Syrian companies, strained by years of civil war, are eyeing a bigger slice of the food and beverage market in the Gulf due to its stable environment.
“We would like to open offices in the Gulf but that depends on the circumstances,” said Mohammad Eibo, general manager at Syria-based Al Adel Food Stuff Trading, at Gulfood 2015 in Dubai on Tuesday.
Syria is in the midst of a civil war that has split the country between the Bashar Al Assad regime, Daesh, secular rebels, Kurds and Al Qaida linked militants. The war, which is soon entering its fifth year, has disrupted businesses in the country.
According to the Civil Unrest Index released in October 2014, which analysed the risk of civil unrest disrupting business operations, Syria was the worst preforming country among 197 countries.
Eibo said his company restarted using two old factories in Damascus after it was forced to leave four factories in the Syrian countryside due to the civil war. “Because of the circumstances in Syria, most of the areas where there are factories have clashes,” he said.
Another company, Alsalam Co., moved its headquarters from Syria to Egypt two years ago due to the unrest in Syria, said Saaed Krunbeh, the company’s sales manager.
Eibo, whose company exports confectionary products through Latakia port in Syria, said export costs have increased since the war began. The civil war has forced merchants to exports goods by sea, which is far costlier but safer than exporting via traditional road networks.
Eibo said his company’s production volumes have dropped, partly due to fewer employees. “We used to produce around 30 tonnes a day [before the Syrian civil war], but now everyday we don’t even reach a tonne,” he said.
Another Syrian businessman, who requested anonymity, said that costs of electricity and water are up in the country, which has increased the cost of his company’s daily operations, making it difficult to run his business. It exports tea and herbs, and has factories in Syria, Jordan and the UAE.
However, Suhail Shammas, general manager at East Mediterranean Oilve Oil Company, said the civil war has not disrupted his company’s operations. “The area where our factory is located in is safe,” he said.
