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00:00Welcome to this new episode of the weekly dialogue where Dr. Abdul Razzaq Qasimah is the head of the Syrian Financial Markets Commission.
00:25Welcome Dr. Abdul Razzaq Qasimah, when we say Syria, we refer to 13 years of crisis, the financial sector was not far from the repercussions of this crisis, what are its stages and how has this sector been affected over the past 13 years?
00:43This sector has been affected by other sectors that have been affected by this crisis over the past 13 years, and ultimately this sector is also a reflection of the economic reality, its indicators and performance are a reflection of the economic performance and economic reality.
01:03A number of circumstances, whether security or economic, have affected the performance of this sector over the past 13 years. I can divide the stages into three main stages.
01:17The first stage is from 2011 to 2016, when the indicators declined significantly, the prices in the financial securities market fell, the prices of listed companies fell, we reduced the number of trading sessions, we tried to put restrictions during this period on the Syrian borders so that the prices do not fall more than necessary,
01:42we tried to address the crisis during the first six or seven years of the crisis in this way. In 2017, a kind of correction began for the prices, in the end, during the first six years of the crisis, the inflation rates were relatively high, the market began to correct the situation as a result of an increase in inflation rates in previous years,
02:12and this did not affect the prices of listed companies in the financial securities market. From 2017 to 2022, the prices began to increase and the indicators began to increase by a number of years and sometimes reached 100% during the first year.
02:30The second stage is from 2017 to 2021, when the prices in the financial securities market fell, the prices of listed companies fell, we reduced the number of trading sessions, we tried to put restrictions during this period on the Syrian borders so that the prices do not fall more than necessary,
02:56and this did not affect the prices of listed companies in the financial securities market. From 2017 to 2022, the prices of listed companies fell, we reduced the number of trading sessions, we tried to put restrictions during this period on the Syrian borders so that the prices do not fall more than necessary,
03:26and this did not affect the prices of listed companies in the financial securities market.
03:38Yesterday, we passed a law on Islamic trusts to finance some projects, and the Islamic sovereign trusts to finance government projects. Yesterday, we passed a law on Islamic trusts to finance government projects.
03:51Yesterday, we passed a law on Islamic trusts to finance government projects. Yesterday, we passed a law on Islamic trusts to finance government projects.
04:11Talking about the issuance of Islamic trusts, after the issuance of transfer certificates, and also the circulation of bonds in the Syrian market.
04:20Talking about the issuance of transfer certificates, after the issuance of transfer certificates, after the issuance of transfer certificates,
04:38the circulation of bonds in the Syrian market will be very limited, but the main tool that we are building on is our expectations that it will greatly contribute, whether it is to attract savings or to strengthen the Damascus market for financial securities,
04:58but the main tool that we are building on is our expectations that it will greatly contribute, whether it is to attract savings or to strengthen the Damascus market for financial securities,
05:18Before the crisis, we saw the launch of a large number of companies, and the first issuances were issued in large numbers, but the law of banks did not allow banks to be established unless they are public-sector companies,
05:35Some insurance companies, industrial companies such as cement and petrochemicals, and all of these were issued by the general election. Therefore, the direction was easy in this way and very comfortable.
05:53This also contributed to the entry of a group of investors who have experience in this field, so they insisted that their investments should be in the form of public-sector companies and be issued to the general election.
06:06After entering the crisis, naturally, we know that investors and capital do not like to venture in this direction, except in recent years, we had the first issuance of the National Islamic Bank,
06:24and now we have a group of companies that are trying to establish a basic system, which will also be issued to the general election. Therefore, we notice that there is a new trend among some investors to issue initial issuances during the current phase.
06:44As for the secondary market, we are now noticing a rise in the volume and the value of the exchange rate, due to a very simple reason. Some bonds and some companies have started to allocate their money in the financial securities market,
07:04and as you have seen in the previous phases, the return on the index was about 50% in the previous years, and therefore, there was a chance for investment, and therefore, there was a trend towards the financial securities market, as well as trading on securities.
07:24Also, Doctor, regarding the policies of the financial securities market, to encourage and motivate high-level companies to switch to public-sector companies, what do you think of these initiatives?
07:36In fact, the government issued a law, the law number 11, which allowed and gave great advantages to family companies to switch to public-sector companies.
