Article Provided by Azerus
Go to Last Paragraph about Iraq

http://www.arabtimesonline.com/Porta.../jan/30/35.pdf

This is the sixth part of
Global Investment House
report on MENA economic
overview – Editor
❑ ❑ ❑
Looking forward to 2011,
the Syrian parliament has
approved the 2011 budget
which expects revenues to
reach SYP668bn and expenditures
to reach SYP835bn,
bringing the deficit to
SYP167bn, or 5.8% of the
GDP. For 2011, GDP is
expected to reach
SYP2,890bn, up 5.8% from
2010. Of the SYP835bn
expenditure, SYP380bn is
budgeted for capital investment
which include housing,
power stations, transport and
roads, agriculture and oil
development.
FDI inflows in Syria has
witnessed a substantial
growth during the past 5 years
period. FDI increased on a
CAGR basis of 25.2% reaching
USD1.4bn as of 2009.
On the other hand remittances
receipts decreased to
USD638mn in 2009 as compared
to USD1.4bn the previous
year due to the financial
crisis, but as the global economy
recover remittances
receipts are expected to
bounce back to pre-crisis levels.
In order to diversify, Syria
plans to attract more
USD55bn in FDI over the
next five years. In addition,
the Syrian government implemented
several economic
reforms, with the purpose of
transforming the economy
from government controlled
economy to a market-based
one, through encouraging private
sector participation, foreign
investment, in order to
expand the economy and
reduce dependency on oil.
In efforts to open up the
economy, the newly established
Damascus Securities
Exchange (DSE) opened its
door in March 2009. The
exchange currently witnessed
an increase in traded companies
from 12 in 2009 to 19 in
2010. In addition traded value
increased from USD36mn during
the period Mar-Dec 2009
to USD177mn during the
eleven months period in 2010.
Syria is in continuous
efforts to increase the number
of listed companies by offering
family businesses tax
breaks and increasing foreign
share in banks operating in
Syria to 60%. In addition On
Dec 28th 2010 Syria gave the
green light for foreigners to
invest in the DSM, aiming to
make available a strong economic
environment and
attract more inward capital to
diversify the economy.
Continuation of reform
policies to liberalize the economy
and reducing dependency
on oil revenue, as well as
strengthening the real and the
financial sectors, are the
major challenges confronting
the Syrian government to
maintain a positive growth
outlook on the long-term.
Also, the agriculture sector
awaits to see light after the
recent drought in the region.
Diversification of the economy
stands as the main challenge
for Syria as oil reserves
decrease.
Overall, Syria is a growing
economy with GDP forecasted
to reach USD65.7bn in
2011. In addition, inflation as
measured by CPI is expected
to register 5.0% in 2010 and
5.5% in 2011, as per IMF
forecasts.
Iraq
A year after the financial
crisis Iraq continues to be
resilient from the crisis with
an estimated real GDP growth
rate of 2.6% in 2010. Iraq real
GDP is projected to reach
IQD58.5bn (USD68.4bn),
backed by higher oil prices
and exports. Oil exports
reached USD29.6bn during
the period Jan-Oct 2010 with
average oil prices reaching
USD74/bbl for the period.
To be Continued Tomorrow