SYRIAN COMMUNITY CONSULTATION MEETINGS: REPORT 2017

ACKNOWLEDGMENTS Many thanks to the team led by John Speakman and Co-TTL Meriem Ait Slimane, with team members Mariem Malouche, Helen Akanisi, Ola Hisou, and Riad Al Khouri. The consultation in Cairo was organized by IOM, and in consultations were conducted in collaboration with ILO. Also, special thanks to the financiers and partners of this projects especially CIIP, GIZ, UK Government, CMI, IOM, and ILO. Additionally, we would like to thank the colleagues in headquarters and the field for their support, with special thanks to Michael Wong, Mariem Malouche, Bassel Hamwi, Khaleda Atta, Sonia Plaza, Omer Karasapan, Lara Saade, Peter Mousley, Imtiaz Sheikh, Fahma Nur, Jihane Rached, Ruba Shawwa, Merlyn Nikitha Dmello, Ayday Alimakizi, Kathleen Cornish, and Simone Mueller. Finally, we would like to thank the Syrian community for an insightful consultation.

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Table of Contents ABBREVIATIONS ...... 4 INTRODUCTION ...... 5 CONTEXT ...... 5 METHODOLOGY OF THE CONSULATATIONS ...... 8 SYRIAN DIASPORA FOCUS GROUP REPORT: (BEIRUT) ...... 9 CONCERNS AND CONSTRAINING FACTORS ...... 9 ...... 10 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 10 SYRIAN DIASPORA FOCUS GROUP REPORT: JORDAN (AMMAN, IRBID, AND AQABA) ...... 11 CONCERNS AND CONSTRAINING FACTORS ...... 12 Amman ...... 12 SUPPLEMENTARY NOTES ON THE CONSTRAINING FACTORS ...... 12 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 13 CONCERNS AND CONSTRAINING FACTORS ...... 14 Irbid ...... 14 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 15 CONCERNS AND CONSTRAINING FACTORS ...... 15 Aqaba ...... 15 SYRIAN DIASPORA FOCUS GROUP REPORT: (CAIRO)...... 16 CONCERNS AND CONSTRAINING FACTORS ...... 16 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 17 SYRIAN DIASPORA FOCUS GROUP REPORT: (DUBAI) ...... 19 CONCERNS AND CONSTRAINING FACTORS ...... 19 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 19 SYRIAN DIASPORA FOCUS GROUP REPORT: (ISTANBUL and GAZIANTEP) ...... 21 CONCERNS AND CONSTRAINIG FACTORS ...... 21 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 23 SYRIAN DIASPORA FOCUS GROUP REPORT: (FRANKFURT) ...... 24 CONCERNS AND CONSTRAINING FACTORS ...... 24 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 25 SYRIAN DIASPORA FOCUS GROUP REPORT: FRANCE (PARIS) ...... 26

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CONCERNS AND CONSTRAINING FACTORS ...... 26 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 27 SYRIAN DIASPORA FOCUS GROUP REPORT: UNITED KINGDOM (LONDON) ...... 28 CONCERNS AND CONSTRAINING FACTORS ...... 28 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 29 SYRIAN DIASPORA FOCUS GROUP REPORT: SWITZERLAND (GENEVA) ...... 30 CONCERNS AND CONSTRAINING FACTORS ...... 30 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 31 SYRIAN DIASPORA FOCUS GROUP REPORT: NEW YORK ...... 32 CONCERNS AND CONSTRAINING FACTORS ...... 32 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 32 SYRIAN DIASPORA FOCUS GROUP REPORT: BOSTON ...... 34 CONCERNS AND CONSTRAINING FACTORS ...... 34 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 34 SYRIAN DIASPORA FOCUS GROUP REPORT: TEXAS, Houston ...... 36 CONCERNS AND CONSTRAINING FACTORS ...... 36 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 36 SYRIAN DIASPORA FOCUS GROUP REPORT: MICHIGAN ...... 38 CONCERNS AND CONSTRAINING FACTORS ...... 38 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 38 CONCERNS AND CONSTRAINING FACTORS ...... 40 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 40 CONCERNS AND CONSTRAINING FACTORS ...... 42 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 42 CONCERNS AND CONSTRAINING FACTORS ...... 44 WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY ...... 45 RECOMMENDATIONS ...... 46 APPENDIX A: KEY DEFINITIONS AND THE SYRIAN MIGRATION ...... 47

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ABBREVIATIONS

AIIE Aqaba International Industrial Estate CIIP Competitive Industries and Innovation Program CSR corporate social responsibility CMI Center for Mediterranean Integration DFI development finance institutions DFID Department for International Development EU European Union GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GVC global value chain GCC Gulf Cooperation Council IFC International Finance Corporation IFI international financial institution ILO International Labour Organization IOM International Organization for Migration KFW Kreditanstalt für Wiederaufbau (German government-owned development bank) NGO nongovernmental organization ROO rules of origin T&C Trade and Competitiveness Global Practice WB World Bank WBG World Bank Group WIPO World Intellectual Property Organization

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INTRODUCTION CONTEXT have faced a devastating humanitarian crisis during the still young 21st century: over 11.5 million people have been displaced and over 12.2 million need humanitarian assistance. The Syrian international community has been playing an important role in supporting the refugees as well as in the reconstruction of . However, the contributions of the community are still underleveraged because of weak coordination and other constraining factors.1 Objectives of the project. The Syrian diaspora project was undertaken with four objectives. First was to determine the constraints to and drivers for engaging the Syrian community. Second was to develop a knowledge base on ways of engaging the Syrian community and a database of diaspora champions. Third, the project sought to help create an environment for diaspora engagement. This work includes technical assistance, advocacy, trust building, and coordination among the Syrian community, the international community, and other key stakeholders; all these are currently weak. Fourth, the project seeks to identify and facilitate opportunities for economic activities to boost investments, jobs, mentorship, and markets to support Syrian refugees, their host countries, and redevelopment in Syria itself. Rationale for the project. There has been strong recognition from the international development community on the role and importance of engaging the Syrian community as development partners for the reconstruction of Syria and for promoting livelihoods for Syrian refugees. Consistently, in the Jordan Program for Results (PforR) operation, encouraging the Syrian diaspora was identified as a critical means of developing trade and investments for the benefit of Syrian refugees. This encouragement and mobilization requires a process of substantial consultation with the Syrian diaspora business community, with the aim of identifying the key impediments to engagement and the valuable roles the Syrian community can play. The findings gathered so far through consultations correspond with this proposition put forth in the Jordan program, as significant potentials of the Syrian community have identified. This initiative is being run by the World Bank (Trade and Competitiveness Global Practice together with the center for Mediterranean Integration) in collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Department for International Development (DFID), International Organization for Migration (IOM), and the International Labor Organization (ILO), with leads for additional partnerships. Origins of the project. As noted, encouragement of the Syrian diaspora was a key recommendation coming from the Jordan PforR, “Economic Opportunities for Jordanians and Syrian Refugees.” One of the main objectives of that project is to attract investors to Jordan who would employ Syrians. As a neighbor host country for many Syrian refugees, Jordan is a proving ground for such efforts. The key elements of the compact for the project were a commitment from the government of Jordan to provide economic opportunities for the Syrian refugees in return for improved market access (EU trade preference) as well as grants and concessional finance. A comprehensive technical assistance effort was designed to support the government of Jordan’s investment promotion efforts. In trying to implement this agenda, it was clear from the outset that Syrian investors had no collective voice or network to (i) advocate for resolution of regulatory barriers or (ii) facilitate investment or trade. This meant the following tasks had to be accomplished: (i) the business diaspora had to be located, (ii) its varying issues and concerns had to be identified, and (iii) both the members and the issues needed to be organized.

1 See the “Syrian Regional Refugee Response: An Inter-Agency Sharing Portal,” hosted by the United Nations High Commissioner for Refugees, http://data.unhcr.org/syrianrefugees/regional.php#_ga=1.73317717.719432716.1481664662.

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None of these steps were trivial, and resolution required extensive consultation, analysis, and substantive meetings. These led to the Syrian Business Forum held in Eschborn, Germany on February 27 and 28, 2017. The initial findings from the initial work and forum exceeded expectations. A thriving but remarkably disconnected diaspora community was in a diverse range of places, from Buenos Aires to Dubai, with interest in supporting investments that would help refugees from virtually everywhere. UN Economic and Social Commission for Western Asia has estimated this diaspora has potentially $100 billion of investible capital at its disposal, which differentiates it from many other diasporas. The initial engagement with the Syrian diaspora quickly revealed two broad areas of interest—an interest in investing in host countries and a forward-looking interest in Syria. This report presents the findings from the consultations that led to the Eschborn forum and that are part of the basis for the work going forward.

