Turkish construction companies are set to significantly contribute to Syria’s reconstruction following the regime change, with stocks rising amid investor optimism. The Syrian economy faces a daunting reconstruction cost estimated between $250 billion and $400 billion, compounded by ongoing sanctions and security issues. International partnerships are viewed as essential for funding these efforts, and companies from the Gulf and neighboring countries are also expected to participate.
Turkish construction firms are poised to significantly contribute to Syria’s reconstruction, with Istanbul-listed companies witnessing a surge in stock prices due to investor confidence in upcoming contracts. The sector has rallied since the appointment of the new government led by Ahmad Al Shara following the overthrow of Bashar Al Assad. Key Turkish players in this field include Oyak Cement, Cimsa, Limak Cement, and Enka Insaat, which are expected to spearhead infrastructure development initiatives.
The Syrian economy has suffered extensive damage from the civil war, with the UN estimating losses exceeding $923 billion. This damage includes crucial infrastructure such as roads, power plants, and grain mills. Current estimates place Syria’s GDP at around $29 billion, showing the monumental challenges ahead for reconstruction efforts.
Turkey’s relationship with Syria has improved post-Assad, with Mr. Al Shara’s visit to Turkey highlighting a focus on rebuilding the country. Gaziantep, a Turkish city near the border, is projected to become a key industrial center aiding reconstruction due to its capabilities in steel and construction sectors.
The Turkish government has already initiated rebuilding efforts, as evidenced by a team dispatched to Damascus to work on the international airport. Turkish exports to Syria are forecast to surge over 90% this year, with substantial gains expected in the construction sector. The total cost needed for Syria’s reconstruction is between $250 billion and $400 billion.
However, S&P Global Market Intelligence warns that Turkey alone cannot fund these efforts due to previous sanctions against Syria. Recent sanctions removals by the UK and EU have begun to allow some economic activities, yet the US maintains strict sanctions under the Caesar Act, complicating potential investments.
International collaboration is critical, as Gulf countries like Saudi Arabia and Qatar express tentative interests in financing reconstruction efforts. Saudi Arabia aims to secure investment opportunities while enabling the lifting of sanctions to facilitate the rebuilding process.
Regional players, including companies from China and Europe, are likely to engage in specific projects. The successful progression of contracts will depend heavily on political stability, availability of funding, and diplomatic relations with Syrian authorities. All stakeholders, including Turkish firms, will face challenges due to the ongoing unrest and security concerns in the region.
In summary, Turkish firms are strategically positioned to play an essential role in the reconstruction of Syria, with significant stock price increases reflecting investor optimism. Despite the immense financial burden projected for reconstruction, international collaboration is crucial for overcoming funding challenges, especially considering existing sanctions. Political stability and diplomatic relations will be fundamental in enabling the successful engagement of regional and international partners in rebuilding efforts.
Original Source: www.thenationalnews.com
