Syria Reexamines Industrial and Economic Policies

Stacking the freshly cut soap, which is still a bright green color. As it cures, it turns more yellow with time. (Ali Haj Suleiman/Al Jazeera)

As economic debate intensifies, support for local production has reemerged as a central policy issue, framed by many as a pathway to job creation and recovery. Yet the broader question remains whether public support is truly improving living standards or merely widening producer profit margins without delivering gains to consumers. Critics argue exemptions, incentives and guarantees can lose their purpose when governments provide them without strong oversight of quality, efficiency and long-term sustainability.

In that scenario, policy risks shifting from economic management to financing losses, with citizens ultimately absorbing the cost through higher prices and weaker purchasing power. The discussion increasingly centers on whether Syria needs stronger protective measures for domestic industry or deeper structural reforms to the production environment itself.

Calls for Smarter Governance and Performance Standards

Businessman Firas Barazi argues government support should no longer remain tied to traditional low-efficiency production. He says economic recovery depends on transforming subsidies into incentives rewarding innovation, competitiveness and operational efficiency. Barazi rejects what he describes as reviving unproductive enterprises at the expense of consumers’ purchasing power.

Instead, he calls for the state to focus on its sovereign regulatory role by setting and enforcing clear standards and specifications, ensuring that products carrying the “Made in Syria” label can meet global benchmarks. He also advocates shifting from a government centered on direct execution to one focused on planning, regulation and oversight, while allowing the private sector to handle implementation within a clear legal framework.

Producers Blame Distorted Market Conditions

A different view comes from businessman Muhammad al-Shihabi, who warns against equating weak production performance with producer failure. He argues that many struggling Syrian manufacturers are not inherently inefficient but are operating inside a distorted business climate shaped by high energy costs, elevated risk and limited access to financing.

He says labeling them as “failed producers” oversimplifies the issue while ignoring the structural barriers they face. According to Shihabi, fully opening imports under these conditions would not create fair competition but rather sideline domestic producers in favor of foreign companies benefiting from more stable environments and lower costs. He warns such a shift could weaken domestic production capacity, increase dependence on external markets and ultimately reduce long-term control over prices.

Imports Seen as Pressure Valve and Warning Sign

Economist and businessman Faisal Atri says the import debate has become overly polarized, with any support for imports often framed as a threat to national agriculture or industry. He argues when imported goods remain cheaper than domestic, the gap indicates inefficiencies in local cost structures, tariffs or logistics. In those cases, the solution is not blanket protection but lowering production costs and improving competitiveness.

Atri points to the poultry sector as a clear example, where high feed and energy costs reduced output and increased prices. He advocates a dual-track response: reducing duties on production inputs, encouraging domestic investment in feed and vaccine industries, and modernizing farming and transport systems while also permitting tightly regulated imports to stabilize prices and prevent shortages.

He makes an exception for strategic goods such as wheat, warning that excessive reliance on imports in those sectors could expose the country to external pressure. At the heart of the debate lies a shared concern: citizens should not continue paying the price for structural inefficiencies under the banner of “supporting local production.”

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