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Growth areas
One big step is the renewal and upgrade of Syrias infrastructure: transport and logistics, industrial cities, education, health facilities and housing. Historic underinvestment in key sectors of infrastructure and real estate has created a shortage of supply. Coupled with high levels of population growth, this has fuelled large pent-up demand. Recognising the opportunity, foreign developers and construction companies, in particular from the Gulf, have converged on Syria in recent years, resulting in a number of large-scale projects underway or planned and a general rise in building standards. Projects include the Eighth Gate, Damascus Hills and the Ibn Hani Bay Resort. Syria is still a lower-middle income country, and measured in GDP per capita among the poorest in the region. However this masks the fact that there is a growing middle class and average incomes are rising, opening up opportunities in the housing and retail sectors. In particular the retail sector is witnessing a mini boom in urban Syria, with a flood of foreign brands and overseas investment entering the country. To accommodate increasing demand, foreign investors are looking to establish new retail spaces. The largest currently under construction is Majid Al Futtaim Properties Mall of Syria, located on the outskirts of Damascus and due to open in 2014. This development forms part of Khams Shamat tourist development, a mixed-use project expected to total some 1.5 million m2. The development of out-of-town retail spaces and the potential for further expansion in the retail sector are sizeable. Tourism is another key growth area, with Syria looking to establish itself as a cultural destination. Some of the biggest regional players, including Qatari Diar, Saudi Binladin Group and the Kharafi Group, have entered Syria with tourism projects. Syria is facing a large housing deficit and estimates put the number of homes needed to at least 687,000. Until now, developers have focused on the high-end market, but more residential units for lower and middle income families will be required in the future. Syrias government is stepping up public investment. The forthcoming 11th Five Year Plan is likely to put increased emphasis on infrastructure and energy. In particular, the government has recently pledged to spend some US$50 billion on capital investments until 2015. This includes power stations, enhancing the road network, plans for a metro system and new airport for Damascus, industrial cities and logistics centres.
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