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Syrian Industry in Danger of Extinction: Factory Closures and Layoffs

Economist Dr. Yahya Omar asserts to al-Modon that industry in regime-controlled areas is undergoing its darkest days.
Fuel Prices Hike: Negative Impacts on Industry and Consumer Products
Syrian Industry in Danger of Extinction: Factory Closures and Layoffs

The voices of Syrian industrialists warning of the perilous threat to Syrian industry due to government policies, particularly the soaring prices of energy resources, have grown increasingly audible. This movement is now taking on a collective character not only in Aleppo and Damascus but also in other governorates. It appears that the regime is persisting in its policy of phasing out subsidies in this sector.

While the reasons cited for the industry’s decline are similar—chiefly the surge in energy prices, reaching rates exceeding 500 percent following the Ministry of Electricity’s recent decision in February—the most notable development is the extension of these concerns from industrialists in Aleppo and Damascus to their counterparts in Tartous and Hama. This expansion underscores the realization of the dire threat of extinction, as previously warned by these voices.

The Looming Collapse: Syrian Economy on the Brink

Economist Dr. Yahya Omar asserts that industry in regime-controlled areas is undergoing its darkest days, grappling with multifaceted challenges. These include broader economic realities as well as the specific policies and practices of the regime. Omar suggests that these challenges are interconnected, posing a risk of complete shutdown for the industry.

Omar elaborates that challenges encompass the inadequate availability of energy resources essential for industry—such as electricity, diesel, and fuel—and the consequent surge in operating costs, leading to diminished revenues. Additionally, logistical hurdles hinder production discharge due to the unavailability of exports and the high associated costs.

Moreover, the industry contends with challenges stemming from regime policies and practices, including exorbitant energy prices, lack of meaningful production incentives, harassment and extortion by warlords, and imposition of royalties on production inputs, final products, and profits. These factors collectively pose a severe threat to the industry’s viability.

Economist Dr. Firas Shaabo contends that what the regime terms as “re-intervention and organization of subsidies” is, in reality, a strategic maneuver towards complete subsidy removal and a shift towards privatization—not in its genuine sense, but rather through the sale of facilities and the preferential treatment of vital industries to benefit regime affiliates, thus depleting state resources.


This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.

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