Syria Already Planning Its Economic Future

Posted: June 20, 2017 in Uncategorized
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Guest Post by Sophie Mengel Inside Syria Media Center.

Last Monday the EU Council extended sanctions against the Syrian government for another year, until June 1, 2018. The event occurred as recent Syrian Arab Army successes raise hopes for an end to the Syrian conflict. It’s clearly not enough to talk about food relief and delivery of basic necessities. Manufacturing and foreign trade have also taken major hits in Syria.

 

World Bank: Total economic damage by city

Bilateral Ties Between Syria and Iran

Not so long ago, at a Damascus meeting between Syrian Prime Minister Imad Khamis and Iranian Ambassador Javad Torkabadi, Khamis highlighted the full-scale economic war the West and their Middle East allies have unleashed against Syria. Tehran, with its long experiencing countering “sanctions war,” and Damascus have become a model of strategic cooperation, both militarily and economically.  However, strong economic ties between Iran and Syria alone will not solve the problem of Syrian economic degradation.

Courting Qatar

Despite their past support for anti-government terrorists, the current economic boycott of Qatar by its “friendly neighbors” is leading to hope of future Qatari investment in the Syrian economy. For Qatar to invest in Syrian zones of influence or to offer Syria offer a kind of Marshall Plan would go a long way towards repairing Qatar’s international image. It would also allow the country to bypass limitations Saudi Arabia seeks to impose on Qatar’s foreign policy, while making it more independent of the US and the EU.

All this would likely depend on consummating an agreement for Iran to purchase LNG from Qatar for onward transport to external consumers. Iran, which is getting closer to Qatar and has strong positions in Syria, has great potential as an intermediary.

Syria is Already Planning Its Economic Future

Despite the ongoing fighting in Syria, the country is already planning its economic future. Syria is rich in energy resources and minerals, including rare-earth metals. At the same time, the country has an advantageous geographical location for transporting goods to the Mediterranean pass through its territory. All this gives Damascus the potential for rapid economic development.

Stability in the region and restoration of foreign trade would enable the Syrians to have a source of stable foreign direct investment. The country has been in the grip of war for more than six years, but is full of enthusiasm to rebuild the economy. The hope of a new life and recent successes on the battlefield inspire optimism on the part of Syrian citizens, as well as the countries such as Iran, China, India, Russia and Armenia that support them.

Follow the latest developments by reading Inside Syria Media Center.

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