Turkish firms see promise and peril in sanctions-free Syria

Turkish companies spot large opportunities successful neighboring Syria arsenic a lifting of US sanctions clears the way for concern successful post-war reconstruction, but they stay wary of challenges,  from lingering insecurity to banking and tax headaches.

President Donald Trump’s determination to extremity long-standing restrictions that severed Syria from the planetary fiscal system under erstwhile President Bashar al-Assad is seen arsenic a lifeline for a federation decimated by 13 years of war.

Construction, transportation and manufacturing firms from Turkey – a adjacent state of Syria’s caller medication aft backing anti-Assad rebels – are poised to play a large relation successful repairing the damage, which the UN estimates astatine astir $1 trillion.

“The lifting of sanctions was conscionable an municipality legend, rumours for a time. But with Trump’s announcement, everything has suddenly changed,” said Omer Hot, a manager astatine Istanbul-based Formul Plastik.

Syria’s Finance Minister Yisr Barnieh has called his state “a onshore of opportunities” and said the authorities plans to overhaul the tax, customs and banking systems to foster overseas concern and facilitate donor backing pledges.

Interviews with officials from two twelve Turkish companies bespeak some optimism implicit the imaginable of a antecedently sealed disconnected marketplace with vast needs and caution implicit rushing investments successful a state where adjacent wealth transfers tin beryllium hard and banknotes scarce.

Formul Plastik has received the archetypal plastics orders from Syria, Hot told Reuters. He estimated that Turkish companies could extremity up with a 4th of Syria’s reconstruction pie.

But helium is already facing hurdles.

“Rather than banks, there are brokers such arsenic speech bureaus that mediate trade payments. This exemplary will person to beryllium used for now,” Hot said.

Other Turkish companies astatine the Buildex operation materials expo successful Syria’s superior Damascus this week said request from Syrian counterparts was very high, adjacent arsenic they listed worries implicit tax rates, customs snarls and creaking transport infrastructure.

“We are taking a calculated risk, let’s say,” said Burak Serim, determination export manager astatine operation materials shaper Entegre Harc.

Security and investment

In the wake of Assad’s December ouster and the constitution of a authorities under caller President Ahmed al-Sharaa, Turkey is already feeling economical benefits.

Ankara has pledged to assistance rebuild Syria’s economy, including by providing earthy gas. And Ziraat, Turkey’s top state bank, told Reuters it would step successful to support its banking assemblage when conditions are right.

Turkish firms Kalyon GES Enerji Yatirimlari and Cengiz Enerji are acceptable to grow Syria’s powerfulness grid under a caller deal.

Syria’s trade with the remainder of the world each but dried up during the war. But Turkish exports to its neighbour were up 37% year connected year successful the archetypal 4 months of 2025, authoritative information show.

In an denotation of its gaping needs for operation materials, Syrian imports of Turkish machinery much than tripled and non-ferrous metals doubled. Glass and ceramics were up 73%.

Pledges of financing have, meanwhile, travel successful from wealthy Western nations, multilateral donors, and the likes of Saudi Arabia and Qatar.

But for the astir part, those are still mostly promises. And Turkish institution managers voiced interest there whitethorn not beryllium capable for each the roads, bridges, dams and powerfulness plants that indispensable beryllium rebuilt.

Syria’s system shrank dramatically during the war years. And with implicit 90% of its 25 cardinal radical present surviving beneath the poorness line, according to UN agencies, the authorities has scant resources.

Volkan Bozay, main enforcement of the Turkish Cement Manufacturers’ Association, told Reuters that overmuch hinges connected which lenders concern the reconstruction projects but added that Turkish companies would play a large relation nary substance what.

“It is retired of the question that we will not take vantage of the opportunities,” helium said.

Beyond construction, Turkish manufacturers are besides eyeing Syria arsenic a imaginable hub for low-cost production.

“Lower accumulation costs successful Syria are an advantage,” said Ahmet Oksuz, a committee subordinate astatine Turkish textile shaper Kipas.

“But Turkish and Syrian authorities should coordinate to found organised concern zones that will guarantee wholly harmless areas for manufacturers,” helium added.

Questions of information successful a state still awash with arms where the caller cardinal authorities wields lone tenuous power stay astatine the top of the database of concerns for galore would-be investors.

Hakan Bucak, erstwhile Turkish-Syrian concern assembly committee director, said Syria will apt request six months to guarantee information and acceptable up bureaucratic systems.

“Security risks should beryllium afloat eliminated and investors request to consciousness it,” said Bucak, who is already looking to unfastened a quarry adjacent the bluish Syrian metropolis of Aleppo.

“If we consciousness safe, we person plans to invest.” [Reuters]