News

Mohammad Hussein, the Minister of Finance, agreed to settle all of Syria’s debts with Romania within the next four years. That was agreed upon in Bucharest between Hussein and his Romanian counterpart Sebastian Vladescu. Syria was preparing to settle all of its other outstanding debts with Romania and Bulgaria, which do not exceed $150 million USD. Hussein explained: “the settlement includes provisions that meet the interests of both parties. It is an important step that will enhance bilateral economic relations between the two countries.”

BEMO Saudi-Fransi Bank announced that in March 2007, the Board of Directors of Visa International approved the bank’s request to become a major member of Visa’s worldwide network. Meaning, Bemo Bank has become the essential providor of Visa International Cards in Syria. Being the first bank in Syria to obtain this membership, the bank has been authorized to issue the card without a guarantor. Visa International carries out all types of transactions including collection, payment and repayment of a large portion of purchases such as travel and shopping due to the wide purchasing power these international cards have.

The Syrian Business Council (SBC) was launched in Damascus at a diner held at the Four Seasons Hotel on May 7, 2007. The slogan was “ Together for Sunshine Syria.” Attending the launch were Hamdi al-Tabba, the president of the Arab Businessmen Council (ABC), in which SBC is a member, and Diala Haj Aref, the Minister of Social Affairs and Labor.

Bank Audi-Syria launched its activities in the coastal city of Latakia during a reception on May 23, 2007 at the Meridian Hotel, Latakia. Attended by some 500 guest, the event was hosted by Dr. Georges Achi, Chairman of Bank Audi Syria, Bassel Hamwi, Deputy Chairman and General Manager of Bank Audi Syria, Raymond Audi, Chairman and General Manager of Bank Audi sale – Audi Saradar Group, as well as members of the bank’s managements. Officials also attended the event, including Zahed Haj Moussa, the governor of Latakia, Nabih Ismail, the Baath Party representative in Latakia, and Issam Sufi from the Central Bank of Syria. The guests were entertained with a classical music performance.

Syria Gulf Bank (SGB) is getting ready to double its capital to 3 billion SP ($60 million USD) through an IPO, after having received approval of the Central Bank of Syria, (CBS), the Credit and Monetary Council, and the Cabinet of Ministers. Authorization from the Syrian Com-mission of Financial Markets and Securities (SCFMS), however, is still pending. Issam Nashawati, the bank’s general manager, said that “each shareholder will be granted a share of stocks equal to their current shares, which relate to 74% of the bank’s shareholders. Where-as 80% of the remaining 26% shareholders have expressed interest in doubling their shares.” Being the _first GCC bank to enter the Syrian market, SGB completed the IPO of 26% of its capital (780.000 shares at a nominal value of 500 SP ($1.00 USD) per share) towards the end of 2006. The coverage of shares at the bank amounted to 250%, whereas the remaining capital percentage was committed by United Gulf Bank (UGB), Bahrain (24%), in addition to a group of GCC companies: Al Foote Investment Co, Kuwait (11%), Global Investment House, Kuwait (7%) First National Bank, Lebanon (7%), as well as a group Syrian shareholders The most prominent of them are Abdul-Ghani Abdul-Rahman al-Attar and Costi Farid Chehlaoui. Nashawati pointed out that this extension comes as part of CBS’s inclination to increase the capital of traditional private banks from $30 million to $100 million.

Hussain Al-meeza, the CEO of Al-Salam Bank in Bahrain, confirmed plans to establish a branch in Syria. This expansion is being done in collaboration with Emaar Properties, Al-Salam Bank (Sudan), Aman for Insurance, Leader Capital, and Overseas In-vestment CO. This newly established bank is expected to provide Syrians with innovative and unique Islamic banking in-vestment services of international standards. These services are geared to higher-ranking Syrian in-visitors and meet all investment requirements that conform to Islamic practices. He added that the Syrian economy is “witnessing a great leap, which indicates the availability of golden investment opportunities that could help reinforce its developmental, economic and banking capacities, particularly in light of such guarantees as political, security, and economic stability. Official reforms and facilities, as well as legislations and laws that the government has been keen to pass and implement, make Syria an attractive and economically feasible investment environment characterized by a number attractive points to investments.” He added, “The fact that the Syrian economy has not bee affected by the pressures exerted recently on Syria, is a proof of how strong this economy is and how efficient Syrian labor force is.”

As part of its expansion plan, BEMO-Saudi-Fransi Bank announced that it will be opening a new branch in the city of Deir ez-Zour. The new branch, being the 14th in the bank’s network, will give the residents of Deir Azzour an opportunity to benefit from the various banking services of BEMO. The new branch is located in the Baghdi building, on the main road opposite the Latin Church. New branches are also expected to be opened in different regions and will cover all Syria.

Developing telecommunications was the main topic on the agenda of Telecom-medications Minister Amr Salem during his talks with the Swiss Secretary of State at the Ministry of Economy, Jean Daniel Gerber. At the meeting, Salem reviewed a series of laws passed in Syria, all related to economic reform, particularly in technology and information. He stressed the Minis-try’s efforts to increase Internet access and “improve the service of landlines and mobiles.” This came after Internet services in Syria witnessed repeated interruptions over the past few months and problems both in network speed and connection quality. On his part the Swiss Minister noted the reforms taking place in Syria and expressed “ Swiss interest in establishing bilateral cooperation in the fields of technology, given Switzerland’s advanced experience in the field.