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.

Since 2002, when the Syrian Parliament ratified the Framework for Development Cooperation
Agreement between the government and the AKDN, the AKDN has been engaged in development projects in Syria in many areas including culture, education, health, microfinance, and
rural support.
Since the agreement was signed between the Syrian Government and the AKDN, the Aga Khan has visited Syria on a number of occasions to promote the work of the AKDN. In 2001 the award ceremony for the prestigious Aga Khan Award for Architecture was held in Aleppo,
Syria. The ceremony was attended by many dignitaries from both within and outside of Syria. In his opening remarks, His Highness the Aga Khan recalled the history of Syria and its role “at the crossroads of civilizations for over 2,500 years,” and “an ancient
witness to the fruitful interaction of different peoples and cultures.” Award winners in this cycle of the award came from several countries including India, Turkey, and Malaysia.
The AKDN has implemented many projects throughout the country with a significant portion of its work focusing on economic development primarily through the Aga Khan Agency for
Microfinance (AKAM). The AKAM’s programs are geared towards aiding Syria’s economy as it transitions from a state-run economy to an economy driven by a vibrant private sector. It
has implemented a credit and business advisory services program throughout the country that serves rural and urban populations. This program disburses loans to encourage business development, and services agricultural activities. Within its first three years
the program disbursed more than US$12 million and created 11,000 new jobs. Even more interesting is the fact that almost 25 percent of the loan recipients are women. The goal
of the AKDN through this project is to build human resource capacity in Syria and to provide access to microfinance to those who do not have access to banking and credit.
Additionally, the AKDN is creating a national microfinance institution to increase the scale of its current microcredit programs. The Syrian government is working with the
AKAM in developing the necessary infrastructure to enable the establishment of this institution, which would be the first of its kind in Syria.
These programs will go far in bridging the gap between the rich and poor and in giving opportunity and empowerment to those who otherwise would not have the chance to succeed.
The Aga Khan Trust for Culture (AKTC) is also involved in the restoration of culturally significant historical sites in Syria such as the citadels of Aleppo and Masyaf. These
projects are significant because they revitalize cities and increase tourism, while also promoting cross-cultural understanding. Aside from economic and cultural development, the
network has implemented programs in several other sectors. The AKDN’s rural development programs deal with water management in rural areas, its health initiatives focus on preventative care, and its education initiatives specialize in teacher education and
performance.
As the Aga Khan commemorates his Golden Jubilee this year, there has been increased awareness of the work the AKDN carries out and the impact it has on the lives of others. The Aga Khan describes the work of the AKDN as part of the Islamic ethic, which calls for people to come together in order to improve the quality of life for all humanity. It is this call to action that has been the inspiration of the AKDN’s work not only in Syria, but across impoverished communities throughout the Muslim 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.

Both the vision and attitude towards direct foreign investment (DFI) in Syria have changed. In the past foreign investment was seen as a way of ‘stealing wealth,’ exploiting resources, and a means for the ‘colonizers’ to get a stepping stone in Syria and interfere in its affairs. That is now a thing of the past.

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.