High production costs cripple Syria’s industrial growth
Shafaq News – Damascus
Rising production costs, combined with the influx of imported goods, are creating an uneven playing field for Syrian industry, limiting its growth both domestically and internationally, a Syrian official told Shafaq News on Tuesday.
Raja Al-Abdullah, director of Media at the General Administration of Syrian Industry, said that the sector faces multiple challenges, including low-quality, low-priced imports that undercut local products, alongside declining exports due to stricter restrictions imposed by certain countries on Syrian goods.
Before the war, Syrian industry contributed roughly 20–23% of GDP, employed hundreds of thousands of people, and exported more than $5 billion annually in products ranging from textiles to pharmaceuticals.
Production fell sharply during the conflict—from 355 billion Syrian pounds ($118M) in 2010 to just 61 billion ($20M) by 2014—and the sector’s GDP share dropped below 8%. Today, the number of operating industrial establishments is estimated at 80,000, with only a fraction functioning at full capacity.
“Enhancing the competitiveness of Syrian industry depends on reducing costs and meeting global quality standards, allowing Syrian products to enter international markets,” Al-Abdullah remarked, noting that coordination between the government and private sector is essential to improve product quality, strengthen oversight of imports, and enforce reciprocity with countries imposing export restrictions on Syria.
He added that the government is pursuing a balanced customs policy to lower production costs, ensure fair competition between local and imported goods, restrict imports of products with domestic alternatives, and implement anti-dumping measures to protect emerging industries.
“More than 2,200 industrial projects were licensed in 2025, although fewer than 220 had started production by September,” Al-Abdullah pointed out, stressing that small and medium-sized industries form the backbone of Syria’s industrial sector, contributing to economic and social development, job creation, and the integration of economic activities.
