Turkish companies are expected to play a critical role in the reconstruction of Syria following the recent regime change, with construction stocks rising as they anticipate securing contracts. The Syrian economy faces immense challenges with over $923 billion in damages from the civil war, and Turkish exports are projected to increase significantly. Although prospects for cooperation exist, international sanctions continue to complicate funding for reconstruction efforts.
Turkish construction firms are poised to significantly contribute to the reconstruction of Syria, as their stocks have surged amid expectations of lucrative contracts. Companies such as Oyak Cement, Cimsa, Limak Cement, and Enka Insaat have seen rising share prices since the regime change in Syria. “Turkish companies will take a pivotal role in reconstruction of Syria… for building bridges, tunnels or any other infrastructure,” stated Kanat Kutluk, president of the Turkish Business Council in Dubai and Northern Emirates.
The Syrian economy faces staggering losses, exceeding $923 billion, due to the civil war, as noted by the UN Development Programme. The current GDP is approximately $29 billion, highlighting the daunting challenges ahead in restoring infrastructure devastated by conflict. In May, a World Bank report revealed that Syria’s economy is expected to contract by 1.5% in 2024, following a 1.2% decline in 2023, and a 54% reduction in GDP from 2010 to 2021.
Following the regime change, President Al Shara’s visit to Turkey signifies strengthening ties between Ankara and Damascus. Turkey’s significant support to rebel forces during the civil war positions it favorably in reconstruction efforts. Gaziantep, a Turkish city close to the Syrian border, is emerging as a key industrial hub for steel, construction, and food production, which are essential for rebuilding efforts.
Turkish exports to Syria are expected to increase by over 90%, surpassing $20 billion by 2028. The estimated cost of Syria’s reconstruction ranges between $250 billion and $400 billion, with Turkish firms expected to secure a substantial share of the contracts related to infrastructure, housing, and energy grids. “Specific opportunities include cement and steel exports, with companies like Limak Cement and Iskenderun Demir Celik leading the way,” noted Hassan Fawaz, chairman of GivTrade.
Concerns about funding challenges persist, as international sanctions remain a significant obstacle to recovery efforts. Some sanctions have been lifted by the UK and EU, but US sanctions under the Caesar Act continue to restrict investment. The involvement of international aid will be pivotal to the overall reconstruction viability, although compliance with current sanctions complicates matters.
Turkish firms are primed for a central role in Syria’s extensive reconstruction efforts following the recent regime change. The substantial economic losses incurred during the civil war underscore the challenges ahead, even as Turkish exports and construction companies prepare for significant contracts. However, the ongoing international sanctions pose serious funding challenges that may hinder these efforts. Thus, ensuring political stability and obtaining financial support will be essential for successful reconstruction.
Original Source: www.thenationalnews.com
