DAMASCUS -- The Syrian Investment Authority (SIA) and the Gulf Finance House (GFH) have signed here on Tuesday a Memorandum of Understanding (MoU) to develop an economic zone, power projects and phosphate mines.

The document involving investments of USD 333 million was signed by Syria Finance House (SFH) - one of Syria's largest Islamic banks under establishment, on behalf of GFH, SIA Chairman Dr. Ahmad Abdul-Aziz said in a press conference on the sidelines of the Fifth Islamic Banks and Financial Institutions Conference.

"SIA is working with GFH to explore and develop the investment opportunities in order to bolster up the Syrian economy and improve the infrastructure," Abdul-Aziz pointed out.

Meanwhile, GFH Chairman, Esam Janahi highlighted the huge potential of the Syrian economy, citing the great growth made by the local private banks in the last five years.

"Under the leadership of His Excellency Dr. president Bashar Al-Assad the Syrian authorities have embarked on across-the-board reforms to create an open business environment," he said.

"The Syrian authorities, notably SIA laid out strong commercial and legal framework that has attracted foreign direct investment (FDI) and witnessed considerable growth in the economy standing largely resilient to the current difficult global conditions," Janahi explained.

Furthermore, the impressive growth of private banks over the last five years driven largely by deposits resulted in excess liquidity in the market which could be better utilized in funding the various business and infrastructure opportunities in the nation, he added.

"This made a compelling case to use our expertise in emerging markets and Islamic finance to establish SFH and look into infrastructure opportunities like phosphate mining, electricity power generation and developing an economic zone," GFH chairman added.

On his part, Hisham Alrayes, head of GFH's private Equity and Venture Capital, said: "The Syrian market enjoys excess liquidity, with deposits being the main reason behind the 30 percent growth in private banking." "Our plan is to provide suitable investment opportunities to employ these deposits and in the development of local business and the country itself in line with the Syrian government's five-year development plan which aims to attract USD nine billion to various development sectors," he added.

The capital of Syria Finance House (SFH) amounts to USD 333 million, 33 percent of which will be offered for public sub!--ion after finalizing the relevant paperwork and the local partners will cover 10 percent, while GFH will contribute the remaining percentage.

© KUNA (Kuwait News Agency) 2010