The closure of Saipa, an Iranian state-owned car assembly plant in Syria, marks a holdup for Iran’s economic aspirations in the war-torn nation, where it has kept a significant military presence.

The factory, operational for nearly 20 years, ceased production due to unresolved issues between Iran and Syria. Despite ongoing Iranian involvement in infrastructure and engineering services, Iran’s economic impact in Syria remains limited, particularly compared to Turkey.

Saipa’s factory, established in 2004, was emblematic of Iran’s industrial ambitions but struggled with profitability amid the civil war. Despite investments estimated between $20 billion and over $50 billion to support Bashar al-Assad’s regime, Iran’s share in Syria’s economy has dwindled to just 3%, highlighting challenges posed by a preference for free-market economies among Syrians.

What led to the closure of Saipa’s assembly plant in Syria?

The closure was attributed to unresolved issues between Iran and Syria, alongside broader challenges in achieving profitability amid the ongoing civil war.

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