During the current stage, the industry faces difficulties and challenges as a result of the destruction of infrastructure, economic sanctions and general deflation in the economy, but with the formation of the new government there is a window of hope to rebuild this vital sector, according to experts.
Syria has various industrial components, which historically made it a country with a strong industrial base, especially in the manufacturing, strategic and nutritional fields, and despite the destruction and weakness that afflicted the sector, there are still capabilities that constitute the basic pillar of the future re -advancement of the sector.
The Syrian government is scheduled to responsible for reviving the Syrian industry and strengthening its role in the national economy by adopting integrated economic policies based on a strategic vision that can invest in the existing ingredients, and establish an industrial environment that is attractive to local and international investors.
electricity
Syria suffers from a suffocating electricity crisis that was not the result of war, but rather a continuation of a crisis that extends for decades during which it did not reach self -sufficiency. The collapse of the infrastructure of the electricity sector constituted the direct cause of the decline in production after the destruction of more than 30 energy stations in the country and exposed at least 40% of the country’s high voltage lines to damage.
In addition to the lack of fuel needed to operate the (fuel) stations that operate thermal stations and international sanctions, especially on the energy and financial sector, which increased the crisis.
The researcher Manaf Qoman, a specialist in the Syrian economic affairs at the Amran Center for Studies in Istanbul, says that the electricity price is a major obstacle to the stability of the industry.
Qanan indicates to Al -Jazeera Net that the price of kilowatts per hour for factories in Aleppo is 27 American cents, which is higher than the average price in nearby countries and the surrounding areas, such as Egypt, where the kilos are sold to industrialists for 5 cents, and Turkey for 8 cents, while in the areas of northern Aleppo and Idlib (formerly opposition areas) it reaches 12 cents.
Qanan says that Sheikh Najjar Industrial City (in Aleppo Governorate) – which includes about 960 operating facilities – suffers from a shortage of electrical supply, as it needs 120 megawatta per day, while the available does not exceed 80 megawatta, and factories suffer from the high cost of fuel from which the price of the tons reached 630 dollars, in addition to its lack of availability all the time, which leads to the continued energy problem.
https://www.youtube.com/watch?v=Ric_oj1at48
The absence of critical stability
Qoman believes that the sharp fluctuations in the exchange rate of the lira against the dollar is one of the most prominent challenges facing industrialists in Syria. The great fluctuation in the exchange rate hinders financial planning and increases the difficulty of making production decisions, which creates a state of financial uncertainty.
These fluctuations affect the structure of wages and salaries directly, so it is difficult for factory owners to determine fixed income levels for workers, which led to disturbances in their accounts, and prompted many of them to separate workers completely or temporarily until the exchange rate stabilizes.
On the other hand, reports indicate that restricting cash withdrawals in front of factory owners within the current monetary policy is weakening their ability to provide the necessary liquidity to operate their factories and pay workers’ salaries.
Qoman believes that industrialists who depend on importing raw materials face difficulties in determining the final prices of their products and estimating operational costs after the exchange rate of the lira against the dollar fluctuated, which weakens their ability to compete in the local and external market.
Destroyer
Syria has witnessed widespread destruction in the infrastructure, as 4626 km was sabotaged of roads, 51 bridges, 66 communications tower and 72 water stations, as well as the destruction of sewage networks with a length of 7393 km.
According to a report published by the specialized energy platform, more than 50% of the infrastructure of the energy and gas energy system was damaged.
The Syrian ports – especially the port of Lattakia (west of the country) – were exposed to material damage as a result of the repeated Israeli attacks in December 2021, which led to severe fires and damage.
Researcher Abdel -Azim Al -Maghrib says that the insecurity of the infrastructure delays the development of the industrial sector, and the ports and roads still reduce the flexibility of import and export operations.
Economic sanctions
Al -Maghrabel adds to Al -Jazeera Net that the Syrian industry faces a difficult and full reality with the challenges that hinder its growth and recovery clearly, as the economic sanctions imposed on Syria by several countries constitute one of the most prominent and most influential challenges.
Al -Maghrib emphasizes that the sanctions have restricted the movement of foreign trade and obstructing the import of the industrial equipment needed for production, as well as the ability of the Syrian factories to market their products in foreign markets.
