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Yahoo
2 days ago
- Business
- Yahoo
Turkish firms see promise and peril in sanctions-free Syria
By Ceyda Caglayan ISTANBUL (Reuters) -Turkish companies see big opportunities in neighbouring Syria as a lifting of U.S. sanctions clears the way for investment in post-war reconstruction, but they remain wary of challenges, from lingering insecurity to banking and tax headaches. President Donald Trump's decision to end long-standing restrictions that severed Syria from the global financial system under former President Bashar al-Assad is seen as a lifeline for a nation decimated by 13 years of war. Construction, transportation and manufacturing firms from Turkey - a close ally of Syria's new administration after backing anti-Assad rebels - are poised to play a major role in repairing the damage, which the U.N. estimates at nearly $1 trillion. "The lifting of sanctions was just an urban legend, rumours for a time. But with Trump's announcement, everything has suddenly changed," said Omer Hot, a director at Istanbul-based Formul Plastik. Syria's Finance Minister Yisr Barnieh has called his country "a land of opportunities" and said the government plans to overhaul the tax, customs and banking systems to foster foreign investment and facilitate donor funding pledges. Interviews with officials from two dozen Turkish companies reflect both optimism over the potential of a previously sealed off market with vast needs and caution over rushing investments in a country where even money transfers can be difficult and banknotes scarce. Formul Plastik has received the first plastics orders from Syria, Hot told Reuters. He estimated that Turkish companies could end up with a quarter of Syria's reconstruction pie. But he is already facing hurdles. "Rather than banks, there are brokers such as exchange bureaus that mediate trade payments. This model will have to be used for now," Hot said. Other Turkish companies at the Buildex construction materials expo in Syria's capital Damascus this week said demand from Syrian counterparts was very high, even as they listed worries over tax rates, customs snarls and creaking transport infrastructure. "We are taking a calculated risk, let's say," said Burak Serim, regional export manager at construction materials producer Entegre Harc. SECURITY AND INVESTMENT In the wake of Assad's December ouster and the establishment of a government under new President Ahmed al-Sharaa, Turkey is already feeling economic benefits. Ankara has pledged to help rebuild Syria's economy, including by providing natural gas. And Ziraat, Turkey's top state bank, told Reuters it would step in to support its banking sector when conditions are right. Turkish firms Kalyon GES Enerji Yatirimlari and Cengiz Enerji are set to expand Syria's power grid under a new deal. Syria's trade with the rest of the world all but dried up during the war. But Turkish exports to its neighbour were up 37% year on year in the first four months of 2025, official data show. In an indication of its gaping needs for construction materials, Syrian imports of Turkish machinery more than tripled and non-ferrous metals doubled. Glass and ceramics were up 73%. Pledges of financing have, meanwhile, come in from wealthy Western nations, multilateral donors, and the likes of Saudi Arabia and Qatar. But for the most part, those are still largely promises. And Turkish company managers voiced concern there may not be enough for all the roads, bridges, dams and power plants that must be rebuilt. Syria's economy shrank dramatically during the war years. And with over 90% of its 25 million people now living below the poverty line, according to U.N. agencies, the government has scant resources. Volkan Bozay, chief executive of the Turkish Cement Manufacturers' Association, told Reuters that much hinges on which lenders finance the reconstruction projects but added that Turkish companies would play a major role no matter what. "It is out of the question that we will not take advantage of the opportunities," he said. Beyond construction, Turkish manufacturers are also eyeing Syria as a possible hub for low-cost production. "Lower production costs in Syria are an advantage," said Ahmet Oksuz, a board member at Turkish textile manufacturer Kipas. "But Turkish and Syrian authorities should coordinate to establish organised industrial zones that will ensure entirely safe areas for manufacturers," he added. Questions of security in a country still awash with arms where the new central government wields only tenuous control remain at the top of the list of concerns for many would-be investors. Hakan Bucak, former Turkish-Syrian business council board director, said Syria will likely need six months to ensure security and set up bureaucratic systems. "Security risks should be fully eliminated and investors need to feel it," said Bucak, who is already looking to open a quarry near the northern Syrian city of Aleppo. "If we feel safe, we have plans to invest."
