The areas under the control of the Syrian regime are witnessing an unprecedented emigration of capital owners from industrialists and traders, as the Syrian economy continues to bleed, which is facing a severe crisis due to the impact of the war and the collapse of the lira.

Less than a month ago, 47,000 industrialists left the Syrian regime-controlled areas in the cities of Aleppo and Damascus - according to Majd Shashman, a member of the Federation of Chambers of Industry in Syria - while the regime continues its policy of restrictions and a security solution.

According to Shashman, the deterioration of electricity access, the rise in fuel prices and other factors, contributed to great burdens and affected the competitiveness of the Syrian product externally, and prompted the emigration of industrialists, noting that the owners of projects and capital lost hope from waiting for conditions to improve, so some of them began to think of leaving.

Lose or run away

Contrary to what the industrialists and traders hoped for the regime’s government to provide facilities to revive the economy and move the market, the recent decisions had repercussions on industrialists, especially Resolutions 1070 and 1701, which negatively affected the import and export movement.

An industrialist from the city of Aleppo, who declined to be named, said that the laws issued by the Central Bank of Syria caused the suspension of the import and export process and the suspension of goods at the borders, due to the lack of clarity of these decisions until this moment for most traders and industrialists.

He added in an interview with Al-Jazeera Net that Resolution 1071 issued by the Central Bank of Syria allows control of merchants and forces them to sell 50% of the value of the goods exported abroad to the bank in foreign exchange, according to the price determined by the Central Bank of Syria, which is much lower than the black market price.

Al-Sinai described the recent circumstances and decisions as placing the trader in front of two options, either to lose or flee from Syria in search of investment opportunities in countries such as Egypt or Turkey.

The deterioration of electricity and the rise in fuel prices contributed to great burdens and prompted the emigration of industrialists (European)

security solution

With the emigration of industrialists and their continued departure from the areas under the control of the Syrian regime, the regime found only a security solution to prevent the continued flight of capital from its areas of control after its desperation to improve economic conditions.

In the city of Aleppo, which is described as the economic capital of Syria, special sources told Al Jazeera Net that more than 20 industrialists and traders have been arrested by the Syrian regime's intelligence since the beginning of last September, after closing their facilities and trying to travel to Egypt and Turkey.

The sources indicate that a number of arrests took place at Aleppo International Airport, which witnesses an active movement of travelers from the city towards Egypt and Lebanon, before the regime authorities made a precautionary seizure of the money of merchants who tried to escape.

Losses and smuggling

The "Bank Workers Syndicate" in the capital, Damascus, estimated the losses of the Syrian economy since the beginning of what it called the war in Syria in 2011 until now at more than 530 billion dollars, which is equivalent to 9.7 times the country's gross domestic product in 2010.

The report, which was issued last February, said that the rate of infrastructure destruction exceeded 40%, and included losses of housing, electricity networks, schools, hospitals and service facilities, and a decline in crude oil production from 400,000 barrels per day to less than 30,000.

The expert in Syrian economic affairs, Younes al-Karim, believes that the industrialists' exit from Syria will leave a gap with their absence from the Syrian arena, and thus will lead to opening the door to smuggling at the hands of regime loyalists.

Al-Karim told Al-Jazeera Net that the Syrian economy is facing a new crisis, as the Syrian regime is building its parallel state on the ruins of the Syrian state, thus narrowing the real economy in favor of the shadow economy.