Shafaq News/ Many Iraqis living in Syria face increasing economic challenges as the cost of living rises sharply, reducing their purchasing power and further limiting the humanitarian aid they once relied on.

For Um Ahmed, an Iraqi woman in her 40s who has lived in Damascus for nearly a decade, these challenges are becoming more difficult. After fleeing Iraq’s Saladin province during ISIS's control, losing her husband in the war, and seeing her home destroyed, she settled in the Sayyida Zeinab district. Humanitarian aid initially provided some relief, but it was never enough to cover all her needs.

Now, since the fall of President Bashar al-Assad’s regime on December 8, 2024, she faces new difficulties, including surging prices and an increase in visa fees between Iraq and Syria. “It has become much harder to afford food and clothing for my children,” she told Shafaq News, adding that she cannot return to Iraq until her children finish the school year. She has turned to relatives for financial support, hoping for economic stability soon.

Omar Abdul-Baqi, Director of Security at Damascus International Airport, said the Syrian government plans to increase visa fees for nationals from several countries, including Iraq. The fees will rise from $50 to $250, making travel between the two countries more expensive.

Price Hikes Across Syria

Many arrivals from Syrian provinces, as well as from outside the country, have complained about the sharp rise in prices at restaurants and cafes in Damascus, with some costs increasing by three or four times compared to northern Syria. They are calling on the government to impose immediate controls to address these soaring prices.

Shams, a Syrian citizen from Damascus, also noted the unexpected increase in food prices, particularly the cost of bread, a staple in the country. She pointed out that "the price hikes are disproportionate to the salaries most employees earn," expressing concerns about the ability to afford food at these higher prices. She urged the Syrian government to "impose market controls and explain the reasons behind these increases."

A new report from the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) warned last week of critical food insecurity levels in Syria, caused by the war's impact on wheat production and supply.

According to the report, "58% of wheat farmers in northwestern Syria reported lower yields in 2023-2024, particularly in Idlib and Hama."

This decline threatens bread availability, leading to higher prices and worsening food insecurity in northwestern Syria over the next year. Many farmers may have to reduce or halt wheat production altogether.

The report also confirmed that the total bread production from bakeries assessed in Syria does not meet the population's needs, with the largest production gaps recorded in Aleppo and Idlib.

Official Clarification

In response, Syria's Ministry of Internal Trade and Consumer Protection explained that the price increases are primarily due to supply and demand dynamics, in line with free-market principles.

The ministry's media office told Shafaq News that pricing differences across commercial activities stem from variations in service quality, including location, product quality, customer experience, and operational costs, all of which impact prices.

"The ministry's role is to require all commercial activities to display clear and public price lists, allowing consumers to know prices before making a purchase, and to ensure compliance with these lists for transparency and consumer protection," the ministry stated, noting that it does not require sellers to set a uniform price but allows them to price products based on supply and demand, in adherence to existing laws and regulations.

Cost of Openness?

Economic researcher Hayyan Hababa viewed the rising restaurant bills in Syria as "normal, due to the opening of Damascus to diplomatic and media missions, as well as an influx of people from northern regions and abroad," which has led to increased demand, particularly in restaurants.

"Rising prices for goods and services are governed by supply and demand economics, so the increase is a result of higher demand," Hababa said in an interview with Shafaq News.

He added that Syria, in its current state, is suffering from an economic crisis "due to the legacy left by Bashar al-Assad's regime, including the destruction of infrastructure, corruption, and administrative inefficiency," affecting both public and private sectors, as well as production facilities and services.

Hababa described the ongoing economic sanctions on Syria as "locks that hinder the Syrian economy," noting that even the increase in visa fees is "natural."

He concluded that closing border crossings between Syria and neighboring countries limits the ability to transport goods, exacerbating the economic crisis. In contrast, reopening these crossings could ease the crisis and positively impact the economies of both Syria and its neighbors.