Turkey's historical ties with Syria could facilitate smoother reconstruction efforts.
The construction sector is expected to be a primary driver of economic recovery in Syria.
Political stability and the lifting of sanctions are crucial for attracting foreign investment.
If international sanctions are lifted, Syria could see a surge in foreign investment.
The return of Syrian refugees may lead to a revitalization of the local labor market.
Increased Turkish investment in Syria could strengthen economic ties between the two nations.
Turkey's Role in Rebuilding Syria's Economy Post-Assad
As the Syrian economy grapples with severe challenges following the fall of the Bashar al-Assad regime, Turkey is poised to play a crucial role in the reconstruction efforts. According to the Turkish newspaper Daily Sabah, Turkey's historical economic ties with Syria and its expertise in key sectors position it as a significant contributor to the rebuilding process. The current economic landscape in Syria is dire, with the 2023 budget estimated at only $5.88 billion, a stark decline from previous years, largely due to internal conflicts and international sanctions.
Turkey's trade relationship with Syria is vital, with imports from Syria valued at $363.5 million and exports reaching $2 billion in 2023. This dependency on Turkish goods, ranging from food to construction materials, highlights the potential for Turkey to stimulate Syria's economic recovery. The construction sector, in particular, presents substantial opportunities for Turkish companies to engage in rebuilding Syria's war-damaged infrastructure, including roads and power plants. Ali Mamouri, a researcher at Deakin University, emphasizes the need for massive investments to revitalize these essential services, which are critical for job creation and economic activity.
In addition to construction, the oil and agriculture sectors are also seen as pivotal for Syria's recovery. Despite having rich natural resources, production has plummeted due to the ongoing conflict. Experts suggest that restoring these sectors will require significant investment and political stability. Agriculture, especially in the fertile Euphrates River region, could enhance food security and create job opportunities, contributing to Syria's self-sufficiency.
However, the path to recovery is fraught with challenges, particularly due to international sanctions that have hindered support from organizations like the International Monetary Fund (IMF) and the World Bank. Despite this, the IMF has indicated its readiness to assist with reconstruction efforts when conditions allow. The potential return of Syrian refugees could also shift labor dynamics, enabling Turkey to establish production facilities in Syria that utilize local labor, thereby improving economic relations and increasing Turkish exports.
As the Syrian currency shows signs of recovery against the dollar, there is cautious optimism for sustainable economic improvement. Local markets are experiencing relative stability, with decreasing commodity prices and increased trade activity. Economists believe that this stability could attract foreign investment and encourage the return of educated Syrians from the diaspora, which is essential for long-term economic recovery.
