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All rights reserved for the Syrian Economic Forum 2017 To get a printable electronic copy of this of this report, please visit the website of SEF: www.syrianef.org Publisher: SURIYE EKONOMI FORUMU DERNEGI, SERTIFIKA NO. 32775 Not for sale All possible efforts were made to make sure that all information in this policy paper are of high quality and accuracy. The researcher and publisher cannot be held accountable for any mistake or misunderstanding of the content of this research.

Introduction "Useful Syria" is a term used extensively in the Western media to reflect the areas between Damascus and Aleppo, including the Syrian coastal areas stretching from the Lebanese border south to the Turkish border to the north. The Assad regime has exerted its maximum military capabilities and sought the help of external forces represented by Russian forces and Iranian-backed militias to maintain these areas and not to let them get out of its control. But on the other side remains the other sequel of Syrian territory, which we will call it metaphorically "Unuseful Syria" According to the strategic vision of the Assad regime, these areas were not only forgotten but also suffered during the years of "Baath" Party rule from systematic marginalization, including the absence of local development plans, which placed them under economic and social underdevelopment. In 2010, where the illiteracy rate reached 30% compared to 15% at the macro level throughout Syria. As a result of this former and current marginalization by the Assad government, the extremist forces in these areas have grown increasingly dominant to the majority of the Syrian Badia, which includes most of its oil wells, as well as the American presence in the far east of the Badia on the Iraqi border, Wide parts of the Eastern "Qalamoon" and the Eastern "Ghouta", which gives us a clear perception that the Assad regime places in its priorities the survival of "Useful Syria" under its control indifferent to "Unuseful Syria" and negligent strategic importance of this region, which external forces be aware of its importance before the regime itself. Recently, large-scale military operations from several sides began to try to control eastern Syria by the regime and the Iranian-backed militias on the one hand, as well as the Syrian democratic forces of the US-led international coalition to try to regain control of the Syrian Badia because of its great wealth in addition to the strategic importance of its geographical location, which will be discussed in detail in this report. 1

Eastern Region Geography: The Eastern Region is divided into two parts: 1. Syrian Badia: Central and eastern Syria is distributed within the borders of the Syrian state in several provinces, it is the northeastern part of the province of Daraa, and Deir Ezzor province, and the eastern section of the province of Homs, and constitute 76% of the countryside of Damascus. In Aleppo, it is located on the south-eastern side extending to the Iraqi-Syrian border. 2. Syrian Jazeera: It is the north - east of the Euphrates River, which flows from the Turkish territory, which transits Syria to Iraq, and includes the fertile Jazeera area from the tributaries of the Euphrates River, and there are large quantities of grain and cotton crops in this area. Oil and natural gas have been discovered in the far north-eastern part of the island and this discovery has greatly enhanced the region's economic potential. The fortunes of the eastern areas: 1. Oil: Syria's oil sector is a key pillar of the Syrian economy, and most of Syria's oil reserves lie in the eastern region. Syria's oil reserves are estimated at about 2.5 billion barrels, which represent 0.2% of the world's reserves, which is close to the UK's oil reserves. Syria's oil production in 2010 was about 385 thousand barrels per day. Syria uses 45% of the heavy oil and exports the rest, consumes about a third of light oil production and exports the rest. The oil production fields in Syria are distributed to the governorates of the Eastern Region as follows: Der Al Zour: Omar, Taymum, Tannak, Jafra, Ward, Hareeji, Maleh, Qasebah, Lesiyad, Ruwais Al Hasakah: Al-Shadadi, Al-Gibsa, Al-Hool, Merkada Al-Raqqa: Wadi Obaid Homs: Jazel field - Hel field For more information about oil in Syria, you can review our previous study entitled: Deadly Oil 2

2. Gas: Syria's gas reserves was about 0.3 billion cubic meters at the end of 2010, according to a report by the World Energy Agency. These reserves are concentrated in three main fields in the ancient city of Palmyra in the Syrian Desert. Recently, it is alleged that the gas reserves in Palmyra are enough for Syria alone for up to 19 years! It seems that the issue of gas is a sensitive issue in the Syrian file, where many studies - including the Syrian regime's government published - indicate the existence of several oil basins containing gas and oil distributed in areas in the Syrian Badia and on the Syrian coast as well, it is still being explored for numerous international interventions. 3. Phosphate: The Syrian Badia contains large amounts of phosphate ores that have the potential to support the Syrian economy continuously. Syria's phosphate production in 2007 was almost three million tons, according to the Central Bureau of Statistics, making it the fourth Arab producer of phosphate. 75% of the total production to several Arab or European countries. The phosphate ores are distributed in Syria in the areas of the Syrian Desert, specifically in the following areas: The palmerian chain: It was discovered in the early thirties of the last century in the foothills of the mountain town of "Sokhna" located to the left of Damascus - Palmyra - Deir al Zour, and the phosphate minerals are located in the region "Khanifis", which is one of the most important phosphate extraction in Syria In terms of quality and is the oldest in terms of extraction. Phosphate ores are located in the eastern region, which lies to the north-east of the Khanifis region, about 30 km away, and is located by Damascus- -Palmyra, about 5 km. The third area is Al-Awaid, located to the right of Palmyra-Homs road. Al-Hammad area: Phosphate is found in large areas of Al-Hammad area, but it is characterized as being newly formed. The coastal area. 4. Agricultural Products: According to data from the Central Bureau of Statistics, the governorates of the Eastern Province of Syria produced 57% of Syria's wheat production in 2010, equivalent to 75% of Syria's cotton production. In addition to many agricultural products such as cucumber, barley and lentils. 5. Water Resources: The vast expanses of the eastern region contain many valleys, which make them natural lakes that collect the falling rain waters. In addition, the Euphrates River passes through half of it in all its branches. It also contains the largest industrial lake (Lake of the Revolution) On the Iraqi border. 3

