SYRIA: Syrian textile factories see less business with economic downturn

Record ID: 278701

  • Title: SYRIA: Syrian textile factories see less business with economic downturn
  • Date: 13th February 2009
  • Summary: ALEPPO, SYRIA (FEBRUARY 10, 2009) (REUTERS) VARIOUS OF CLOSED FACTORY VARIOUS OF TEXTILE MATERIALS VARIOUS OF UNUSED MACHINES WORKERS SITTING IN OFFICE VARIOUS OF FACTORY STREET SCENES
  • Embargoed: 28th February 2009 12:00
  • Keywords:
  • Topics: Industry
  • Reuters ID: LVA5GK9EQUMPYFUU50B08ZLE8X1O
  • Story Text: Syrian textiles factories in the northern city of Aleppo have taken a battering by the global financial storm which continues to hit businesses worldwide.
    Factories in Syria's city of Aleppo are feeling the heat as the global financial crisis continues to cause problems by hitting sales and local jobs.
    Aleppo, a favoured tourism destination because of its historical sites, is also regarded as Syria's industrial capital.
    A number of textile factories have been shut down altogether because of a decrease in demand for products.
    Mohammed Sabah Sharbati, the director of the Industry Chamber of Aleppo, says the timing of the global credit crisis was extremely unfortunate for the country.
    "This influence was caused by the timing of this crisis with a number of new legislations and laws that led to a new technique of work. The private sector started to deal with these new procedures, at that time, the crisis occurred. So the effect is doubled on the Syrian economy and the economy of the city of Aleppo," he explains.
    Syria, which is under U.S. sanctions, has taken some steps to open its economy after decades of nationalisation. Private banks were allowed back only five years ago and deposits have risen sharply since. An ease of restrictions on imports has affected domestic production.
    The crisis has had a far reaching effect that has seen many businesses feel the financial pinch.
    Saadallah Kourdi, the owner of a pharmaceutical factory, says measures have been taken to balance the books in his firm.
    "During the last few years, we were working overtime to earn a little extra, but now we don't. Our sales have been reduced by 20 percent and I've heard that some other factories have seen a reduction of 40 percent," he said.
    The Central Bank governor recently said a rapidly expanding banking sector will help Syria weather the global downturn in general, but its effect would still take its toll on the overall economy.
    Khaled al-Olabi, who owns a textile factory in the city, says even if the country can stay healthy in financial terms, poor economies elsewhere remain a major problem to Syrian production because of less demanded for exports.
    "The weakness of buying power abroad will affect Syrian exports. I think Syrian exports have gone down in a way that can be described as frightening," he said.
    Syria is ruled by the Baath Party, which took power in a 1963 coup.
    President Bashar al-Assad, who succeeded his late father Hafez al-Assad in 2000, has taken measures to reverse decades of economic retreat, including inviting Gulf investors, but kept the Baath's monopoly on the political system.
    Unemployment in Syria is officially at 10 percent and some fear that figure could increase if more factories struggle to remain in business.
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