Turkish corporations see massive alternatives and business potential in neighboring Syria as a lifting of U.S. sanctions clears the way in which for funding in postwar reconstruction, however nonetheless they continue to be cautious of sure challenges, from lingering insecurity to issues associated to banking and the tax system.
The choice of U.S. President Donald Trump to finish long-standing restrictions that severed Syria from the worldwide monetary system underneath former President Bashar Assad is seen as a lifeline for a nation decimated by 13 years of conflict.
And now, development, transportation and manufacturing corporations from Türkiye seem all however poised to play a serious function in repairing the harm, which the U.N. estimates at practically $1 trillion.
“The lifting of sanctions was just an urban legend, rumors for a time. But with Trump’s announcement, everything has suddenly changed,” stated Ömer Hot, a director at Istanbul-based Formul Plastik.
Last month, throughout his first journey overseas since returning to the White House, Trump in Saudi Arabia stated the U.S. would elevate sanctions on Syria. Soon after, the European Union additionally adopted go well with, and Syrians now hope the restoration after years of civil conflict may lastly decide up its tempo.
Syria’s Finance Minister Yisr Barnieh has referred to as his nation “a land of opportunities” and stated the federal government plans to overtake the tax, customs and banking programs to foster overseas funding and facilitate donor funding pledges.
Recently, he stated Syria’s inventory market will reopen on June 2, practically seven months after anti-regime forces toppled Assad.
Interviews with officers from two dozen Turkish corporations mirror each optimism over the potential of a beforehand sealed-off market with huge wants and a dose of warning over speeding investments in a rustic the place, at instances, even cash transfers may be troublesome.
Formul Plastik has obtained the primary plastics orders from Syria, Hot advised Reuters just lately. He estimated that Turkish corporations may find yourself with 1 / 4 of Syria’s reconstruction pie.
But he confronted some hurdles.”Rather than banks, there are brokers such as exchange bureaus that mediate trade payments. This model will have to be used for now,” Hot stated.
Other Turkish corporations on the Buildex development supplies expo in Syria’s capital, Damascus, stated demand from Syrian counterparts was very excessive, whilst they listed worries over tax charges, customs snarls, and creaking transport infrastructure.
“We are taking a calculated risk, let’s say,” stated Burak Serim, regional export supervisor at development supplies producer Entegre Harç.
Security, funding
In the wake of Assad’s December ouster and the institution of a authorities underneath new interim President Ahmed al-Sharaa, Türkiye is already feeling financial advantages.
Ankara has pledged to assist rebuild Syria’s economic system, together with by offering pure fuel. And Ziraat Bank, Türkiye’s high state lender, advised Reuters it will step in to assist its banking sector when circumstances are proper.
Turkish corporations Kalyon GES Enerji Yatırımları and Cengiz Enerji are set to broaden Syria’s energy grid underneath a brand new deal valued at about $7 billion, which includes Qatari and U.S. corporations.
Syria’s commerce with the remainder of the world all however dried up throughout the conflict. But Turkish exports to its neighbor have been up 37% year-over-year within the first 4 months of 2025, official knowledge exhibits.
In a sign of its gaping wants for development supplies, Syrian imports of Turkish equipment greater than tripled and non-ferrous metals doubled. Glass and ceramics have been up 73%.
Pledges of financing have, in the meantime, are available from rich Western nations, multilateral donors and the likes of Saudi Arabia and Qatar.
But for probably the most half, these are nonetheless largely guarantees. And Turkish firm managers voiced concern that there might not be sufficient for all of the roads, bridges, dams and energy vegetation that have to be rebuilt.
Syria’s economic system shrank dramatically throughout the conflict years. And with over 90% of its 25 million folks now dwelling under the poverty line, in keeping with U.N. businesses, the federal government has scant sources.
Volkan Bozay, chief govt of the Turkish Cement Manufacturers’ Association, advised Reuters that a lot hinges on which lenders finance the reconstruction initiatives, however added that Turkish corporations would play a serious function it doesn’t matter what.
“It is out of the question that we will not take advantage of the opportunities,” he stated.
Beyond development, Turkish producers are additionally eyeing Syria as a potential hub for low-cost manufacturing.
“Lower production costs in Syria are an advantage,” stated Ahmet Öksüz, a board member at Turkish textile producer Kipaş.
“But Turkish and Syrian authorities should coordinate to establish organized industrial zones that will ensure entirely safe areas for manufacturers,” he added.
Questions of safety in a rustic nonetheless in an early stage of restoration following years of conflict stay on the high of the checklist of issues for a lot of would-be buyers.
Hakan Bucak, former Turkish-Syrian business council board director, stated Syria will seemingly want six months to make sure safety and arrange bureaucratic programs.
“Security risks should be fully eliminated and investors need to feel it,” stated Bucak, who’s already trying to open a quarry close to the northern Syrian metropolis of Aleppo.
“If we feel safe, we have plans to invest.”
Source: www.dailysabah.com