The lifting of international sanctions on Syria is opening the door to major reconstruction deals, with Turkish companies keen to capitalise on this. A multi-billion-dollar energy contract signed last week is expected to be the first of many.
In Damascus, under the watchful eye of Syrian President Ahmed al-Sharaa, Turkish construction firms Kalyon GES Enerji Yatırımları and Cengiz Enerji signed a $7 billion (€6.1 billion) energy deal.
They were joined by Qatar's UCC Holding and the United States-based Power International. The contract aims to rebuild Syria’s electricity network, badly damaged by more than a decade of civil war.
"Today, we signed a very big agreement in Damascus. A contract was signed for the production of approximately 5,000 megawatts of electricity to meet Syria's electricity needs," Kalyon chairman Orhan Cemal Kalyoncu told RFI.
"We have a strong partnership and the means. God willing, we will start working as soon as possible."
Sanctions lifted
The deal was made possible after the US lifted sanctions on Syria last month, and the European Union eased financial restrictions. This released frozen Syrian funds and gave energy-rich Arab states a green light to invest.
Rebuilding cities and restoring electricity are among the main tasks Syria’s new leadership is facing.
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"Aleppo [Syria's second largest city] is two hours away from Turkey's southern border, so I don't think meeting the Syrian construction needs will be a problem for Turkey," said Veysel Yayan, secretary-general of the Turkish Steel Producers Association.
Turkish contractors are able to operate in difficult environments and can quickly deliver large-scale projects, Yayan added.
They are equipped to bring in everything needed – from materials to machinery – and complete construction in a matter of months, he said, even in places where others would struggle.
Political connections
Turkey’s construction industry has strong political ties, with President Recep Tayyip Erdogan closely linked to some of the country’s biggest building firms.
In addition, his government backed the rebel group Hayat Tahrir al-Sham during the civil war – the same group now led by Syria’s current president, al-Sharaa.
"I look at the countries [in the region] with excess capacity to provide Syria the cement construction materials, the wherewithal, and the engineering capacity – Turkey is the only one," said Atilla Yesilada, a political analyst at New York consultancy firm Global Source Partners.
"So, not just because of political relations with Tahrir al-Sham necessarily, but because of economic necessity, Turkey will be the cheapest provider."
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Economic lifeline
During the war, Turkish firms built thousands of basic homes in rebel-controlled parts of Syria. The reconstruction of the country could now offer a lifeline to Turkey’s struggling construction industry.
"The construction material industry, the contracting sector and the steel sector, we do not have the slightest problem in supplying all kinds of materials that Syria will need as soon as possible," Yayan said.
"The most basic challenge for us is financing. That is, we are not in a position to start rebuilding in Syria without financing."
With restrictions lifted, billions in frozen Syrian funds are being released. Gulf states are also starting to commit money to support rebuilding efforts.
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"It is also in the interest of the European Union, I would say lift the sanctions because [countries] like Germany, they have 1 million Syrians who live there," said Huseyin Bagci, professor of international relations at Ankara’s Middle East Technical University.
"Establishing the new airports, roads, opportunities for the people to come and go and get property or get their properties back... they are all positive developments [for] Syria," he added.
The speed and success of Syria’s reconstruction will be key to meeting public expectations of President al-Sharaa and stabilising the country. While for Turkey, it offers the prospect of a major economic boost.
