Deal between Syria and Iran is finally coming to life after decades of slumber. Deals to abolish shared customs duties, revive Iran’s automotive facilities in Syria, establish a joint bank, and also establish an insurance company have advanced since May.
Talk of better financial ties between Tehran and Damascus was once only that— speak. But now there is a fresh deadline for assistance: the conclusion of Egyptian patience.
Since the start of Syria’s civil war in 2011, Iran has been an a & nbsp, steadfast supporter of President Bashar al-Assad. Throughout the 12-year conflict, Tehran has given Damascus financial aid, militias, and weapons. An estimated US$ 50 billion in military and non-military support is revealed by & nbsp, Personal files, reportedly and / or leaked by Iran’s Presidential Institution. & nbsp,
However, none of this andnbsp’s assistance was completely. Iran, on the other hand, saw it as a financial purchase. Iran has attempted to recover its debts through project-based settlements because it is informed that Syria’s financial problems would create cash repayment doubtful. & nbsp,
Few of these jobs have been completed as of yet. Numerous projects were kept in social hell by protracted negotiations. Making matters worse, the Arab state turned its back on Tehran-based loans while giving Russia the lion’s share of new business opportunities.
Iran started & nbsp in 2022, frustrated, in an effort to turn its significant support into observable economic advantages. Iran was able to obtain economic concessions during President Ebrahim Raisi’s visit to Damascus in May by using strategic leverage, such as & nbsp, and withholding oil shipments.
Raisi and nbsp placed a strong emphasis on the quick application of both new and existing agreements, including those relating to energy, crops, transportation, and free trade. A number of projects, including a telecoms deal and nbsp, were also advanced and were managed by proxy companies connected to Iran’s Islamic Revolutionary Guard Corps ( IRGC ).
In contrast to earlier agreements, the most recent round of announcements, which were made possible by intense & nbsp and shuttle negotiations, show Tehran’s new capacity to &/ or shape & r / p, as well as Syrian trade and import policies. One example is the recent revival & nbsp of Iranian auto manufacturing in Syria, which was halted due to the war. & nbsp,
Another is a brand-new, zero-tariff deal between Iran and Syria that was unveiled in July. That agreement makes it possible for companies to conduct cross-border deal without paying taxes, including auto assembly plants.
Banking and healthcare agreements
It is particularly noticeable that Iran is pushing to revive ideas for a joint Iran-Syrian bank. The bank was initially & nbsp, which was decided upon in 2019, reportedly registered with the Central Bank of Syria on August 17 and is anticipated to start operations soon. Beyond that, not much is known about the financial institution, and the majority shareholder, a & nbsp, an unnamed offshore company and b & p registered in Lebanon, owns 49 % of the company’s stock.
Additionally, Iran is moving forward with the creation of an insurance firm in collaboration with Syria’s Al-Aqeelah Insurance Company and Alborz Insurance, one of the oldest and largest carriers in the nation.
The healthcare plan, like the bank deal, aims to increase exclusive Egyptian investments in Syria by reducing the risks andnbsp that come with doing business there. With the help of this tactic, Iran will be able to expand its investments outside of the Egyptian government and IRGC systems.
Last but not least, Iran has accelerated the release of Wafa Telecom, its smart telecom provider. Although the & nbsp’s initial contract was signed in 2017, until recently, little progress had been made.
According to reports, Wafa has already delivered 60 smart telecom stations, 500, 000 SIM cards, and nbsp to Syria, indicating an impending launch. It’s interesting to note that the IRGC owns the majority stake in Wafa through scale organizations, including the Malay company Tioman Golden Treasure.
Iran has long aspired to carry out and has extensive corporate projects in Syria. They include ambitious plans like building a second oil plant, connecting Egyptian rail services to the Mediterranean harbor of Latakia, and taking control of important assets like ships, airports, agricultural land, oilfields( especially Blocks 21 and 12 ). & nbsp,
Originally, these initiatives seemed like far-off dreams. Today, they’re quickly turning into truth.
Undoubtedly, Iran’s activity in the area will then receive more attention, which could aggravate its economical plans. Tehran is being criticized for supporting Hamas, which launched the massive attack on Israel, killing hundreds of people and intensifying Israel’s continuous assault of the Gaza Strip.
But regardless of how last week’s attack reshuffles the local calculus, Iran will continue to support Syria. The Assad administration’s negotiating position has been weakened by Syria, which has a struggling economy that is made worse by the continuing conflict in the nation and exacerbated by Russian attention to the Ukraine crisis.
Damascus needs Egyptian purchase as a lifeline. Additionally, it is a way for Iran to establish its long-desired supremacy over Syria’s business.
The Syndication Bureau, which holds rights, provided this article.
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