Box I.1 KEY FINDINGS FROM THE CONSULTATION MEETINGS Commonalities across the Regions Visited Trust issues, political concerns, and weak communication: Several aspects of distrust were raised. The first relates to the trust issues within the Syrian community, which are mainly due to the strong differences in the members’ political views. The Syrian community emphasized fragmentation and weak coordination of the Syrian-owned nongovernmental organizations (NGOs). There was also an aspect of distrust for host governments and the international community, due to their perceived lack of transparency, unkept promises, and doubt in the ability of the international community to help. Common issues of distrust, weak coordination, and information gaps were raised throughout. This raises the need for more partnerships, in and between the Syrian community and the international community. Access to finance: There was a strong indication of the reluctance of financial institutions to lend to Syrian nationals due to concerns that their stay in host countries may be temporary and the fear of business discontinuity. Additionally, many Syrian refugees do not own properties and therefore do not have collateral to meet the funding requirements of most banks. Most banks reject investors’ track record in Syria, treating them as green fields, which negatively impacts their financial and credit assessment. On the other hand, there is very limited provision for microfinance funding from Syria. Per respondents, there are only about three active microfinance institutions currently operating in Syria— and these institutions are highly inadequate and raise political suspicions of having affiliations with the regime. Innovation: The findings showed that Syrian firms are strongly motivated to innovate to compete. However, the Syrian business community faces some distinct challenges having to do with innovation. The first is due to Syrians’ transition from a closed, trust-based community that did not rely on debt to a community that relies on predictable rules and conservative use of debt. The second is the need to modernize their businesses in terms of integration in global value chains, technology, and absorption of services. Strong interest for reconstruction of Syria: There was a significant appeal to boost access to key infrastructure in Syria, such as access to the Internet and electricity. This would help improve access to people as well as help encourage investors and other development partners looking to reconstruct the economy. While there is a strong interest in returning to Syria, this would happen only when it is clear that infrastructure and social services will be restored.

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Philanthropy: There was also a strong indication of philanthropic interest in the education and the health sectors. Already, significant philanthropic efforts have been made by the Syrian community to address the gaps in education and health, both within Syria and for refugees in host communities. Even despite the political and security challenges, several Syrian-owned NGOs are still on the ground providing philanthropic services in Syria. However, there are still significant gaps and a high need for funding and coordination from the international community to help fill these gaps. The findings also showed that there is a general openness for opportunities that combine philanthropy with for-profit initiatives. Other interesting areas that were highlighted were ways of leveraging corporate social responsibility opportunities from the private sector. However, most important, there was a strong request from the Syrian community for nonpoliticized solutions. Youth and gender issues: High needs for education and job opportunities for youth and women were raised. These needs are particularly crucial for youths to reduce their vulnerability to radicalization. The need for targeted support to women refugees is also highly relevant, given that many of these women were financially dependent while they were in Syria and are now abruptly required to create means of livelihoods for the first time, which leaves them very vulnerable. Commonalities among the Syria’s Neighboring Countries During the consultations, common issues were identified across all countries. However, in the near neighbors, additional sets of issues were raised, and most of the issues were more intense. Significant concerns were raised about financial exclusion; the high cost and low ease of doing business; nontransparent and unpredictable governance; highly unfavorable and discriminatory laws; and bureaucratic and regulatory barriers. Also, for the most part, large gatherings or registration of Syrian associations are prohibited, including business-related associations. All the mentioned challenges hinder both social and economic activities. These challenges not only make it difficult to employ refugees or for businesses to operate in the host communities, they also create barriers for business activities and hinder support from the Syrian business community in Europe, particularly those trying to support refugee business and those wanting to create job opportunities for refugees in neighboring communities. Thus, there was a strong indication for the need for financial inclusion--significant constraints with banking were raised, such as the difficulties with opening and operating a bank account or owning a checkbook and the inability to do foreign exchange transactions as well as money transfers. Most business owners rely on personal financing and not on banks. There was also a strong need for advocacy relating to constraining laws and regulatory barriers, both formal and informal. Other strong needs included upgrading of education and skills, improved health care, and targeted programs for women and youth. Support is needed for micro, small, and medium enterprise initiatives, both in host communities on the borders of Syria and in Syria. Finally, group participants noted the need for business climate reforms, preferential market access, and special economic zone regimes; these could possibly take the form of a compact for each of the neighboring host communities. Commonalities among the Visited European Countries While most respondents indicated their preference for the more conducive business environment and minimal regulatory barriers in Europe, a big challenge was the issue of weak integration. Language barriers and higher labor and doing-business standards were raised as key integration issues. This creates the need for more interventions around these areas. Another major issue that was raised was access to finance, particularly due to the low risk appetite of banks to fund business with operations or a market in the .

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METHODOLOGY OF THE CONSULATATIONS A mixed-method approach was used in collecting and analyzing this report. Consultations included focus group workshops and one-on-one interviews. The focus groups and interview discussions were conducted using a set of guiding questions and defined objectives. Samples were identified using a convenience sampling technique. So far, 21 focus group consultations have been conducted in 11 countries and 19 cities. Consultations took place in the following locations:

• Europe: London, Frankfurt, Paris, and Geneva • Syrian neighboring host communities: Jordan (Amman, Irbid, and Aqaba); Egypt; Turkey (Istanbul and Gaziantep); Lebanon, and United Arab Emirates • North America: Boston, Michigan, Texas, New York, Washington D.C., California, Toronto The team is planning additional consultations in the Americas. The locations for the consultation were selected based on high Syrian diaspora concentration and potential diaspora investors, with priority to neighboring communities around Syria. The consultations aimed to accomplish the following: (i) identify the major incentives and challenges hindering diaspora-enabled development; (ii) assess the willingness of the Syrian diaspora to invest either in a refugee-oriented initiative in the host communities or to invest for the future reconstruction of Syria; (iii) gather actionable feedback that would help in designing inclusive solutions; (iv) engage and encourage commitment from the Syrian community as development partners; (v) collate information on already existing or planned initiatives so as to avoid redundancies; and (vi) identify the unique opportunities and challenges that women and youth face.

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SYRIAN DIASPORA FOCUS GROUP REPORT: LEBANON (BEIRUT)

“There is a big difference in opinion from one Lebanese party to the other in terms of regulations, but there is generally a big concern of Syrian refugees naturalizing.”

Context: Unemployment is among the most complex effects of the Syrian crisis on the Lebanese economy. Although earlier bilateral agreements between Lebanon and Syria allowed the free movement of labor between the two countries, currently the law allows Syrian refugees to work only in jobs such as construction, agriculture, cleaning, and maintenance.

Others 17% Trade 25%

Date: Oct. 21, 2016 Financial sector NGO No. of attendees: 12 17% 33% Other Services 8%

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: Regulatory and Business Barriers • Respondents indicated that several regulatory hurdles and not always consistent governance hinder social and economic activities in the Syrian community. These affect the ability both to do business and the to gain employment. • Movement restrictions, including difficulty in obtaining travel documents and visas, affect Syrian business owners and employees. Movement restriction can occur both within and between cities and hinder Syrian employees from going to work even when they have a work permit and a job. • Unlike in neighboring host communities, there are no quotas for hiring Syrian refugees in Lebanon. Respondents mentioned that it can be difficult to fill roles with skilled Syrians even where there are no Lebanese with expertise; it costs about an additional 25 percent of that employee’s gross income to pay for their social insurance. More recently displaced Syrians are now required to sign a pledge not to work and can support themselves only through humanitarian assistance provided by the Lebanese government with support from the international community. Registered Syrian refugees could work in Lebanon until early 2015.

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• Respondents indicated that it is difficult to buy property. Syrian nationals are only allowed to own only 5,000 square meters of land, which creates challenges for building large work spaces. • They also mentioned that Syrian nationals are not allowed to open industrial businesses in Lebanon unless they operate under a Lebanese name, which poses a potential ownership risk. Financial Exclusion and Weak Access to Finance • Per respondents, Syrian business owners face several obstacles and difficulties in the financial and banking sectors. There are restrictions related to operating a bank account, owning a check book, and transferring money. They indicated that a Syrian national cannot own a foreign currency account, and they can carry out foreign currency transactions only through exchanges. • They note the poor access to finance for Syrian refugees.

WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

Business Opportunities Enable Syrian businesses to operate freely. For instance, free economic zones in Akkar or Tripoli might provide job opportunities to unemployed skilled Syrian refugees. It would be important to govern the zones with enabling laws. • Explore creating job opportunities for Syrian refugees in the agriculture and wood-processing sectors, which are largely dependent on migrant labor. There is also a need to provide working capital for micro and small businesses in these sectors.