Straits Times
2 days ago
- Business
- Straits Times
Turkish firms see promise and peril in sanctions-free Syria
FILE PHOTO: People ride on a motorbike past a damaged building as U.S. President Donald Trump announced that he would order the lifting of sanctions on Syria, in Aleppo, Syria May 14, 2025. REUTERS/Mahmoud Hassano/File Photo ISTANBUL - Turkish companies see big opportunities in neighbouring Syria as a lifting of U.S. sanctions clears the way for investment in post-war reconstruction, but they remain wary of challenges, from lingering insecurity to banking and tax headaches. President Donald Trump's decision to end long-standing restrictions that severed Syria from the global financial system under former President Bashar al-Assad is seen as a lifeline for a nation decimated by 13 years of war. Construction, transportation and manufacturing firms from Turkey - a close ally of Syria's new administration after backing anti-Assad rebels - are poised to play a major role in repairing the damage, which the U.N. estimates at nearly $1 trillion. "The lifting of sanctions was just an urban legend, rumours for a time. But with Trump's announcement, everything has suddenly changed," said Omer Hot, a director at Istanbul-based Formul Plastik. Syria's Finance Minister Yisr Barnieh has called his country "a land of opportunities" and said the government plans to overhaul the tax, customs and banking systems to foster foreign investment and facilitate donor funding pledges. Interviews with officials from two dozen Turkish companies reflect both optimism over the potential of a previously sealed off market with vast needs and caution over rushing investments in a country where even money transfers can be difficult and banknotes scarce. Formul Plastik has received the first plastics orders from Syria, Hot told Reuters. He estimated that Turkish companies could end up with a quarter of Syria's reconstruction pie. But he is already facing hurdles. "Rather than banks, there are brokers such as exchange bureaus that mediate trade payments. This model will have to be used for now," Hot said. Other Turkish companies at the Buildex construction materials expo in Syria's capital Damascus this week said demand from Syrian counterparts was very high, even as they listed worries over tax rates, customs snarls and creaking transport infrastructure. "We are taking a calculated risk, let's say," said Burak Serim, regional export manager at construction materials producer Entegre Harc. SECURITY AND INVESTMENT In the wake of Assad's December ouster and the establishment of a government under new President Ahmed al-Sharaa, Turkey is already feeling economic benefits. Ankara has pledged to help rebuild Syria's economy, including by providing natural gas. And Ziraat, Turkey's top state bank, told Reuters it would step in to support its banking sector when conditions are right. Turkish firms Kalyon GES Enerji Yatirimlari and Cengiz Enerji are set to expand Syria's power grid under a new deal. Syria's trade with the rest of the world all but dried up during the war. But Turkish exports to its neighbour were up 37% year on year in the first four months of 2025, official data show. In an indication of its gaping needs for construction materials, Syrian imports of Turkish machinery more than tripled and non-ferrous metals doubled. Glass and ceramics were up 73%. Pledges of financing have, meanwhile, come in from wealthy Western nations, multilateral donors, and the likes of Saudi Arabia and Qatar. But for the most part, those are still largely promises. And Turkish company managers voiced concern there may not be enough for all the roads, bridges, dams and power plants that must be rebuilt. Syria's economy shrank dramatically during the war years. And with over 90% of its 25 million people now living below the poverty line, according to U.N. agencies, the government has scant resources. Volkan Bozay, chief executive of the Turkish Cement Manufacturers' Association, told Reuters that much hinges on which lenders finance the reconstruction projects but added that Turkish companies would play a major role no matter what. "It is out of the question that we will not take advantage of the opportunities," he said. Beyond construction, Turkish manufacturers are also eyeing Syria as a possible hub for low-cost production. "Lower production costs in Syria are an advantage," said Ahmet Oksuz, a board member at Turkish textile manufacturer Kipas. "But Turkish and Syrian authorities should coordinate to establish organised industrial zones that will ensure entirely safe areas for manufacturers," he added. Questions of security in a country still awash with arms where the new central government wields only tenuous control remain at the top of the list of concerns for many would-be investors. Hakan Bucak, former Turkish-Syrian business council board director, said Syria will likely need six months to ensure security and set up bureaucratic systems. "Security risks should be fully eliminated and investors need to feel it," said Bucak, who is already looking to open a quarry near the northern Syrian city of Aleppo. "If we feel safe, we have plans to invest." REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
