UNDP Syria

A project aimed at helping to formalize the “Informal Sector” has been signed at the State Planning Commission as a collaboration between the office of the Deputy Prime Minister, the State Planning Commission and the United Nations Development Programme in Syria.

The informal sector in Syria is increasing in size and currently absorbs 45% of the market labor force. These men and mostly women face an unpredicted future as their livelihoods become jeopardized as Syria makes its ascendance towards the implementation of international trade agreements that bear labor laws not favoring the informal sector. Moreover, the informal sector deprives the government of tax revenues that are crucial to finance minimum health and social security benefits for the labor force serving within it. More importantly, members of the informal sector are also deprived of the benefits that are currently enjoyed by the members of the formal sector such as access to subsidies, small business financing, and insurances.

To address this current situation, the project aims at addressing the institutional gaps and challenges by encouraging members of the informal sector to enter into the formal system. The project will be developing a system of incentives to encourage the formalization of the informal sector members by including legal rights and access to local and international institutionalized labor markets within the incentives package. The project will be delivering the following to help realize such an aim :

A) A survey that identifies the volume of the informal sector in terms of specialization/ sector/geographic location/ size of the enterprise
B) A study that identifies the challenges facing the informal sector and a diagnosis of what prevents it members from working formally
C) A legal framework that supports and helps implement the developed incentives system
D) A Capacity development programme for national authorities to continually implement the above.


The $475,335 project will be signed by H.E. Amer Husni Lutfi, Head of State Planning Commission on behalf of the Syrian Government, H.E. Abdullah Al Dardari Deputy Prime Minister for Economic Affairs, on behalf of the implementing partner and Ismail Ould Cheikh Ahmed, Resident Representative UNDP.