports on the Mediterranean Sea. The Syrian government grants temporary imports of goods to other countries without paying taxes in the following cases. The banking system in Syria is under the control of the Syrian government, and all Syrian banks operate under the Ministry of Economy and Trade. Syria is a pristine export market for Iranian products due to the situation in Syria due to sanctions.

Syria Geography

It is located in West Asia, north of the Arabian Peninsula in the Middle East, and east of the Mediterranean Sea. It is bordered by Turkey to the north, Lebanon and Palestine to the west, Iraq to the east, and Jordan to the south. Syria's geography includes mountain ranges in the west and steppes in the interior. The Syrian desert is located in the east and the Druze mountain range in the south of the country. The Euphrates River has divided the Syrian desert. The reservoir of the dam, which was built on the Euphrates in 1973, is called Lake Assad and is currently the largest lake in Syria. Syria's highest point is Mount Jabal al-Sheikh, 2,814 meters (9,232 feet) on the Lebanese border. Semi-arid steppe zones, nestled between the wet shores of the Mediterranean on one side and the desert on the other, cover about three-quarters of the country. These steppe zones host hot, dry winds blowing through the desert.

Syria is divided into fourteen provinces. Each province is divided into 60 counties (in Arabic: region), and each county into smaller sections (in Arabic: district). Damascus is the capital of Syria and the second-largest city in the country. The city of Aleppo in the north is the largest in Syria. The cities of Latakia and Tartus are the largest and main ports on the shores of the Mediterranean Sea.

The Syrian economy is known as a state economy. The lack of strong financial resources and infrastructure in the private sector, as well as government interference in the economy, has put the country in a difficult economic situation.

Syria's diverse nature, with its mountains, valleys, deserts, rivers, and access to open waters, has had a tremendous impact on the country's industries and agriculture. The Syrian economy is based on the three pillars of industry, agriculture, and trade, and we must not forget the oil and gas industry, as well as the tourism industry. The Syrian economy faced many crises in the 1990s that could overshadow the country's future, and at a glance, they can be summarized in three main sections.

  • Oil is a perishable stock and due to its high price fluctuations and the trend of declining underground reserves, it cannot be considered as the main source of income.
  • The average annual population growth in Syria is 3.3%, which is above the global average. This trend has increased the labor force and forced the country to make huge investments in education, health, and the social security system.
  • Trade opening, which is due to Syria being in the Free Trade Zone of the Arab countries or due to cooperation with the European Union or joining the World Trade Organization, will have a great impact on Syrian industry because many Syrian factories and industrial centers Government support will not be able to withstand this opening.

Maritime Transportation of Syria

The most important Syrian ports are:

  • Port of Latakia
  • Port of Jabala
  • Port of Tartus
  • Port of Arvad
  • Port of Banias

Crises in Syria
With the escalation of the Syrian crisis and the disappearance of its position in the world market, as well as the role of transit of goods that Syria played years ago between the Arab countries of the Persian Gulf and Europe, this position now seems to have been lost. According to a news item published in August 2013, in the past, 30,000 shipments of goods passed through Syrian territory annually, transporting various goods from the Arab countries of the Persian Gulf to Europe and vice versa. 

These shipments, which were usually transported by truck, passed through Jordan and Turkey, which played a significant role in the transit profitability of these countries. The Syrian war prevented many of these goods from being sent to Europe via Syria.

Syrian Free Zone Law
The Syrian Free Zones are located on the Mediterranean coast and at Damascus International Airport, as well as in other important domestic areas of the country, to be of special strategic importance. Authorized activities in the free zones of Syria include commercial, industrial and free-market activities. 

Benefits of investing in the Free Zones of Syria include tax and duty exemptions, freedom to transfer capital and profits, freedom to employ foreign and domestic labor in projects in the mentioned zones, presentation of a certificate of origin of Syria or a free zone for products. He mentioned the production in these areas and providing all the necessary infrastructure for projects in free zones such as water, electricity, telephone, highway, sewage, and so on. The free zones of this country are Latakia Zone, Aleppo Free Zone, Latakia Port, Adra Free Zone, Damascus International Airport Free Zone, Tartus Port Free Zone, and Damascus Free Zone.

Syrian customs laws

Foreign projects:
A foreign project company in Syria can import the required equipment or goods to complete the projects required in Syria, provided that it re-exports the equipment or goods after completion.

International Organizations:
These organizations may import the equipment or devices in question, provided that the equipment or devices are re-exported.

Tourist:
People who travel to Syria as tourists can use personal vehicles for travel for 3 months and with the possibility of extension for 1 month.