Women and Youth • Focus on developing entrepreneurial opportunities for Syrian women and youth, who face severe challenges in getting jobs, and promote mechanisms that would help them access credit. • Enable NGOs to support women in developing sheep and livestock farms, in Syria and possibly Lebanon (if the Lebanese government will permit). • Support more youth education programs and scholarship funds, especially in higher education. Notable examples of such include the following scholarship funds: Rafik al Hariri in Lebanon, Al Ghurair Foundation in United Arab Emirates, and Luminus Education program in Jordan.

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SYRIAN DIASPORA FOCUS GROUP REPORT: JORDAN (AMMAN, IRBID, AND AQABA)

“Socially, we feel welcomed, but the business climate is not welcoming. We feel treated as a restricted nationality, not even like other foreign investors; so many of us are moving our businesses away.”

Context: While respondents indicated that the social environment in Jordan is conducive for Syrian refugees, they also mentioned that regulatory barriers can hinder economic opportunities and livelihoods for Syrian refugees in Jordan.

The focus group consultations were conducted in collaboration with the International Labor Organization for Amman and Irbid. While the findings were similar across the three locations, each had some distinctiveness, given that the economic activities of Syrian refugees in Irbid are for the most part micro, small, and medium enterprises and home-based businesses, while activities in Aqaba are generally industrial based.

Before the war, there were no restrictions on Syrian entry or stay in Jordan. Jordanians living in the north long relied on Syria for trade and agricultural exchange. The Jordanian Investment Board stated that in 2013 Syrians invested about $1 billion in the country. However, during the focus group discussion, many Syrian business owners indicated that the numbers of Syrian investors in Jordan is declining. Many of the Syrian investors are now moving to other host countries, particularly Turkey, because of the more favorable business environment.

Others Metal & Plastics 14% 20% Garment &Textile 3% General Industry 9% Trade 8% NGO 11%

Date: Oct. 23 and 25 and Nov. 18, 2016 No. of attendees: 35 Services Food & Hospitality 9% 26%

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Amman

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: Regulatory Barriers • Per respondents, the allowed Syrian hiring quota of one Syrian to four Jordanians is low. In addition, quota requirements are difficult and expensive, with hiring restrictions in several skilled professions. • Respondents also mentioned that restricted movement is an issue. The procedures for obtaining a driver’s license, as well as for obtaining travel and reentry permits, are challenging, particularly for the staff and families of business owners, and such challenges significantly discourage potential Syrian investors. • Sometimes-unpredictable implementation of Jordanian laws and regulations are causing businesses to leave. For instance, a respondent stated that her husband used to have several hundred employees and he has had to move his business to Turkey, where business regulations are less restrictive. Financial and Banking Difficulties • Although Syrian business owners can open a personal bank account, they can issue checks only through their personal accounts, while they have the freedom to open personal accounts they must issue business checks through these personal accounts which creates problems when their financial statements are audited. In addition, they cannot obtain a letter of credit in Jordan. Direct Business Constraints • There are solvency and deposit requirements of a minimum of JD 250,000 to obtain an investment ID. • It is very difficult to get a new trademark under a Syrian name and to register an entity, even an NGO. • In addition, Syrian refugees are required to have Jordanian partners for most business sectors, and the partnership requirements can be difficult. Partnerships are required for trade, export, and import businesses, while internal memos restrict Syrian ownership of restaurants, clothing, and phone companies completely. • Syrian refugees cannot gain membership in the Chamber of Commerce, and Syrian investors are not allowed to establish Syrian business associations or hold large gatherings. • Respondents also mentioned that there are no incentives to do business in the industrial zones, given the high taxes, baseline infrastructure, and social amenities that could be improved.

SUPPLEMENTARY NOTES ON THE CONSTRAINING FACTORS

Quota Restrictions, Work Permission, and Restricted Professions These are major constraints for Syrian investors who want to employ Syrian workers. The law requires hiring four Jordanians for every Syrian hire. One of the challenges is that hiring one Syrian refugee requires paying social security for four Jordanian workers, who may not necessarily work. This factor affects the productivity and cost efficiency of Syrian enterprises. In addition, the law prohibits Syrian employment in

12 several classifications of skilled labor; hiring a Syrian for such work requires registering an employee under an alternate profession. Restriction and Limitation of Movement The challenges with obtaining travel and reentry permits, as well as the difficulties with obtaining a driver’s license, constrain the ability of investors to promote and expand their businesses. Even those who have been living freely in Jordan for decades now experience restriction of movement. In addition to the restrictions in obtaining a driver’s license, Syrian refugees can buy a car only if they have residency in Jordan. Renting a car for a sustained period is costly, up to JD 500 per month, and it requires a security clearance. No Protection for Intellectual Property Rights Before the crisis, Syria was not a member of the World Intellectual Property Organization, and many Syrian business owners were not aware of the need to register or protect their trademarks. They now face challenges of having their trademarks registered under Jordanian names, which leaves them vulnerable. Certain businesses sectors like restaurants, clothing, and phone companies prohibit Syrian investors from registering their businesses under Syrian names; they must rely on either Jordanian relatives or partners. High Cost of Investments and Doing Business Several regulatory factors contribute to the cost of doing business. For instance, there is a cost implication of paying social security for Jordanian workers who may not necessarily work, to list them on the payroll to meet the one-Syrian-to-four Jordanians hiring requirement. Also, there are high costs and difficulties of property ownership. Per the respondents, the government owns about 67 percent of the land in most industrial zones, and the minimum land area a business owner can buy is 2,000 square, meters, which costs on average JD 100,000 for purchase and JD 21 per meter to rent. The cost of electricity is high and the supply is sometimes unstable, requiring the use of generators and the services of the National Electric Power Company General Company. Additionally, when applying for an investment ID, Syrian investors are required to show and deposit a minimum of JD 250,000. The bank locks this amount as a guarantee, and Syrian investors are unable to access this deposit as working capital. Per respondents, although this condition was canceled at one time, it was reenacted after two months. Added to this challenge is that there are no clear criteria for banks accepting investment applications. If the application is rejected by the bank, a business owner cannot appeal to another authority. Furthermore, the income tax in the industrial areas is very close to that in other areas near Amman, so investors prefer to stay in Amman, as most industrial areas lack basic infrastructure and social amenities. This makes investment incentives in the industrial zones less attractive. WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

Establish Business Opportunities • Respondents suggested establishing big partnership projects that would be run under the protection of a reputable institution (such as the International Finance Corporation). This would help Syrian-owned business projects overcome the burdensome regulations that Syrian businesses face. The products from this initiative would target export markets and would not create a competition to local products.

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• Focus on establishing sectors where Syrian’s have a competitive advantage and connections to some international markets, such as the food and garment industries. • Adopt comprehensive approaches to developing business sectors, focusing also on developing the value chains around a business or product line. Advocate on Regulations

• Circulate a survey to list all the restrictions that Syrian and Jordanian investors face and try to address these issues with the government and other key stakeholders. Key regulatory areas for advocacy include restricted professions, travel permits and driver’s license restrictions, investment and banking constraints, hiring quotas, trademarks, and commercial licensing. Coordinate

• Strengthen the network among Syrian investors and have regular meetings for information updates.

Irbid

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: Regulatory Barriers • Obtaining security clearances takes a long time, and Syrian workers who work illegally are subject to arrest and then moved to Azrak camp, where they are isolated. • Furthermore, respondents mentioned that there are no regulations that protect Syrian workers. Business Challenges • Many home-based producers have water shortages and lack needed tools and workspace. • Taxes are high for a newly established business, and lack of a tax grace period makes it difficult for Syrian startups to establish themselves. • There are restrictions on producing certain products, such as pickles. • There is potential for many home-based products on both local and regional levels, but most of the producers’ lack access to markets and have no experience in marketing. • Respondents mentioned that it was impossible to obtain a new trademark under a Syrian name, and Syrian producers need to have a Jordanian partner to get a commercial license. Gender-Related Challenges • Women face difficult work conditions, including low wages and long working hours that reach up to 16 hours per day. • Women also face difficulty moving around to sell their products. Sometimes they feel they are not given professional recognition as saleswomen. This could be particularly challenging given that many of them are entering business or the labor market for the first time, as they never had the experience of working while they were in Syria.

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WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

Advocacy on Regulations • Advocacy is needed on restricted professions to allow some flexibility. For example, some business owners noted that they are unable to register their sons or family members as managers of their factories. Business Support • Register Syrian home-based products under Jordanian or licensed Syrian NGOs to enable Syrian refugee producers to promote their products under a corporate social responsibility label such as “Syrian made.” Also, encourage exhibitions or allocating certain areas where Syrian producers can sell their home-based products; such a market could be called Syrian Market and could attract buyers from outside Irbid. • Highlight successful stories. This could ease the tension between the Syrian and host communities. Some Syrian investors came to Irbid and managed to renovate a dairy factory, which was not operating, and now this factory is a main provider of milk in the area.

