Syria 'pressing on accelerator' to attract US investors

US investors are optimistic about the opportunity to invest early in Syria as the transitional government strives to create a business-friendly atmosphere and entice foreign capital. Steve Lutes, vice president of Middle East Affairs at the US Chamber of Commerce, expressed confidence in this development. After a round-table at the UN General Assembly and a delegation visit to Damascus, Lutes believes US companies are eager to engage strategically and support Syria's economic recovery.

The US has lifted Syria's state sponsor of terrorism designation, removing a significant hurdle to reintegration into the international financial system. Syria's government has swiftly sought investment, with the World Bank estimating the cost of rebuilding the nation at $216 billion. The delegation witnessed commitments from Gulf nations, such as DP World's $800 million investment in Tartus Port.

The Chamber of Commerce is focusing on Syria's banking sector, which has undergone significant transformation. The government expects foreign investment in establishing new banks to exceed $1 billion. However, public spending remains a challenge, with a $1 billion fiscal deficit. Despite reputational risks associated with Syria's grey list status with the Financial Action Task Force, Lutes anticipates more US companies partnering with Gulf entities to mitigate these risks and enhance investor confidence.