Syrian banking forum talks of reform

28 May 2004
The Syrian Banking Conference in Damascus on 26-27 May talked less about the planned subject of Syria's new private banks and more about the problems facing the country's reform process, according to a lengthy report in The Daily Star.

Kicking off the conference on May 26, Rateb Shallah, president of the Federation of Syrian Chambers of Commerce, issued an urgent appeal to extend the country's economic reforms 'beyond legislation', referring to many laws that businessmen claim have made little difference.

Fawaz Akhras, chairman of the British Syrian Society and father-in-law of Syrian President Bashar Asad, then threw out an open question on whether 'separating ownership from management poses a possible alternative to privatisation'.

In a presidential speech delivered by State Planning Commission chief Abdullah Dardari, Asad stuck closely to the state's line of welcoming 'public-private' partnerships and moving Syria toward a market-orientated economy. Asad stopped short of outlining a clear vision for Syrian reforms, but predicted the private sector would dominate the service sector in future, the public sector would participate in the market, and non-governmental organisations would move 'from philanthropy into development.' Assad also made a subtle reference to the need for a 'stock market'.

Finance Minister Mohammed al-Hussein indicated the state's strong commitment to national development projects. Al-Hussein took heavy criticism from the audience on his ministry's recent efforts to overhaul Syria's cumbersome taxation system.

Dardari outlined where Syria's economic reform process might be headed under the country's next five-year plan, to be introduced in June 2005. In the medium-to-long term, Dardari said state would seek an integrated, market-oriented economy. To help exporters, Dardari announced a proposal for the creation of an Export Support Authority focussing on lifting current duties on Syrian exports.

Ibrahim Dabdoub, CEO of the National Bank of Kuwait, openly asked Central Bank Governor Bashar Kabbara why he has not capitalised on Syria's estimated $18 billion reserves to 'float the Syrian pound'.

Syrian economist Nabil Sukkar delivered a sober assessment of the Syrian economy and a brief roadmap of his vision for reform. Sukkar said that separating the Baath Party from day-to-day governance was essential for the reform process.

Former Lord Mayor of the City of London Sir Gavyn Arthur told conference participants that Syria 'should push ahead quickly' with reform before its efforts were eclipsed by the opening up of Libya.

The conference did not address the key issue in Syrian finance, money laundering.

'We support the reform of Syrian finance, but serious issues concerning transparency must be addressed before a stock market can function properly,' said Bassel Hamwi, senior investment officer at the International Finance Corporation.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.