Aqaba

CONCERNS AND CONSTRAINING FACTORS The following were raised by the respondents during the consultations: Positive Factors behind Investments’ Success • Jordan’s political support and King’s leadership • Investors’ willingness to hire Syrians out of patriotic reasons • Aqaba International Industrial Estate’s (AIIE’s) incentives (0 percent interest on land lease for a two-year grace period) • AIIE’s after-sale ongoing support • Aqaba’s available infrastructure (port) and export-related logistics and channels

Challenges Hindering Expansion Prospects • High cost of electricity • Limited project finance options • Jordanian “private” banks’ reluctance to extend credit to Syrians due to risk of business sustainability, claiming that Syrians’ presence is temporary • Banks rejection of investors’ track record in Syria, treating their projects as green fields, negatively impacting their financial and credit health assessment • Absence of state-owned banks with a mandate to support Syrians’ access to finance • Complex rules of origin for exports to Europe. • Excluding Aqaba from the 18 zones benefiting from ROO simplification (Instead, Gweira is included, whose growth prospects are limited given its small size, among other things.) • Security-driven restrictions (coming from the Ministry of Interior) impacting Syrians’ mobility, and in some cases, preventing Syrians from being hired

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SYRIAN DIASPORA FOCUS GROUP REPORT: EGYPT (CAIRO)

Context: At the beginning of the crisis, many of Syria’s businessmen moved to Egypt. The investments of Syrian businessmen in Egypt have been estimated at US$400 million to US$500 million.2The institutional framework of Egypt’s business and legal environment hinders Syrian business owners, who are unable to leverage the strengths and opportunities in the Egyptian economy. These obstacles not only hinder the capacity of Syrians to expand their businesses but also reduce their potential to create new job opportunities for both Egyptians and Syrians. Unregistered companies face additional challenges in doing business compared with registered ones, but several common challenges were identified. Nonetheless, most of the respondents were willing to invest, with preferences for certain sectors (food industries, textiles, handicrafts and construction). However, they mentioned that institutional reforms were required.

Trade 7% Food & Hospitality 7%

NGO 18% Garment &Textile 68%

Date: Oct. 24, 2016 No. of attendees: 28

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: Movement and Labor Regulations

• Despite the 10 percent quota for companies to hire foreign labor, most Syrian job seekers are formally unemployable due to the difficulty in gaining a work permit in Egypt. • Security clearance takes a long time and the application could be refused for reasons unclear to the applicant. • Significant difficulty in acquiring travel permits and visas hinders business partnership opportunities as well as opportunities to invite Syrian expatriates for business consultations. Business Challenge • There is difficulty in accessing industrial raw materials. Per the respondents, foreign industrialists are not allowed to import industrial materials from abroad if they do not have an import license,

2 Gihan Shahone, “Syrians in Egypt: A Haven Despite the Hardships,” Ahram Online, May 17, 2016, http://english.ahram.org.eg/NewsContent/1/151/217025/Egypt/Features/Syrians-in-Egypt-A-haven-despite-the- hardships.aspx.

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which is allowed only for Egyptian citizens. Syrian businesses are required to import under Egyptian names and pay commissions for this service. Banking Constraints • Respondents indicated that there are several obstacles when dealing with financing institutions in Egypt. These include security clearance requirements, delays in opening accounts, and challenges receiving transfers from business clients, particularly clients abroad. Residency • Per most respondents, obtaining new or renewing existing residence permits for Syrians is a challenge. Young, single Syrians are especially at a disadvantage as permits are provided to Syrians with children living in Egypt. Challenges Facing Women • Female Syrian business owners are at risk of exploitation due to their dependence on Egyptian brokers and agents to do business in Egypt. • Some discrimination occurs against Syrian women by their Egyptian co-workers and/or authorities. Cases of authorities preventing Syrian craftswomen from working in groups were discussed by respondents. • Some forms of wage discrimination for Syrian women employees were also mentioned during the focus groups.

WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY • The Egyptian government can facilitate an annual business-to-business (B2B) event in Egypt that caters to Syrian businessmen. The event could be a networking opportunity where Syrian diaspora members would be invited to engage Syrians in Egypt and identify potential business links. This would increase exports from Egypt and have an overall positive impact on various sector value chains, as well as promote business growth and job creation. Accordingly, respondents believe that such an initiative will have a positive economic impact on both Syrians and their host communities in the long run. • Chambers of commerce and trade in Egypt could have an enhanced role in promoting links between Syrians in Egypt and Syrian business persons in other countries, especially in the Middle East and North Africa region. • Supporting the marketing of Syrian products in Egypt and abroad, as well as raising awareness on issues affecting Syrians, could promote new livelihood opportunities for the most vulnerable Syrian refugees. • Allocating a small percentage of subsidized services and business locations for Syrians in Egypt’s industrial zones would prompt more Syrians to start businesses and eventually create new job opportunities in their host communities. • Improving the quality and outreach of institutions and programs that provide training and skill enhancement for employment and increasing the accessibility of these programs to Syrian job seekers would have a positive impact on both Syrians and Egyptians who seek employment. These training programs could be linked to Syrian private sector companies as part of a job placement initiative. • Supporting the General Authority for Trade and Investment to enhance its outreach and provision of support services to Syrian businesses would have a major impact in reducing barriers to trade.

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• Syrian business men and women engaged during the focus group discussions revealed a general lack of trust in international and national agencies. The International Organization for Migration (IOM) recommends implementing quick-win joint activities to help establish trust. Examples could include a local trade or B2B networking event organized for businesses owned by Syrians in Egypt. • The role of Syrian or Egyptian commercial attachés and commercial representatives in other help temporarily contribute to overcoming the numerous challenges Syrians face when attempting to export their products. • It would be worthwhile to implement interventions that support and empower Syrian women to start their own businesses, linking them with existing value chains within sectors of interest. Support would include training women on how to start, manage, and operate a small business in a specific sector, as well as support their initial start-up phase by linking them with potential local business partners and customers. • A clear preference to support noncompeting businesses was indicated during the focus groups. IOM accordingly recommends facilitating mentorship and technical support programs between established Syrian businesses and potential micro, small, and medium suppliers that could complement their businesses. This would also help establish potential business linkages for the micro, small, and medium enterprises supported under the project. • Civil society organizations supporting Syrian communities could be engaged in promoting outreach to vulnerable members of the community and linking them with small livelihood projects that could be financed or supported by the Syrian diaspora. • Regarding diaspora-enabled investment models, the majority preferred to provide technical support to small businesses and entrepreneurs. The second preference was for social and economic projects that would help create livelihood opportunities for vulnerable Syrians.

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SYRIAN DIASPORA FOCUS GROUP REPORT: UNITED ARAB EMIRATES (DUBAI)

“I will personally contribute 100 million euros if we are given the opportunity and support to invest back within or on the borders of Syria for Syria.”

Context: The Dubai workshop started out with respondents voicing their lack of confidence in the international development community. However, confidence improved up after they learned about the World Bank Group’s (WBG’s) current involvement in host communities to support the Syrian refugees. There was a strong interest in investments, particularly for WBG-supported business pilot projects within Syria or on the borders of Syria. There was also interest in WBG-supported pilot projects within the neighboring host communities especially projects that could also leverage the EU preferential trade deals in Jordan.

Trade Others 8% 8%

Financial sector NGO 25% 34%

Other Services Date: Oct. 25, 2016 25% No. of FG Attendees: 12

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: Skill Gap • Respondents indicated that education is treated as an aid rather than a necessity. They mentioned also that it is insufficient to focus only on primary education, and they were particularly concerned that they were losing a whole generation. Trust Concerns and Weak Coordination • There is fragmentation and a lack of trust among NGOs; many operate in isolation from others, with unclear objectives. • There is also a significant level of mistrust among the community members, which makes it difficult to strengthen networks • Respondents are also concerned that the international and host communities are mindful of the Syrian government, which may be attributing to their reluctance to help.

WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

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Business Opportunities

• Address the need for nonpolitical and transparent solutions, particularly for inclusive solutions that encourage partnership between the Syrian community and the International community. • Consider producing goods (especially scarce goods) that can be used in Syria. The factories can be sited in the neighboring countries or around the Syrian borders. In this regard, respondents suggested for economic free zone either in the southern zone or north of Aleppo. They generally do not mind seeing a small investment project done in Jordan, but they suggest that larger resources go to Syria. A respondent pledged to contribute 100 million euros in investments if such could be facilitated. • Consider a proposal that would promote win-win solutions for Syrians in East Africa, as the region has been receptive to refugees and conducive to helping. • Create a business case study project for Syria. This project would help identify what works and what does not and serve as a positive signal for building investors’ confidence. This pilot project would also help rebuild trust among the Syrian community. Success stories could be replicated. • Address the need to support strategic sectors like agriculture and education that would be needed to rebuild Syrian economy. • Address the need for land, electricity, Internet, and other basic infrastructure to enable investors to invest. • Finally, address the need to create microfinance opportunities for refugees. Human Capital

• Develop free zones in the Syrian border. This will create jobs for Syrians in the southern zone. • Address the need for continuity and fast solutions in education, especially offering certified training in English, technology, and entrepreneurship. The education service needs to be operated by the private sector to allow innovation efficiently. There also needs to be Syrians in the educational system. • Consider granting refugee’s temporary passports, as was done in . • Subsidize the cost of having national identity documentation. • Actively explore solutions for refugees to go back to Syria. • Help remove the embargo. Coordination

• Address the need for a unified NGO mechanism, through which NGOs would have well-defined criteria, missions, and vision. • Strengthen the network among the Syrian community. • The respondents also urged the World Bank to help with advocacy, including with the political issues with Syria.

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SYRIAN DIASPORA FOCUS GROUP REPORT: TURKEY (ISTANBUL and GAZIANTEP)

“Turkey is a great country, but the laws in Turkey surrounding Syrians are getting difficult.”

Garment &Textile Metal & Plastics 11% 11% Manufacturing Trade 6% 11%

Date: Oct. 27 and 28, 2016 Financial sector 11% No. of attendees: 18 NGO 50%

Context: Per a survey of micro and small Syrian businesses conducted by the Syrian Economic Forum in Gaziantep, 64 percent out of 312 respondents specified language and regulatory barriers as their key challenges. Further, on their reasons for moving to Gaziantep, 55 percent of the 309 respondents to this question specified the quest for business opportunities, with family and social reasons also significant. Between 2013 and 2014, Syrians businesses in this area grew by 129 percent, from 489 to 1,122. Although rate dropped to 42 percent in 2015, Syrian startups ranked as the highest number of foreign start-ups in Turkey in 2016. today constitute about 3.5 percent of the country’s total population, and 9 percent of this population resides in refugee camps. Registered Syrians have free access to public services such as education and health, but their integration into the formal labor market is still limited. The perception of respondents in other host communities is that Turkey is a better neighboring location because Syrians can buy and own houses.

CONCERNS AND CONSTRAINIG FACTORS The following constraints were raised by the respondents during the consultations: Integration and Business Environment Constraints • Per respondents, it is complex to navigate the Turkish market, and it is easier to export. • Skills gaps are a challenge, given that the business environment in Turkey is more advanced than Syria’s. Also, per the respondents, it can be difficult to do business with Turkish business owners. The Syrians feel they look down on Syrian business owners and could take their money. They also mentioned that language barriers significantly hinder education and the integration process.

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• Unlike in -speaking host communities, the requirement to meet the Turkish-to-Syrian employee hiring quota (90 percent Turk to 10 percent Syrian) entails a language barrier, which affects productivity and cost, as many factories are forced to hire interpreters. • The Syrians can work only in the provinces where they were registered. Furthermore, the law limits the number of Syrians that can work in a province to 10 percent of total private sector employment. • Many Syrian business owners are unable to expand or promote their business outside Turkey due to movement limitations linked to the difficulties of getting visas, renewing passports or obtaining travel documents. • Microenterprises need help with scaling up. Respondents indicated that it is difficult to do so in Turkey because organizations do not have the know-how to do so. Financial Exclusion and Poor Access to Finance • There are significant constraints with banking, money transfers, and foreign exchange. Many business owners rely on personal financing and not on banks. • To open an account or transfer money, Syrians need a passport and Syrian identity card translated into the , as well as a proof of home address. Considering the conditions in which Syrian refugees moved to Turkey, many Syrians do not have a passport or home address. Even when they have a Turkish ID (kimlik), they are still required to provide a passport. • The Turkish system does not provide a mechanism for repayment or re-collection of loans or arrears. Youth Challenges • Many children are vulnerable and lack access to education, which leaves them vulnerable to violence and potential targets for radicalization. • Also, Syrian children report that they are discriminated against in schools, which makes them not want to go to school. Others • Respondents raised concerns that, although Turkey is a great country, Syrians feel they are not well recognized. • There are unsustainable funding sources for NGOs and difficulties in accomplishing projects due to changing policies and priorities from one sector to another and from one area to another. • Respondents also mentioned that there are data gaps on Syrians in Turkey as well as information gaps on the laws and regulations related to Syrians. Sometimes Turkish officials are not aware of the new laws and regulations, which creates confusion and contradictions between different cities in Turkey.

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WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

Business Support, Including Financial Inclusion and Access to Finance • Generate a database of Syrian business owners and form a group of Syrians with dual nationality to help solve the issues with money transfers. This group would be less constrained by the laws and regulatory challenges hindering Syrian refugees. • Create a pilot project for Gaziantep. To do so, set up subcommittees of about three people from each representation group. If this project succeeds in Turkey, it could also be replicated in Syria. • Create a financial institution that will help deal with the challenges of financial exclusion. This will help make Syrian refugee businesses more competitive. • Close the skills gap, as most Syrian skills are viewed as inadequate in Turkey. Also, upgrade management skills (especially marketing skills) and rehabilitation of plants. • Explore ways of encouraging joint investments between Turkish and Syrian people. • Create a holding company in Syria, preferably in horticulture. • Give small loans to microenterprises for scaling up. Also consider providing opportunities for Islamic banking to support microenterprises with scaling up. Such would possibly have interest-free loans such as “the good faith loan.” Respondents recommended giving loans rather than grants, as this will drive refugee enterprises to take their businesses seriously.

Integration • Provide access to Turkish language instruction to help refugees with the integration process. • Advocate for ways to ease the social difficulties for Syrians in host countries and promote more awareness of laws and regulations.

Syria Recovery and Reconstruction • Invest in education, health, agricultural, transport, and communication as well as in the building and reconstruction sectors. • Address the need for rehabilitation of plants and upgrading of management skills. Coordination • Improve coordination among international and humanitarian organizations. Education • Provide educational support for Syrian children—most importantly, education that is relevant to the Syrian context, so that they can adapt when they return. • Consider working with UN and other development agencies to establish an agency like the UN Relief and Works Agency. • Consider providing support to Syrian refugees through Turkish aid agencies.

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SYRIAN DIASPORA FOCUS GROUP REPORT: GERMANY (FRANKFURT)

“For the most part, Syrian refugees are treated as Germans. The biggest challenge however, is the issue of integration.”

Others Financial 13% sector 12%

Date: Nov. 21, 2016 No. of attendees: 4 focus groups & NGO 3 interviews 75%

Context: There was an indication that the Syrian community in Germany was more focused on helping integrate the “newcomers” (this was how they referred to the refugees) than building connections with other Syrian groups in different host countries. While respondents mentioned the issue of integration as a major challenge among the Syrian refugees, they also mentioned that the German government has been reasonably supportive. For instance, work permits have not been a significant issue, as refugees can travel easily with the German refugee passport, unlike the case in many host communities. In addition, refugees get living, housing, and insurance allowances (up to 400 euros per month), although the amount decreases over time to incentivize the refugees to find jobs, but there is also an incentive for the government to help them find jobs.

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: Integration • Respondents indicated that Syrian refugees have major challenges with integration, especially regarding language barriers and understanding regulations. It could take two to three years to become well acquainted with the work regulations, even in less skilled fields such as carpentry. • There are only five Arabic-speaking advocates in the German parliament. There is need for more representation. • Skills gaps prevent Syrian refugees from working in most big companies; often these companies do not have budget provisions for training. • Each time refugees cross the border; they are made to sign a document that labels them as refugees. • Some refugees are skeptic about long-term investments in Germany, because they are still looking to return to Syria.

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Access to Finance • There is weak access to finance. Most financial institutions, including microfinance institutions, are not willing to lend to the Syrian refugees, especially because refugees lack the sophistication to compete. Respondents mentioned that among the existing financial institutions, KFW was the most flexible, but it still requires that the business be German based, because KFW is state financed. Additionally, respondents mentioned that most financial institution refuse to lend if the applicant has any business connections in the Middle East. Gender-Related Challenges • Per the respondents, it is harder for women to get jobs, because companies are afraid of female hires getting pregnant. Others • Respondents were concerned about the ways the World Bank Group can monitor and ensure that work permits are given to Syrian refugees. WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

• Provide microfinance opportunities that work in partnership with German companies. Support microfinance activities like KFW’s that are more open to Syrian refugees and refugees generally. • The World Bank should help in organizing training and workshops for the Syrian community. • Support the Chamber of Commerce so it can help with business matching. It can also help facilitate partnerships between Syrian refugee and German businesses. • Improve the connection between the universities and the refugees. • Provide internship opportunities for refugees in companies. • Provide access to finance for businesses, especially those looking to operate in the Middle East who find it difficult to access capital.

