$ 710 mln Revenues of Free Zones in 2012

DAMASCUS, (ST) – General Director of the General Foundation of Free Zones estimated the damages hit the free zones, due to the actions of terrorist groups and robbery, by more than 250 million Syrian pounds.

The Director of the Foundation of Free Zones, Mohammed Katkout, said that the estimates are still initial in light of the available information in the free zones of Hisyah and Adra, whereas  the full damages in Aleppo free zone haven’t been not been estimated yet.

“The foundation recorded last year revenues of $ 710 million, while the revenues were $ 884 million in 2011, adding that the invested capital in the free zones reached about $ 694 million in 2012  while it was in the previous year $ 837 million down the value of $ 143 million and the invested capital for foreign companies declined in 2011 to $ 85 million,” the Director said.

Mr. Katkout pointed out that the number of investors, according to investment activity, reached to 1176 and according to  work contracts reached 966 investors while it was in the year 2011 according to the investment activity 1295 investor and according to work contracts reached 1074 investor, adding that the number of foreign companies reached 74 last year,   whereas the number reached  about 84 companies in the year 2011 and the number of workers in the facilities of free zones amounted to 6883 workers last year, up from the previous year by about 266 workers.

  
 “The foundation continues to provide its services, facilities and exemptions to investors to ensure appropriate conditions for work and investment,” the Director added.

On addressing the problems facing  investors in the free zones and to provide facilities for them, Mr. Katkout pointed out that the foundation in coordination with the Ministry of Economy and Foreign Trade is currently studying the issue of transferring the investors’ machinery  and their commodities  in the free zones to another places, and extending  the Year of manufacturing  for the vehicles and equipment placed in local consumption as well as to allow the owners of existing industrial facilities within the country to transfer their facilities to more safe areas, including free zones and investors in the free zones to pay work allowances in dollars or in Syrian pounds by prices determined by the Central Bank of Syria.

He also pointed to a number of decrees that help investors in their work and provide them with facilities and exemptions, including exemption to investors from taxes and fines imposed on them in the last year and previous years if they pay allowances owed them by the end of next July and allowing investors to sell what they left behind and settling their goods and vehicles before sale.

And about the appropriateness of the investment law in the free zones being applied now and its ability to respond to new economic changes, the Director said that the company had prepared a new draft law in the free zones, currently discussed by the economic committee, explaining that this law will help to attract new investments to the free zones and provide more features for industrial establishments, particularly the ones that use hi- tech and facilities in obtaining a license for the free zones.

The General Director of Free Zones said that the Ministry of Economy is currently studying the issue of industrial activity in the free zones and the possibility of making exemptions for their products if they achieved an added value of not less than 40 percent of the raw materials used in the manufacturing process.

Concerning the continuation of work in the free zone in Damascus after stopping the works of construction , Mr. Katkout clarified that the cabinet had  agreed to pursue the construction works in the free zone in Damascus since 2011 and settling the conditions of investors for the period they stopped work there.

The director underlined cooperation with investors in the free zones through the High Commission of Investment  in the Free Zones and to deal with all the problems and overcome the obstacles facing the work of these investors. He also confirmed the continued coordination, cooperation and communication with the Department of Customs through joint meetings to remove obstacles that hinder joint action, especially with regard to the work of investors in the free zones.

“There are draft agreements to establish Syria- Iraqi joint free zones on the borders in the Syrian regions of al –Yarobiyah and  Abu Kamal and the Iraqi regions of al  Rabiah and al Qa’im. The draft agreements are being studied at the moment by the governments of the two countries,” Mr. Katkout concluded.

Sh. Kh.