Enab Baladi – Jana al-Issa

On January 27, the first commercial vessel carrying cars arrived at the Port of Latakia, two days after the statement of the Minister of Transport in the interim government of Damascus, Bahaa al-Din Sharim, regarding the ministry’s decision to allow the import of cars into Syria under certain conditions.

The decision stipulated that all types of cars and vehicles can be imported into Syria, provided that they are no older than 15 years.

The decision faced numerous criticisms, as some experts believed it would affect car prices and cause losses for their owners, in addition to draining foreign currency resources for non-essential goods.

In local markets, car prices have noticeably decreased with the arrival of cars from northern Syria to Aleppo, and the prices of old cars, which had reached record highs before the regime’s fall, have also decreased, although some were manufactured over 30 years ago.

Market needs

To understand the justifications for this decision and the government’s comments on the opinions of economic experts regarding the negative impacts that will result from the decision, Enab Baladi contacted the Ministry of Transport in the Syrian interim government.

The Assistant Minister of Transport, Mohammad al-Rahal, stated to Enab Baladi that the decision was made due to the local market’s need for new types of cars suitable for various sectors and to contribute to the overall economic development of private and public business establishments.

With the policy of reducing previously imposed taxes on this type of trade, a general decrease in car prices has been observed in the Syrian markets, accompanied by a significant increase in demand for cars overall in Syrian territories. This is taking into account that cars manufactured over 15 years ago are abundantly available in the local market, suitable for various segments of society, according to al-Rahal’s statement.

The Assistant Minister added that one of the reasons for specifying the year of manufacture for imported cars is the high percentage of old cars in Syria compared to the modern cars that have recently been allowed for import.

All categories and types

The General Directorate for Car Imports in the Ministry of Transport stated that cars would be imported from all categories and types, especially those that are in high demand in the local market, such as Korean, Japanese, and European cars, which run on gasoline or diesel.

The director of the directorate, Abdul Latif Shartah, stated to the Syrian official news agency (SANA), that any Syrian citizen returning to the country has the right to bring his car and pay the customs fees and obtain official papers for it, indicating that in the upcoming phase, the import will be organized exclusively for companies licensed by the Chamber of Commerce.

Shartah emphasized that the imported vehicle must be manufactured strictly between 2011 and 2025.

The arrival of the first commercial vessel carrying cars at the Port of Latakia – January 26, 2025 (SANA)

Scrap cars increase demand for dollars

The decision to allow the import of used cars up to 15 years old is seen as a “big mistake,” according to economic expert George Khouzam, as these are “scrap cars” coming from “car graveyards,” which consume fuel and spare parts and drain dollars in the coming years.

Khouzam stated in an interview with Enab Baladi that it would have been better to allow the import of used cars with a maximum age of five years instead of 15 years, as cars used to be considered a means of saving for citizens. However, their prices have now dropped by about 80%, which is a huge loss for citizens.

It would have been better to raise customs fees on used cars, with older car owners paying higher customs duties, in order to direct imports toward newer cars that consume less fuel and spare parts. Most of the used cars currently coming from the Gulf have previously been submerged in floodwaters, making them cars with lower technical specifications and significantly lower value than their current market prices, according to the expert.

Khouzam also considered that importing cars is a drain on dollars, and instead of importing means of production and working in industry, capital is directed toward importing used cars for quick profits. He added that theoretically, the dealer and the final customer pay for the car, but practically, the entire Syrian population pays the price when demand for dollars rises, leading to an increase in prices for all goods in the market.

Losses and drainage

On the other hand, economic researcher Radwan al-Dibs considered that the justifications for the decision consist of two points. The first is a kind of obtaining popular support due to the reduction of car prices by up to 80% as a result of their availability in large quantities, especially after a long interruption in imports for extended periods.

The second justification relates to the presence of thousands of cars in northern Syria over the past years, so it is natural for these cars to move to other provinces at “reasonable” prices, according to al-Dibs’ statements to Enab Baladi.

Regarding the effect on the car market, car prices will inevitably decrease; however, the decision will cause several issues, the most prominent being that some Syrians who already own cars will suffer due to the decreased value of their vehicles and potentially lose about 70% of their capital within days.

Al-Dibs also confirmed that a “huge” amount of foreign currency would leave Syria through the import of cars, which are considered a consumable sector with a risk of loss due to price declines over the years, instead of spending foreign currency on a productive sector that is currently needed by the country.

The increase in car imports will also add to traffic congestion in the streets and increase demand for fuel and spare parts, which may not be available in the markets.

Opening the door for imports without controls other than the car’s age will flood the car markets with many types of old cars that are already abundant in Syria, without proper monitoring of their performance and types, according to al-Dibs.

On the other hand, the state’s treasury will receive additional funds and income in foreign currency through fees and customs duties resulting from the import of cars.

The arrival of the first commercial vessel carrying cars at the Port of Latakia – January 26, 2025 (SANA)

$400 Million

While the decrease in car prices may encourage citizens to own a vehicle, the timing is not right for importing cars as it is not a priority today in Syria, according to researcher in political economy Yahya al-Sayed Omar.

The researcher added, in a video recording on his YouTube channel, that the priority should be the import of production lines, indicating that since the fall of the regime on December 8, 2024, about 80,000 new cars have entered the country. Assuming that the average selling price of a single car is $5,000, the total value of the imported cars would be $400 million, a figure that is likely to increase daily as imports continue.

Al-Sayed Omar believes that while the decision is not intrinsically wrong, the timing is inappropriate, as it would be more advantageous to stimulate production and direct all capital toward work and investment. Later on, after the economy improves, it would be possible to resume imports, which could serve the interests of all without exception at that time, according to his viewpoint.