SYRIA
 
Country Data & Domestic Economy
(USD millions, except where noted)
 
 
Population  15.7 million
Population Growth Rate 3.4 percent
Languages Arabic some French and English
Area 185,180 sq.Km (slightly larger that North Dakota)
Work Week   Saturday-Thursday
Time GMT + 2
 
1995 1996 1997 (est.)
Gross Domestic Product* 16,600 16,700 17,000
Population Growth (% change) 4.6 3.6 1.9
Government Spending ( % of current GDP) 30.1 29.6 30.7
Inflation 7.7 8.9 2.2
Average exchange rate ( US$ 1.00= x SP)* 34.4 39.3 41.3
Foreign debt 21,200 N/A N/a
 
* Blended government exchange rate (Syria maintains a complex tiered exchange rate seystem for different uses. 
 
Syria's economic growth has slowed to less than 2 percent following a period of more rapid growth in the early 1990's. Declines in agricultural production, foreign aid, and private investment have been the main contributing causes. Syria has only halfheartedly embraced economic reform and remains hampered by the statist orientation of its economy, with banking, insurance, utilities, and heavy industry all in the public sector. Investment in the oil and gas sector (the traditional focus of foreign investors) requires joint ventures with the Syrian government to develop commercial discoveries. Cumbersome systems of tiered foreign exchange rates, high tariffs and import restrictions all present difficulties for U.S. businesses seeking opportunities in Syria. In addition, Syria's inclusion on the State Department list of state sponsors of terrorism makes it subject to export controls and ineligible for U.S. guaranteed trade financing. Even for approved transactions, extended delays for evaluating technology exports may place U.S. suppliers at a competitive disadvantage. Most efforts at developing national capacity in environmental affairs are donor-funded, as are many of the efforts at environmental remediation. The World Bank, UNDP, and the EU's Mediterranean Environment Technical Assistance Program (METAP) are the key donors in this sector. Opportunities also exist in clean technology for new industries. ENVIRONMENTAL PROBLEMS Syria is slowly developing the organizational capacity to address its environmental problems. Its system is hierarchical, with the Higher Council of the Environment (HCE) supervising the Ministry of State for the Environment, which in turn guides the General Environmental Directorates in each of the seven water basins and the Local Environmental Committees in each of the 14 governorates. However, this institutional structure is still evolving and has not yet become effective at implementing environmental policy or enforcing environmental law. Syria's past pattern has been for the state to control heavy industry, unencumbered by environmental restrictions. This is changing slowly, with donor assistance, both to lessen the pervasive presence of the state in the economy, and to sensitize remaining state industries to the importance of environmental considerations. Air and Industrial Pollution Industrial pollution is a problem cutting across virtually all of Syrian industry. Homs is the most polluted city industrially, with its refinery and several fertilizer factories. Another refinery is located at Banias and a third is being planned, although execution appears unlikely in the near term. Three quarters of the existing thermal power stations burn fuel oil with a high sulfur content. New construction for power generation will rely more heavily on natural gas, although fuel oil is not being abandoned. The country's six cement factories are polluters, as is the battery factory in Aleppo. Tanneries in Damascus and the textile industry based in Aleppo are sources of industrial water pollution. Prohibitive tariffs on imports mean that most vehicles are older, fuel-inefficient, and polluting. The government is beginning to introduce unleaded gasoline, however there are still no exhaust emission controls. Water As elsewhere in the Middle East, Syria faces problems of both quality and quantity of water. In Damascus, for example, a system designed for a population of one million is servicing a population of four million that is still growing at eight per cent annually. To compensate for the excess demand, ground water sources are being exploited unsustainably. Until recently, wastewater treatment was virtually nonexistent, with sewage dumped untreated into surface water in many Syrian cities. In addition, Syria faces surface water sharing issues with all its neighbors that are either unresolved or only partly resolved. The most prominent of these is its dispute with Turkey over the flow of the Euphrates and, to a lesser extent, the Orontes and Tigris rivers. Some degree of controversy also applies in its sharing of the Yarmouk waters with Jordan and the Litani waters with Lebanon. Solid Waste Waste collection and disposal is handled haphazardly, with above-ground dumping and open-air burning at unprepared sites. All paper is imported into Syria, and there is no recycling except to produce egg cartons. Maritime Pollution Domestic and industrial activities are modest on the Syrian coast, although its three oil terminals are occasional polluters. Land Desertification is a serious problem, especially in the Syrian steppe, largely as a result of overgrazing and unregulated pumping of groundwater. ENVIRONMENTAL BUSINESS OPPORTUNITIES Industrial Pollution Control and Monitoring End-of-pipe solutions, as well as clean industrial engineering, will have a market in Syria across a range of industries. Initially, at least, these opportunities are most likely to be in donor-funded projects. In an effort to defer future power plant construction, the government is working on a project with the Global Environmental Facility (GEF) to improve the efficiency of existing plants. Other clean technologies are being sought, such as options for the tanneries in Damascus and Aleppo, whose current waste stream endanger plans for biological treatment of wastewater. Syria is also looking at the possibility of using natural gas fuel for vehicles. The Water Sector (Treatment and Supply) The lack of wastewater treatment facilities means there is a substantial opportunity in this sector in most of the major urban centers. The government has already taken steps to address this problem in Homs, Aleppo, Hama, and Damascus. Improvements to system efficiency as well as re-use of wastewater will be essential in Syria's future water needs. Large scale conveyances for Euphrates water may be possible in the future. Solid Waste Other than a pilot landfill for Damascus, this sector has been rather neglected. This is likely to present opportunities in the future, ranging from landfill design and construction through hazardous and medical waste disposal technologies. Environmental Consulting Syria is at an early stage of developing its environmental awareness and establishing a governmental structure for monitoring and protecting the environment. As such, there may be opportunities for consultants working with donor funding to help build capacity in this area. There may also be potential for sales of environmental monitoring equipment. 

CONTACTS 

Ministry of Environment 
PO Box 3773 Damascus 
Tel: (963-11) - 333-0510 
Fax: (963-11) - 333-5645 

Contact: H.E.Abd al-Hamid Munajjid, Minister of State for Environmental Affairs 

Public Establishment for Power Generation and Distribution 
P.O. Box 3386, Damascus 
Tel: (963-11) - 222-7981, 222-9654 
Fax: (963-11) - 222-9062 

Contact: Mr. Zeki Odeh, Director General 

Syrian Petroleum Company Fardos, 
Mutanabi St., P.O. Box 2849, Damascus 
Tel: (963-11) - 222-7095, 222-7007 
Fax: (963-11) - 222-5648 
Contact: Dr. Muhammad Khaddour, Director General 

Commerce and Engineering Consultants 
Malki, P.O. Box 6136, Damascus 
Tel: (963-11) - 373-3956, 373-0771 
Fax: (963-11) - 373-3955 

Contact: Mr. Ramez Raslan 

The Federation of Syrian Chambers of Commerce and Industry 
P.O. Box 5909, Damascus 
Tel: (963-11) - 333-7344, 331-1504 
Fax: (963-11) - 333-1127 

Contact: Dr. Rateb Shallah, President 

Aleppo Chamber of Commerce 
P.O. Box 1261, Aleppo 
Tel: (963-21) - 238-236/7 
Fax: (963-21) - 213-493 

Contact: Mr. Mohammad Saleh Al-Mallah, President 

Embassy of the United States 
Abou Roumaneh 2 Al-Mansour Street 
P.O. Box 29 Damascus 
Tel: (963-11) - 333-3232 
Fax: (963-11) - 224-7938 

Contact: Ms. Anne Bodine, Economic/Commercial Officer