New Indian Express
4 days ago
- Business
- New Indian Express
Hostilities with Pak suspended, but it's not business as usual yet
Though hostilities with Pakistan have been suspended, it is not business as usual. Following security concerns expressed by the Union government, the Bureau of Civil Aviation Security (BCAS) has revoked the security clearance of Istanbul-based airport ground handling firm, Celebi Airport Services India. Celebi, an old player in airport services, and with 10,000 employees in India, now faces the prospect of being ousted from the 9 airports it had ongoing contracts. The trigger has been Turkey's undiluted support for Pakistan. Not only did Turkey's President Recep Tayyip Erdogan greet the Pakistani PM Shebaz Sharif as 'his brother', but he ensured a steady supply of Turkey's advanced Bayraktar drones launched on India. In its defense, Celebi has said it has no political affiliations, that it is not a Turkish government organization, and it is not owned by Turkish capital. The company points out it is in existence since 1958 as a global airport services firm. Its majority 50 percent owner is Actera Partners, a New Jersey-registered fund, while 15 percent is held by Alpha Airport Sevices BV, a Netherlands company. It goes without saying national and security interests are paramount, and must prevail over business interests. Business organisations have been known to be moles working for the enemy. In this case though, Celebi has run the security gauntlet and had been given a license to operate in India. Has some new, palpable evidence changed that perception? One can understand Turkey needs to be taught a lesson. But should a company with a fairly long run in India, and with no apparent evidence of security breaches, become the collateral damage?
Indian Express
21-05-2025
- Business
- Indian Express
Turkish Airlines partnership ‘fully compliant' with Indian rules; up to govt to decide on Turkish aircraft leases, says IndiGo CEO
Amid the backlash in India over Turkey's support for Islamabad in the India-Pakistan conflict, India's largest airline IndiGo on Wednesday said that the carrier's codeshare partnership with Turkish Airlines and the operation of damp-leased wide-body jets between the two countries are fully compliant with all Indian rules and regulations, and are strictly within the framework of the India-Turkey bilateral air services agreement. On the upcoming renewal of the damp lease arrangement, IndiGo CEO Pieter Elbers said that it is for the Indian government to decide, and the airline will have fallback plans in case of changes in the current arrangement. There have been calls from some quarters in India for IndiGo to end its relationship with Turkish Airlines, including its damp lease of two wide-body jets of the Istanbul-based carrier, with which IndiGo operates its flights to Istanbul from Delhi and Mumbai. These planes are high-density Boeing 777 aircraft with over 500 seats apiece, allowing IndiGo to carry significantly more passengers that what its regular narrow-body aircraft can carry. The codeshare agreement also enables the Indian carrier to offer connections to over 40 destinations in Europe and North America on the Turkish Airlines network via Istanbul. The lease arrangement is ending this month, and the airlines cannot go ahead with a renewal unless New Delhi greenlights it. Following India's decision to cancel the security clearance of Turkey-headquartered airport ground handling major Celebi, speculation is rife that the IndiGo-Turkish Airlines damp lease renewal may not receive a favourable decision from the government. The past few days have seen a growing clamour for a boycott of Turkey and review of Turkish firms' presence in India in the wake of Operation Sindoor. Apart from Ankara's open support for Islamabad in the recent India-Pakistan military, widespread use of Turkish drones by Pakistan in operations against India has added to the disapproval for Turkey in India. 'The flights between India and Turkey are governed and are within the framework of the air service agreement between the two nations. Two, the operations which are taking place are fully compliant and in line, not only with the regulatory framework, but also with all the rules and regulations from the (Indian) government…We still have lots and lots of Indian customers booked on these flights, mostly connecting over at Istanbul and flying to other parts of the world for their travel needs,' Elbers said in an investor call on Wednesday. 