Turkish firms are set to play a pivotal role in Syria’s reconstruction, following the Assad regime’s fall. With rising stocks for construction companies, significant opportunities are anticipated despite challenges from sanctions and security issues. The total reconstruction cost is estimated at $400 billion, necessitating international cooperation and investment amidst ongoing geopolitical dynamics.
Turkish construction firms are poised to significantly contribute to the reconstruction efforts in Syria, with investor confidence reflected in the rising stocks of several companies. Among these are Oyak Cement, Cimsa, Limak Cement, and Enka Insaat, which have seen increasing share prices since December, following the establishment of a new government led by Ahmad Al Shara after the fall of Bashar Al Assad’s regime.
The president of the Turkish Business Council in Dubai, Kanat Kutluk, emphasized, “Turkish companies will take a pivotal role in reconstruction of Syria, be it construction companies, energy companies or food production firms…” He believes these firms possess the necessary financial resources, technology, and experience to undertake major infrastructure projects.
The economic damage from the Syrian civil war is staggering, with UN Development Programme estimates indicating losses exceeding $923 billion. The UNDP described the scale of devastation as immense, placing a significant burden on the reconstruction efforts against the backdrop of a gross domestic product of roughly $29 billion.
The establishment of improved relations between Turkey and Syria is marked by President Al Shara’s visits to Turkey and discussions on rebuilding the war-torn nation. Gaziantep, a Turkish city near the Syrian border, is expected to play a vital role in this effort, leveraging its industrial capabilities.
Turkish companies are anticipated to secure a significant share of reconstruction contracts due to their geographical proximity and competitive prices. A recent report from Oxford Economics projects over a 90% increase in Turkish exports to Syria, with the construction sector benefiting greatly from this surge.
Major projects, including repairing infrastructure, energy grids, and housing, are on the horizon. With an estimated total reconstruction cost of $400 billion, opportunities abound for Turkish firms like Limak Cement and Enka Insaat, though independent funding from Turkey is seen as inadequate due to international sanctions still affecting Syria.
While some sanctions against Syria have been lifted, the US Caesar Act remains in effect, complicating potential funding for reconstruction. International aid is expected to play a crucial role, but the flow of assistance is hampered by current geopolitical tensions.
Regional players such as Saudi Arabia and Qatar are also eyeing opportunities in Syria’s reconstruction, albeit their precise roles remain uncertain. Discussions between Syrian President Al Shara and Saudi officials indicate potential for investment, particularly in energy and financing rather than construction projects.
Further, firms from China and the Middle East are expected to engage in rebuilding efforts, leveraging their regional proximity and strategic interests. However, the effective execution of these plans is contingent upon achieving political stability and securing adequate funding and cooperative relationships with Syrian authorities amid ongoing tensions.
The outlook for Turkish firms in Syria’s reconstruction appears promising as they possess the necessary resources and expertise to take on significant infrastructure projects. With an estimated reconstruction cost of up to $400 billion, various international players are vying for involvement, influenced by geopolitical considerations. Nevertheless, the ongoing US sanctions and security challenges remain substantial hurdles that may hinder progress. The future of reconstruction depends on the establishment of stability and a conducive environment for investment.
Original Source: www.thenationalnews.com