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SYRIAN DIASPORA FOCUS GROUP REPORT: FRANCE (PARIS)

Others Food & Hospitality 8% 15%

Services 8%

Real estate 15% Date: Nov. 15, 2016 NGO 54% No. of attendees: 13

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: Integration • Per the respondents, although Syrian refugees can work once they have legal papers, they face major constraints that include difficulty in accessing information, finding job matches, filling skills gaps, and renting workshops. Constraints in Supporting Refugees in Syria and Other Host Communities • Established Syrian migrants encounter difficulties in supporting refugees in some other host communities due to regulatory barriers. For instance, an initiative called Sourali was launched in 13 countries to help young Syrian refugees create business opportunities using technology. While they could do so in some host communities, they could not do so in Jordan due to difficulties in contracting and the banking system. • Although not particular to inflows from France, respondents complained that established Syrian business owners looking to send remittances to or invest in Syrian businesses are unable to perform bank transactions with Syria and must invest through cash transactions. Trust and Coordination Issues • There is poor access to information and weak communication in the Syrian business community due to differences in political views, and this fragments the community. Gender-Related Challenges • Some Syrian women in France have the capital and motivation to start a business but lack the know-how.

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WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

• Advocate to remove or alleviate restrictions hindering Syrian professionals in neighboring host communities from practicing their professions such as medicine, law, pharmacy, among others. • Provide business training to women refugees in France, as many lack business know-hows. • Support Syrian refugees to obtain permission for container shops to do businesses in the camps (as is the case of Egypt). This was attempted in Turkey but failed due to bureaucratic and administrative procedures. Such an initiative should also be considered for Jordan and Lebanon. • Foster a mobile market through mobile shops where Syrian refugees can manufacture and sell traditional Syrian products across cities. • Support agency services that would help match Syrian refugees with job opportunities as well as help refugees rent workshops, as permission for this is difficult to obtain and requires several approvals.

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SYRIAN DIASPORA FOCUS GROUP REPORT: UNITED KINGDOM (LONDON)

“When I think of Syrian refugees, I think business opportunities, skilled migrants and the least fortunate.”

Financial sector Others 14% 29%

NGO 57% Date: Nov. 21, 2016 No. of attendees: 7 focus groups & 4 interviews Context: There have been instances of remarkable support from the Syrian community in London, per the feedback. For example, the Asfari Foundation has raised 100 million euros to support Syrian refugee small and medium enterprise (SME) initiatives. The Saïd Foundation (supporter of the Saïd Business School, University of Oxford) is reported to have also committed £10 million toward aid in the Syrian crisis and he is of Syrian descent as well. While some of the concerns raised by the UK focus groups were outside the range of World Bank Group interventions, the actionable issues raised present opportunities for more intervention from the entire international community.

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: Trust and Weak Coordination • Respondents raised concerns about the lack of cooperation among the development finance institutions (DFIs), international financial institution (IFIs), and other development partners. • They also raised concerns about the fragmentation and lack of trust in the Syrian community. Business Constraints • There is poor access to finance for SMEs, as banks are accustomed to catering for the bigger firms. • Refugee businesses require some skills upgrading as well as other key business support to adapt to the more advanced business landscape in Europe. This holds true especially regarding management skills and access to business networks.

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WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

Coordination

• Better coordinate among the DFIs, IFIs, and other key stakeholders. • Also, strengthen network in the Syrian community. There is a need to organize networking events, including embassy meetings (such as the Iraqi youth council in the UK). There used to be some networking activities in the past, but the number of these events is shrinking. • Have the World Bank’s involvement (possibly taking the lead) in whatever initiative would be developed, due to the band’s reputation of being credible, neutral, and apolitical. • A compact is needed with each of the neighboring countries that would help address refugee issues. There is also a need to create comprehensive projects, prioritizing objectives by sectors, skills, security, and country. • Support existing structures rather than create new ones. • Showcase success stories, especially to the Jordanian government and other host communities, on how Syrians are contributing to their economy. Support to Businesses

• Empower small businesses by linking them to larger businesses. It is also important to strategically support large businesses, as they can be used to showcase success stories and restore investor confidence. While it is important to focus on the niche market, it also important to target the large companies because they are the major contributors to GDP. • There should be a Syrian Chamber of Commerce or desk in the Chamber of Commerce assigned specifically to Syrian businesses in the different host communities, as is the case in Gaziantep. • Boost access to finance with consideration for technology-based financing, with a decentralized mechanism where due diligence on the company and a professional rating platform can be performed. • The Syrian community in Latin America should be explored for commercial diaspora opportunities, as it may present good prospects given its robust demographic profile. • Make more investors aware of opportunities and incentives such as the EU trade deal. • Facilitate access to information and knowledge to Syrian businesses. • It would be good to explore a combination of philanthropy and for-profit initiatives.

Skills Development

• Preserve not only capital but also talents. In other words, there is a need to support education and vocational training. There is also a need to help connect refugees to jobs once trained; there are significant gaps and opportunities in these areas.

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SYRIAN DIASPORA FOCUS GROUP REPORT: SWITZERLAND (GENEVA)

“Syrians are business oriented by nature. All they need is good integration in hosting countries; after that the international community should not worry about them.”

Financial sector Others 20% 20% Food & Hospitality 10%

NGO 20%

Other Services Date: Nov. 21, 2016 30% No. of attendees: 8

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: Integration and Business Constraints • Per respondents, one of the main reason for relatively low number of Syrian refugees in Switzerland is the stricter asylum policy in the alpine nations compared to other parts of Europe. • Respondents also mentioned that laws and regulations sometimes differ from one canton to another, which makes it difficult for Syrian refugees to understand their rights and obligations. • They also indicated that language is a major challenge. • Furthermore, respondents mentioned that legal and administrative difficulties prevent business owners from hiring Syrian refugees. Business owners are required to sign several papers— permissions vary from one status to another, and only refugees who have permission B can be hired. Per respondents, about 56 percent of Syrian refugees in Switzerland have permission F (under a temporary protection), which makes it difficult for them to get jobs. • Lack of funding also makes it challenging for Syrian refugees to start a business. Weak Coordination • The number of organizations dealing with Syrian community are very limited, and the Syrian communities do not communicate and coordinate with each other. Child- and Gender-Related Issues • Some refugee children face social difficulties, especially because some of them arrive in Switzerland without their parents.

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Context: The Syrian community is relatively small in Switzerland compared to that in other host communities. Respondents indicated that some of the Syrian refugees moved from the Gulf Cooperation Council countries to Switzerland due to difficulties in renewing their residency papers in the gulf countries. WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

Support to Businesses • Provide opportunities for angel and venture capital investors that would provide both financial and nonfinancial support, such as mentorship and access to networks and markets to refugees. • Provide guarantees for investment projects that focus on reducing risk concerns for Syrian investors as well as other investors looking to invest in refugee-targeted initiatives. • Create a one-stop shop or advisory company that can advise Syria refugees on the required documentation for hiring Syrian employees and for doing business. • Advocate for reducing the requirements to hire a Syrian refugee • Create secure special zones near Syria, as many Syrians are currently looking to establish their businesses in neighboring host communities, given the rigid business environment and the quota restrictions in host communities.

Coordination • Address the need for support from the World Bank to help in trust building and to help create a networking and matchmaking platform.

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SYRIAN DIASPORA FOCUS GROUP REPORT: NEW YORK

“We are happy that the World Bank is involved.”

Garment Services &Textile 50% 50%

Date: January 10, 2017 No. of attendees: 6

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: • Trust issues as well as weak communication and coordination were mentioned as major impediments. • Opportunities for integration available to the newcomers (refugees) in the is still very weak. • There are concerns about the resentments Syrian refugees face from their host communities, who feel that the refugees are taking their jobs and opportunities, often leading to bullying and blackmailing. • Banking restrictions are a major constraint. • Per the respondents, refugees migrating to the United States are coming from the countryside of Syria, are not very well educated, and need to upgrade skills.

WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY Finance and Private Sector Development • Strengthen small and medium enterprises, as they are the backbones of the economy. • Open factories that would employ and provide good work conditions for Syrian refugees. • Support Syrian refugee firms to leverage EU trade deals • A respondent with a corporate social responsibility (CSR) background suggested the case for “needs and benefit” be developed. This would help drive and guide CSR, especially because corporations need to understand better how they can contribute. This would help fine tune the value proposition that would drive CSR, especially regarding supply chain and outsourcing opportunities. • Explore opportunities that promote online business and jobs matchmaking. For instance, the online jobs platform LinkedIn is considering how it can connect Syrian refugees to businesses, skills, and so forth.

