Following the repeal of the Caesar Act, Syria’s industrial sector is entering a pivotal testing phase. Investors, industrialists, and workers are anticipating tangible changes in the availability of raw materials and energy, hoping for the gradual restart of factories in industrial cities and the revival of local markets. This shift coincides with emerging foreign interest in investment and partnership opportunities.
Official sources emphasize that industrial revival remains closely linked to resolving long-standing challenges, foremost among them energy shortages, high production costs, and disrupted supply chains. As a result, the coming phase depends on realistic recovery plans based on gradual implementation and an expanded role for both local and foreign investment.
Phased Recovery Focuses on Four Key Industrial Cities
Rim Halli, Advisor to the Minister of Economy and Industry, stated that the initial post-sanctions period will witness gradual industrial momentum, varying by sector according to its ability to address energy and supply chain constraints. “Recovery will be phased, not immediate,” she stressed. Halli noted that over 1,500 factories have already resumed operations due to supportive customs policies, with expectations that this number will rise further following the lifting of sanctions.
The recovery plan prioritizes four major industrial cities: Sheikh Najjar, Adra, Hassia, and Bab al-Hawa. The strategy focuses on stimulating investment in key sectors, including engineering industries, food production, pharmaceuticals, and construction materials. Halli explained that the policy aims to create an attractive investment climate through incentives rather than targeting specific companies.
While lifting sanctions is expected to improve access to raw materials, she cautioned that production costs will decline gradually, particularly due to ongoing electricity shortages. However, exhibitions such as BuildEx, notes Halli, are early indicators of foreign interest, noting participation from more than 400 companies, especially in reconstruction, energy, oil, and gas sectors.
Foreign Investment Promises
Halli confirmed that the Ministry’s approach centers on enabling the private sector to revive state-owned facilities through partnerships, rather than placing additional strain on the public budget. This model, she said, is expected to generate higher returns for the state.
She also revealed initial commitments for significant investment inflows from neighboring countries, including Qatar, Saudi Arabia, the UAE, and Turkey, particularly after banking channels reopen. These investments are expected to focus on lower-risk sectors such as infrastructure. Additionally, memoranda of understanding valued at approximately $14 billion have been signed for strategic projects.
Repealing Caesar a ‘Real Revolution’
In a related statement, Assistant Minister Muhammad Huraira described the repeal of the Caesar Act as a “real revolution” for Syrian industry, enabling the import of previously banned modern technologies and digital systems. He explained this development opens the door to upgrading local factories, enhancing efficiency, and expanding productive capacity.
The new environment facilitates the procurement of spare parts and maintenance equipment, reducing prolonged shutdowns and supporting the integration of automation and digital transformation. These changes, he added, are essential for rebuilding the sector and developing local competencies aligned with modern labor market demands.
