By Qays al-Hamoud
RAQQA, Syria (North Press) – Business owners in Raqqa Governorate, northern Syria, believe the city’s stable conditions makes it eligible to attract investors and capital owners, despite some surmountable challenges.
Newly established facilities in recent years have provided job opportunities in the city, not to mention producing local products at lower prices compared to goods imported from other areas in Syria or from abroad.
Ibrahim Muhammad, an economist in Raqqa, said that after the city’s liberation from the Islamic State (ISIS) in 2017, it became a destination for businessmen and investors, especially due to its distance from conflict zones and political and military tensions.
In January 2014, ISIS fully captured the city of Raqqa from armed factions of the Syrian opposition and later declared it as the de-facto capital of its caliphate. The extremist group was expelled from the city in October 2017 after a four-month battle with the Syrian Democratic Forces (SDF), backed by the U.S.-led Global Coalition.
He further explained that the availability of a commercial market in a densely populated city attracted contractors and investors, even from northwest Syria. Although there are some challenges, they can be resolved and overcome.
Muhammad pointed out that one of the primary obstacles faced by businesses in the city is the periodic closure of crossings due to security or military tensions in other parts of Syria.
Muhammad believes that incentive measures, such as facilitation of granting identification papers and work permits and licenses, could increase the number of investors coming from abroad and Syrian regions beyond areas held by the Autonomous Administration of North and East Syria (AANES).
He said that the community in Raqqa has long been known for embracing and providing opportunities for all Syrians coming from various areas.
Investment factors
Ammar Mahmoud, the owner of a candy factory in Raqqa, attributes the establishment of his business to the stability in the region and improved cross-regional access to raw materials within Syria, and between Syria and the Kurdistan Region of Iraq.
Mahmoud’s factory in Raqqa employs 10 workers, each providing for their families. It produces a variety of candies at affordable prices compared to similar products from Damascus or the city of Ariha in Idlib countryside, northwest Syria. This emphasizes the need for more productive and industrial projects in the region.
Mahmoud explained that he is currently facing several obstacles, including a fuel shortage and the difficulty of acquiring it, even unsubsidized fuel. He noted that fuel used to be available prior to the Turkish attacks in October and the Deir ez-Zor clashes in recent months between the SDF and militants linked to Syrian government and Iran.
In 2022, just before Eid al-Fitr, which is a peak production season for his factory, Mahmoud struggled to secure a sufficient sugar supply. This led to a temporary halt in operations, which affected his workers who relied on their income from the factory during Ramadan and the Eid al-Fitr.
Mahmoud urges the AANES to increase support for investors whose projects contribute to local production and create more job opportunities. By doing so, it would stimulate business activity not only in Raqqa but also in the surrounding areas.
Obstacles and demands
Muhammad al-Maloud, an official in the Economy Board of the AANES in Raqqa, said that the benefits of boosting business activity will be shared among investors, consumers, and the community as a whole.
Al-Maloud attributes the recent decline in fuel quality and its shortage to the Turkish attacks on infrastructure facilities and oil fields in October.
Ali al-Bilal, an owner of a furniture workshop, urges investors to consider starting their projects in the city of Raqqa due to the prevailing stability in the area as nothing would hinder their production.
Al-Bilal said that the city’s safety has played a significant role in fostering the growth of business activity in Raqqa over the past four years.
Al-Bilal believes that industrial and commercial projects can be further increased in the coming years if the AANES provides additional facilitations for investors and capital owners, including those coming from other Syrian regions or from abroad.