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Türkiye must intensify investment efforts in Syria, complementing its growing trade footprint with long-term capital engagement through new efforts, Istanbul Chamber of Commerce (ICOC) President Sekib Avdagic said on Tuesday.
"Syria needs everything right now," Avdagic told Anadolu Agency (AA), emphasizing the importance of accelerating the pace of cooperation toward new fields.
"Our state is making very meaningful contributions to help core recovery mechanisms take hold in Syria," Avdagic said, noting that Turkish authorities are already involved in multiple recovery-related processes through formal and informal channels, aiming to help Syria stabilize after years of war.
Avdagic pointed to the strong social and economic connections between the two countries, forged over the past 15 years, during which Türkiye hosted millions of Syrians.
Many have since returned to Syria—some restarting businesses, others launching new ventures—while a number remain active in Türkiye’s private sector.
“We have hosted our Syrian brothers and sisters for nearly 15 years. Now, many are gradually returning," he said. "Some are rebuilding the businesses they left behind. Others continue their activities in Türkiye."
In light of this, Avdagic proposed a dual-track approach, adding, "We must absolutely be part of the investments in Syria—supporting them, partnering in them, and sharing in them. As we develop trade, we must move quickly into investment."
Türkiye’s road exports to Syria reached 133,076 truckloads between January and June 2025, marking an annual increase of nearly 60%, with the bulk of shipments including construction materials and food products.
Avdagic interpreted the growth as a reflection of both urgent needs and commercial potential, saying, "This is not a temporary spike. The fundamentals of Syria’s reconstruction require a long-term presence."
Turkish companies are scheduled to attend the International Fair of Damascus, which will run through Sept. 5. Organized by the Southeast Anatolian Exporters’ Association under the coordination of Türkiye’s Ministry of Trade, the fair aims to promote durable commercial engagement.
The event is expected to deepen cooperation across multiple sectors, reinforcing Türkiye’s private-sector presence during the early stages of Syria’s recovery.
Earlier in August, trade ministries from both countries signed a protocol to launch a new-generation economic partnership, setting a target to increase the annual trade volume from $2.6 billion to $10 billion.
Turkish companies are also expected to play a major role in the reconstruction of Syria, following the prolonged civil war that caused an estimated $400 billion in damage across the country.
"We need to structure all our policies with the goal of becoming Syria’s primary trade partner—and its most trusted investor," Avdagic said.
Avdagic also weighed in on Türkiye’s broader macroeconomic conditions, welcoming the Turkish central bank’s 300-basis-point policy rate cut in July.
"We expect a total cut of 1,000 basis points under normal conditions by the end of the year," Avdagic expressed his year-end forecast for 2025, bringing the policy rate to 33%. Financing costs are likely to fall, with "inflation could close the year below 30%," he said.
However, he expressed concern that the Turkish lira’s depreciation has not kept pace with inflation, wages, and other cost increases. "When you compare the rise in the exchange rate with the increase in minimum wage and consumer prices, there’s a gap of around 20 to 25 percentage points,” he said. "That means exporters are seeing a 25-point drop in real income."
"While it makes things harder for exporters, it also makes imports more attractive," he said, adding that this poses a two-sided risk.
He argued that Türkiye must urgently focus on producing more of the goods it currently imports, while protecting the competitiveness of its exporters. "We must constantly ask how we can reduce imports by producing more at home and how we can grow exports," he remarked.
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