Editing Economy of Syria (section)

==Sectors of the economy==

===Agriculture===
{{Main|Agriculture in Syria}}
[[File:Olive groves in Syria.jpg|thumb|right|Olive groves in Western-Syria, [[Homs Governorate]].]]
Agriculture is a high priority in Syria's economic development plans, as the government seeks to achieve food self-sufficiency, increase export earnings, and halt rural out-migration.<ref name=cp9-10>{{cite news|title=Country Profile: Syria, April 2005|url=http://memory.loc.gov/frd/cs/profiles/Syria.pdf|newspaper=Library of Congress – Federal Research Division |pages=9–10}}</ref> Thanks to sustained [[Capital (economics)|capital investment]], infrastructure development, [[subsidy|subsidies]] of inputs, and price supports, before the civil war Syria went from a net importer of many agricultural products to an exporter of cotton, fruits, [[vegetable]]s, and other foodstuffs. One of the prime reasons for this turnaround was the government's investment in huge [[irrigation]] systems in northern and northeastern Syria.<ref name="state.gov">[https://2009-2017.state.gov/outofdate/bgn/syria/47567.htm Syria (08/04)] . US State Department.</ref> The agriculture sector, as of 2009, employed about 17% of the labor force and generates about 21% of the gross domestic product,<ref name="databank.worldbank.org">[http://databank.worldbank.org/ddp/home.do?Step=2&id=4&DisplayAggregation=N&SdmxSupported=Y&CNO=2&SET_BRANDING=YES The World Bank DataBank | Explore . Create . Share]. Databank.worldbank.org.</ref><ref name="cp11"/> of which livestock accounted for 16%, and fruit and grains for more than 40%.<ref name=cp9-10/>

In 2015, Syria's main exports included spice seeds ($83.2 million), apples and pears ($53.2 million).<ref>{{Cite web|url=https://atlas.media.mit.edu/en/profile/country/syr/|title=Syria|website=atlas.media.mit.edu|language=en|access-date=2018-04-28|archive-date=18 November 2017|archive-url=https://web.archive.org/web/20171118135310/https://atlas.media.mit.edu/en/profile/country/syr/|url-status=dead}}</ref>

Most land is privately owned, a crucial factor behind the sector's success.<ref name=cp9-10/> Of Syria's {{cvt|196,000|km2}},<ref name="state.gov"/> about 28% of it is cultivated, and 21% of that total is irrigated. Most irrigated land is designated "strategic", meaning that it encounters significant state intervention in terms of pricing, subsidies, and marketing controls. "Strategic" products such as wheat, barley, and sugar beets, must be sold to state marketing boards at fixed prices, often above world prices in order to support farmers, but at a significant cost to the state budget. The most widely grown arable crop is wheat, but the most important cash crop is cotton; cotton was the largest single export before the development of the oil sector. Nevertheless, the total area planted with cotton has declined because of an increasing problem of water shortage coupled with old and inefficient irrigation techniques. The output of grains like wheat is often underutilized because of poor storage facilities.<ref name=cp9-10/>

Water and energy are among the most pervasive issues facing the agriculture sector. Another difficulty suffered by the agricultural sector is the government's decision to liberalize prices of fertilizers, which increased between 100% and 400%.{{when|date=June 2021}} Drought was an alarming problem in 2008; however, the drought situation slightly improved in 2009. Wheat and barley production about doubled in 2009 compared to 2008. In spite of that, the livelihoods of up to 1 million agricultural workers have been threatened. In response, the UN launched an emergency appeal for $20.2 million. Wheat has been one of the crops most affected, and for the first time in 2 decades Syria has moved from being a net exporter of wheat to a net importer.<ref>[https://2009-2017.state.gov/r/pa/ei/bgn/3580.htm#econ Syria]. US State Department (24 October 2012).</ref> During the civil war which began in 2011, the Syrian government was forced to put out a tender for 100,000 [[metric tonnes]] of wheat, one of the few trade products not subject to economic sanctions.<ref>{{cite web|title=Syria Looks for Big Wheat Purchase|url=https://www.reuters.com/article/us-grain-syria-idUSBRE87S0JJ20120829|work=Reuters|date=29 August 2012|access-date=31 August 2012|archive-date=30 August 2012|archive-url=https://web.archive.org/web/20120830011053/http://www.reuters.com/article/2012/08/29/us-grain-syria-idUSBRE87S0JJ20120829|url-status=live}}</ref>