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• Help with banking regulations. • Address the need for an umbrella association that would help strengthen networking and serve as a chamber for Syrian commerce.

Other Feedbacks • Create opportunities for both education and jobs. • Organize educational awareness programs that help eliminate resentment. • To remedy trust issues, consider focusing on developing opportunities around areas of shared interest. This would result in harmonized developmental solutions, especially among conflicting parties.

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SYRIAN DIASPORA FOCUS GROUP REPORT: BOSTON

“To build trust is to build parallel solutions both inside and outside Syria.”

Others 23%

Healthcare sector 77% Date: October 9, 2016 & January 18, 2017 No. of attendees: 13

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: • Many of the internally displaced refugees in Syria have been forgotten by the relief agencies, and there is a need to create more welfare provisions. • It is almost impossible to send money to Syria, and most of smuggle money home through Lebanon. • Respondents also mentioned that there is a huge lack of trust among and toward the NGOs, especially those inside Syria, which makes it very difficult for donors to contribute. • Syrian refugees and diaspora are concerned about the long-term implications of investing (especially long-term investments) in neighboring countries in case they cannot repatriate or claim their investments in the future. • Respondents were concerned about the very limited means to help internally displaced refugees inside Syria.

WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

Finance and Private Sector Development • The World Bank needs to help finance small businesses. • Create access to banking in refugee communities (especially in less-developed communities). • Respondents suggested that it would be more relevant to target philanthropic contributions rather than investments because Syrians expect refugees’ stay in host countries to be temporary and fixed or long- term investments may not be ideal.

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Communication and coordination • Need to use apolitical and neutral approaches • Need for a communication platforms. • Need for help with creating transparent platforms where contributions can be made given the disturbing challenge with lack of trust. Other Feedbacks • Help provide support to refugees to rebuild their villages inside Syria. • Need to develop projects that are targeted at rebuilding Syria. • Need to also consider the policy aspect of education in host communities to ensure that that children especially, have access to decent education.

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SYRIAN DIASPORA FOCUS GROUP REPORT: TEXAS, Houston

“How can we help? We cannot help the refugees because we do not have a mechanism to get money to the camp.”

Other 31%

Service 44%

Date: January 25, 2017 Real Estate 25% No. of attendees: 19

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: • Trust and transparency issues are a major challenge that prevents engagement in the Syrian community. • It is difficult to perform banking transactions, and there are no mechanisms for sending money to the camps. • The skills gap is widening, as some refugees have not gone to school for five to six years. • Mental health is a big issue among the Syrian refugees, and this needs to be addressed. For instance, the refugees in Zaatari camp are bitter and it is difficult to help them. They need rehabilitation before they can be helped.

WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

Finance and Private Sector Development • Create a mechanism for banking transactions, such as a Syrian Bank, as this is the foundation of any business. • Create a business-support infrastructure like the Small Business Administration. • Approach ideas centered around big investment projects with caution, because they stand the risk of being consumed by bureaucracy. • Help develop a mechanism for people to either invest or engage in philanthropy. • Help identify and vet refugee projects that require funding—consider identifying projects from each of the refugee host countries.

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Education and Jobs • Conduct a needs assessment to identify skills gaps and conduct training on key skills. • Set up factories that would help create jobs for refugees. • Establish educational facilities, as many youths have not gone to school for years. • Create more jobs directly in the camp and cut the middlemen.

Other Feedbacks • Help in providing safe zones for the refugees inside Syria. • Create a vetting process for Syrian diaspora initiatives that would ensure transparency. • It is important to maintain the momentum of this diaspora initiative. Consider sending weekly newsletters.

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SYRIAN DIASPORA FOCUS GROUP REPORT: MICHIGAN

“Detroit is the biggest Arab-American society in the country, and we want to help, but the problem is the regulatory barriers. We need help with advocacy.”

Food & Hospitality Other 12% 31%

Services Real estate 44% Date: January 26th 2017 13% No. of attendees: 13

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: Education and Jobs • There is still a major gap with refugee placement. For instance, there is still very limited availability of homes for refugees. • There are significant educational gaps. • The labor conditions in many host countries are very poor, refugees work up to 12 hour shifts Business Opportunities • Many women are vulnerable, as they are not accustomed to being business owners or making business decisions. • The local laws make it difficult to do business that would create jobs for the refugees in the neighboring host countries. Other Factors • Infrastructural limitations. For instance, group members got involved in a medical mission and discovered that transportation and other facilities were missing. This affected the mission work and poses a significant challenge for the refugees.

WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

Finance and Private Sector Development • Consider financing businesses in the garment sector and help provide them with support. • Help finance and support refugee businesses in garments that could be exported. • There is need to map and itemize the existing skill of the refugees and create a talent bank. • Help create business opportunities for women, especially with microloans and skills development.

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• Help create free zones in Jordan. This would help shield refugee businesses from their unique regulatory barriers. Education and Jobs • Have a public education facility to finance a good curriculum for Syrian children in host communities. • The refugees in the camps are the ones eager to work. Develop their talents now that they are still in the camp as well as help provide job opportunities for them. • Consider establishing a virtual college or university such as the Khan Academy. Programs such as “Teach for Lebanon” should also be considered for replication; this program provides morning classes to Lebanese children and evening classes to Syrian children. • Labor market needs to be regulated. Other Feedbacks • Consider designing solutions for each host community differently, as they each have unique circumstances. • Both short and long term solutions are needed given the complexity of the situation. Some refugees plan to stay in the host country only temporarily and would want to repatriate their investments back to Syria. Also, some refugees may be reluctant to go back, so it is important to target solutions that would support them when they do. It is important to map the needs of refugees in the camp to identify a plan for those who wish to return to Syria or for those who wish to remain in the host country. This will help determine whether they require a short- or a long-term project.

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SYRIAN DIASPORA REFUGEE FOCUS GROUP MEETING: WASHINGTON, D.C.

“Don't give fish, instead teach Syrian refugees how to fish”

Others Construction Trade 6% 12% 13% Health sector 12%

Manufacturing 6%

Other Services NGO Date: May 15, 2017 38% 13% No. of attendees: 16

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: Education • Refugees are becoming complacent and dependent due to the prolonged crisis and would need to be reeducated. • Also, the prolonged crisis has created a knowledge gap. The youths especially, need education and schooling to have a future. Finance and private sector development • Syrians cannot take out their own money from the Central Bank. • It is difficult for professionals to get licensing and there are limited resources to help businesses get established. Other factors • Syrians are looked at as a competition in many host communities which is may have an adverse social implication. • There is no database on Syrian refugees in most host countries.

WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

Structure and mission of SIBA • Create chapters for SIBA everywhere. • The Syria diaspora should work with the World Bank—it’s giving Syrians a voice. Education

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• A systematic approach is needed to train and reeducate refugees to retool themselves rather than becoming complacent and taking hand-outs. Schooling and education are important for youths to have a future. Banking and money transfers • A Syrian international bank under the auspices of the World Bank would help to provide a guarantee of funds given the difficulty Syrians have with taking out their own money from the Central Bank. Also, consider the idea of a virtual bank. • Create a mechanism for transferring money especially on how to get money to reach Syrians. Job and Business opportunities for refugees • Need to empower Syrians only by giving them sustainable tools. • The World Bank and the International community together with Syrian International Business Association (SIBA) could open a free zone, like in Turkey, which would eliminate local restrictions to work. • Reconstruction and the eventual return of refugees to Syria is a long-term goal; strengthening entrepreneurship outside of Syria will eventually lead to imparting skills and benefit to Syrians back in Syria. • Help professionals obtain licensing and provide resources to help businesses get established • Create investment opportunities in the manufacturing sector in Jordan and Turkey. • Devise several models for Syrians, one business model doesn’t fit all. Make existing businesses stronger. • There is a need for databases and resumes of talents to help job matching. Other feedbacks • Keep communicating and importantly, build partnerships with existing international organizations. • Work on neutrality and good intentions and keep politics out. • Identify transferrable resources, for example transfer the experiences from Afghanistan and . • Consider establishing a lobby for rights and policies. • Work with Syrians to go home to Syria. If not, strengthen their capacities so they will help Syrians at home.

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SYRIAN DIASPORA REFUGEE FOCUS GROUP MEETING: TORONTO

“Host countries need not be concerned about refugees taking away jobs, because Syrians by nature can create jobs and market. Syrians are creative, despite all odds. They have been successful in their diaspora countries, such as those in the Persian Gulf.”