07:48The law allowed the return on the index from family companies to public-sector companies, and the tax on the return on the index was about 1%.
08:05The tax on the return on the index was about 1%, and the tax on the return on the index was about 28%, and therefore, it gave great incentives to companies to switch from family companies to public-sector companies.
08:24The reason for this, in one way or another, is the lack of competition and tax competition between the different legal forms of business projects, and therefore, there is a need for a reform of the tax system so that these companies become convinced to switch to public-sector companies,
08:50and so that these companies become convinced to switch to public-sector companies, and so that these companies become convinced to switch to public-sector companies,
09:08As we know, in Syria, family companies remain limited to the existence of the founder, as soon as they move to heirlooms, disputes begin, and as a result, we notice that these companies lose their existence.
09:23Regarding the government policies related to the transfer of public-sector companies, and the participation with the private sector, I think it is still too late in this regard.
09:39In fact, a law was issued a very short time ago, Law No. 11, if I remember correctly. This law allows the President, the Council of Ministers, if they agree with some of the public-sector companies, to enter into partnerships with the private sector, regardless of the legal form,
10:04and therefore, in order to be able to say that there is development, whether in the primary export market or in the secondary market, it is necessary for the public sector to enter this line, because most of the strategic sectors were established at a stage when they were and still belong to the public sector state,
10:31and as a result, it can contribute greatly to strengthen the market, and on the basis of the law that was issued, this may lead to the strengthening of the role of the Damascus market for financial papers, and the role of the Financial Papers Commission in restructuring the Syrian economy in this regard.
10:47Of course, the main role of the Commission is to focus on a regulatory and supervisory role in general. What about this role, its implementation, and the implementation of the rules and practices of the government?
10:59In fact, we have a number of procedures that have been adopted, like all other financial papers bodies. A number of regulations have been put in place for companies, whether it is related to the regulatory system, the required regulations, whether it is related to the government, the reports of the government, and the obligation to form committees.
11:25In fact, the Commission was active in these directions, especially after the activation of what is called the supervisory leadership of the members of the Commission and the companies under the supervision of the Commission, and as a result, it became necessary for all of them to comply with all the rules and regulations, and to form all the committees required by the Board of Directors, whether it was the Committee of the Directorate of Finance, the Committee of the Directorate of Finance, the Committee of the Directorate of Finance, the Committee of the Directorate of Finance, the Committee of the Directorate of Finance, the Committee of the Directorate of Finance, the Committee of the Directorate of Finance, the Committee of the Directorate of Finance, the Committee of the Directorate of Finance, the Committee of the Directorate of Finance, the Committee of the Directorate of Finance, the Committee of the Directorate of Finance, the Committee of the Directorate of Finance, the Committee of the Directorate of Finance, the Committee of the Directorate of Finance, the Committee of the Directorate of Finance,
11:55the Committee of the Directorate of Finance, the Committee of the Directorate of Finance,
12:19The court report includes a comparison and a summary of all the court reports issued by the companies subject to the financial documents.
12:29I will leave you, doctor, with this short commercial break. We will be back to follow the weekly dialogue with you.
12:35Dear viewers, a short commercial break. We will be back to follow the weekly dialogue with my guest, Dr. Abdel Razzaq Qasim.
12:41He is the head of the Syrian Financial Markets Commission. Don't stay too long. Stay with us.
12:49Welcome again, dear viewers, to the second episode of the weekly dialogue with my guest, Dr. Abdel Razzaq Qasim.
13:03He is the head of the Syrian Financial Markets Commission.
13:06I believe, doctor, that the crisis, its implications, and its repercussions were a direct reason for the delay in e-commerce transactions.
13:14You started only three years ago.
13:17Of course. The past period and the sanctions imposed on Syria, all these factors have had an impact on all these procedures.
13:32Despite all the sanctions and all the difficulties I have been through, and the investment that must be made,
13:40in the past period, we have forced e-commerce transactions through mobile applications.
13:49We are moving in this direction.
13:52We are still one step ahead through the system of e-promotion.
13:57Companies are linked to us and their promotions are made electronically.
14:01This environment needs to be rehabilitated and established,
14:05of course, in the financial documents market in Damascus, or in the financial documents sector, or at the level of the companies.
14:10Of course, because, as we see, we must have effective channels to transmit information and promotions
14:19so that we can reach investors as soon as possible and as quickly as possible.
