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The availability of the services needed for the process of investment is obviously, became one of the most important elements of attracting the investment, especially those that save the time, reduce the needed effort and lower the coast of investment. May be, the primer services that entrusted with this role is the insurance and banking services.
The success of the investment in these activities and consequently, fulfilling its role in enhancing the investment in the other activities requires the availability of these five elements: 1- the existence of the legislative texts that controls these activities.
2- the availability of the suitable environment that allows the use of the technology of information .
3- The availability of the qualified human resources for this kind of activity .
4- fulfilling the economical interest of the these projects .
5- simplifying the procedures of setting up these facilities and their operating guarantees .
Now, are these element available in the free zones?
This is the question we will try to answer. In fact and through our studying and analyses of the extent of the availability of these elements, we came to the following:
First , concerning the existence of the legislative texts that control the insurance and banking activities .
Legislations that allow to set up private banks in the free zones were issued and actually , some banks had been set up in some free zones ( in Damascus branch , for example) while they hadn't in the other branches (as Tartous) in spit of, the existence of five private banks in Tartous city.
Concerning the insurance sector , the legislations, that allow setting up insurance companies in the free zones , had been issued and ,many insurance companies had been established (joint stock –limited liability)and a commission had been formed under the title The Supervisor Commission on the Insurance , subject to the Minister of finance to control these companies.
In addition to that, the law of managing the investment in the free zone that issued in the decree No (40) for the year 2003 ,allows to establish banking facilities according to its the article No/66/'' It is permissible, by a decision from the board, to license the establishment of banking institutions within the territories of the free zones to exercise their operation in the various commercial, industrial and other activities and provide all banking services required for the business of investors and depositors in these zones as well as the nonresident.
Also article No /3/ ,particularly item /I/ of this law ,allows to set up facilities of all kinds of the service activity and perhaps, one of the important kinds of this activity is the insurance and, if the text didn't mention it directly, the effort, of the General Administration to amend the Investment Law to harmonize with the up dating and developing of our economical frames, would make the legislation of setting up such facilities it first concern. Therefore, we see that the recent legislations are enough to enhance setting up such facilities and an essential element of its success. Second: the availability of the infrastructure that allows using the technology of information.
The availability of the electricity power for 24 hours in a law prizes in comparison with the neighboring countries, and also the availability of net of communication, makes the infrastructure to attract the technology of information available and the prove is that some of the commercial companies invested in the free zones automate complete net that join between the centre and the branches for observing the warehoused, sales and the financial accounts. Third: the availability of the qualified human resources.
The change in the out put of the high education in Syria became obvious in away that harmonize with these activities through the graduation of such human resources from the scientific institutions that are newly set up in Syria for example , the Arab Academy for the financial and banking sciences and the Arab Academy for the technology (which are belong to the Arab League) the high institution for business management (which is working under the control of the European union) the National French school for General Management. Furthermore, these facilities may ask for the help of the non Syrian worker who had the suitable qualifications for these activities, because the Investment Law encourage the bring of this kind of labor through the exemption from the tax of wages and all other taxes enforce in the country. This according to the provision of the article NO (76) of the investment law. In conclusion we see that the qualified human resources are available.
Forth: the fulfilling the economical interest of setting up the facilities and companies specialized in the insurance and banking activities.
The insurance sector in the middle east, as Beirut Forum for insurance and reinsurance in general and particularly in Syria, had confirmed, is still in the beginning if compared with the rest of the world countries. This means that this service is requested ,but there is no equivalent offering for it, this is from one side. From the other side the Investment Law and in accordance with the article NO (30) obligates the Organization to insure the goods deposed in the public whorehouses and squares, and article No (55) obligates the investors of the private places to carry out the insurance in the acceptable insurance companies, on heir own responsibility.
This is in concern with the insurance activity and concerning the banking activity the Investment Law in accordance with its article NO (68) , offer the private banking facilities in the free zones, a preferential feature, if
compared with the facilities set up out side the free zone, through exempting them from the provisions of the law of banking activity in the country ,in the condition that they must agree with the aim of the free zones and the nature of the investment in .
Here we come to the conclusion that the request of these services is available and this is an essential element to fulfill the economical interest of the project under the shadow of the wise administration, and the other element of fulfilling the economical interest, is the low cost of the investment as a result of:
1- Low hand working wages in comparison with other countries.
2- Exempting these facilities from all taxes and duties in accordance with the article NO (76) of the investment law.
3- Low private tenancy fees, in comparison with the rates of rent, if the facilities were set up in the center of the main countries and low prizes of the energy and communication.
Fifth: simplifying the procedures of setting up these companies and its operation guarantees.
The Investment law gives The General Organization for Free Zones the authority to offer licenses for these companies, and also the Minister of Economy and Trade authorized The General Manager by some authorities in accordance with the decision NO (390) for the year 2006.
From his side, The General Manage give the subject of simplifying the procedures a great importance by issuing the generalization NO (5110) of November 4th /2007 which include the authorizing the branches directors by some authorities related to the license and investment management.
This is defer from the situation out side the free zones ,where the license requires the approval and procedure from different authorities of various administrative reference the commotion of observation cancel of currency and credit, the related ministry concerning the quarantines , the article NO (77) of the investment law stated: ''Precautionary seizure decisions or executive decisions shall not be applicable to the installations existing within the free zones, the rights of their investment, goods and items existing within them unless the seizure is resulting from a dispute related to an activity in the free zones of one of the disputing parties or that the seizure decision stipulates explicitly the seizure of the investor’s assets in the free zone rather than the installation itself and the right of its investment.''
Also article No (78) stated: ''Should a dispute arise between the Organization on one side and the investors or depositors thereof on the other side, this dispute may be solved through the following methods:
A. A settlement decided by the board.
B. Arbitration
C. Resort to the competent Syrian jurisdiction.
in conclusion, we realize that the legislator offer The guarantees that are enough to set up such companies in away that enhance the needed confidence for the investors .
From what has been mentioned, we can say that the elements of the success of investment in these two activities are available, but to fulfill the its aim, we must marketing these information to the investor and when we insert them in this magazine we would carry out the marketing part , but the other part cant' be carried out without unifying the efforts of the testamentary parties with the efforts of the Organization in marketing the incentives of investment. This what the General Manager pointed to in the editorial of the issue NO (1) for October., By unifying the efforts, we mean that the Organization should participate in discussing the investment matters ,weather through the related conferences or by the participation in the commission concerned in the investment activities of insurance and banking sector.
For example: the high commission for investment, The commission of in the insurance, The Council of Currency and Credit to find out an active insurance and banking industry centered in the free zones for what it has of investment incentives.
This is, in our opinion, the strategic sight of the role of the free zones that the administration of Organization seeks. |