Trade Fairs:
Participants in this fair can import their goods to Syria for tax-free visits, provided that all goods are re-exported at the end.

Factories:
Factories operating in Syria can import the raw materials they need without paying taxes, provided that they operate in this country to export their products.

Some goods that are banned from importing into this country:

  • Drugs
  • Gun

Some processed foods other than canned fish and those covered by the Greater Arab Free Trade Area (GAFTA).

Raw materials for cosmetics
Alcohol and tobacco (only the Syrian government can import alcohol and tobacco for sale in the domestic market.) It should be noted that this country has reduced the number of items on the list of prohibited goods in the case of member countries.

Syrian banking laws

In general, one of the plans to reform the Syrian government's economic system is to allow the establishment and operation of private Syrian banks in the country, where several private banks are currently operating.

According to Syrian banking law, foreign countries are not currently allowed to establish branches in the country, but the establishment of a joint bank is unrestricted, taking into account the share of 51% of Syrian parties and 49% of foreign parties. Banking and financial laws of Syria on the website of the Central Bank of Syria at www.banquecentral.gov.sy and the website of the Commercial Bank of Syria as the largest state-owned bank in Syria at www.cbs-bank.com Available.

Tax laws in Syria
Syria's income tax system is generally classified into two broad categories:

  1. Income tax on industrial, commercial, and non-commercial companies
    All companies operating in Syria, including foreign companies, are obliged to pay any income that comes from commercial or non-commercial activities in Syria. Usually, the corporate tax rate in the country starts from 10% and eventually increases to 45%.
  2. Payroll tax
    In Syria, the payroll tax usually starts at 5 percent and eventually rises to 12.5 percent. All people working in Syria, including foreign workers and employees, whose income is not less than a certain amount, are required to pay taxes. Income tax includes basic salary, overtime, and bonuses.

Exports to Syria and export and trade activities with Syria

Exports to Syria: the decision of the Syrian government to ban the import of goods from Turkey and on the other hand become more competitive prices of goods produced in Iran, Iranian goods have high competitive potential with similar foreign products.

For export to Syria, according to surveys conducted by the research and marketing team of Noor Al-Furat Company, Iranian manufacturers and exporters can have more priority in the fields of energy, construction industry, medical equipment, infrastructure and equipment, and livestock and food industries. 

It should be noted that due to the volume of reconstruction with the high speed of Syria and the pristine nature of exports to Damascus and the Syrian market, and given the current economic market conditions in Iran, the best way to earn foreign exchange and be able to cope with the exchange rate. The global dollar is an export and entry into world markets, and a suitable option for Iranian producers and exporters, as has been said about the geography and market of Syria, is to export and trade with Syria.

Export along with technology transfer is one of the most important pillars of international trade, which is also one of the important levers of international politics. Strengthening exports can facilitate the economic development of industries, and this will be possible by identifying new markets and introducing customers. We are with you to do things for you, such as identifying the market and exporting and transporting to Syria.

Syria, the capital of Damascus, still has a lot of potential for reconstruction after years of civil war. Syria's population of 22 million provides a very, very large consumer market for exporters so that they can expand their trade by exporting to Syria. Iran's political influence in the capital of Tehran, Syria, is very high and it can be said that it is very large and unique in the region, so it creates a very good opportunity for exporters of Iranian goods and services.

Iran's main rivals in the Middle East, such as Turkey, have been barred from entering the Syrian economy, so they cannot play a role in the Syrian economy. Egypt, which is one of Tehran's main competitors in the Syrian market, also does not have significant industrial potential and the quality of their products is low.

It can be noted that Iran's main economic and trade rival in the trade market is Syria; it is Russia, but goods produced in Russia are much more expensive than goods produced in Iran, and Russia is not able to compete with goods made in Iran to export to Damascus. Also, the geographical location of Syria and the access of Syrian businessmen to European businessmen and African countries will open new windows for economic actors in Iran.

Iran's main rivals in the Middle East, such as Turkey, have been barred from entering the Syrian economy, so they cannot play a role in the Syrian economy. Egypt, which is one of Tehran's main competitors in the Syrian market, also does not have significant industrial potential and the quality of their products is low.

It can be noted that Iran's main economic and trade rival in the trade market is Syria; it is Russia, but goods produced in Russia are much more expensive than goods produced in Iran, and Russia is not able to compete with goods made in Iran to export to Damascus. Also, the geographical location of Syria and the access of Syrian businessmen to European businessmen and African countries will open new windows for economic actors in Iran.

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