The Syrian industrial sector is facing mounting pressure from the influx of European goods into local markets.
Imported products—often more diverse, of higher quality, and cheaper—are undermining the survival chances of local manufacturing, particularly amid rising production costs and insufficient institutional support.
This challenge, long warned about by industrialists and traders, has recently come to light in official meetings between the Minister of Economy and the Aleppo Chambers of Commerce and Industry in early August.
Minister’s Meeting in Aleppo: Promises to Confront Dumping
On August 3, Minister of Economy and Industry, Mohammad Nidal al-Shaar, met with representatives from Aleppo’s chambers to discuss ways to stimulate the local economy and strengthen production.
Traders and industrialists presented demands including:
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Strengthening customs to secure borders and combat smuggling
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Tightening quality control on imports and enforcing standards
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Adjusting customs duties for fairness
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Protecting domestic production from dumping, especially in sensitive sectors
On August 4, the minister announced new measures, including reducing energy costs (fuel and gas) and abolishing electricity taxes, alongside administrative facilitations such as enabling remote company registration.
While the current debate focuses on European imports, Syrian markets have already faced waves of product dumping—such as Turkish ready-made clothes and second-hand garments—undermining the textile industry, which has struggled to match their lower prices and acceptable quality.
Causes of Exposure and Weak Competitiveness
Economic and banking expert Ibrahem Nafi Koshaji said the crisis stems from decades of a closed, protectionist, monopolistic economy lacking modern management and development tools.
He explained that the rentier model dominating domestic production created a fragile structure focused on assembly and packaging rather than investing in quality or modern technology. As a result, Syrian industries were ill-prepared for direct competition with advanced foreign goods.
The shift toward a free market economy occurred without ensuring fair competition conditions, leaving local products directly exposed to European goods, which often outperform them in quality and come at lower prices—making them preferable to low-income consumers.
Sectors like footwear have been hit hard, with factories unable to keep up in design and technology.
Koshaji warned that without a clear vision, industrial institutions risk not only financial losses but also the inability to adapt to market changes.
Path to Reform: What’s Needed?
Regarding solutions to the crisis, the economic expert outlined a set of proposals aimed at improving the competitiveness of Syria’s industrial sector, including:
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Modernizing production systems and adopting smart, integrated technologies.
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Complying with both Syrian and international standards to ensure local product quality.
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Using scientific cost-analysis methods to minimize waste without compromising quality.
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Revisiting pricing policies to adopt realistic profit margins that support sustainability.
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Developing management models and enhancing human resources and skillsets.
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Strategically linking industries to local resources—such as food and agricultural industries, or plastics and petroleum derivatives—in order to create added value within the market.
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Establishing a modern institutional framework for industrial governance to regulate relations among stakeholders and implement coordinated economic growth policies.
The preliminary suspension by the Ministry of Economy and Industry of both the “Import License” and “Import Form” has helped eliminate the burden of violations previously incurred by traders under the foreign currency regulations issued by the Central Bank of Syria, restoring freedom to conduct commercial activity in the markets.
These measures, which allowed traders to import goods without the earlier bureaucratic obstacles, have benefited certain manufacturing industries that rely on imported inputs, particularly by granting access to suppliers, technologies, and raw materials from abroad that had been unavailable for years.
However, at the same time, they have left the door open to importing many products that increase competition and place added strain on domestic producers.