Executive Summary:
Since the fall of the Assad regime on December 8, 2024, economic relations between Syria and Turkey have witnessed a qualitative shift, culminating in the convening of the Syrian-Turkish Business Forum in Damascus on August 26, 2026, with broad official and economic participation.
This forum represents the culmination of a growing cooperation, with trade volume between the two countries increasing by 45% in 2025, reaching approximately $3.7 billion, and achieving further growth of 16% during the first seven months of 2026, reaching $2.2 billion.
This study examines the dimensions of the Syrian-Turkish economic partnership in light of current political and economic changes, analyzes the opportunities and challenges it faces, and presents a strategic vision for achieving the desired economic integration, based on the Syrian Future Movement’s vision of building a strong and regionally integrated national economy.
First, the Damascus Economic Forum:
On August 26, 2026, the Syrian-Turkish Business Forum commenced at the Seven Gates Hotel in Damascus. It was jointly organized by the Syrian Ministry of Economy and Industry, the Turkish Ministry of Trade, the Federation of Syrian Chambers of Commerce, and the Turkish Exporters Assembly.
This forum coincided with the opening of the 63rd Damascus International Fair, where Turkey participated with a large trade delegation of approximately 200 participants.
During the opening ceremony, Ahmed Rawad Ramadan, Director of the Syrian Investment Authority, emphasized that Syria now has a genuine opportunity to build a new economic phase and strengthen its partnership with Turkey based on joint investment and production.
He noted that Syria requires extensive investments in the energy, infrastructure, real estate, tourism, agriculture, and services sectors.
For his part, Alaa Al-Ali, President of the Federation of Syrian Chambers of Commerce, expressed an ambition to increase the volume of trade between the two countries from approximately $7 billion to $10 billion.
He affirmed that historical and fraternal ties, shared borders, and the convergence of markets and expertise form a solid foundation for broader economic integration. The head of the Turkish Exporters Assembly, Mustafa Gültepe, emphasized that Turkey views Syria not only as a market but also as a vital trade bridge to the Gulf Arab states, noting that the two sides discussed establishing joint industrial zones in the border region.
Secondly, Economic Indicators:
Trade Volume: From $3.7 to $10 Billion:
Official data indicates a significant leap in the volume of trade between the two countries.
Bilateral trade reached approximately $3.7 billion in 2025, representing an increase of over 40% compared to the previous year, and a 45% increase according to statements by Turkish Trade Minister Ömer Polat.
During the first seven months of 2026, trade volume reached $2.2 billion, a 16% increase compared to the same period last year.
Turkish exports to Syria reached $1.28 billion during the first half of 2026, a 26.4% increase.
According to data from the Economic Complexity Observatory, Turkish exports to Syria reached $214 million in May 2026, compared to Turkish imports from Syria of $20.2 million.
Reconstruction Costs: $216 Billion
The World Bank estimates the cost of rebuilding Syria at approximately $216 billion, with an estimated range between $140 billion and $345 billion.
Infrastructure accounts for about $82 billion of this cost.
This figure is roughly ten times Syria’s projected GDP, underscoring that economic recovery requires massive investments that exceed the Syrian government’s capacity alone and necessitates broad regional and international partnerships.
Third, Investment and Partnership Opportunities:
Promising Sectors:
The Syrian and Turkish sides identified a number of promising sectors for joint investment, including:
- Infrastructure and Construction: Turkish companies possess extensive experience in reconstruction.
- Energy: This includes electricity generation and transmission, where Turkish companies are working on projects. The 500 MW Birecik-Aleppo power line is expected to increase Turkish electricity exports to Syria to approximately 900 MW.
- Food and Textile Industries: Major Turkish companies, such as LC Waikiki, have entered the Syrian market, launching their first factory in Aleppo with a current production capacity of 150 workers, with plans to expand to 1,000 workers within three years.
- Logistics and Transportation: There are six operational border crossings between the two countries, and the Bab al-Hawa crossing is being developed.
