Turkish Firms Positioned to Lead in the Reconstruction of Syria

Turkish construction companies are set to play a crucial role in Syria’s reconstruction, with significant stock increases as opportunities arise post-regime change. Economic losses from the civil war are immense, with the rebuilding estimated to cost between $250 billion and $400 billion. Relations between Turkey and the new Syrian government are improving, and while Turkish firms have considerable potential, the situation remains complex with geopolitical factors at play.

Turkish construction firms are anticipated to play a significant role in the reconstruction of Syria, with Istanbul-listed companies seeing stock increases as investors foresee future contracts in the war-torn nation. Following the removal of Bashar Al Assad and the rise of Ahmad Al Shara’s interim government, shares of companies such as Oyak Cement and Enka Insaat have surged. According to Kanat Kutluk, president of the Turkish Business Council in Dubai, “Turkish companies will take a pivotal role in reconstruction” due to their financial capability and the political support from Turkey.

The devastation of Syria’s economy due to civil war has been severe, with the UN Development Programme estimating total losses exceeding $923 billion by the end of last year, highlighting the challenges ahead. Currently, Syria’s GDP stands at around $29 billion, amidst significant physical and economic damage. Infrastructure such as roads, bridges, and power plants has been extensively damaged. The World Bank forecasts a continued economic contraction of 1.5 percent for the year ahead.

Relations between Ankara and Damascus are improving post-regime change, indicated by meetings between the newly elected Mr. Al Shara and Turkish President Recep Tayyip Erdogan. The Turkish city of Gaziantep, located near the border, has become an essential industrial hub, enhancing logistics and competitive pricing for rebuilding Syria. Kanat Kutluk noted the advantages of geographical proximity for Turkish companies.

In the past month, Turkey allocated a team to assist in rebuilding Damascus International Airport, marking a commitment to reconstruction. Predictions for Turkish exports to Syria suggest a significant growth of over 90 percent in 2028, with substantial opportunities for Turkish construction firms identified by economist Ethan Bright.

High-value projects in housing, energy grids, and infrastructure are expected to be secured by Turkish firms like Limak Cement and Enka Insaat, although the total rebuilding cost could reach between $250 billion and $400 billion. S&P Global cautioned that Turkey may struggle to independently finance these efforts due to existing international sanctions. The UK and EU have begun lifting certain sanctions, though the stringent US Caesar Act remains in effect.

Other Middle Eastern nations are also eyeing opportunities in the Syrian reconstruction process. Mr. Al Shara met with Saudi Arabia’s Crown Prince to discuss reconstruction efforts, indicating a broader regional interest in aiding Syria’s recovery. Although Gulf nations may provide financial backing rather than direct construction, this partnership is pivotal.

Companies from Asia and Europe are expected to participate in Syria’s reconstruction projects. For example, China is poised for large-scale infrastructure and development integration through the Belt and Road Initiative. The reconstruction’s success is contingent on political stability, achievable funding avenues, and cooperative relationships with Syrian authorities, as highlighted by Hassan Fawaz, chairman of GivTrade.

In conclusion, Turkish firms are positioned to be key players in Syria’s reconstruction, bolstered by their financial strength and favorable political relations. While the economic landscape is challenging, ongoing diplomatic engagements and easing sanctions present new opportunities for growth. However, broader regional participation and international support will be essential to tackle the daunting costs of rebuilding and ensure long-term stability.

Original Source: www.thenationalnews.com