'On the (damp lease) renewal, that's up to the government to decide. We have had this operation in place for some time now. It has served the Indian customers well…The government has a view on what is the overall landscape and the overall setting and the holistic picture, and we operate within that guidance and framework,' Elbers added. In response to a question on IndiGo's options if the damp lease arrangement with Turkish Airlines is not renewed beyond May, Elbers said: 'As a good airline, we make sure that we have fallback plans in case of changes. And I think we have demonstrated that over the last years, be it domestic, be it International…We'll deal with it, and we adjust our network accordingly'. In the past, IndiGo has operated its flights to Istanbul from Delhi and Mumbai using its narrow-body Airbus A320neo and A321neo aircraft whenever the Boeing 777 jets faced technical issues or the lease arrangement was not in place. For instance, for about two weeks in November, IndiGo operated its Turkey flights using narrow-body aircraft as the process for renewal of the damp lease of the Boeing 777 planes was underway at the time. The air services agreement between India and Turkey allows carriers of both countries to operate a total of 56 flights a week between India and Turkey—28 flights from India to Turkey and 28 in the opposite direction—without a cap on the number of seats on each flight. Turkish Airlines and IndiGo have split the allocation between themselves. As the bilateral air services pact does not have a cap on seats, the larger the aircraft, the better it is for IndiGo given the high demand on India-Turkey routes, which is largely due to Istanbul being a global transit hub. That is the reason why the Indian airline, after initially operating its Istanbul flights using its own narrow-body fleet, switched over to a damp lease arrangement with Turkish Airlines for wide-body aircraft with more than twice the capacity of IndiGo's own narrow-body jets. Sukalp Sharma is a Senior Assistant Editor with The Indian Express and writes on a host of subjects and sectors, notably energy and aviation. He has over 13 years of experience in journalism with a body of work spanning areas like politics, development, equity markets, corporates, trade, and economic policy. He considers himself an above-average photographer, which goes well with his love for travel. ... Read More
Malaysia Sun
21-05-2025
- Business
- Malaysia Sun
Roundup: Growth expected in Trkiye's impoverished regions as stability to return after PKK's disbandment
ANKARA, May 20 (Xinhua) -- The disbandment of the Kurdistan Workers' Party (PKK) will provide new economic opportunities for Trkiye, especially for its underdeveloped eastern and southeastern regions, said a Turkish official and analysts. On May 12, the PKK, designated a terrorist organization by Trkiye, the United States, and the European Union, declared it would disband and cease its decades-long armed insurgency against the Turkish state. The move followed a February call from jailed PKK leader Abdullah Ocalan urging the group to lay down its arms. Turkish Treasury and Finance Minister Mehmet Simsek said the PKK's disbandment will enhance investor confidence in Trkiye and unlock resources for such vital sectors as education, healthcare, and infrastructure, especially in areas neglected due to security concerns. The conflict with the PKK "has cost the country an estimated 1.8 trillion U.S. dollars," Simsek was quoted recently by local English newspaper Daily Sabah as saying. "Now we can pivot toward productive spending that supports long-term growth," the minister added. "This is a significant economic development opportunity for Trkiye," Istanbul-based economist Atilla Yesilada told Xinhua. "The return of security and stability in conflict zones would be followed by private investment flows into impoverished regions." Industrial zones once deemed risky may now attract manufacturers and logistics firms, especially given their strategic proximity to Middle Eastern markets, he noted. Data from the Turkish Statistical Institute showed that unemployment rates in Trkiye's southeastern provinces have historically remained above the national average, while per capita income in many of those provinces is less than half that of western provinces. "With proper planning, these regions can become drivers of Trkiye's economy," Yesilada said, highlighting agriculture, tourism, and manufacturing as key sectors for potential growth. The PKK's disbandment, a "historic shift" for Trkiye, "will lower Trkiye's country risk premium," said Gurkan Yildirim, head of the Turkish Young Businessmen Association. "Creating a secure and stable environment would boost investor confidence, reduce perceived risks, and highlight Trkiye's economic strengths," he told Xinhua. The eastern and southeastern Anatolia regions, bordering Syria, Iraq, and Iran, will be well positioned to benefit from new investment opportunities, thereby improving local living standards and contributing to broader national economic growth, Yildirim said. "Revitalizing the tourism sector in these areas could play a role in driving economic transformation," he added.