Less than 2.7% of [[Forests of Syria|Syria's land area is forested]], and only a portion of that is commercially useful.<ref name="CIA World Fact Book – Syria's Economy" /> Limited forestry activity is centered in the higher elevations of the mountains just inland from the coast, where rainfall is more abundant.<ref name=cp10>{{cite news|title=Country Profile: Syria, April 2005|url=http://memory.loc.gov/frd/cs/profiles/Syria.pdf|newspaper=Library of Congress – Federal Research Division |page=10}}</ref>

=== Drug exports ===
{{Further|Ba'athist Syrian Captagon industry}}
As of 2022, [[captagon]] was Ba'athist Syria's most valuable export product and a key source of income for the Assad regime. The total value of drug shipments sold in 2021 were approximately $5.7 billion.<ref>{{Cite web |title=The Al-Assad Government's Captagon Trade |url=https://carnegieendowment.org/sada/2022/10/the-al-assad-regimes-captagon-trade?lang=en |access-date=2022-11-10 |website=Carnegie Endowment for International Peace |language=en}}</ref> Those were mostly dismantled by the new [[Syrian caretaker government]] in January 2025.

===Energy and mineral resources===

====Mining====
Phosphates are the major minerals exploited in Syria. According to estimates Syria has around 1,700 million tons of phosphate reserves.<ref>{{cite web|url=http://www.nti.org/learn/facilities/447/|title=Ministry of Petroleum and Mineral Resources of Syria|website=nti.org|access-date=30 August 2018}}</ref> Production dropped sharply in the early 1990s when world demand and prices fell, but output has since increased to more than 2.4 million tons. Syria produced about 1.9% of the world's phosphate rock output and was the world's ninth ranked producer of phosphate rock in 2009.<ref name=USGeoSurvey>{{cite web|last=Taib|first=Mowafa|title=2009 Minerals Yearbook: Syria|url=http://minerals.usgs.gov/minerals/pubs/country/2009/myb3-2009-sy.pdf|publisher=US Geological Survey|access-date=23 August 2011}}</ref> Other major minerals produced in Syria include cement, gypsum, industrial sand (silica), marble, natural crude asphalt, nitrogen fertilizer, phosphate fertilizer, salt, steel, and volcanic tuff, which generally are not produced for export.<ref name=cp10/>

====Oil and natural gas====
{{main|Petroleum industry in Syria}}
Syria is a relatively small oil producer, accounting for just 0.5% of global production in 2010.<ref name=ReutersEnergy>{{cite news|title=Factbox: Syria's energy sector|url=https://www.reuters.com/article/us-syria-oil-idUSTRE77D15V20110814|access-date=18 August 2011|newspaper=Reuters|date=14 August 2011|first=Daniel|last=Fineren|archive-date=28 August 2011|archive-url=https://web.archive.org/web/20110828010821/http://www.reuters.com/article/2011/08/14/us-syria-oil-idUSTRE77D15V20110814|url-status=live}}</ref><ref name=PBReview>{{cite web|title=BP Statistical Review of World Energy June 2011|url=http://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/reports_and_publications/statistical_energy_review_2011/STAGING/local_assets/pdf/statistical_review_of_world_energy_full_report_2011.pdf|publisher=British Petroleum. pp. 6-8|access-date=18 August 2011|archive-date=2 September 2011|archive-url=https://web.archive.org/web/20110902033116/http://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/reports_and_publications/statistical_energy_review_2011/STAGING/local_assets/pdf/statistical_review_of_world_energy_full_report_2011.pdf|url-status=dead}}</ref> Although Syria is [[List of countries by oil production|not a major oil exporter]] by Middle Eastern standards, oil is a major pillar of the economy. According to the [[International Monetary Fund]], oil sales for 2010 were projected to generate $3.2 billion for the Syrian government and account for 25.1% of the state's revenue.<ref name=IMF>{{cite book|title=IMF Country Report  |page=17|url=http://www.imf.org/external/pubs/ft/scr/2010/cr1086.pdf|access-date=18 August 2011}}</ref>

According to the 2009 Syria Report of the Oxford Business Group, the oil sector accounted for 23% of [[government revenue]]s, 20% of exports and 22% of GDP in 2008. Syria exported roughly 150,000 bpd in 2008, and oil accounted for a majority of the country's export income.<ref name="USState2010" />

