The Turkish Daily Sabah newspaper said that Ankara is emerging as a major player in efforts to rebuild the Syrian economy, following the fall of Bashar al-Assad’s regime.
The newspaper states that, given the historical economic relations between the two countries and Turkish experience in vital sectors, Turkey is qualified to contribute significantly to rebuilding Syria, which is suffering from a comprehensive economic collapse.
The Syrian economic reality in numbers
Under the rule of the Baath Party, Syrian economic indicators declined sharply, with figures for 2023 showing a dire situation.
Syria’s budget amounted to only about $5.88 billion, at a rate of $256 per capita annually, which is less than a quarter of the 2011 budget level, according to a report issued by UNICEF.
This collapse – according to Daily Sabah – is attributed to internal conflicts and international economic sanctions, as well as the destruction of the country’s basic infrastructure.
In 2023, Turkey imported products worth $363.5 million from Syria, while its exports to Syria amounted to $2 billion, highlighting Syria’s heavy dependence on Turkey to meet its needs for various products, from foodstuffs to building materials and energy.
These trade relations are expected to play a pivotal role in stimulating Syrian economic recovery in the future, according to the newspaper.
The construction sector…an opportunity for shared growth
Daily Sabah indicated that the shares of Turkish companies in the construction, steel and cement sectors witnessed a noticeable rise immediately after the fall of the Assad regime.
These companies could benefit from tremendous opportunities to rebuild Syrian infrastructure that was severely damaged by the war, including roads, power plants, and communications networks. It is expected that these sectors will be among the most prominent economic engines that will return Syria to the regional growth map.
According to Ali Mamouri, a researcher at Australia’s Deakin University, the Syrian infrastructure has suffered massive damage that requires huge investments to rehabilitate it.
Mamouri added: “Rebuilding roads, power stations, and communications networks will be necessary to revitalize economic activity and create job opportunities.”
Opportunities in the oil and agricultural sectors
Although Syria has rich natural resources, including oil and gas reserves, the war has led to a significant decline in production.
Experts believe that restoring these sectors requires huge investments and political stability to ensure that production returns to acceptable levels, according to the newspaper.
As for agriculture, it is considered one of the pivotal sectors, according to Daily Sabah, especially in the fertile areas surrounding the Euphrates River.
These areas can contribute to enhancing food security and creating broad job opportunities, which enhances Syria’s ability to achieve self-sufficiency and export.
Sanctions and economic challenges
Despite the great opportunities, Syria faces major challenges due to the continued international sanctions. The Daily Sabah report indicated that the International Monetary Fund and the World Bank did not provide support to Syria due to the war and sanctions.
However, IMF spokesperson Julie Kozak said the fund was “ready to support reconstruction efforts when conditions permit.”
Experts believe that lifting sanctions or providing humanitarian exceptions will be important to attract foreign capital and finance reconstruction operations.
A shift in labor dynamics
Ahmet Oksuz, head of the Istanbul Textile and Raw Materials Exporters Association, noted that the return of Syrian refugees to their country may bring about a change in labor dynamics between the two countries.
Oksuz said: “Turkey can benefit from establishing production facilities in Syria that depend on Syrian labor that was working in Türkiye.”
This model could contribute to improving economic relations between the two countries and increasing Turkish exports, while providing Syrians with job opportunities within their country.
According to economic analyst Victor Tricaud, reconstruction will provide huge investment opportunities. With international support and political stability, Syria could benefit from significant financing from multilateral development banks, allowing foreign investors to achieve high returns from infrastructure projects.
Hopes for stability of the currency and economy
With the fall of the Assad regime, the Syrian currency began to recover against the dollar, reflecting hopes for sustainable economic improvement.
According to statements reported by Daily Sabah from traders and bankers, local markets have begun to witness relative stability with commodity prices declining and trade activity improving.
Economists hope that this stability will contribute to attracting foreign investment and the return of millions of Syrians from the diaspora, especially from the educated middle class, which may be key to achieving a long-term economic recovery.
