On rebuilding Syria’s trade and industrial base
How would you characterise the current stage of economic recovery in Syria, particularly in trade and commodity markets?
AMMAR BARDAN: Syria is clearly in a recovery phase, but it is in an early and uneven stage. We are seeing renewed commercial activity in trade and commodity markets, particularly in essential goods such as animal feed, agricultural products and basic industrial inputs. Demand is gradually stabilising and supply chains are being rebuilt after years of disruption.
However, the recovery is constrained by financial limitations. The majority of businesses are operating primarily with their own capital, as access to external financing remains limited and borrowing costs are high. This naturally slows expansion and investment activity.
Another defining feature of this phase is adjustment. During the conflict, companies adapted to survive under severe constraints. Today, they are adjusting again – this time to a more open economic environment with greater competition, new regulatory approaches and evolving market dynamics.
In trade and commodities specifically, Syria maintains structural advantages: established merchant networks, longstanding supplier relationships and a culture deeply rooted in commerce. As financial channels improve and confidence builds, these strengths can support faster reactivation of imports, distribution and regional trade links.
The foundation for recovery is in place. The challenge now is to reinforce it with stable policies, functional banking mechanisms, and sustained engagement between the private sector and policymakers.
What are the most pressing structural challenges facing Syria’s private sector, particularly in manufacturing and trade?
BARDAN: One of the most critical issues is the condition of local manufacturing. Syrian industry has endured 14-15 years of strain. Many factories were unable to modernise or upgrade equipment during that period and today face competition from well-developed regional producers, particularly in neighbouring markets.
Local industry needs time to recover before being fully exposed to intense external competition. Temporary and carefully designed Customs adjustments may be necessary to support domestic production while Syria rebuilds capacity and competitiveness. Policymakers are aware of this challenge, and some regulatory adjustments have already been introduced, but further calibration is needed.
Another structural constraint is the shortage of skilled labour. A significant portion of experienced workers migrated during the conflict. Rebuilding industrial capacity is not only about machinery – it is also about human capital. Encouraging skilled professionals to return will be essential for long-term competitiveness.
From a policy perspective, communication between the government and the established local business community can be strengthened. Officials are eager to implement reforms, but decision-making sometimes lacks sufficient consultation with private-sector stakeholders. Greater dialogue would help avoid frequent policy reversals and improve predictability for investors.
What operational obstacles remain for Syrian businesses, and what would accelerate economic normalisation?
BARDAN: Although sanctions have officially been lifted, practical obstacles remain. Many international companies continue to exercise caution in re-engaging with Syrian counterparts. In banking, correspondent relationships are still difficult to restore and financial transactions remain more complex than they should be in a normalised environment.
This situation is improving gradually, but progress is slow. The restoration of trust in financial channels will be critical for trade, commodity imports and industrial inputs. Currently, the majority of businesses operate on internally generated capital. While this demonstrates resilience, it also limits growth potential.
Syria retains strong fundamentals. It has a longstanding commercial culture, experienced trading houses, and deep-rooted entrepreneurial traditions. In sectors such as agricultural commodities, steel trading and consumer goods, there is scope to rebuild supply chains and regain regional market presence. Real estate and industrial redevelopment will also benefit as financing conditions improve.
For economic normalisation to accelerate, three elements are essential: consistent regulatory frameworks, functional banking channels, and constructive engagement between policymakers and the domestic private sector. International perception also matters. Clear messaging that Syria is open for business and that transactions can be conducted legally and transparently would help reduce hesitation among global partners.
Recovery is underway, but it requires patience and coordination. The private sector has remained present through the most difficult years. With appropriate financial support and policy stability, it can play a decisive role in rebuilding the economy.
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