MadMUN - Magdeburg Model United Nations

Syria's economy

Syria's economy has once being marked by a socialist regime and developed now from a state-controlled economy to a market-oriented one. Under the new government of President Bashar al-Asad Syria's economy is experiencing strong reforms. By creating a business-friendly environment, the Syrian government hopes to give new incentives to foreign investment. The new Investment Law No. 10 established in 1991, an anti-corruption campaign as well as several laws aimed at establishing a Damascus Stock Exchange, legalizing private banks and harmonizing Syria's various currency exchange rates definitley attracted foreign investment during the past few years. The paramount goal of al-Asad is to move Syria towards a more market-based, modernized economy. But Syria is only hesitatingly opening up to the world market; all strategic sectors like the banking system, oil, electricity and chemicals are still government-controlled. Trying to establish herself on the international market, Syria began negotiations with the European Union in regards to a possible association agreement. Currently, the European Union is buying more than half of Syria's exports and is as well Syria's main trading partner. Oil is the biggest contributor to Syria's GDP, but the reserve will soon be exhausted, therefore needs to find alternatives for facing the upcoming challenge in the future. The tourism sector has high potential to offer for finding a solution for the issue and with more modernized irrigating systems the agricultural sector will also play a more leading and important role.
To put it in a nutshell, Syria has a high potential for a growing and prosperous economy, but reforms in the banking, administrative and political sector are a prerequisite for that. The slowly fading away oil reserves, the modernization of old equipment in the agricultural sector and the reforming of the centralized banking system will be challenges that are necessary and Syria will have to face in the future. But new incentives for foreign investment already have born fruit and Syria is on its way of entering the world market.