14:23These promotions are required because they affect their investment decisions.
14:27I don't want to jump into the air too much, but also,
14:30at the level of plans, programs, and outlooks, what about the issuance of ETFs, investment boxes,
14:36index boxes, the stock market, soft trading, and short selling?
14:41Which of these tools do you use?
14:43In fact, we are taking the main steps at the beginning.
14:49In order to complete the traditional tools that the Syrian economy must use at the investment stage,
14:58we can think about it later.
15:00Of course, we have a complete picture of what these tools require.
15:06But we are convinced, frankly, that in the end, this market is a reflection of the economic reality.
15:12When there is an economic need for these tools, there is no need to think about it.
15:17We now need the basic tools that guarantee that I can collect these savings
15:24and turn the production process into a real production process,
15:29because without increasing the local output and increasing growth rates,
15:35we will not reach a place where we need these tools to guarantee an increase in growth rates.
15:40I know, doctor, that behind you, you had some visions for getting out of the economic crisis.
15:47Hopefully, we will come to them.
15:49What are the most important issues in what you said about this?
15:52In fact, the vision was related to the general balance of the state
15:57and the mechanism of managing the balance generated by the general balance of the state.
16:03We had some basic problems.
16:07In fact, the general spending is within the limits of the world.
16:11If we take the inflation rates and the balance sheet numbers, etc.,
16:15they are within the limits of the world.
16:16So, you no longer have a solution to reduce spending.
16:20You now have a solution in other places.
16:22We need to look for resources,
16:24and these resources will not affect the local output and lead to a recession.
16:29There is a reason for this.
16:31We are now thinking of certain mechanisms that are better to manage,
16:34whether it is the assets owned by the government or what is called state property,
16:39or these are huge assets and huge assets in terms of value.
16:44The balance is very modest,
16:47and so we were proposing how to find mechanisms
16:52that we can use to improve the interests related to the general balance of the state from these principles.
17:01The second important issue is the public sector and its management.
17:06In the end, the Syrian government has invested, over the decades,
17:12huge sums of money in the public sector companies.
17:16This public sector, with most of its benefits,
17:19has a very modest general balance of the state,
17:23or sometimes a negative balance due to losses.
17:25There is a reason for this.
17:27Also, this reform is a very important factor in reducing the inability to achieve a balance.
17:35In addition to simplifying the procedures
17:39related to licensing private businesses and encouraging investors to remove barriers
17:44so that the private sector does not enter into production and contributes to the production process.
17:51These three factors are very important, in my opinion,
17:55so that we can overcome the obstacles we are facing in terms of the Syrian economy and growth rates.
18:02Now, the revolution of communication and the ease of transferring information
18:06has begun to emerge in a new generation, based on what is happening in the world's capital markets,
18:13such as the metal and commodity markets, and so on.
18:17Do you think that these tools can be applied and invested in at some stage,
18:22despite the fact that we have noticed a cultural and investment expansion of this generation in these financial tools?
18:28In any case, this is related to the current financial and monetary system in the country.
18:34It is related to the freedom of money transfer.
18:36You cannot invest in these tools without the possibility of transfer,
18:40without being subject to a system of penalties that you cannot transfer.
18:43Also, given the balance of payments and its impact on all this,
18:48you have to take all these data into account.
18:51We hope that one day, if we can overcome this stage,
18:56we will be able to return to positive growth rates in the Syrian economy,
19:01and we need high growth rates to be able to overcome the regression or stagnation that occurred in recent years.
19:09Therefore, we hope that we will reach this stage,
19:12and that we will be able to launch such products at the level of the Syrian economy.
19:17We are still at the beginning of 2024, and we have finished the first quarter.
19:21What are the plans, programs, and goals for the rest of this year?
19:26In fact, we want to continue the legislations related to the establishment of private companies.
19:35We are waiting for the law to be issued,
19:37so that we can issue all the instructions and systems that relate to the issuance of all Islamic trusts,
19:43whether it is a private company,
19:45or whether it is a legal entity.
19:51Therefore, this is the first part.
19:54The second part will be based on what we are thinking about.
19:58Last year, we issued a new model for the first revelations.
20:02We called it the report on the results of the business.
20:04We included the most important indicators in the company's business.