The strategic importance of the Eastern Region The tribal diversity and the geographical extension of the Syrian Badia, which occupies 55% of the area of Syria, has made it a point of conflict by several international forces. The strategic importance of the Eastern Region is highlighted in the following aspects: The Eastern Province of Syria is the main corridor for oil and gas export pipelines from various regional countries such as Iran and Iraq. The Arab gas pipeline produced in Egypt, which passes through Lebanon and then to Europe, in addition to the oil pipeline from the Kirkuk field in Iraq to the Syrian port of "Banias" Which passes through it as well. Iran plans to transfer its oil and gas wealth through the Syrian Desert to the Syrian and Lebanese coasts. For more information, please refer to a previous report prepared by the "Syrian Economic Forum" on the gas file entitled Syria and the curse of gas The presence of many underground resources in the Syrian Badia such as phosphate, gas and oil and contain abundant water as the Euphrates and Tigris rivers pass through them, and Syria's agricultural fund for the production of its products of strategic importance such as wheat and cotton. The primary market for the western regions of Syria, most of the weaving mills from Aleppo depend on the cotton grown in the eastern region, and the oil refineries in Banias and Homs depend on the oil supplied from them. The conflict of powers: Iran: Iran wants to find a land corridor to ensure the transfer of its oil and gas production to the Syrian coast. This route passes through the south of the Syrian Desert, which is a bridge between Iraq, the Syrian coast and Lebanon. The recent military operations have escalated between the Iranian-backed militias and the Syrian regime. The opposition forces on the other, in the areas of Qalamoon and Ghouta East and the international road linking Damascus and Baghdad. On the other side of the Syrian Badia we find the intensification of battles also in the area of "Altnf" on the Syrian-Iraqi border, the popular crowd supported by Iran to try to control this border city, and then respond to the United States by establishing a military base to try to cut the road to Iran To link its land borders with the Mediterranean coasts through Iraq, and Tanf is the important strategic point in this corridor. 4

Russia: For Russia, having taken full control of the Syrian coastline overlooking the Mediterranean Sea, it is in its interest that Iran can secure a land corridor that will enable it to transfer its resources to the Syrian coast, so that Russia can market it as needed, giving it greater power to control and market the gas market in other countries. European Union, thus strengthening its political and economic position more. Russia also wants to get the reconstruction file in the eastern region and rehabilitate the oil and gas fields there, and give its companies the right to explore the underground resources in the Syrian Badia. United States of America: The United States of America justifies its presence and military intervention in this region by waging war on its leader and leading the air operations of the international coalition strikes on positions controlled by the ISIS forces. But previous wars fought by the United States under the pretext of combating terrorism have always taught us that America has hidden economic interests that make it militarily intervene, as happened in Iraq before. The Syrian Badia is only a natural geographical extension of the Iraqi territory rich in underground resources. Therefore, the US control of the Syrian Badia means that it effectively controls all of the region's wealth, except that it will control the land-trading corridor linking East and West, giving it a deeper strategic depth in the region. Preserving its interests and achieving balance in the region according to its perspective, especially with the presence of Russia on the Syrian coast. Turkey: The Turkish government's fear is that the Syrian Kurdish Democratic Forces militia will be able to establish their unified state in the northeast of the Syrian-Syrian region, which will extend over the entire Syrian-Turkish border and thus intervene militarily in the former Syrian north through the Operation Euphrates Shield. On the cities of Grapples and the door through which, in this way, Ankara was separated between the Kurds west of the Euphrates and the Kurds east of the Euphrates. Not to mention that the Kurds will be the US guards on oil fields in the Syrian Badia, and will control "if they succeed" in the supply of oil and gas coming from Iran by land, which will give them greater economic power in the region and this increases the fears of Ankara more. Nor should we overlook the dream of the State of Qatar to extend the gas pipeline from its territory to Turkey through Saudi Arabia, Jordan and the Syrian Desert. Therefore, the control of any other party on the eastern region other than Turkey or one of the factions of the opposition forces backed by Qatar means the impossibility of implementing this project completely. 5

To where? "Who controls the Syrian Badia, governs the world." The success of Russia, Iran and the Assad regime in controlling them means a victory in the war and strategic depth in the region, and the survival of Russia, the only controlling gas supplies to European countries hungry for him. The success of Syria's democratic forces backed by the United States means weakening the forces of Russia and Iran and growing a balance of forces in the region with Russia remaining on the shores of the Mediterranean, in addition to the transfer of international economic conflict between them to the Syrian interior, which will increase the distance between the spectrums of the people Syrian conflict in the east and west of the country. Turkey's success in stopping the Kurdish tide in the Syrian Badia means greater hope of playing a greater strategic role in decision making and reviving the dream of establishing a Qatari gas transportation project. After all this talk about the powers of the player in the eastern region of Syria, and its strategic importance, unfortunately no Syrian party has a pivotal role in manufacturing or influencing the future of this Syrian region, and continuing to see the growing alliances and differences among us forget the larger goal, leaving the arena empty for the rest of the forces in To make and dictate our decisions and ideas. 6