====Electrical generation====
In 2001 Syria reportedly produced 23.3 billion [[kilowatt hours]] (kWh) of electricity and consumed 21.6 billion kWh.<ref name=cp10/> As of January 2002, Syria's total installed electric generating capacity was 7.6 [[gigawatts]] (GW), with [[fuel oil]] and [[natural gas]] serving as the primary energy sources and 1.5 GW generated by [[hydroelectric power]].<ref name=cp10/> A network totaling 45 GW linking the electric power grids of Syria, [[Egypt]], and [[Jordan]] was completed in March 2001.<ref name=cp10/> Syria's electric supply capacity is an important national priority, and the government hopes to add 3,000 [[megawatts]] of power generating capacity by 2010 at a probable cost of US$2 billion, but progress has been slowed by a lack of investment capital.{{Update after|2010|11}}<ref name=cp10/> Power plants in Syria are undergoing intensive maintenance, and four new generating plants have been built.<ref name=cp10/> The power distribution network has serious problems, with transmission losses estimated as high as 25 percent of total generated capacity as a result of poor quality wires and [[transformer]] stations.<ref name=cp10/> A project for the expansion and upgrading of the power transmission network is scheduled for completion in 2005.{{Update after|2010|11}}<ref name=cp10/>

As of May 2009 it was reported that the [[Islamic Development Bank]] and the Syrian government signed an agreement stating that the bank would provide a €100 million loan for the expansion of Deir Ali power station in Syria.<ref>{{Cite web|url=http://infoprod.co.il/main/siteNew/index.php?langId=1&mod=article&action=article&Admin=qwas&stId=260|title=Islamic Bank to loan Syria €100M}}{{Dead link|date=May 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

==== Nuclear energy ====
[[Syria]] abandoned its plans to build a VVER-440 reactor after the [[Chernobyl accident]].<ref name="nip102">{{cite web
 | url = http://world-nuclear.org/info/inf102.html
 | title = Emerging Nuclear Energy Countries
 | date = April 2009
 | work = [[World Nuclear Association]]
 | access-date = 2009-04-22
 | archive-date = 29 October 2019
 | archive-url = https://web.archive.org/web/20191029134444/https://world-nuclear.org/information-library/country-profiles/others/emerging-nuclear-energy-countries.aspx
 | url-status = dead
 }}</ref> The plans for a nuclear program were revived at the beginning of the 2000s when Syria negotiated with Russia to build a nuclear facility that would include a nuclear power plant and a seawater atomic [[desalination]] plant.<ref name=nti>{{Cite journal | title = Syria Profile. Nuclear Overview | publisher = Nuclear Threat Initiative | date = November 2006 | url = http://www.nti.org/e_research/profiles/Syria/Nuclear/index.html | access-date = 2007-07-15 | archive-url = https://web.archive.org/web/20110818103811/http://www.nti.org/e_research/profiles/Syria/Nuclear/index.html | archive-date = 18 August 2011 | url-status = dead }}</ref>

===Industry and manufacturing===
{{Main|Industry in Syria}}
The industrial sector, which includes mining, manufacturing, construction, and petroleum, accounted for 27.3 percent of gross domestic product (GDP) in 2010 and employed about 16 percent of the labor force.<ref name="CIA World Fact Book – Syria's Economy"/> The main industrial products are petroleum, textiles, food processing, beverages, tobacco, phosphate rock mining, cement, oil seeds crushing, and car assembly.<ref name="CIA World Fact Book – Syria's Economy"/> Syria's manufacturing sector was largely state dominated until the 1990s, when economic reforms allowed greater local and foreign private-sector participation. Private participation remains constrained, however, by the lack of investment funds, input/output pricing limits, cumbersome customs and foreign exchange regulations, and poor marketing.<ref name=cp10/>

Because land prices are not controlled by the state, [[real estate]] is one of the few domestic avenues for investment with realistic and safe returns. Activity in the construction sector tends to mirror changes in the economy. Investment Law No. 10 of 1991, which opened the country to foreign investment in some areas, marked the beginning of a strong revival, with growth in real terms increasing over 2001 and 2002.<ref name=cp10/>

===Services===
Services accounted for 60.4% of [[gross domestic product]] (GDP) in 2017<ref name="CIA World Fact Book – Syria's Economy" /> and employed 67% of the labor force, including government, in 2008.<ref name=cp11>[https://www.cia.gov/the-world-factbook/countries/syria/ The World Factbook]. Cia.gov.</ref> In May 2009, it was reported that Damascus office prices were skyrocketing.<ref>{{Cite web|url=http://infoprod.co.il/main/siteNew/index.php?langId=1&mod=article&action=article&Admin=qwas&stId=254|title=Damascus office prices are skyrocketing}}{{Dead link|date=May 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

====Banking and finance====
[[File:BankSharqAndBlueTower.jpg|thumb|280px|Bank Al-Sharq and the [[Blue Tower Hotel]] in Damascus]]

