Doing business in Syria

Doing business in Syria is a major challenge and one that most companies are not willing to take on. Syria is considered to be a middle income country but it is danger of falling to the status of a low income country. The economy is growing very slowly while the population is growing very quickly. If things don't change soon Syria will find itself in serious financial difficulty. The problem is that the country is heavily dependent on oil production to keep its economy going but production has been declining and there have been no new oil finds in years. Clearly the oil is running out and there is no plan in place for what happens when it runs out.

Another major problem facing Syria is that many of its industries are run by the state. This wouldn't necessarily be a problem except that the state has proven hopelessly inept at running these industries. This has left the country with little growth and little foreign investment. The government is actively trying to encourage foreign companies to do business in Syria but it is a tough sell. There are major challenges to be overcome for any company to operate in Syria.

The biggest problem that will have to be overcome if you want to do business is Syria are outdated laws that are made and enforced in a completely arbitrary fashion. Combine this with massive corruption and it is nearly impossible to set up a business without greasing a few wheels first. This has gone a long way to keeping companies out and has contributed heavily to Syria's economic troubles.

There are a number of other problems that will need to be dealt with if you are interested in doing business in Syria. These include a completely inadequate banking system that makes both foreign exchange and financing projects very difficult. There is also a shortage of skilled workers, the unemployment rate is very high but there are few people in the country with the necessary skills for most work. Infrastructure is also a problem since most of this is quite poor and will significantly increase the cost of doing business.

Despite all of the difficulties involved with doing business in Syria there are reasons that you might want to consider it. There is potential for growth since the majority of the country's exports are raw materials. By processing the materials in Syria rather than exporting them in raw form they would increase in value and greatly help the Syrian economy. There is also a massive need to improve the financial services sector and this is another area where potential exists.

One thing to keep in mind if you are considering doing business in Syria is that the United States maintains a number of Sanctions against Syria. This will limit who can do business in Syria and it will also limit import and export opportunities.