Sunday 9 August 2009

Damascus proves a draw for Gulf investors

Saudi Arabia has an ambassador to Syria for first time in 18 months. After a stormy period during which Riyadh and Damascus repeatedly clashed over their mutual interest in Lebanon, the appointment of Abdullah al Eifan signals new warmth in a key regional relationship.

It also fosters a welcoming climate for new Gulf investment in Syria as regional players beat a path to to the country in an effort to penetrate one of the last untapped markets in the region.

They have been encouraged by a dismantling of barriers to investment, which has seen foreign direct investment inflows to Syria more than double to $1.28 billion (Dh4.7bn) last year from $583 million in 2005.

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