{{main|Banking in Syria}}

The [[Central Bank of Syria]] began operations in 1959. It controls all foreign exchange and trade transactions and gives priority to lending to the [[public sector]]. The Central Bank has been subject to US sanctions since May 2004, which has accused the Bank of [[money laundering]].<ref>{{cite web|url=https://obamawhitehouse.archives.gov/the-press-office/2011/04/29/executive-order-13572-blocking-property-certain-persons-respect-human-ri |title= U.S. trade and financial sanctions against Syria
 |date=29 April 2011|via=[[NARA|National Archives]] |work=[[whitehouse.gov]] |access-date=2012-08-24}}</ref> These US sanctions may have increased the role of Lebanese and European banks because a ban on transactions between U.S. financial institutions and the Central Bank of Syria created an increase in demand for intermediary sources for US$ transfers.{{Update after|2010|11}}<ref name=cp11/> The United States, European Union, [[Arab League]] and Turkey all also imposed sanctions on the Central Bank because of the Civil War.<ref>{{cite news | url=https://www.reuters.com/article/us-syria-arabs-sanctions-idUSTRE7AR1A020111128 | work=Reuters | first=David | last=Cutler | title=Factbox: Sanctions imposed on Syria | date=28 November 2011 | access-date=1 July 2017 | archive-date=24 September 2015 | archive-url=https://web.archive.org/web/20150924160722/http://www.reuters.com/article/2011/11/28/us-syria-arabs-sanctions-idUSTRE7AR1A020111128 | url-status=live }}</ref>
<ref>{{cite news| url=https://www.foxnews.com/world/turkey-slaps-economic-sanctions-on-syria/ | work=Fox News | title=Turkey Slaps Economic Sanctions on Syria | date=30 November 2011}}</ref>

The six specialized [[Public bank|state-owned banks]] – the Central Bank of Syria, [[Commercial Bank of Syria]], Agricultural Co-Operative Bank, [[Industrial Bank (Syria)|Industrial Bank]], Popular Credit Bank, and Real Estate Bank – are major financial operators. They each extend funds to, and take [[Deposit (finance)|deposit]]s from, a particular sector. The Industrial Bank also is directed more toward the public sector, although it is [[Market capitalization|under-capitalized]]. As a result, the private sector often is forced to bank abroad, a process that is more expensive and therefore a poor solution to industrial financing needs. Many [[business people]] travel abroad to deposit or borrow funds. It is estimated that Syrians have deposited US$6 billion in [[Lebanon|Lebanese]] banks.

In the 2000s, Syria started reforms in the [[financial sector]], including the introduction of [[private banks]] and the opening of the [[Damascus Securities Exchange]] in March 2009.<ref name="AP">[https://web.archive.org/web/20120212075555/http://www.google.com/hostednews/afp/article/ALeqM5gPsB6CSsyXUgWdxEsC0B_O-jqV-w "Syria launches first stock exchange"]. Google, AFP (10 March 2009).</ref> In 2001, Syria legalized private banks and the sector, while still nascent, has been growing.<ref name=USState2010/> Foreign banks were given licenses in December 2002, under Law 28 March 2001 which allows the establishment of private and [[joint-venture]] banks. Foreigners are allowed up to 49% ownership of a bank, but may not hold a controlling stake.<ref name=cp11/> As of January 2010, 13 private banks had opened, including two [[Islamic bank]]s.

Syria took gradual steps to [[Economic liberalization|loosen controls]] over [[foreign exchange market|foreign exchange]]. In 2003, the government canceled a law that criminalized private sector use of foreign currencies, and in 2005 it allowed licensed private banks to sell specific amounts of foreign currency to Syrian citizens under certain circumstances and to the private sector to finance imports. In October 2009, Syria further loosened its restrictions on currency transfers by allowing Syrians travelling abroad to withdraw the equivalent of up to US$10,000 from their Syrian pound accounts. In practice, the decision allows local banks to open accounts of a maximum of US$10,000 that their clients can use for their international [[payment card]]s. The holders of these accounts will be able to withdraw up to US$10,000 per month while travelling abroad.<ref name=USState2010/>

To attract investment and to ease access to credit, the government allowed investors in 2007 to receive loans and other credit instruments from foreign banks, and to repay the loans and any accrued interest through local banks using project proceeds. In February 2008, the government permitted investors to receive [[loan]]s in foreign currencies from local private banks to finance [[capital investment]]s. Syria's [[exchange rate]] is fixed, and the government maintains two official rates—one rate on which the budget and the value of imports, customs, and other official transactions are based, and a second set by the [[Central Bank of Syria|Central Bank]] on a daily basis that covers all other [[financial transaction]]s. The government passed a law in 2006 which permits the operation of private money exchange companies. However, there is still a small [[black market]] for foreign currency.<ref name=USState2010/>

