According to Kurdpress, the reopening of the border crossing "Ali-Arubiyyah-Talkojar" in Syria and "Rabia" in Iraq, after more than 10 years of closure, has increased hopes for the revival of trade between the two countries. This crossing, which was closed since 2014 after ISIS took control of the border areas, is now open again and commercial trucks pass through it.

Syrian and Iraqi officials say that this route can become one of the most important trade routes in northeastern Syria; Especially if the security and stability of the region is maintained.

Maher al-Shaar, the director of Al-Yarubiyeh crossing, told "Amarji" that trade exchange between the two countries has started and trucks carrying goods are officially entering Syria. He said that the reopening of this crossing is part of the joint effort of Damascus and Baghdad to strengthen economic cooperation.

According to Al-Shaar, the activation of this route can strengthen local markets and make the entry of basic goods such as food and construction materials easier. He also emphasized that the agricultural sector, especially the production of wheat and barley, will benefit from this development. According to him, the reopening of the crossing can also reduce smuggling and return trade to legal channels.

Economic relations between Syria and Iraq before the war

Before the start of the Syrian war in 2011, Iraq was one of the most important export markets of Syria. Agricultural products, cloth, construction materials and chemical fertilizers of Syria were exported to Iraq, and Iraqi investors had invested billions of dollars in Syrian industrial and transportation projects.

But with the beginning of the civil war, these economic relations were severely damaged. Mohammad Abdul Karim, an economic expert, says that the trade between the two countries did not stop, but continued informally and was out of the control of the governments.

He explained that in recent years, Iraq has become more dependent on Iran to supply the goods it needs. Abdul Karim also said that the stoppage of oil exports from the Kurdistan Region of Iraq through Türkiye has caused billions of dollars in damage to Baghdad.

According to him, Syria can now become an important route for the export of Iraqi oil. This land route, which is more than 600 kilometers long, can reactivate trade between the two countries and help the economy of the region.

Banking and infrastructure problems

Abdul Karim considered the most important problem of trade between Syria and Iraq to be the lack of a regular banking system. He said that in previous years, with the crossings closed, traders had to use informal financial networks.

According to him, Baghdad and Damascus should establish a joint banking agreement so that financial exchanges can be made in an official and transparent manner.

He also emphasized that the Syrian infrastructure needs serious reconstruction to expand business. Roads, ports and storage warehouses in the ports of Tartus and Latakia must be renovated. In addition, Syria is now facing fierce competition from Iranian goods in the Iraqi market, and it will not be easy for Syrian goods to return to this market.

Fuel crisis and inflation in northeastern Syria

Reports show that the energy sector is the main cause of the increase in inflation in Syria, and the northeastern regions have suffered the most

In Haskeh province, the lack of fuel has caused the price of diesel to increase by 65%. Abdul Karim says that the increase in the price of fuel has increased the cost of agriculture, transportation, bakeries, and food storage, and as a result, the price of most goods has increased.

He believes that the short land route between Rabia and Haskeh can make it easier to transport fuel to the northeast of Syria and reduce part of the economic pressure.

Informal economy and currency crisis

The Syrian economic crisis is also seen in the currency market. Now there is a significant difference between the official dollar rate and the free market rate

Abdulkarim says that a large part of the trade between Syria and Iraq is conducted outside the official statistics. According to him, while the official statistics declare the trade volume to be around 85 million dollars, the actual estimates show figures close to 3 billion dollars.

He emphasized that the formalization of trade can reduce the cost of transportation and help the economy of the region. However, the economic effects of reopening the crossing are likely to become clear over the next few months.

Ahead opportunities and challenges

After the fall of Bashar al-Assad's regime, Syria has found a new opportunity to improve its economy by reducing some of the sanctions and promising foreign investment. However, many of these promises have not yet been fulfilled, and problems such as weak economic laws and lack of sufficient guarantees for investors remain.

Abdul Karim warned that Syrian roads are not ready for the high volume of truck traffic. He also said that very high tariffs at border crossings could create new problems.

Despite these challenges, the Al-Yaroubiyah-Rabiah crossing can become one of the most important trade routes between Syria and Iraq and play an important role in revitalizing the economy of the two countries.