20:07When the investor is not able to fully read the financial statements,
20:12we included in this report the most important indicators compared to the current year and the previous year.
20:18In short, the report is divided into two or three pages,
20:21and each section is independent,
20:24so that we can explain the real results of these companies,
20:28and the most important information in a short report that the company presents.
20:32We publish it to the investors during this stage.
20:36Some reports were issued in 2024.
20:39In addition to that, we are working on the amendment of the law on investment boxes.
20:44We have seen that, in light of the regulations and the regular instructions for the current investment box law,
20:52no fund has been established.
20:54Medium-sized companies are carrying out a kind of investment insurance management for some customers.
21:01We thought it would be useful to reconsider the law on investment boxes.
21:08Sorry, I mean the law on investment boxes in the current year.
21:11Therefore, we want to reconsider the law on investment boxes in Syria,
21:18in light of the new law that we are working on,
21:21and which we hope will be implemented this year.
21:25This will contribute to the creation of new investment channels
21:30through which we can raise investments and cause the production process,
21:36and at the same time stimulate the Dimashq market for financial documents.
21:39Do you think that the stability of the exchange rate has recently given some positive signs
21:45and reassurance to investors, both in the capital market and at the Syrian economic level?
21:51In fact, it has contributed greatly in the past stage.
21:58When there is stability in the exchange rate,
22:01investors, instead of going to the exchanger for the exchange rate,
22:04go to the exchanger for other goods.
22:06In the end, there is no profit, there is only profit.
22:10In fact.
22:11But the hope is, first, that this stability continues.
22:16The second thing is that the investor is convinced of this.
22:23The investor is convinced that this stable exchange rate is also very important.
22:28We hope that this trend will continue,
22:31because in fact the exchange rate is one of the very difficult problems to deal with,
22:36whether in the financial markets or other investment tools in the Egyptian economy,
22:42because there is a real problem related to the fluctuation of the exchange rate in this direction.
22:48Just as a reminder to the viewers, I am conducting this interview with you,
22:52Dr. here in the Qatari capital, Doha,
22:54on the occasion of the meetings of the Arab Financial Papers Association,
22:58as well as the inauguration of the Arab Capital Conference,
23:03with broad titles such as Innovation, Artificial Intelligence, and Success.
23:08Where are you from these titles?
23:10Do you feel alienated when talking about these titles after 13 years of crisis?
23:17I am completely with you.
23:19I am not alienated.
23:20I feel that they are not priorities for the economic reality that you are in.
23:26I may want to talk about carbon zero,
23:30in light of the huge costs that the institutions or companies have to pay
23:36in order to achieve these standards,
23:39in light of the need for economic growth equations.
23:42As for the governance,
23:45there is a useful issue that can be applied to everyone,
23:49as long as it has to do with governance or artificial intelligence.
23:53This issue is possible.
23:55The important thing is that there is a specific economic environment in each country
23:59that governs what can be applied and what is not.
24:02Now there are talks and maybe bets by investors, businessmen,
24:07and even economists,
24:09that the economic future in the region may be for Syria after years of crisis,
24:14including the financial market.
24:17To what extent do you support this opinion?
24:21Of course.
24:23When things settle down,
24:28punishments will be removed.
24:32The financial market in Damascus will be one of the tools
24:36or channels for investment and exit.
24:40We know that there is a need for legislative and organizational amendments
24:44regarding the Syrian market.
24:47This is clear for us.
24:49At the moment, we feel that we have reached this stage
24:53in which we need to amend these legislations.
24:55Of course, there will be legislative amendments.
24:57In fact, even under the new investment law,
25:00some of these punishments have been removed.
25:03When it comes to money and profit,
25:05under the new investment law,
25:07the investor who invests money in the foreign sector
25:11has the right to withdraw his profits as well.
25:14Therefore, these punishments must be removed
25:17so that the market becomes active,
25:19but at the appropriate moment,
25:21as you can see,
25:23whether it is through the foreign sector's payments,
25:26the balance of payments,
25:28and so on.
25:31Dr. Abdel Razzaq Qassem,
25:33Chairman of the Syrian Monetary Commission.
25:36Thank you very much, sir.
25:38You were with us on Arab CBC
25:40in this week's discussion.
25:42And you, dear viewers,
25:44thank you very much for watching.
25:46See you soon.