On a cost-competitive pharmaceutical manufacturing and export growth
How would you characterise the current state of Syria’s pharmaceutical sector, particularly in terms of local manufacturing capacity and market structure?
JOSEPH BAHRI: Syria’s pharmaceutical sector has demonstrated considerable resilience over the past decade. There are approximately 90 licensed pharmaceutical manufacturers in the country, of which around 60-70 are actively producing. Despite the prolonged conflict, production capacity was largely maintained. In many cases, output remained stable, supported by government tenders, UN procurement and export orders. The pricing environment is regulated. The Ministry of Health sets fixed prices for prescription medicines and most over the counter products, using a uniform pricing methodology across manufacturers. Food supplements are the only segment where pricing is determined by market dynamics. While this system ensures affordability, it also shapes competitive behaviour within the sector. Competition is strongest among smaller manufacturers that may use promotional incentives to gain pharmacy shelf space. However, established producers with recognised brands and quality standards tend to compete primarily on reputation and reliability rather than short-term discounting. Overall, the sector remains structurally stable and capable of meeting domestic demand.
In what ways have supply chains and input procurement evolved, and what changes have improved operational efficiency?
BAHRI: One of the most significant improvements in the current environment has been in the importation of raw materials. Previously, manufacturers were required to obtain import licences, a process that could take 45-60 days. This was followed by lengthy payment procedures through government banking channels, often extending total procurement timelines to six months before raw materials were received. Today, the system is far more streamlined. Import licences are no longer required. Manufacturers can issue a pro forma invoice, arrange payment through commercial banking channels and receive shipments within two to three weeks. Customs procedures have also improved, operating under clearer and more predictable frameworks. This has reduced uncertainty and improved production planning. These improvements in logistics and procurement have strengthened the sector’s operational base, enabling companies to focus on expansion and product diversification.
What is your assessment of export potential and foreign competition, and what are the medium-term prospects for Syrian pharmaceutical manufacturers?
BAHRI: Syrian pharmaceutical manufacturers benefit from a strong cost advantage and competitive quality standards. In several export markets – including Yemen, Libya, Sudan and Iraq – Syrian products are well regarded. In certain cases, buyers prefer Syrian medicines over alternatives from larger producing countries due to perceived quality and price balance. Foreign competition in the domestic market is not currently a major concern. Given the regulated pricing structure and the cost advantages enjoyed by domestic manufacturers, imported products would struggle to compete at prevailing price levels. For example, medicines that retail at significantly higher prices in neighbouring markets would need substantial price adjustments to compete in Syria.
Looking ahead, export expansion remains a strategic objective, particularly in select African markets. However, market access in some countries depends not only on commercial relationships but also on regulatory approval and institutional frameworks. Domestically demand is steady and the sector retains the capacity to scale. Continued regulatory clarity, sustained access to raw materials and predictable financial channels will be essential to supporting investment in new product lines and technologies. With these elements in place, Syria’s pharmaceutical industry is well positioned to consolidate its domestic role and expand its regional footprint over the medium term.
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