- Technology and Digital Services
Turkish Direct Investments:
Reports indicate growing Turkish interest in direct investment in Syria.
Syria signed a strategic agreement with the Turkish company Kozy Star to establish a shipyard in Tartus, with an investment of at least $190 million over five years.
The two sides also signed a cooperation agreement in the phosphate sector. The Turkish Energy Minister stated that Turkish companies are ready to conduct seismic surveys and exploratory drilling in Syrian onshore and offshore oil fields.
Joint Industrial Zones:
The two sides discussed the establishment of joint industrial zones in the border region, with plans for organized industrial zones in both Qamuna and Saraqib.
A feasibility study is also underway for six potential industrial zones in the cities of Azaz, Saraqib, Raqqa, Latakia, Hasya, and Daraa.
The Turkish delegation’s visit will include the Sheikh Najjar industrial zone in Aleppo.
Fourth, Challenges and Obstacles:
Despite the optimism, the Syrian-Turkish economic partnership faces several challenges:
First: The continuation of international sanctions. Despite Syria’s removal from the list of state sponsors of terrorism, specific sanctions remain in place against individuals and entities linked to the former regime, which may hinder some investments.
Second: Infrastructure challenges. Syria’s road, electricity, and water networks have suffered extensive damage, increasing investment costs and prolonging the return on investment.
Third: Security instability. Some areas continue to experience security tensions, which may deter investors.
Fourth: The need for reforms. Legislatively, attracting investments requires developing the investment environment and simplifying procedures, which the Syrian Investment Authority is working on, but it will take time.
Fifth, a strategic vision for the Syrian-Turkish partnership:
Based on the Syrian Future Movement’s vision of building a strong and regionally integrated national economy, we propose the following axes to enhance the Syrian-Turkish partnership:
First: Accelerating the establishment of joint industrial zones. Joint industrial zones are an effective mechanism for transferring technological expertise, creating job opportunities, and increasing exports. They can serve as a model for economic cooperation between Syria and its neighbors.
Second: Strengthening cooperation in the energy sector. Cooperation in the fields of electricity, oil, and gas is a fundamental pillar for economic recovery and can contribute to alleviating the energy crisis that Syria is suffering from.
Third: Developing transportation and logistics infrastructure. With six border crossings, Syria and Turkey have the opportunity to become a logistics corridor linking Europe to the Gulf and Asia.
Polat emphasized that “Syria constitutes a very important corridor for us to reach the entire Gulf region and North Africa.”
Fourth: Building partnerships in the agricultural sector and food industries. Utilizing Syrian agricultural land and Turkish expertise in food processing can contribute to achieving food security and increasing exports.
Fifth: Establishing a clear legal framework for investment and working to enact legislation that protects investors, facilitates profit repatriation, and reduces bureaucracy, thereby enhancing confidence in the Syrian investment environment.
The Syrian-Turkish Business Forum in Damascus, and the accompanying economic momentum, represent a clear indicator of a qualitative shift in bilateral relations, from a stage of limited trade exchange to one of economic integration and strategic partnership.
With a trade volume exceeding $3.7 billion in 2025, and aspirations to increase it to $10 billion, coupled with Turkish investments in vital sectors, Syria and Turkey are moving towards building a promising regional economic model.
However, this path, despite its importance, remains contingent on Syria’s ability to create an attractive investment environment, implement the necessary legislative and institutional reforms, and strengthen security and stability.
Conversely, its success depends on continued Turkish support and expanding the scope of investments to encompass broader sectors and more regions. In the Syrian Future Movement, we believe that economic cooperation with Turkey is a cornerstone of the recovery and reconstruction process, and that this partnership, if managed effectively, can serve as a model for regional integration based on shared interests and mutual benefit.
We are ready to contribute to developing a comprehensive economic vision that positions Syria as a bridge for cooperation between East and West, and Turkey as a strategic partner in building the future.
