Damascus- It resumed a market Damascus Securities have trades today, Monday, after a hiatus of about 6 months, amid a high -level official presence and a wide participation of economic figures, investors and merchants.
Syrian Finance Minister Mohamed Yusr Burniyah confirmed in a speech at the event that this step is a clear message that the wheel of the Syrian economy began to rotate again, noting that the government is going according to a comprehensive economic vision based on the principles of justice and fairness, enhancing the role of the private sector and attracting investments, as well as combating poverty and providing job opportunities.
Burniyah explained that the market is heading towards a private company during the coming period, to be an active platform in developing the economy, in parallel with keeping pace with the digital transformation in the financial markets, and creating a more flexible investment environment that enables the private sector instead of its competitor, through stimulating policies and promising investment projects.
Historical station
For his part, the Executive Director of the Damascus Stock Exchange, Basil Asaad, said that the market has become prepared to return to the performance of its natural role, in light of expectations of greater expansion in the volume of investments within “New Syria”.
Asaad pointed out that the administration, despite the limited resources, succeeded in carrying out the tasks assigned to it in transparency and protecting the rights of investors, stressing the market’s readiness to keep pace with the expected economic and technical changes.
Regarding the companies listed in the market, Asaad said in a statement to Al -Jazeera Net that their number so far is 27 companies, and 14 companies have returned, while the remaining companies did not meet simple requirements with governance reports or disclose their financial data, indicating that these companies will remedy this within a short time and return to circulation.
He added that the companies listed for trading operate in various sectors, from the financial sector (banks and insurance companies), industrial and service as telecommunications companies.
And on the volume of trading in the past year 2024 from the beginning of the year until the date of December 5 (last trading days), Asaad said that it reached about 198 million shares, equivalent to a trillion Syrian pounds (90.9 billion dollars).
Asaad pointed out that the market has returned to work according to a trading system that extends 3 days a week temporarily, through the approved brokerage companies, which numbered 6 companies.
He considered that, in light of the return to trading after a 6 -month hiatus, the need to reduce the pace of trading temporarily reduce, giving investors enough time to accommodate changes and understand their impact on stock prices, with the aim of ensuring the stability of the market, provided that the work of the usual system (5 days trading a week) returns after preparing the appropriate conditions.
It was decided to suspend the deals outside the cabin for a month, in the context of the administration’s endeavor to ensure the highest levels of transparency and oversight, especially that following this type of operation is more difficult, according to Asaad, who stressed that this procedure is temporary, and it may be reviewed within a short period depending on the market conditions.
Trading mechanism
Asaad explained that the trading mechanism on the stock exchange includes operations inside the cabin via the screens, in addition to the presence of what is known as “huge deals or trading outside the cabin”, which are often concluded by a direct agreement between the seller and the buyer outside the usual channels, with parallel financial settlements.
He explained that the return of joint -stock companies to trading was linked to the extent of their commitment to the required standards, such as disclosing the final financial statements last year, updating governance reports, and disclosing the lists of senior shareholders, which is committed to the majority of companies, while some parties work to complete the requirements within a short period.
With regard to the measures taken to not allow criminals to exploit the Damascus Stock Exchange, Asaad pointed out that the state agencies have carried out many accurate technical and legal procedures before the redemption, and included verification of shareholders compliance with property rights, which guarantees the integrity of operations and provides a suitable legal climate, and that the owners are investors who have no dust on their behavior.
Asaad explained that the market today finds itself in front of an economic reality that tends to further openness, driven by a strong desire from local and external investors to contribute to the reconstruction and development process in Syria.
He pointed out that public shareholding companies provide an ideal environment for safe investment, given the governance, transparency and participatory management controls, stressing that the market is ready to receive any company that meets the conditions of inclusion and wants to enter this path.
Important economic roles
For his part, Syrian economist and banking expert Nabal Najmah considered that the reopening of the Damascus Securities Market is an important step that falls within the process of comprehensive economic reform that Syria is witnessing recently.
Najma said in a comment to Al -Jazeera Net that this economic reform process has made remarkable progress through the use of financial and economic competencies to manage the relevant ministries and sensitive economic sites in Syria, and through a political effort that led to the lifting of the sanctions from them to deal with the world in a systematic and natural manner and within recognized financial channels.
He explained that re -circulation at this time has many economic connotations, considering that it is a step that enhances confidence in the Syrian economy.
Regarding the economic roles that the Damascus Securities Market can play in the next stage, the expert believes that they are 3 basic levels:
- Securing financing channels for companies listed in the financial market: Public offering operations lead to the supply of the treasury of these companies with the money necessary for their commercial growth.
- Investment level: Trading and investing in the financial market may provide new investment opportunities for economic customers, and this leads to the possibility of investing in new assets.
- Brave investment decisions: The companies listed in the financial market must fulfill many conditions and respond to the requirements of the global recognized governance, and this allows the economic customer to take courageous investment decisions, and leads to enhancing transparency, stimulating investment and creating liquidity in the financial market, and thus in the Syrian economy as a whole.
The expert notes that this step must be accompanied by a group of other steps that would contribute to increasing production, reduce unemployment and achieve critical stability in Syria, because this is what actually reflects on the standard of living of the Syrians, and in the long run leads to the achievement of political and national stability.
The opening of the Damascus Securities Market comes within the framework of the government’s efforts to restructure the national economy and enhance the confidence of investors in the economic environment after years of destruction, which was destroyed by the war and the policies of the defunct system in infrastructure and economic and financial sectors.
It is noteworthy that the Damascus Securities Market was launched for the first time in 2009, but its performance was greatly affected during the past years as a result of the political and economic conditions, as well as Western sanctions and repeated stops for trading for organizational and technical reasons.