Hundreds of Syrian factories closed under HTS administration as industry faces deepening crisis
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By Dr. Pshtiwan Faraj | Kurdish Policy Analysis
More than 420 factories have reportedly closed across Syria under the HTS administration as insecurity, electricity shortages, and cheap imports deepen the country's industrial crisis.
Security concerns, energy shortages, cheap imports, and economic restructuring accelerate the collapse of Syria's manufacturing sector
Syria's industrial sector has suffered a sharp deterioration under the administration led by Hayat Tahrir al-Sham (HTS), with hundreds of factories and manufacturing facilities closing across the country amid worsening security, soaring production costs, and growing competition from imported goods.
According to EghtesadOnline, approximately 420 factories, industrial plants, and workshops have ceased operations over the past three months in key industrial provinces, including Aleppo, Damascus, Latakia, Tartous, and Homs, highlighting the mounting economic challenges facing post-Assad Syria.
The closures come after HTS-led forces seized Damascus on December 8, ending the government of former Syrian President Bashar al-Assad following a rapid two-week military offensive.
Security Breakdown Hits Industrial Centers
Industrialist Ahmed Anqa said deteriorating security conditions have become one of the primary drivers behind the collapse of industrial activity.
According to Anqa, unidentified armed groups have looted major industrial zones, including:
- Sheikh Najjar Industrial City in Aleppo
- Hasiya Industrial Zone in Homs
- Adra Industrial City near Damascus
At the same time, manufacturers continue to struggle with unreliable electricity supplies and sharply rising energy costs.
Diesel prices have reportedly increased by around 30% since the fall of the Assad government, significantly raising production expenses for businesses already operating under difficult conditions.
Turkish Imports Intensify Competitive Pressure
Syrian manufacturers are also facing growing competition from low-cost foreign imports, particularly from neighboring Turkey.
According to Anqa, imported and smuggled goods are entering Syrian markets with limited government oversight, allowing foreign products to undercut domestic manufacturers.
He noted that many imported goods are priced using Syria's black-market exchange rate, while local producers continue to operate under the Central Bank's official exchange rate, creating an uneven competitive environment.
Frequent electricity cuts imposed under the HTS-led administration have further increased production costs and reduced the competitiveness of Syrian factories.
Public Sector Layoffs Add to Economic Strain
The broader economic crisis has also resulted in significant public-sector job losses.
According to the Syrian Observatory for Human Rights, approximately 12,000 government employees have been dismissed in Latakia Province, while another 500 workers at the General Company for Iron and Steel Products have reportedly been placed on indefinite leave.
Meanwhile, Syria TV reported that as many as 500,000 public-sector employees could eventually lose their jobs as part of the HTS administration's transition toward what officials describe as a competitive free-market economy.
Interim Finance Minister Basil Abdel Hanan told Reuters that the objective is to encourage private-sector growth while continuing to provide assistance to vulnerable groups.
"The goal is to balance private sector growth with support for the most vulnerable," he said.
The reform agenda reportedly includes privatizing state-owned enterprises and removing so-called "ghost employees" from government payrolls.
IMF Engagement Raises Questions About Syria's Economic Future
As Syria attempts to rebuild its economy, the International Monetary Fund has begun discussions with Syrian officials regarding future economic cooperation.
The development has prompted debate over whether Syria could become increasingly dependent on external borrowing during its reconstruction.
Last month, Qatari media outlet The New Arab cautioned against excessive reliance on international lenders, arguing that Syria should prioritize rebuilding domestic production, expanding exports, and strengthening foreign currency reserves rather than financing recovery through debt.
Analysis
The closure of more than 420 industrial facilities illustrates the scale of the economic challenges confronting Syria's new authorities. While the HTS-led administration has announced ambitious plans to liberalize the economy and expand private-sector activity, manufacturers continue to face immediate obstacles, including insecurity, unreliable infrastructure, higher energy costs, and increased competition from imports.
The industrial slowdown also highlights a broader dilemma facing Syria's post-war economy: attracting investment and rebuilding productive capacity while simultaneously implementing structural reforms. Without improvements in security, electricity generation, and industrial competitiveness, efforts to revive manufacturing are likely to remain constrained despite political change.
#Syria #HTS #Economy #Industry #MiddleEast
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