The reality of Syrian industry and the determinants of reviving this sector

Introduction:

For decades, Syrian industry formed one of the most important pillars of the national economy. It was characterized by its diversity, encompassing textiles, food processing, engineering, and chemicals, and was closely linked to the agricultural and commercial sectors.

This integration was the cornerstone of the stability of the Syrian economy before 2011, before the country underwent radical transformations as a result of the protracted war, which lasted until liberation in 2024. This war weakened the industrial infrastructure and rendered thousands of facilities inoperable.

First: Syrian Industry Before the Revolution (Pre-2011)

At that time, the Syrian economy was described as diversified and relatively self-sufficient. The industrial sector contributed approximately 23% to the GDP, and the manufacturing sector achieved a growth rate of 14.8%, while industrial exports exceeded US$5 billion annually.

Basic industries were concentrated in major cities (Damascus, Aleppo, Homs, and Hama), with textiles, food processing, and pharmaceuticals forming the backbone of the Syrian economy. These industries benefited from cheap labor and a medium-sized production infrastructure that generated high added value.

Second: Syrian Industry During the Years of War (2011–2024)
With the outbreak of the Syrian revolution, the industrial sector entered a phase of sharp decline, both in terms of its physical and human resources. This decline was manifested in:

1. Total losses estimated at more than 2 trillion Syrian pounds, four times the industrial output of 2010.
2. A drop in industrial production from 355 billion Syrian pounds to approximately 61 billion Syrian pounds, according to market prices in 2014.
3. A decrease in the industrial sector’s contribution to GDP from 23% to less than 8%.
4. Direct destruction of facilities, particularly in Aleppo, Homs, and the Damascus countryside, and the closure of thousands of factories.
5. A brain drain of skilled workers and professionals due to migration and displacement, and the loss of productive national capital.
6. High operating costs due to energy scarcity, rising raw material prices, and import difficulties.
7. Loss of traditional export markets due to sanctions and declining competitiveness.

These combined factors transformed Syria from an emerging industrial nation into an economy dependent on imports and substandard goods, exacerbating the trade deficit and deepening the economic crisis.

Third: The Current State of Industry After Liberation (2025 and Beyond)
After the fall of the regime and the beginning of the political transition, Syrian industry faced a complex reality of challenges and opportunities. Among the most prominent features are:

1. An ill-conceived transition to a free market economy without adequate legislative or institutional preparation, which confused industrialists and opened the door to unfair competition.
2. A decline in production capacity in a large number of factories, with some shutting down completely, especially those heavily reliant on energy.
3. Higher production costs compared to neighboring countries due to the absence of structural, rather than purely financial, support and weak infrastructure.
4. The influx of low-quality, cheap goods from abroad into Syrian markets, weakening domestic production and damaging purchasing power.
5. The absence of effective trade union organization and institutions supporting industrialists during the transitional phase.
6. The weakness of the quality and standards system and the lack of unified administrative frameworks in industrial zones.

Fourth: Determinants for Reviving the Industrial Sector:

Reviving Syrian industry requires a comprehensive strategic vision that addresses both structural and phased challenges.

Among the most important fundamental determinants are:

1. Political and Security Stability:
   Industry cannot flourish without a stable environment that provides legal and economic security for investors.
2. Reforming the Legislative Framework:
   The need to modernize laws governing industry, eliminate bureaucratic complexities, and establish clear incentives for industrial investment.
3. Rehabilitating Industrial Infrastructure:
   Establishing new industrial zones in secure governorates and rehabilitating damaged areas through national and international partnerships.
4. Financing Small and Medium Enterprises (SMEs):
   These enterprises are the backbone of any industrial revival, given their ability to absorb unemployment and stimulate domestic markets.
5. Restoring Trust Between the State and the Private Sector:
   This can be achieved by involving industrialists in formulating public policies and providing realistic tax and legislative incentives.
6. Focusing on Industries with a Comparative Advantage:
   Such as agricultural, food, textile, and pharmaceutical industries that rely on local resources.
7. Transitioning to a Green Economy and Sustainable Industry:
   By encouraging the use of renewable energy, clean production technologies, and the recycling of industrial waste.

Fifth: Recommendations of the Economic Bureau of the Syrian Future Movement:

1. Establishing the “Supreme Council for Syrian Industry”
   Comprising representatives from the government, the private sector, and civil society, its mission will be to formulate national industrial policy and develop short- and medium-term implementation programs.
2. Launching the “National Program for the Rehabilitation of Industrial Zones”
   Aiming to restart partially or completely destroyed facilities through partnerships with Syrian investors abroad.
3. Establishing a “Fund for Financing Small and Medium Industries”
   With support from the government, development banks, and international institutions, with facilitated credit facilities.
4. Gradually adopting an “Industrial Substitution” policy
   That is, manufacturing imported products locally through technology transfer and the localization of expertise, thereby achieving self-sufficiency and reducing imports.
5. Issuing a “National Industry Protection Law”
   Defining mechanisms to support the competitiveness of national products and imposing regulatory restrictions on dumping, in accordance with Syria’s international obligations.
6. Reconnecting industry with agriculture and logistics
   Within the framework of the “National Production Integration” strategy to ensure a value-added chain that begins with raw materials and ends with exports.
7. Stimulating export industries through bilateral trade agreements
   with neighboring regional countries, and identifying target markets in Africa, Asia, and Eastern Europe.
8. Activating vocational and technical industrial education
   by rehabilitating industrial institutes and developing their curricula to align with the needs of the modern labor market.
9. Adopting “Industrial Digital Transformation”
   by establishing a national industry database and linking it to electronic platforms to facilitate investment, marketing, and exports.
10. Strengthening partnerships with Syrian communities abroad
    through joint investment projects in the manufacturing, light, and medium industries sectors.

Sixth: Potential Challenges (Negative Aspects)

1. Weak local financing and insufficient domestic resources.
2. The potential for conflicts of interest between investors and government entities during the transitional phase.
3. The risk of market saturation with foreign goods due to weak customs controls.
4. Delays in issuing executive laws and regulatory legislation.
5. Bureaucratic sluggishness in implementing development projects. Seventh: Available Opportunities (Positive Aspects)

Seventh: Available Opportunities (Positive Aspects)

1. The existence of a viable industrial base in major cities.
2. The availability of Syrian expatriate expertise that can be attracted through voluntary return programs for industrialists.
3. Syria’s strategic geographic location, making it a trade hub between Asia and Europe.
4. Increasing international openness to supporting the reconstruction phase.
5. The diversity of local resources, including raw materials and a trainable workforce.

Conclusion:

For a century, Syrian industry was a symbol of Syrian productive identity and a source of national pride. However, the years of bloody war (2011–2024) emptied this sector of its substance and reduced it to rubble.

Today, Syria stands at a historical crossroads: either it regains its industrial glory through a clear strategic vision and a firm executive will, or it loses what remains of its capabilities to foreign markets that fill the void.

The Economic Bureau of the Syrian Future Movement believes that reviving national industry is the gateway to true economic renaissance, and that the path to this lies through:

Political stability, legislative reform, smart financing, and effective partnership between the state, society, and the private sector.

Only through this integrated approach can Syrian industry return to being the beating heart of the new Syrian economy.