It would seem that a large number of frontier markets are concentrated in the Middle East these days. Iran is a major energy trader with China and Russia; Dubai is opening movie studios in Hollywood; and Iraq is now exporting oil.

And now, Syria is becoming the next hot spot for Middle East opportunities.

President Bashar al-Assad has recently introduced new laws that make it easier for international companies to do business in socialist Syria. Al-Assad is quick to point out that these changes are economic only, and not political in nature, but economics commentator Jihad Yazigi told the BBC that it’s a way for Syria to break its isolation:

“It’s a circle. More investments improve political relations and political relations attract more investment [sic] and more investments.”

More investments like Lafarge (LG:Paris) and Total (TOT:NYSE) teaming up after French President Sarkozy took a trip to Syria in early September. Lafarge will set up two cement factories, making it the largest foreign investor in Syria, and Total would extend its operations at the Deir Ez Zor oil block and sign a gas development deal.

Other European companies are investing in Syria, too. EADS (EAD:Paris) and Alstom (ALO:Paris) both have long-term deals in the country.

Continue Reading »