Dubai: Syria has been approached by a number of international banks, including those from Europe and Turkey, interested in setting up branches in Syria, whose economy is expected to grow by 5.5 per cent this year, the country's central bank head said.
"There is big interest from major regional banks — from Arab countries — to come to the Syrian market. Turkish banks are also interested in setting up banks here. And from European banks we know they're interested in coming," Adib Mayaleh told Zawya Dow Jones in an interview.
"Syria has achieved big reforms and is open now to the outside world so all these banks are really interested in coming to this market," Mayaleh added.
Syria first allowed private banks to start domestic operations in 2004, and 12 private lenders launched by banks from Lebanon, Jordan and Gulf Arab states are now operating in the country, in addition to six state-owned banks.
Western banks so far have refrained from entering Syria due to political reasons. The US last month renewed for a year sanctions first imposed on the country in 2004, accusing Damascus of supporting militant groups and pursuing missile programmes and stocking weapons of mass destruction.
But signs of warming relations between Damascus and the West last year sparked renewed interest from international banks in the Syrian market.
Syria's decision earlier this year to lift foreign ownership ceiling in local lenders from 49 per cent to 60 per cent and to facilitate movement of capital has added to its international appeal. Mayaleh in March met Morgan Stanley chairman John Mack in Damascus. "This is part of the interest of these international banks to come to the market," he said.
