Turkish Construction Stocks Surge Amid Hopes for Syria's Reconstruction

Shares of companies in the Turkish construction sector, particularly those in the cement and steel industries, have seen significant gains due to expectations that these companies will play a central role in the rebuilding of the Syrian Arab Republic following the unexpected collapse of the Bashar al-Assad regime.

In the trading environment in Istanbul, the share value of Oyak Cement, owned by the Turkish Armed Forces Retirement Fund, rose by 9.9% to reach 20.92 Turkish lira. Shares of Cimsa Cement, in which Hacı Ömer Sabancı Holding holds a majority stake, increased by up to 10%.

Additionally, the shares of steel producer İskenderun Demir ve Çelik (İsdemir) and another cement producer, Limak Doğu Anadolu Cement, also rose by 10%.

Fatih Yücelik, president of the Turkish Cement Manufacturers' Association (Türkçimento), expressed confidence in the sector's ability to adapt to changing conditions in the Syrian Arab Republic. Yücelik stated, "Our industry can efficiently adapt to the new situation on the ground." He also indicated that member companies of the association are ready to contribute to the rebuilding of the Syrian Arab Republic once stability is achieved.

Turkey's commitment to the future of the Syrian Arab Republic was again emphasized during a meeting held by Foreign Minister Hakan Fidan with ambassadors in Ankara. Fidan highlighted Turkey's determination to facilitate the "safe and voluntary return of Syrians and the reconstruction of the country."

The extent of devastation in the Syrian Arab Republic has been significantly large following a civil war that has lasted since 2011. A World Bank study published at the end of 2022 estimated that the damage in Syrian cities and industries could amount to as much as $11.4 billion, with more than two-thirds of that figure attributed to the loss and damage of physical infrastructure.