Turkish companies expect more opportunities to support $500bn Syria reconstruction

Companies from banks to port operators and energy companies are lining up to grab their share of business opportunities arising out of Syria’s $500 billion reconstruction effort as the war-torn country opens up its economy.

Turkey’s Deniz Bank, which is fully owned by Emirates NBD, expects more financing opportunities to support Syria’s reconstruction, while the port operator DP World plans to ship more cargo out of Turkey to Syria.

Turkish conglomerate Kalyon Holding also expects more deals in Syria after signing a $7 billion energy investment agreement to build power plants in the country on Thursday. US and Qatar-based companies are also part of this consortium.

Syria's Tartus port crucial to economic recovery, with help from Dubai

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As part of the agreement, natural gas power plants with a total installed capacity of 4,000 megawatts and a solar power plant with an installed capacity of 1,000 megawatts will be built in Syria.

“Despite security challenges, the international community's commitment is strong in Syria, with support from the EU and the US,” Kalyon Enerji chief executive Murtaza Ata said in Istanbul.

Kalyon Enerji is a unit of Kalyon Holding, which has interests in a number of sectors, including construction.

“The group we formed is one of the best solution providers who can successfully implement all these projects,” Mr Ata said. “Syrian people are fed up with the struggle and the war of 15 years and are looking for development projects.”

The company is also looking at other opportunities in Syria, including the reconstruction of the airport, Kalyon Holding chief executive Mustafa Kocar said.

The company built Istanbul airport in Turkey and this expertise can be applied in Syria and other countries, he added.

Infrastructure devastated by war

The Syrian economy has been devastated by the civil war, with the UN's Development Programme estimating cumulative losses – including physical damage and economic deprivation – at more than $923 billion at the end of last year.

The estimated cost of reconstruction has varied from $250 billion and $500 billion, according to experts.

Earlier this month, US President Donald Trump made a surprise announcement about lifting economic sanctions on Syria as he visited Saudi Arabia to pave the way for investments in the country.

Following the decision, the European Union also said that it would begin lifting sanctions to help Syrian people rebuild the country.

Last week, Syria signed a separate agreement with Turkey for the supply of two billion cubic metres of natural gas to help the country overcome power shortages.

Deniz Bank is also bullish about Syria as the country reopens. “There will be a good opportunity for us,” Deniz Bank chief executive Recep Bastug told media in Istanbul.

“In the past, it was an opportunity of commercial, but now infrastructure and other parts of investment will be there … because Turkey has serious amount of construction power in terms of companies, there will be very important opportunities.”

Despite security challenges, the international community's commitment is strong in Syria, with support from the EU and the US

Murtaza Ata,
Kalyon Enerji chief executive

However, he did not elaborate on the extent to which the lender’s balance sheet would be strengthened due to opportunities in Syria.

Emirates NBD bought Deniz Bank from Russia’s Sberbank for $3.2 billion to expand its footprint in Turkey in 2018.

The Syrian government and DP World have signed an initial agreement worth $800 million to develop the port of Tartus. AFP

Kris Adams, DP World's executive vice president for East Europe, said the reopening of the Syrian economy provides new opportunities for ports in neighbouring countries for shipment of cargo.

“A country that has been war-torn for many, many years is finally looking at some positives and will require a lot of rebuild,” Mr Adams said in Istanbul.

“The ports in the country itself will be relevant, but also ports in neighbouring countries like Turkey, which has a border with Syria, will see more cargo flowing through in order to assist with that rebuild.”

Earlier this month, Dubai-based DP World signed an initial agreement with the Syrian government to develop the port of Tartus in an $800 million deal.

Opportunity for many nations

Syria reopening is “not just an opportunity for Turkey but also for many other nations”, according to Burak Daglioglu, president of the Investment Office of the Presidency of Turkey.

“After the lifting of sanctions, the opportunities will be for all countries, but the biggest opportunity will be for civilians themselves."

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

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7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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