Turkish Firms Prepared for Key Role in Syria’s Reconstruction Efforts
Turkish firms are set to play an instrumental role in Syria’s reconstruction, with stock prices of construction companies rising amid expectations of lucrative contracts. With substantial damage reported due to the civil war, the reconstruction cost is estimated between $250 billion and $400 billion. However, ongoing international sanctions present significant challenges, impacting funding and investment opportunities in the region.
Turkish construction firms are poised to significantly influence the reconstruction of Syria, particularly in light of the recent government changes following the ousting of Bashar Al Assad. Stocks of key construction companies in Turkey have surged as investors anticipate lucrative contracts for rebuilding efforts in the war-ravaged nation. This uptrend began around December, aligning with the new administration led by Ahmad Al Shara in Damascus.
According to Kanat Kutluk, President of the Turkish Business Council in Dubai and Northern Emirates, Turkish businesses possess the necessary resources and expertise to undertake diverse reconstruction projects. These include infrastructure developments such as roads and energy facilities. Political support further enhances the prospects for Turkish investment, attributed to Turkey’s historical involvement in the Syrian conflict.
The UN’s Development Programme indicates that Syria has incurred staggering losses exceeding $923 billion due to the prolonged civil war. The devastating impact is evident, with significant infrastructure, including roads and power plants, severely damaged. Current GDP conditions underscore the extraordinary challenges facing reconstruction, with Syria’s economy projected to contract by 1.5% in 2024 following a decline in previous years.
Turkey and Syria’s diplomatic relations are improving, symbolized by President Al Shara’s visit to Turkey for discussions on revitalizing Syria’s economy. Gaziantep, a city in Turkey near the Syrian border, is emerging as a key industrial hub expected to support reconstruction logistics and initiatives.
Ethan Bright, an economist, forecasts a more than 90% increase in Turkish exports to Syria this year, potentially surpassing $20 billion by 2028. Turkish firms are likely to secure substantial contracts for reconstructing critical infrastructure, with the estimated total rebuilding costs ranging from $250 billion to $400 billion.
However, significant funding challenges persist due to ongoing international sanctions against Syria, which hinder foreign investments. Notably, the recent lifting of some sanctions by the UK and EU allows for more financial flexibility regarding reconstruction aid. Yet, U.S. sanctions under the Caesar Act remain intact, complicating recovery efforts.
While Turkey’s direct construction funding may fall short, regional stakeholders such as Saudi Arabia and Qatar are exploring collaborative avenues for financial support. Concurrently, firms from neighboring countries and regions, such as China and Europe, are also anticipated to engage in Syrian reconstruction projects, enhancing avenues for international partnerships and logistical support.
Nevertheless, political stability and security issues within Syria pose significant challenges that could impede progress in reconstruction efforts. As Kanat Kutluk stated, these obstacles impact not only Turkish firms but also all businesses looking to invest in Syria’s future.
In summary, Turkish construction firms are strategically positioned to play a vital role in the reconstruction of Syria following a period of significant political changes. While the potential for lucrative contracts exists, substantial funding challenges and international sanctions continue to complicate the landscape. The collaboration between regional and international partners could foster opportunities for rebuilding, although achieving stability and overcoming logistical hurdles remain crucial factors for successful execution.
Original Source: www.thenationalnews.com
