100,<> Syrian traders withdraw from markets in regime-controlled areas

Inflation rate in Syria reached 156% this year (Al Jazeera)

Damascus – Merchants in areas controlled by the Syrian regime have been suffering from great challenges and difficulties to maintain their business and trade under the weight of economic and legal pressures for years, prompting some of them to abandon their trade and withdraw from the market to preserve capital.

The Syrian markets are witnessing the worst commercial reality since the beginning of the economic crisis in the country about 12 years ago, due to the stalemate controlling the movement of buying and selling, the decline in the purchasing power of Syrians, and the restrictions imposed by economic laws on traders.

Mohammed, 47, a clothing trader in Damascus's al-Hariga market, said: "Difficult times are passing for traders in Damascus markets with no sales."

He adds in an interview with Al Jazeera Net, "We can not talk about a healthy trade without talking about the reasonable purchasing power of citizens, if the customer is unable to buy the commodity, traders will not help any government solution."

Mohammed said the "lack of purchasing power" of Syrians is the main reason for the stagnation in Damascus markets, especially since the average salaries of employees do not exceed 250,18 liras ($3), which is barely enough to buy ingredients for two or three meals of food.

The Damascene trader points to another reason for the crisis related to the high prices of locally manufactured goods, and says, "The factories bear all the added costs of electricity, fuel, and imported raw materials, most of which are expensive, and all this gnaws at the profit margin that we traders, which today has become a very small margin compared to previous years."

Syrian markets are witnessing the worst commercial reality since the beginning of the country's economic crisis nearly 12 years ago (Al Jazeera)

Merchants in Damascus and other regime-controlled areas complain about high tax fees and annual financial costs imposed by the Finance Ministry, which sometimes exceed two million Syrian pounds ($142) for some shops.

Added to this is the increase in the price of commercial electricity by about 150% since last September, and the extreme difficulty in providing and trading foreign currencies, which are subject to tight legal restrictions.

Mechanisms that hinder trade and raise prices

Yasser Akram, a member of the board of directors of the Damascus Chamber of Commerce, revealed that more than 100,<> traders have left business in Syria, considering this a great loss for the Syrian economy.

In remarks a few days ago, Akram spoke about the absence of government support for the commercial sector, stressing that this support is negligible compared to the support provided to the industrial sector, pointing to the negative repercussions of this situation on the economy.

Akrim added that out of 110,7 commercial registers registered with the Ministry of Internal Trade and Consumer Protection in the regime's government, there are only <>,<> active registers in the Damascus Chamber of Commerce, attributing this trade contraction to "the lack of clarity of commercial laws".

Akrim explained that the trader in Syria is now in "his worst condition as a result of the government's failure to support him and stand by him as required".

In an interview with local radio station Cham last September, Akrim pointed out that controlling prices is not possible in light of the lack of availability of raw materials, the high exchange rate, energy and fuel prices.

Abu Yahya, a 52-year-old food trader and warehouse owner in Damascus's al-Midan district, attributed the high prices in the markets to "ill-considered" government policies.

The trader added in an interview with Al Jazeera Net, "We can not as traders determine the cost of imports accurately for the lack of stability of the exchange rate on the one hand, and the delay in the arrival of imports through the platform (a government mechanism to regulate the import of goods from abroad) two months and 3 months on the other hand, which forces us to price goods at higher prices than they may be to ensure not to lose."

Abu Yahya pointed out that the slow work of the import platform compounded the crisis, as it led to "depriving the market of many commodities and raw and basic materials, and led to the inability of traders and factory owners to secure them, which sometimes prompted them to close their shops and factories".

Mohammed Hallaq, a member of the Damascus Chamber of Commerce in a statement to the local radio Melody last September, revealed that there is no government mechanism to reduce or stabilize prices, pointing out that the price regulations issued by the government do not correspond to reality.

Hallaq stressed that official decisions issued by the government, such as the establishment of the import platform and the adoption of the Consumer Protection Law, contributed to hindering the work of traders and caused prices to rise.

Part of the Asroniya market branching from the Hamidiya market in the capital Damascus (Al-Jazeera)

Economists believe that the import platform has hindered the movement of production by restricting the import process and financing imports, and limiting it to local exchange companies and the Central Bank, which led to the flight of capital and thus the contraction of the economy.

The platform forces traders to pay 50% of the value of imports to the Central Bank in exchange for granting them an import license, provided that the rest of the amount is paid after a month of the arrival of the imported goods, which incurs additional losses and expenses for traders with the change in the exchange rate, and pushes them to hedge and raise prices, which leads to the high cost of goods in the markets.

Inflation and economic losses

The Syrian economy has been suffering for 12 years from worsening crises due to the continuing conflict in the country, and the inflation rate in 2023 alone reached 156%, according to Abdul Raouf Nahhas, a professor of economics at the University of Aleppo.

The Syrian pound lost about 100% of its value during 2023, bringing the dollar exchange rate to 14,7 pounds in December, compared to 2023,<> in early <>.

The Human Rights Watch report indicates that the economic losses of the war in Syria have reached about $1.2 trillion by 2022, while 13.4 million Syrians need humanitarian assistance.

The direct and indirect losses of the oil sector alone are estimated at about $ 112 billion by the end of 2022, according to a statement by the Foreign Ministry of the Syrian regime.

Source : Al Jazeera