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Abdullah Dardari, the Deputy Prime Minister for Economic Affairs, said that the oil sector will remain an important revenue sector for Syria for the next 40-years, thanks to the country’s oil reserve. Speaking at a workshop organized by the Banias Reinery in August 2007, he said that during the upcoming period, the government will seek to maximize investment in gas. He stressed that oil, gas, and other mineral resources, are an important resource for the national economy. He pointed to the increase of oil revenues in Syria despite the low volume of production. He underlined the necessity for improving the infrastructure of the oil and mineral resources sector in order to cope with the economic growth that has exceeded expectations, and has become more in need of fundamental structures in spheres of transport and energy. He added that the government will work on developing economic, financial and banking reforms.

Mohammad Hussein, the Minister of Finance, praised the latest IMF report on Syria. A delegation from IMF had visited Syria in April-May 2007 to evaluate the economic reform process started by President Bashar al-Assad, and the effect of nearly 1.5 million Iraqi refugees on the Syrian economy. Hussein noted the report’s appreciation of managing public finance, stability of the exchange rate, attracting foreign investment, reforming taxation laws, and solving the state’s foreign debt problem. On a similar note, Abdullah Dardari, the Deputy Prime Minister for Economic Affairs, said that the growth rate in Syria reached 6.2% in 2006. He added that it was expected to reach 6.5% in 2007. Dardari noted that this is the first time that economic growth is not related to oil revenue, but rather, to agriculture, commerce, services, and investment. This kind of growth, the Deputy Premiere said, was more stable for Syria, providing a finer balance in the distribution of wealth.

Syria and Iraq have agreed to restart the Banias-Kirkuk pipeline, a move that both countries consider to be ground breaking and historical. It links the coastal Syrian city of Banias with the oil-rich Iraqi city of Kirkuk. This was agreed to after Iraqi Prime Minister Nuri al-Malki visited Damascus in August 2007 where he met with President Bashar al-Assad and his Syrian counterpart, Prime Minister Mohammad Naji al-Otri. The pipeline has the capacity of producing 200,000 barrels per day at an annual revenue of $1.2 billion USD for Syria. The agreement was signed by Iraqi Oil Minister Hussein Shahristani and his Syrian counterpart Suian Alaw at the Dair Ali Station for Arab Gas, located south of Damascus. The two sides also agreed to invest in Akas, an oilfield near the Syrian-Iraqi border. Malki, who had been a fugitive to Syria before returning to Iraq in 2003, said to the Syrians “Help us with security  and we will help you with economic agreements.” He added that security was the “golden key” for stability in the entire region. If trade is resumed and economic relations are enhanced in all domains, exchange between Iraq and Syria could reach $3 billion in the near future.

SHABAB, an NGO committed to the development of Syrian youth, was inaugurated in Aleppo in August 2007. The ceremony was attended by First Lady Asma al-Assad. SHABAB, which is part of the Syrian Trust for Development (headed by the First Lady) is a project that strives to develop entrepreneurship among young Syrians. It aims at encouraging them to join the private sector, and providing them with necessary skills to excel in their respective domains. It also works on changing their perception of the business sector, encouraging them to launch small and medium sized business-oriented projects. SHABAB relies on serious and maximal cooperation between the government, private sector, and civil society. It has started operation in Damascus and its vicinity, Aleppo, Homs, Latakia, Deir ez-Zour, and Qunaytra.

Syria would raise the diesel price in an effort to restructure oil subsidies in a just way, said the three state-run Syrian dailies. The diesel price would increase from the current seven Syrian pounds (about $0.14 U.S. USD) per liter to 12 pounds ($0.24 USD) and the price of one household gas cylinder would go up to 250 pounds ($5 USD) from 145 pounds ($2.9), the papers said. Prime Minister Mohammad Naji Otri said that in order to alleviate the consequences of the prices lift, Syria would increase government subsidies to common families accordingly. «A family’s average annual consumption of diesel is 800 to 1000 liters and one household gas cylinder a month,» Otri was quoted as saying. «Every family will receive 12,000 pounds ($240) a year and some 1500 centers have been set up throughout the country for citizens’ services, where they will receive two coupons of 6,000 pounds ($120) each,» he added. Meanwhile, Otri said that the heating allowance that government employees receive would remain as it is when the new decision is put into effect. Such measures are expected to correct deformations and reduce spending since government subsidies for oil derivatives are expected to reach 350 billion pounds ($7 billion) in 2008.

Syria is preparing to celebrate Damascus as the capital of Arab Culture in 2008. A press conference was held at the event’s headquarters by its secretary-general, Hanan Qassab Hasan. «We will seek to show the historic role of Syria and Damascus and their interaction with world civilizations as well as the present contemporary dimension in the creativity of Syrian artists» she said. Qassab Hasan announced the start of the second executive phase of the project, which includes launching a website, setting up locations and a schedule for events, along with general outlines for the launch and final ceremony. She added that there will be grants for filmmakers, theatre, and animation to encourage young Syrian artists to produce cultural programs about Damascus. Currently, negotiations are underway for a variety of international media sources to cover the event when it starts in 2008. Algiers had the honors of being “capital of Arab culture” in 2007. Jerusalem will follow in 2009.