Since the start of the [[Syrian Civil War]] in 2011, there has been a [[capital flight]] to nearby countries. Syria has been subject to sanctions by United States, Canada, European Union, [[Arab League]] and Turkey because of the civil war.<ref>{{cite news | url=https://www.reuters.com/article/us-syria-arabs-sanctions-idUSTRE7AR1A020111128 | work=Reuters | first=David | last=Cutler | title=Factbox: Sanctions imposed on Syria | date=2011-11-28 | access-date=1 July 2017 | archive-date=24 September 2015 | archive-url=https://web.archive.org/web/20150924160722/http://www.reuters.com/article/2011/11/28/us-syria-arabs-sanctions-idUSTRE7AR1A020111128 | url-status=live }}</ref><ref>{{cite news| url=https://www.foxnews.com/world/turkey-slaps-economic-sanctions-on-syria/ | work=Fox News | title=Turkey Slaps Economic Sanctions on Syria | date=2011-11-30}}</ref><ref>{{cite web |url=http://www.defenddemocracy.org/canadian-sanctions/ |title=Canadian Sanctions &#124; Foundation for Defense of Democracies |publisher=Defenddemocracy.org |access-date=2013-02-04 |archive-url=https://web.archive.org/web/20180806163208/http://www.defenddemocracy.org/canadian-sanctions/ |archive-date=6 August 2018 |url-status=dead }}</ref> The currency of Syria is the [[Syrian pound]] (SYP). The pound's official exchange rate has deteriorated significantly, falling from £S 47 for US$1 before the civil war to £S 1,256 as in June 2020.<ref>{{cite news |last1=Morad |first1=Abood |title=المركزي : تعديل سعر صرف الليرة السورية مقابل الدولار |url=http://jamahir.alwehda.gov.sy/economy/117422-%D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A-%D8%AA%D8%B9%D8%AF%D9%8A%D9%84-%D8%B3%D8%B9%D8%B1-%D8%B5%D8%B1%D9%81-%D8%A7%D9%84%D9%84%D9%8A%D8%B1%D8%A9-%D8%A7%D9%84%D8%B3%D9%88%D8%B1%D9%8A%D8%A9-%D9%85%D9%82%D8%A7%D8%A8%D9%84-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%A7%D8%B1.html |access-date=17 June 2020 |work=صحيفة الجماهير {{!}} حلب |date=17 June 2020 |language=ar-aa |archive-date=18 June 2020 |archive-url=https://web.archive.org/web/20200618231321/http://jamahir.alwehda.gov.sy/economy/117422-%D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A-%D8%AA%D8%B9%D8%AF%D9%8A%D9%84-%D8%B3%D8%B9%D8%B1-%D8%B5%D8%B1%D9%81-%D8%A7%D9%84%D9%84%D9%8A%D8%B1%D8%A9-%D8%A7%D9%84%D8%B3%D9%88%D8%B1%D9%8A%D8%A9-%D9%85%D9%82%D8%A7%D8%A8%D9%84-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%A7%D8%B1.html |url-status=dead }}</ref><ref name="www.barrons.com">{{cite news |last1=Presse |first1=AFP-Agence France |title=Syria Devalues Currency As New US Sanctions Hit |url=https://www.barrons.com/news/syria-devalues-currency-as-new-us-sanctions-hit-01592388004 |access-date=17 June 2020 |work=barrons.com}}</ref> On another hand, while its exchange rate for money transfer is £S 1,250 for US$1,<ref name="www.barrons.com"/> its non-official exchange rate (black market) plunged to around £S 4,000 for US$1 in March 2021.<ref>{{cite news |title=Syrian pound hits new low in ripple effect from currency woes in neighboring Lebanon |url=https://english.alarabiya.net/business/economy/2021/03/04/Syrian-pound-hits-new-low-in-ripple-effect-from-currency-woes-in-neighboring-Lebanon |work=Al Arabiya English |date=4 March 2021 |language=en}}</ref>

====Tourism====
{{main|Tourism in Syria}}
Tourism in Syria has greatly reduced as a result of the [[Syrian Civil War]] and its associated [[Refugees of the Syrian Civil War|refugee crisis]]. Tourism has been further impacted by the [[COVID-19 pandemic in Syria|outbreak of COVID-19]] that started in March 2020. The [[Economic sanctions|international economic sanctions]] imposed on Syria and the sharp drop in the value of the [[Syrian pound]] also adversely impact tourism in Syria.