Investment

While many non-governmental organizations are actively engaged in projects within Syria, the work of the Aga Khan Development Network (AKDN) is one of the most intriguing. This is not only because of the types of projects the AKDN is implementing across the country, but also because of the context in which the organization operates in the developing world.

With her charismatic and friendly personality, The Laughing Cow (La Vache Qui Rit) has inhabited the hearts of Syrian children for many years now, adding an eccentric touch to plain old cheese products. Remaining a popular item on shopping lists until 1982, when the Syrian Government decided to forbid the importation of milk products, La Vache Qui Rit has now made a fully ledged re-entry into the Syrian market. Bel Group, the host company, has set up its own production line in 2005, labeling itself as the second largest French investment in the country.

yrian authorities are fully aware that the key to enhanced economic performance is through structural reforms with the objective of shifting Syria from a state-led economy to a market driven economy. A report by the World Bank in June 2005 concluded that 20 main reforms were needed. Up till now one third of these recommendations have been implemented and the balance is being worked on. These reforms aim at encouraging private entrepreneurship, promoting market mechanisms, opening the economy to the rest of the world, liberalizing the financial system and strengthening the medium term fiscal outlook. The basis for Syria’s economic policy over the coming period is the recently disclosed five-year plan covering the years 2006 to 2010. The plan identifies financial sector development, investment climate enhancement and trade liberalization as the core areas of structural reforms to accelerate growth to 7% by 2010, lower unemployment to 8% by 2010, and reduce poverty.

Whether inspired by our heart or our brain, people usually remember firsts. This is the case when it comes to my initial visit to Dubai in the summer of 1990. It was the week following Saddam Hussein’s march on Kuwait. 45 degrees and counting upwards and we were covering the entire region from a five star hotel.

It almost impossible nowadays to turn to any media outlet and not hear commentators and their opinions on the condition of the global financial markets based on institutions’ lending to less-than-creditworthy individuals in the United States. The ripple effect of these so-called Alt-A or ninja loans (No Income No Job no Assets) is being felt all over the world, as German banks are failing, multi-national financial behemoths are evaluating whether or not to rescue some of their funds, and both corporate debt and equity financing has come to a halt because investment banks are unable to find buyers for their clients’ IPOs or paper. Words such as ‘credit crunch’ and liquidity crisis’ are causing investors to re-evaluate their holdings and pour into the bond mar-ket. Just recently the Federal Reserve of the United States has decided to reduce its target lending rate to 4.75%, down 50 basis points.