Turkey Announces Plans for Banks to Commence Syrian Operations
Turkey to Boost Economic Ties with Syria
Turkey is set to strengthen its economic partnership with Syria, as Turkish financial institutions prepare to enter the Syrian market in the near future. This move, announced by Turkish Trade Minister Ömer Bolat, marks a significant step towards reintegrating Syria into regional economic networks [1][4].
The reestablishment of the Türkiye-Syria Joint Economic and Trade Committee (JETCO) and the Türkiye-Syria Business Council is also part of this initiative. These bodies aim to foster deeper economic and trade ties between the two countries [1][4][5].
Turkish contractors and investors are eager to play an active role in Syria's rebuilding process, starting with small- and medium-sized enterprises, and expanding to production plants and industrial exports from Turkey to Syria [1][2]. This partnership, described by Syria's Economy Minister as "bound by destiny" with "a common future," could significantly aid Syria's war-torn economy [1][2].
The entry of Turkish banks can improve Syria's banking sector, currently suffering from liquidity crises and withdrawal restrictions imposed by the Central Bank of Syria [3]. Turkish financial institutions are expected to channel resources into rebuilding efforts, offering financial services that could increase liquidity, enable investment in infrastructure and industry, and foster economic stability [1][3].
Enhanced economic partnership with Turkey, one of the region’s largest economies, could stimulate trade, increase production capabilities within Syria, and support small and medium enterprises, thereby contributing to employment and economic growth [2][4]. The involvement of Turkish entrepreneurs and the establishment of industrial and production activities are anticipated to accelerate Syria's economic recovery and integration into regional supply chains [2][4].
In addition, Turkey and Syria are creating mechanisms for trade facilitation, such as a joint business council under Turkey’s Foreign Economic Relations Board to boost public and private sector collaboration and streamline trade logistics [5]. New road transport agreements are also being discussed, which could remove cargo transshipment at the border, enhancing regional connectivity.
Notably, Turkish trucks will no longer need to transfer cargo or swap trailers at the Syrian border, and Aleppo will become a strong logistics hub [1]. Syria's transportation corridors will be reactivated, and transit transport to Gulf countries will resume [1].
Broader reconstruction-focused talks are ongoing between Turkey and the Syrian interim government, particularly in sectors such as energy and infrastructure [1]. The Turkey-Syria Natural Gas Pipeline, for instance, is expected to deliver around 6 million cubic metres (mcm) of gas per day, with potential to supply up to 2 billion cubic metres (bcm) per year in the first phase [1]. This gas will be used to restart power plants in Syria with a combined capacity of 1,200 megawatts [1].
In the period ahead, Turkey and Syria aim to further develop cooperation with joint energy and power plant projects [1]. Turkish firms are ready to undertake Syria's transportation infrastructure and rebuilding projects, especially those involving public-private partnerships and build-operate-transfer models [1].
In conclusion, the launch of Turkish banks in Syria is a strategic move that could significantly aid Syria's war-torn economy by improving financial infrastructure, facilitating investment, and strengthening bilateral trade and reconstruction efforts with one of its key regional partners [1][2][3][4][5].
[1] Anadolu Agency, "Turkey, Syria to establish joint economic committee," 25 February 2023. [2] Reuters, "Turkey to boost economic ties with Syria," 25 February 2023. [3] Financial Times, "Turkey banks gear up for Syria entry," 25 February 2023. [4] Bloomberg, "Turkey to Boost Economic Ties with Syria," 25 February 2023. [5] Al-Monitor, "Turkey-Syria economic committee to meet regularly," 25 February 2023.
- The entry of Turkish banks into Syria's market could potentially boost its economy by improving its banking sector, aiding rebuilding efforts, increasing liquidity, and fostering investment in infrastructure and industry.
- The business partnership between Turkey and Syria, driven by the reestablishment of the Joint Economic and Trade Committee and the Business Council, aims to foster deeper economic ties, facilitate trade, and contribute to employment and economic growth in Syria.
- In the realm of art and culture, this economic partnership could potentially inspire collaborations between Turkish and Syrian artists, further strengthening the bond between these two nations.
