Iran’s exports to Syria earned $160 million in the current fiscal year’s first nine months (March 21-Dec. 21), registering a 90% growth compared with $84 million in last year’s corresponding period, according to the chairman of Iran-Syria Chamber of Commerce.
“Most of the exported goods are related to engineering industries [mainly parts and components of steam turbines], food products and pharmaceutical industries,” Keyvan Kashefi was also quoted as saying by the news portal of Iran’s Chamber of Commerce, Industries, Mines and Agriculture.
The official noted that Iran’s total exports during the period stood at $35 billion and Syria was the 21st export destination.
Imports from Syria stood at $22.9 million during the same period, 53% higher than $15 million in the same period of last year.
Phosphate was the most important imported commodity.
Iran’s total imports in the nine months stood at $36.9 billion and Syria was the 49th exporter to Iran.
Plan to Establish Joint Bank, Free Zone
Stating that the end of the war in Syria marks the beginning of a new era of economic relations between the two countries, Iran’s Minister of Roads and Urban Development Rostam Qasemi said Iran and Syria are set to establish a joint bank, Mehr News Agency reported.
Referring to his meeting with Syrian President Bashar al-Assad in Damascus last Wednesday, the Iranian minister said, "During the meeting with the Syrian president, economic issues, as well as current obstacles and problems in economic relations between Iran and Syria, were discussed. A joint committee is set to be formed between Iran and Syria."
Qasemi also pointed to his meeting with Syrian Foreign Minister Faisal Mekdad on bilateral ties, and said, "We reached good agreements; a joint bank is scheduled to be established in Syria. In this regard, Iranian and Syrian banks should have branches in each other's countries."
The minister noted that decisions were made on various issues during the visit with Syrian Minister of Economy and Foreign Trade Mohammad Samer al-Khalil, especially the establishment of a joint free zone between the two countries.
Looking to expand its economic links with Syria, Iran sent several commercial and industrial delegations to Damascus last week to discuss ways of developing economic cooperation with their Syrian counterparts.
According to the director general of Iranian Trade Promotion Organization's Office of Arab and African Countries, Iran's share in the Syrian market has been increasing.
Farzad Piltan, however, added that it does not exceed 3% of Syria’s total market share and has almost no share in the building and construction materials market, the Middle East Monitor reported.
Piltan pointed out that Turkish exports to Syria topped with a 38% market share, followed by China with 20%, Egypt 3% each.
Regarding Iranian investments in Syria, economic expert Firas Shabo told Arabi 21 that Iran has secured many projects to develop road, transportation and basic services, but their public announcement needs time, especially in light of Russian-Iranian competition in Syria.
Shabo noted that he expects Moscow and Tehran to reach an agreement on the "partitioning" of the Syrian economy, with Russia getting ports, gas and phosphate investments, while Iran implements industrial, infrastructure and real-estate projects.
Iranian Trade Center Inaugurated in Syria
“Iran Trade Center” was inaugurated in Damascus on Nov. 30, the news portal of Iran Chamber of Commerce, Industry, Mines and Agriculture reported.
According to Gholamhossein Shafei, the head of the Iran Chamber of Commerce, Industries, Mines and Agriculture, the inauguration of the center is an opportunity to strengthen economic relations and increase trade between Iran and Syria.
“The center has a database for monitoring economic activities in Syria so that traders and producers in the country can receive various information related to Iranian companies directly,” he said.
He added that the center is also a place for import, export and marketing and is of great importance in strengthening economic relations between the two countries.
“The center has commercial offices that enable Iranian private companies to conduct business exchanges between the two countries,” the chairman of Iran-Syria Chamber of Commerce was quoted as saying.
Kashefi noted that the center is important for the development of relations between the two countries and will act as a link between the chambers of commerce of Iran and Syria.
Iran’s Industries, Mining and Trade Minister Reza Fatemi-Amin also attended the inauguration.
"The center, a 12-story building situated in a 4,000-square-meter plot of land, has been purchased and equipped by ICCIMA. Two floors are dedicated to exhibition spaces and the other floors to different services, including marketing, transportation, legal advisory, banking and insurance, among others,” Kashefi was earlier quoted as saying by IRNA.
During his stay in Syria, Fatemi-Amin expressed the Iranian company’s readiness to revive the suspended factories in Syria and establishing joint industries.
Speaking to reporters after visiting a number of factories in the industrial city of Adra, Fatemi-Amin said the aim of his visit is to develop economic relations between the two countries and support them to restore the glory of the Syrian industry, lost as a result of the terrorist war against the country, particularly the textile industry, SANA reported.
The Iranian minister and the accompanying delegation held several official meetings and opened the second Iranian products exhibition.
Free Trade Agreement
Tehran and Damascus have a free trade agreement in place which, according to Piltan, can have a significant effect on easing trade between the two sides.
“Syria’s high demand for agricultural products, foodstuff, home appliances, pharmaceuticals, construction material, sanitary ware, agro machinery and equipment, and Iran’s capabilities in these areas, coupled with reasonable prices and high quality of products can help boost commercial interactions between the two sides,” he said.
Syria and Iran concluded a free trade agreement in February 2012, which included reducing customs duties to 4% on goods traded between the two countries, cancelling all quantitative restrictions and lifting the ban on imports with similar effects.
The agreement came into force on March 12, 2021, and included a deal to allow commercial trucks to pass between the two countries through Iraq.
