Syrian conflict triggers boom in shares of Turkish construction companies

1. The destruction of Syria’s conflicts
2. The overthrow of Bashar Al-Assad

Yusuf Dogan, head of Global Market Research at Data Yatrim, noted that there will be significant opportunities for Turkish companies in the construction, cement and steel sectors following the conflict in Syria and the ouster of President Bashar Al-Assad from power after he was toppled by Syrian rebels. 

Turkish construction companies’ shares rose on 9 December.

Oyak Cimento, owned by the Turkish Army Pension Fund, saw its share value rise by 9.9 per cent to 20.92 lira ($0.60). Also, shares in Cimsa, a cement producer majority owned by Sabanci Holding, rose by about 10 per cent recently.

Other Turkish companies such as Isdemir, a steel producer, and Limak Dogu Cimento, a cement producer, also saw their shares rise by 10 per cent.  

Fatih Yucelik, president of the TurkCimento cement industry, said: ‘Our industry can adapt effectively to the new situation on the ground,’ but also mentioned that they will be able to contribute once the situation stabilises. 

Similarly, Hakan Fidan, Türkiye’s foreign minister, emphasised Türkiye’s dedication to facilitating the ‘safe and voluntary return of Syrians and the reconstruction of the country.’ 

The destruction of Syria’s conflicts

In 2011, Syria was in a bad economic situation due to the global recession and the inability to develop a modern industrial sector. It is estimated that more than half of the national product came from agriculture and mining, while industry accounted for only 3 to 4 per cent of the total.

After the outbreak of the civil war in 2011, the country’s economy was quickly affected and an important development was the fall of oil resources into the hands of the Islamic State of Iraq and Syria and Kurdish forces, generating a recession due to sanctions and devastation.

In addition, there was also the destruction of Syria’s infrastructure, such as residential and commercial buildings and industrial complexes. This has caused both a loss of income and poverty for millions of people.

In 2018, a UNITAR and UNESCO report documented damage to more than 33,500 structures in Aleppo in 2016 and a World Bank estimate of infrastructure damage indicates that it quadrupled between 2014 and 2016.

The United Nations Development Programme exposes the problem by ranking Syria 157th out of 189 countries in the 2022 Human Development Index.  

The overthrow of Bashar Al-Assad

Following a peaceful demonstration for democracy and against Bashar Al-Assad, the conflict began in 2011. This demonstration turned into a civil war, and more than half a million people died and 12 million had to go into exile.

This started a war that involved several regional and global actors, but it was over before the 27 November offensive, as the government recaptured several Syrian cities with the support of Russia, Iran, and Tehran-backed groups. However, some areas in the north were controlled by other rebel groups.

The focus, according to BBC sources, is on Idlib, a city in north-western Syria, as government forces tried to regain control. In 2020, Türkiye and Russia agreed a ceasefire in Idlib, and the truce had held until the November offensive.

On 27 November, Hayar Tahrir al Sham (HTS), the Levant Liberation Organisation, launched an offensive accusing the government and allies of intensifying attacks on civilians. They finally seized Damascus proclaiming ‘victory’ and the overthrow of Bashar al-Assad.

Damage to Syrian cities and industries since the civil war in 2011 is estimated, according to a World Bank study published in late 2022, at $11.4 billion. This damage is attributed to the destruction of infrastructure and basic facilities in cities.