Inside a Syrian Captagon factory: evidence uncovered of Assad’s multi-billion-dollar narcotics trade


Nada Maucourant Atallah
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The Assad regime long denied involvement in the Captagon trade, but hundreds of thousands of pills discovered by Syrian rebels in a warehouse on a hill in Douma, near Damascus, tell another story.

Hidden inside fake fruits, electrical devices and copper coils, these highly addictive pills have been smuggled out of Syria and exported across the Middle East, notably to Gulf countries, where their use is widespread.

The Douma warehouse was seized by Hayat Tahrir Al Sham (HTS) after president Bashar Al Assad’s forces were ousted from the area, offering journalists access for the first time to a Captagon production site. HTS fighters placed a picture of Mr Al Assad at the building’s entrance during a tour of the facility, resulting in people stepping on his face as they entered.

From the outside, the factory looks like any other, with neatly stacked cartons and mundane administrative documents stored haphazardly in boxes.

But a quick search revealed unprecedented evidence of the massive illicit trade, which Washington has accused Mr Al Assad and his close circle of profiting hugely from. Captagon is said to have been Syria's main export during the country's 13-year civil war.

According to the New Lines Institute, a Washington-based think tank, the global Captagon market was worth about $10 billion a year, with 80 per cent produced in Syria.

Ian Larson, a Syria analyst at the Centre for Operational Analysis and Research, said the country's Captagon factories were an "open secret".

“The images emerging now confirm the conclusions of many analysts and investigators: Captagon production in Syria is an industrial enterprise. This evidence leaves us no doubt of that,” he told The National.

In another section of the warehouse, several large barrels were stacked together, labelled with chemical names including hydrochloric acid and sodium hydroxide. Some were numbered to indicate production stages.

Inside a dark garage beneath the warehouse, a rebel shook a plastic apple, revealing white pills stamped with two intertwined half moons, typical of Captagon pills. “That’s how they were hiding them,” he said as they spilt out.

A Syrian rebel fighter stands near raw materials at the Captagon factory in Douma. EPA
A Syrian rebel fighter stands near raw materials at the Captagon factory in Douma. EPA

Small pieces of metal were placed inside the fake fruits so the weight would match that of real fruit. A pill presser was also found.

Mr Larson said the Douma warehouse was most likely "used for receiving and storing chemical inputs and also for packaging and concealing the manufactured pills".

“For years, there has been debate over the scale and systems involved in drug production in Syria. Now, we’re finally beginning to see behind closed doors," he said.

An owner under sanctions

According to locals and rebels interviewed by The National, the warehouse's owner is Amer Al Khiti, a former MP sanctioned in 2023 by the British government for controlling “multiple businesses in Syria that facilitate the production and smuggling of drugs”.

The garage was filled with campaign materials for his election run, including electoral cards and ballot papers. He was not available for comment.

Rebel fighters say the site is one of many warehouses they have discovered across the country and pledged to destroy. Videos posted online show them burning the pills.

Locals said they would never have thought Captagon was produced there. “They said it was a soap factory,” one neighbour said, pointing at the building from afar.

But analysts are not surprised. Caroline Rose, who studies the Captagon trade for the New Lines Institute, told The National on Sunday that the evidence uncovered at the Douma site was expected.

“We already had evidence of regime-operated industrial-scale production of Captagon, particularly in Douma, Latakia and Damascus,” she told The National. “I expect that residents and this new transitional government will uncover more sites.”

Enormous regional market

The cross-border flow of the drug has long been viewed as a major national security threat in the Middle East. Billions of dollars a year in Captagon have crossed from Syria into other Arab countries since 2018. In 2021, the Syrian government is estimated to have made more than $5 billion from the sale of the drug. Dealers often targeted the wealthy cities of the Gulf states, leading to drug busts in Saudi Arabia, the UAE and elsewhere.

The flow of the drug was one of the main reasons that Arab countries ended hostilities with Mr Al Assad three years ago and normalised ties with his government, as they were seeking co-operation in combating the smuggling operations.

One pill costs as little as a few US cents to produce, but high-quality pills have sold for as much as $20 each in Arab countries.

This week a European official told The National that Syria's production of the drug had come to a near halt since the ousting of Mr Al Assad.

A Syrian rebel shows pills hidden inside a melon. AP
A Syrian rebel shows pills hidden inside a melon. AP

“It is at least 90 per cent down,” said the official, who toured the border area between Jordan and Syria.

Over the past two weeks, Syrian militants have overrun the main Captagon factories in Syria's coastal areas. Members of cartels linked to the former regime and the Lebanese militant group Hezbollah have abandoned the production compounds, the official said.

“What is left are small, scattered workshops, and small players on the border,” he added.

However, Ms Rose said that the halt may be short lived.

“While Captagon supply will contract, at least in the short term, we should not expect the trade to disappear,” she said. “Rather, we’ll see a balloon effect into other transit sites like Iraq, Lebanon, and potentially Turkey.”

Mr Larson added that as long as demand for the drug persists, production will simply move abroad.

“There is an enormous regional market. If anything, the elimination of production in Syria will increase the relative value of production elsewhere," he said. "Demand still exists, and years of co-ordinated anti-narcotics campaigns in the region have not crushed it.

"The pressure for production to move to other countries is now far, far greater.”

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Company name: Fine Diner

Started: March, 2020

Co-founders: Sami Elayan, Saed Elayan and Zaid Azzouka

Based: Dubai

Industry: Technology and food delivery

Initial investment: Dh75,000

Investor: Dtec Startupbootcamp

Future plan: Looking to raise $400,000

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Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

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The Court of Appeal issues a judgment challenging parts of the restructuring plan

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Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

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Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

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Yahya Al Ghassani's bio

Date of birth: April 18, 1998

Playing position: Winger

Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda

Abaya trends

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• Scientists estimate there could be as many as 3 million fungal species globally
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  • Promises of high, fixed or 'guaranteed' returns.
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Courtesy: Carol Glynn, founder of Conscious Finance Coaching

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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European arms

Known EU weapons transfers to Ukraine since the war began: Germany 1,000 anti-tank weapons and 500 Stinger surface-to-air missiles. Luxembourg 100 NLAW anti-tank weapons, jeeps and 15 military tents as well as air transport capacity. Belgium 2,000 machine guns, 3,800 tons of fuel. Netherlands 200 Stinger missiles. Poland 100 mortars, 8 drones, Javelin anti-tank weapons, Grot assault rifles, munitions. Slovakia 12,000 pieces of artillery ammunition, 10 million litres of fuel, 2.4 million litres of aviation fuel and 2 Bozena de-mining systems. Estonia Javelin anti-tank weapons.  Latvia Stinger surface to air missiles. Czech Republic machine guns, assault rifles, other light weapons and ammunition worth $8.57 million.

Bio

Born in Dubai in 1994
Her father is a retired Emirati police officer and her mother is originally from Kuwait
She Graduated from the American University of Sharjah in 2015 and is currently working on her Masters in Communication from the University of Sharjah.
Her favourite film is Pacific Rim, directed by Guillermo del Toro

Indoor cricket in a nutshell

Indoor cricket in a nutshell
Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai

16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership

Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.

Zones

A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full

Updated: December 16, 2024, 10:59 AM