
The Contribution of Syrian Businesspeople to the Turkish Economy
Executive Summary:
The arrival of Syrians in Turkey has represented a significant opportunity for both Syrians and Turks alike, showcasing the talents and innovations of Syrians across various fields in Turkey. Among these contributions have been the economic activities of Syrian businesspeople, who transferred their investments and commercial operations from Syria to Turkey, becoming an influential phenomenon in the Turkish labor market.
Turkey has experienced considerable economic fluctuations during the rule of the Justice and Development Party (AKP) since 2002. In its early years, the country witnessed notable economic growth, accompanied by an openness to foreign investment, particularly from Arab countries. This growth persisted until 2018, when Turkey entered an economic crisis marked by volatility in the Turkish lira’s exchange rate. The crisis deepened in 2022, following the visible impact of the COVID-19 pandemic and an abrupt, sharp reduction in interest rates, which triggered high inflation and a significant depreciation of the Turkish lira. After 2023, inflation rates slowed, and relative market stability was restored.
Amid these fluctuations, certain segments of Turkish society began to blame Syrian refugees for the economic downturn, portraying their presence as merely a burden on the economy while disregarding its positive aspects. In response, this report seeks to highlight the role of Syrian businesspeople in the Turkish economy, examine their current realities, and explore their expectations and future plans.
The report indicates that Syrian businesspeople have become an active component of the Turkish economy since the outbreak of the Syrian Revolution, as the deteriorating security and political conditions in Syria compelled them to seek a more stable environment for their commercial activities. Turkey’s geographic proximity and growing economic infrastructure offered significant opportunities for these investment flows. The majority of Syrian investors concentrated in major cities, especially Istanbul, which hosted more than three-quarters of them, while the remainder settled in cities such as Bursa, Gaziantep, and Mersin. Their business activities spanned wholesale and retail trade, construction, real estate, transportation, tourism, and other sectors.
The initial years of their arrival witnessed substantial growth in company establishments, peaking in 2019 before beginning a gradual decline through 2023, influenced by Turkey’s overall economic conditions and the broader contraction in foreign company formations. Since 2019, Syrian investments have totaled approximately 2.58 billion Turkish liras—equivalent to over 260 million US dollars at the time. However, the depreciation of the Turkish lira, combined with the relocation of some investors to other countries, has reduced the dollar value of these investments in recent years.
Despite their successes in the Turkish market, Syrian investors have faced numerous challenges, including volatile economic policies, high taxes and interest rates, complex bureaucratic procedures, and an increasingly restrictive political and media climate regarding their presence. These factors have led some to consider moving their investments elsewhere, while others still view Turkey as a promising destination, provided the business environment improves. In fact, in 2023, Syrian investors constituted the largest share of foreign business withdrawals from the Istanbul market.
A survey conducted for this report revealed that the majority of respondents view Turkey as an unfavorable environment for investment. This sentiment is largely attributable to the difficulties foreign entrepreneurs have faced in recent years, particularly economic instability and growing public hostility toward Syrians fueled by incitement campaigns and shifting public opinion.
Survey responses also highlighted several specific issues facing Syrian investors in Turkey, including financial hardship and inflation, lack of access to Turkish citizenship, hate speech and racism—especially on social media—bureaucratic obstacles in obtaining work permits, legal ambiguities for foreigners, and restrictions on movement and travel.
The report concludes that sustaining the contribution of Syrian businesspeople to the Turkish economy requires practical measures by the Turkish government. These include streamlining procedures, reducing legal and financial barriers, preserving an attractive investment climate, addressing the ongoing economic crisis, resolving residency and passport renewal challenges, and considering the granting of Turkish citizenship or long-term residence permits to investors. Such measures would help retain these valuable human and financial resources within the domestic market and enhance their positive impact on the economy.
To read the full report click here (Arabic)