Nr. 2 | July 2026 - Informal Trade between Jordan and Syria
Dr. Qasem Hamouri
Informal trade between Jordan and Syria has long been a component of the border economy in northern Jordan, particularly in Ramtha. This paper examines the evolution of informal cross-border trade, its socio economic implications, and the ways in which regional political and economic developments have re shaped border-related economic activity over the past decade. The paper argues that informal trade should be understood not merely as a customs or security issue, but as part of a broader border economy shaped by geography, historical ties, labour market conditions, and changing regional dynamics.
The analysis shows that the Syrian conflict fundamentally affected both formal and informal trade. Contrary to the common assumption that declining formal trade automatically leads to an expansion of infor mal trade, the paper finds that both forms of economic activity contracted following border closures, mobility restrictions, and disruptions to transportation networks. Recent improvements in Jordanian-Syrian economic relations, reflected in the strong growth of bilateral trade during 2025, suggest that a new phase of economic engagement may be emerging. If sustained, these developments could create new opportu nities for border communities, transportation, logistics, and regional economic cooperation.
Based on these findings, the paper recommends a balanced policy approach that combines effective regulatory oversight with measures to strengthen economic opportunities in border regions. It emphasizes the importance of distinguishing livelihood-based informal trade from organized criminal activities, im proving data collection, supporting gradual formalisation, and promoting transparent regulatory frame works that preserve legitimate livelihood opportunities. Such an approach could strengthen the resilience of border economies, improve policy effectiveness, and facilitate the gradual formalisation of cross-border economic activity.