Added to this is a great weakness in the industrial infrastructure, especially in the energy, electricity and transportation sectors, which led to the high costs of production and the decline in the competitiveness of the Syrian product locally and abroad.
https://www.youtube.com/watch?v=iolicfsu8de
Industry ingredients
Syria has the necessary ingredients to revitalize the country’s industrial sector, and includes:
1- Local natural resources
Natural resources are a major source of state revenues, and may contribute to securing the raw materials needed for the industrial sectors if the sanctions are lifted.
The oil is the most prominent resource of the state, as the confirmed Syrian reserves, according to the American Energy Magazine, amounted to about 2.5 billion barrels.
Phosphate also constitutes the most important resources, as the state reserves are estimated at 1.8 billion tons, according to the figures issued by the Syrian phosphate and mines company, and the country produced about 3.5 million tons of phosphate annually, which makes it one of the largest phosphate producers in the world.
2- The geographical location
Syria is in a geographical location that allows it to be a knot for international and sea trade roads, as it is the link between the continents of Asia and Europe and between the Arab Gulf markets, Turkey and the European Union countries, and this site provides the country with flexibility and ease to reach the international markets produced and consumed.
3- Agricultural lands
According to a study published in the Carnegie Center, Syria is 18.5 million hectares, and the cultivation and forest area constitute about 6.5 million hectares, which constitutes 32.8% of the country’s total area, and more than 20% of the Syrians work in agriculture, and the grains, vegetables, fruits, olives and cotton are planted.
However, the sector faces financing challenges, according to the Food and Agriculture Organization (FAO), the initial cost estimates to re -prepare the agricultural sector amount to between 10.7 billion dollars and 17.1 billion.
Promising sectors
1- Food Industry Sector
Syria has a variety of agricultural commodities that allow it to expand industries that depend on converting basic agricultural crops into food products, and Abdel Azim Al -Maghrib notes that the agricultural sector in Syria will have a role in stimulating industrial work, especially those related to wheat products.
2- Textile industry sector
Syria was historically known as textile industries related to the industry of fabrics, carpets, ready -made clothes and traditional heritage textiles.
Al -Maghrib notes that the revival of this vital sector through the introduction of modern technology and the provision of government facilities and investment encouragements will contribute to increasing job opportunities and reopening the markets that were previously preferred the Syrian product because of its high quality and competing prices.
3- The pharmaceutical industry
A published research research for the researcher is a sound extent at the Robert Shoman Center for Graduate Studies at the European University of Florence, Italy, under the title “The Pharmaceutical Industry in Syria between Challenges and Defigations” that the pharmaceutical industries sector was one of the most prominent areas that were witnessing development in the country.
The study confirmed that the pharmaceutical industries provided millions of dollars in the country instead of importing medicines from abroad.
The pharmaceutical industry formed one of the most important investments of the private manufacturing sector in the first decade of the current century, and this industry has employed more than 17 thousand jobs, and was issued at a value of 210 million dollars annually, and thus Syria is the second largest Arab exporter for medicines after Jordan.
Industry promotion requirements
Qanan believes that the solution to the problem of providing electricity is the most important thing that faces the Syrian government, and suggests that the government return the kilowatt after studying the costs of production and distribution based on the actual cost, provided that the cost of kilos is about 10 cents, and work to install the price in dollars for a temporary period until the exchange rate of the lira stabilizes against the dollar.
Qanan recommends the Syrian government to rely on solar energy to produce electricity as a solution to provide electricity and reduce cost.
https://www.youtube.com/watch?v=w8tyzaryqg8
Al -Maghrib emphasizes the importance of reforming the banking sector, improving the efficiency of government and private banks, and providing soft loans to industrialists, in addition to developing electronic payment systems.
As for Qanan, he believes that there is a need to review commercial agreements with neighboring countries and reassess them to ensure their justice and not harm the national industry, and to design a program to support local industries for a period of between 3 and 5 years through tax exemptions or government grants so that they can compete with imported products, after setting a list of sectors or most affected products.
The Maghreb refers to the necessity of modernizing equipment and machines, providing a stable legislative environment and lifting the sanctions imposed on the country, and it is also possible to benefit from successful regional experiences such as Türkiye.
