6 - 12 September 2001
Issue No.550
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Al-Ahram Weekly Online 6 - 12 September 2001 Issue No.550 |
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The road to Damascus
On the occasion of Egypt's participation in the 48th Damascus International Fair, Gamal Essam El-Din spoke with Egypt's ambassador to Syria about the dramatic growth in commercial relations between the two countries
Business between Egypt and Syria is at an all-time high, and plans are underway to increase trade further. Building on an impressive record in the past two years, which has seen trade between the two countries almost treble, senior officials are working to conclude a free trade agreement next month.
Mohamed Ahmed Ismail
Enthusiasm for the fruitful partnership was in evidence at the 48th Damascus International Fair at which Egypt was the visiting country with the largest number of companies in its delegation. In conjunction with the event, which opened on 28 August and runs until 7 September, Mohamed Ahmed Ismail, Egypt's ambassador to Damascus (and the son of Field Marshal Ahmed Ismail Ali, Egypt's Minister of War during 1973's October war), discussed in an exclusive interview with Al-Ahram Weekly the recent developments in the economic relations between his country and Syria.
"The fact that Egypt ranks first in terms of number of companies participating in this international fair is highly significant. With a total of 55 companies, almost all of Egypt's commercial and industrial activities are represented," Ismail said.
Among Egyptian fair participants are 11 of the country's largest private sector companies, including ones involved in the manufacture of ceramics, electronics and electric appliances. "As a matter of fact, Egyptian businessmen's interest in the Syrian market increased sharply during the past two years. A case in point is that a large delegation of businessmen representing Egypt's International Economic Forum visited Damascus last month and met with a wide array of senior officials. During that visit, it was decided that an Egyptian-Syrian Business Council will be established to institutionalise the promotion of commercial relations between the two countries," Ismail said.
When Ismail was appointed ambassador to Syria in October 1999, it had been three years since the joint Egyptian-Syrian Ministerial Committee last met. "The general view among officials in the two countries was that there was no need for such a committee to meet as long as previous economic and commercial agreements were not implemented," Ismail said.
Now the committee is back on track, having met in November in Damascus and being scheduled to convene in Cairo during the next two months.
Since Ismail assumed his post, 16 commercial protocols and agreements have been signed and trade between Egypt and Syria has risen from $52 million in 1999 to $123 million in 2000. By the end of this year, this figure is expected to reach between $150 million and $200 million.
These figures have meant big business for Egypt in particular: during 2000, the balance of trade was in Egypt's favour by $20 million. While wracking up purchase orders from Syria, Egypt has also been diversifying its exports. These are no longer confined to agricultural products such as rice, but have come to included air conditioners, ceramics, electric appliances and computer services.
Ismail revealed that the joint committee has also managed to create a semi-free trade zone between the two countries. A list of 20 Egyptian goods and 19 Syrian goods is now completely exempted from custom duties. This list, Ismail added, is expected to be expanded during the committee's next meeting as part of a wider plan that would create a free trade area that also includes Iraq.
In terms of private investments, Ismail explained that some of Egypt's prominent businessmen are making forays into the Syrian market. "Foremost among them are Naguib Sawiris, Shafiq Gabr, Hosam Badrawi and Mohamed Guineidi. The latter had decided to establish a production line in Syria for assembling electric appliances such as washing machines and refrigerators," Ismail said. Sawiris's company, Orascom Telecom, has recently won the contract to provide mobile phone services in Syria. Gabr is an automobile importer and Badrawi owns a private hospital.
Egypt's public sector is also doing business in Syria. Ismail noted that El-Nasr Company for Car Manufacturing, a public sector company based in the south Cairo district of Helwan, was recently awarded a bid for the supply of 200 air-conditioned passenger buses to Syria's Ministry of Transport.
The joint committee's most significant achievements, in Ismail's view, are in the electricity and natural gas sectors. The ministers of electricity have agreed to establish two joint-venture companies. One of these will link the two countries' electrical grids, while the second will manufacture machinery used in power generation and distribution.
Syria is one of four Middle East countries that Egypt is slated to supply with natural gas, a project that will be facilitated through establishing a joint- venture Egyptian-Syrian gas company.
Another area of economic cooperation has been in the form of consultations between Syria and Egypt regarding their liberalisation programmes. Since Al-Assad took office in June 2000, he has demonstrated determination to reform the public sector and open up Syria's economy to foreign investment. "President Al-Assad has urged Syrian officials to call upon Egypt's experience in these two areas. As a result, Prime Minister Atef Ebeid, during his visit to Syria in November, held a five-hour meeting with four Syrian ministers and the chairman of Syria's Union of Chambers of Commerce," said Ismail. He also explained that the Syrians were informed of the main guidelines of Egypt's new investment laws, focusing on banking and industrial zones. "It is now a well-known fact that President Al-Assad is determined to open the Syrian market to foreign banks and private universities. The National Bank of Egypt will be the first foreign bank to have a branch in Damascus. Added to this, a Syrian stock exchange is in the making," said Ismail.
According to Ali El-Haddad, chairman of Egypt's Information Office, it is noted that a new Syrian investment law (Law no. 10, for the year 2000) emulates Egypt's 1997 investment law in offering generous incentive packages for a wide array of projects designed to manufacture products for export in new industrial communities.
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