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A Review of Syria's Economic Sectors and an Identification of Sectors With SME SUPPORT P ROGRAMME Project No. (SSP) MED/2005/17542 Programme funded by the European Union and implemented through the SEBC A Review of Syria’s Economic Sectors and An Identification of Sectors with possible Investment Potentials ToR No.: AWP2/044 Experts: Edward Owen & Ziad Ayoub Arbach DATE: January 2010 PROJECT NO. MEDA/2005/17542 EUROPEAID/122282/C/SV/SY SEBC/SSP 1 SEBC/SSP 2 DISCLAIMER This document was produced by the SME Support Programme (SSP) – a private sector development programmed with the overall objective of supporting the development of the Syrian economy through direct assistance to the Syrian private sector. The European Commission funds the SSP based on the financing agreement signed between the European Community and the Syrian Arab Republic, ref.:MED/2005/17542. The SME Support Programme (SSP) is hosted and implemented by the National Institution; Syrian Enterprise and Business Centre (SEBC) in close collaboration with the Ministry of Economy and Trade under a Service Contract for European Community External Actions identification number EuropeAid/122282/C/SV/SY with GOPA. The content of this document is the sole responsibility of the author and can in no way be taken to reflect the views of the European Community nor SEBC or the Syrian Government. The document's recommendations do not entail any legal commitment on the part of the European Commission or the SEBC/SSP. The company/client/reader accepts that this service is without warranty of any kind, explicit or implied. The company/client/reader assumes all risks related to the use of information provided to him or her. In no event is SEBC/SSP liable for any damages resulting from use or misuse of the information provided. The content of this report may be fully or partially reproduced provided that the source is acknowledged. Published by: SME Support Programme © 2010 SEBC/SSP 3 Contents 1. Summary .............................................................................................................................................. 7 1.1. The Terms of Reference ....................................................................................................................... 7 1.2. Considerations ...................................................................................................................................... 7 1.3. Assumptions ......................................................................................................................................... 7 1.4. Work Done ............................................................................................................................................ 8 a. Approach 8 b. A Review based on the Export Trade Statistics 8 c. A review of the Economic sectors based on the Government’s Five-Year Plan and Executive Reform Plan 10 i. Agriculture, Livestock, Fishing and Forestry Sector 10 ii. Manufacturing, Mining, Energy & Water Sector 10 iii. Building & Construction Sector 11 iv. Wholesale, Retail, Restaurants and Hotels Sector 11 v. Transport & Communications Sector 12 vi. Finance & Insurance Sector 13 vii. Services Sector 14 2. Introduction ....................................................................................................................................... 15 2.1. Background ......................................................................................................................................... 15 2.2. The Terms of Reference and Methodology ........................................................................................ 16 2.3. A Further Discussion of the Methodology used to Identify Opportunities based on the Ability to Export .............................................................................................................................................. 17 2.4. Some Further Thoughts ...................................................................................................................... 19 a. The importance of the Primary & Secondary Industry Sectors 19 b. Utilities 20 c. Other Services 21 3. A Review of the Syrian Economy ................................................................................................... 21 3.1. An Overview ........................................................................................................................................ 21 3.2. The Agricultural and Forestry Sector (including fishing) .................................................................... 24 3.3. The Mining & Manufacturing Sector ................................................................................................... 29 3.4. The Energy Sector .............................................................................................................................. 31 a. The Oil and Gas Resources 31 b. Electricity Generation 33 c. Public-Private Partnerships 33 d. Renewable Energy Production 34 i. Energy Conservation 34 ii. Renewable Energy Generation 35 3.5. The Building & Construction Sector ................................................................................................... 36 3.6. The Wholesale & Retail Trade Sector ................................................................................................ 38 3.7. The Tourism Sector ............................................................................................................................ 41 3.8. The Transport & Communications Sector .......................................................................................... 45 a. Transport 45 b. Communications 48 3.9. The Finance & Insurance Sector ........................................................................................................ 51 3.10. The Social & Personal Services Sector ............................................................................................. 52 a. Education Subsector 52 b. The Health Subsector 54 4. An Analysis of investment Opportunities based on the Trade Statistics .................................. 55 5. A Development Strategy for Syria .................................................................................................. 61 5.1. Move to high value-added (VA) activities ........................................................................................... 61 5.2. Increase output in those sectors that Syria would seem to have a competitive advantage .............. 62 5.3. Encourage investment in those sectors in which neighbouring countries would seem to have a competitive advantage in the expectation that Syria would as well ................................. 65 6. The Identification of Development Opportunities based on Syrian Exports ......... 67 6.1. Preface ................................................................................................................................................ 67 6.2. Overview ............................................................................................................................................. 68 6.3. The Sectors where there are perceived opportunities for growth ...................................................... 71 i. HS 02: Meat and edible meat offal ..................................................................................................... 71 ii. HS 03: Fish, crustaceans, molluscs, aquatic invertebrates, not elsewhere specified .................... 72 SEBC/SSP 4 iii. HS 04: Dairy products, eggs, honey, edible animal product not elsewhere specified ...................... 73 iv. HS 06: Live trees, plants, bulbs, roots, cut flowers, etc ..................................................................... 73 v. HS 07: Edible vegetables and certain roots and tubers ..................................................................... 74 vi. HS 08: Edible fruit, nuts, peel of citrus fruit, melons .......................................................................... 75 vii. HS 09: Coffee, tea, mate and spices.................................................................................................. 75 viii. HS 11: Milling products, malt, starches, inulin, wheat gluten............................................................. 75 ix. HS 15: Animal, vegetable fats & oils, cleavage products, etc............................................................ 76 x. HS 20: Vegetable, fruit, nut, etc, food preparations ........................................................................... 77 xi. HS 21: Miscellaneous edible preparations ......................................................................................... 78 xii. HS 25: Salt, sulphur, earth, stone, plaster, lime, and cement............................................................ 78 xiii. HS 27: Mineral fuels, oils, distillation products, etc ............................................................................ 78 xiv. HS 30 Pharmaceutical products ......................................................................................................... 79 xv. HS 33: Essential oils, perfumes, cosmetics, toiletries........................................................................ 79 xvi. HS 34: Soaps, lubricants, waxes, candles, modelling pastes ........................................................... 80 xvii. HS 39: Plastics and articles thereof ................................................................................................... 80 xviii. HS 41: Raw hides, and skins (other than fur-skins) and leather ....................................................... 81
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