Syrian industrialists turn to imports as production costs rise, Damascus chamber official warns

DAMASCUS, Syria — The head of the Damascus Chamber of Industry's Energy and Gas Committee said high production costs are pushing Syrian industrialists toward importing goods from neighboring countries rather than expanding domestic manufacturing. Mehmet Mervan Urfeli said industrial investments typically take five to ten years to recover capital, while importing finished products can yield returns in roughly six months, making imports more attractive to capital holders. Urfeli said the disparity has driven some industrialists to purchase imported goods and market them under their own brands. He described Syria's industrial cities as productive zones built with local labor and offering advantages through port and rail links to investors, singling out the city of Hassia for what he called effective administration. According to Urfeli, border crossings operate in one direction, with Turkey applying high customs duties to Syrian goods, giving imports an edge over exports. He added that restrictions in a joint Syrian-Jordanian industrial city have also weighed on operations. Urfeli warned that energy costs are making local production uncompetitive, leaving imports more profitable and posing risks to the Syrian economy and the Syrian pound. He urged policy action to support domestic industry and stabilize the currency.