Trade and Business 19% Manufacturing 29%

Real Estate 10%

Heath sector 5% NGO Date: May 11, 2017 Food Hospitality 14% Services No. of attendees: 21 14% 9%

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: Education and Jobs • The systems for licensing refugees in host countries are insufficient especially in professional fields. • The forced displacement is leading to a brain drain in Syria. Other Factors • Syrians want SIBA to be affiliated with the World Bank for credibility even though the World Bank wants SIBA to be independent. • When the war ends, there may be no infrastructure, hydropower, housing, and so forth to accommodate returnees.

WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

Structure and mission of SIBA • Regarding SIBA as a company versus non-profit, some respondents indicated they would prefer a company model and for SIBA to be a grass root organization with chapters. • Respondents suggested that SIBA be empowered by Syrian business owners. • On paper, everything looks good, but to create credibility, execution and results is needed. • A recurring theme was that Syrians want SIBA affiliated with the World Bank for credibility.

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• One of the goals of SIBA should be to educate, train, and to develop skills for refugees who are younger— 15 to 25—making them employable because they are the future of Syria’s next generation. • SIBA doesn’t have to be in the investment business initially; SIBA can advocate, educate, mentor, and be the link to match people with employment or employers. • The idea of SIBA empowering the private sector is great. However, SIBA will work only if there is no personal, political, or financial gain to the individuals who administrate the organization. • SIBA is expected to empower refugees at all levels and to help in Syria’s reconstruction when the war ends. Investment opportunities • Canadians would invest in business or property if the World Bank provided guidance, a mechanism, and stability. • Finally, there are many Syrians who would like to send money for refugee development. SIBA could facilitate this through the Canadian government; with trustworthy investors and philanthropists. • What are the objectives to strengthen refugees? Two schools of thought: via industry, building factories and skills, or via small businesses. For example, in , many immigrants were welders, carpenters, mechanics, and so forth, but couldn’t obtain licensing. Thus, they have opened small businesses such as restaurants where they became successful. • Targeting Turkey, Lebanon, and Jordan might be too much at the outset. Perhaps a strategy of targeting one country is better. As the respondent put it, “You have one shot at this, and if you fail the opportunity is gone.” • A refugee investment strategy is not sufficient to create buy-in from the Syrian diaspora as a long- term strategy of solving the current crisis is essential. Job opportunity • Need to develop a clear-cut process to get refugees licensed in their host countries as most host countries have a poor system for licensing refugees partly because host countries are worried that refugees will dominate their markets. Brain Drain and refugee Repatriation • Consider an end goal of repatriating refugees back to Syria as there has been a huge brain drain because of the war.

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SYRIAN DIASPORA REFUGEE FOCUS GROUP MEETING: LOS ANGELES

“Syrians are known for their business attributes historically and culturally; when it’s time for reconstruction and recovery, let the Syrian business people rebuild Syria.”

Engineering 11% Construction 21% Trade and business 16%

Health sector 11% Other Services 21%

Manufacturing 11% Date: May 1, 2017 No. of attendees: 19 NGO 11%

Note: After the focus group meeting, respondents stated that this was the first gathering in the Syrian community for several years since the current conflict in Syria as political differences has contributed to a divisive environment and community. Participants felt a sense of optimism regarding the World Bank’s participation and were hopeful that these new initiatives would continue to be free of any political agenda. Furthermore, the participants felt strongly that the World Bank could possibly regain trust and unify the Syrian community for one purpose—improving the economic conditions of the Syrian refugees.

CONCERNS AND CONSTRAINING FACTORS The following constraints were raised by the respondents during the consultations: Education • Education gap is significant among Syrian refugees especially for children. Jobs and Business Opportunities • Refugees have limited job and business opportunities because of the work restrictions in host countries. • Licensing of professionals in many host countries is an issue. Other Factors • There are issues of trust and if there is no trust and stability, it would be difficult to invest. • There may be sensitivities and credibility concerns about where SIBA will be registered, it is important to carefully identify a neutral country.

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WHAT COULD BE DONE? BRAINSTORMING FEEDBACK FROM THE SYRIAN COMMUNITY

Investment Opportunities • Trust should be established to attract the private sector, which will lead to organic growth. Discussants strongly believe that the World Bank could possibly regain trust and unify the Syrian community for improving—the economic conditions of the Syrian refugees. Refugee • Need to provide licensing for refugees in the host countries especially for professional such as physicians, engineers, tradesmen. For example, establishing a hospital where Syrian licensing would be accepted or a trade union that would accept Syrian licensing so that the people could work in host countries. Education • Education was stressed for the Syrian refugees as the way to make progress. Good schools are needed for refugee children. Also, good education will provide stability to families and, in turn, prosperity. Structure and mission of SIBA • How can the World Bank help? The idea of SIBA in conjunction with the World Bank sounds like it could be successful only if it can overcome the economic obstacles faced by host countries. For example, SIBA can create a private sector initiative and help to build skills that are transferable. • Discussants deliberated having SIBA as a nonprofit versus a for-profit organization. However, there was a consensus from several participants that the organization would be better served as a for-profit. This is primarily because a for-profit model would attract more investors and lend more credibility. In general, respondents had a cynicism about a nonprofit model.

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RECOMMENDATIONS Potential interventions that the World Bank Group could support are as follows: 1. Support the establishment of a Syrian Diaspora Chamber of Commerce—the Syrian Economic Forum will prepare a business case. This would be the platform for the business diaspora and provide a basis for policy advocacy on the many constraints Syrian businesses face in the neighboring countries. A prerequisite for any kind of meaningful public private dialogue. There is already an indication from GIZ and some private sector associations to support this initiative. 2. Provide technical assistance to resolve the many bureaucratic and technical obstacles Syrian businesses face (travel restrictions, difficulty with driver’s licenses and international payments, establishing bank accounts). The Turkish Trade and Competitiveness advisory team has already started work on some of these topics in Turkey and in the Jordan Program for Results we touch on some of these points. The underlying challenge is to establish the political environment with the authorities in the respective countries to discuss and find solutions to these problems. 3. Grant support to firms (through matching grant or challenge fund type of approaches) to enable the transitions just mentioned. 4. Undertake initial feasibility studies for economic zones in Syria adjacent to the borders of Turkey, Lebanon, and Jordan. These could be designated as reconstruction zones and link to counterpart zones like the Mafreq in Jordan. One observation of the diaspora: their origins from within Syria are important—those from the north want to connect with Turkey, those from the south with Jordan. 5. Establish an apex financial institution as done in Bosnia to meet the financial needs for the Syrian refugees and eventual returnees. 6. Address key questions regarding potentials for and barriers to deeper regional integration in goods and services trade. Where are the untapped potentials for regional integration, and in which sectors? How can Levant economies benefit from complementarities and competitiveness through regional trade integration? What are the behind-the-border barriers, and what are the suggested policies or actions to remove these barriers in the short and long terms? 7. More analysis is needed of opportunities created by the current situation, in terms of improved attitudes, business culture, and so forth. 8. Address the issue of weak social capital—particularly trust—which discourages diaspora engagement. 9. Promote ground-level business efforts: for example, a “Made by Syrians” brand.

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APPENDIX A: KEY DEFINITIONS AND THE SYRIAN MIGRATION

What is a refugee? The 1951 Refugee Convention and its 1967 Protocol define a refugee as “a person who is outside his or her country of nationality or habitual residence; has a well-founded fear of being persecuted because of his or her race, religion, nationality, membership of a particular social group or political opinion; and is unable or unwilling to avail him- or herself of the protection of that country, or to return there, for fear of persecution.

What is a migrant? A migrant, in comparison, may leave his or her country for many reasons that are not related to persecution, such as for the purposes of employment, family reunification, or study. A migrant continues to enjoy the protection of his or her own government even when abroad. What is a diaspora? A diaspora has two dimensions: first, people having migrated, and second, maintaining a connection with the homeland. Per the International Organization for Migration, a broad definition of diasporas is “members of ethnic and national communities, who have left, but maintain links with, their homelands.” Assessing the size of a diaspora and defining criteria of appurtenance can be challenging. There have been three waves of Syrian migration. The first wave migrated in the 1880s to the Americas in search of economic opportunities and to escape from political and cultural tensions. The second wave migrated in the 1970s and 1980s, when many went to the Persian Gulf area, driven by the discovery of oil, and the others to Europe for academic and economic purposes. The third wave was forcefully displaced at the start of the Syrian crisis in 2011, and this migration is still ongoing. Some notable figures of Syrian descent include Steve Jobs and Carlos Saul Menem, president of from 1989 to 1999. There are significant prospects for new business development in the Syrian community, given the tradition of Syrians as adept business people with a history of merchants. Additionally, there is a compelling drive for refugees to work exceedingly harder due to the lack of a safety net. In 2010 there were several business councils in Syria, however, by 2013 all these councils were closed due to the imposed economic sanctions and the movement of large waves of Syrian business owners to neighboring countries in search of a safe environment for livelihood and economic opportunities.

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