Interview: Mustafa Yağmurlu

The Turkish machinery sector increased its exports to Syria by 174.6% in 2025, overtaking China to become the market leader as the country’s reconstruction process gains momentum. Sevda Kayhan Yılmaz, President of the Machinery Exporters’ Association (MAİB), stresses that competitive measures in financing, customs and banking need to be implemented swiftly to safeguard this advantage.

Sevda Kayhan Yılmaz
Chairperson / Machinery Exporters’ Association

Türkiye’s machinery exports reached $16.5 billion in the first seven months of the year, while the sector’s rapid rise in the Syrian market has attracted particular attention. Capitalising on the growing demand for machinery and technology as Syria enters its reconstruction phase, the Turkish machinery sector overtook China in 2025 to become the market leader. In her assessment for BBM Magazine, Sevda Kayhan Yılmaz, President of the Machinery Exporters’ Association, points out that competition with Chinese and European manufacturers is intensifying in Syria, where demand for industrial equipment, particularly food processing machinery, is on the rise. Yılmaz emphasises that new measures in financing, export credit insurance, customs and banking are needed for Türkiye to maintain its current advantage.

According to consolidated machinery manufacturing industry data released by the Machinery Exporters’ Association (MAİB), Türkiye’s total machinery exports, including free zones, reached $16.5 billion in the first seven months of the year. Despite a decline in volume, a 9% increase in export unit prices resulted in a 1.7% rise in export value compared with the same period last year.

Sales to Germany, the sector’s largest export market, increased by 8.4% to nearly $2 billion, while machinery exports to the United States rose by 28.9% to $1.4 billion. Syria, meanwhile, stood out with a much higher growth rate. In the seven-month period, machinery exports to Syria increased by 51.4% to nearly $95 million.

We spoke with Sevda Kayhan Yılmaz, President of the Machinery Exporters’ Association, about the new market dynamics emerging with Syria’s reconstruction, the Turkish machinery sector’s leadership over China and the steps needed to sustain this position.

How do you assess Türkiye’s machinery export performance in the first seven months of the year?

In the first seven months of the year, our total machinery exports, including free zones, reached $16.5 billion. Although we experienced a decline in volume terms, the 9% increase in our export unit prices enabled us to achieve a 1.7% increase in value compared with the same period last year.

Germany and the United States were our two largest machinery export markets. Our exports to Germany increased by 8.4% to nearly $2 billion, while exports to the United States rose by 28.9% to around $1.4 billion. The Syrian market has also attracted particular attention with its rapid growth in the recent period. During the seven-month period, our machinery exports to Syria increased by 51.4% to nearly $95 million.

What are the main dynamics behind this rapid growth in the Syrian market?

Before the civil war, Syria imported an average of $1.5 billion worth of machinery annually. More than a decade of devastating conflict disrupted industrial investment and prevented significant commercial potential from being realised.

However, the picture began to change as the country entered a recovery phase in 2025. Syria’s total machinery imports doubled compared with the previous year, reaching $378 million. This strong surge is concrete evidence of how rapidly the country’s need for technological renewal and infrastructure has gained momentum.

Syria’s reconstruction and the rebuilding of its civilian industrial infrastructure are also bringing significant commercial potential back to the fore.

What position has the Turkish machinery sector achieved in the Syrian market during this new period?

This represents an extremely important achievement for the Turkish machinery sector. Türkiye ranked fifth in the Syrian machinery market in 2010. In 2025, however, our exports increased by 174.6% compared with the previous year, reaching $148 million. As a result, we overtook China and became the leading machinery supplier to Syria.

Moreover, our sector achieved this position under extremely difficult conditions. Turkish machinery manufacturers did not leave the market even during the most challenging periods of the civil war. The market leadership we have achieved today is underpinned by this continuity and our strong commercial relationships in the region.

Which machinery segments are benefiting from new opportunities created by Syria’s reconstruction?

Demand is rising rapidly across key industrial sectors, particularly metalworking, plastics, food processing and textile machinery. Syria needs to rebuild not only its physical infrastructure but also its production capacity and civilian industrial infrastructure. We therefore expect demand for machinery and manufacturing technologies to strengthen further in the coming period.

However, this potential is attracting not only Turkish manufacturers. Competition between Chinese and European manufacturers for a share of the rapidly growing Syrian market is also intensifying. For this reason, certain new measures aligned with competitive market conditions are needed if we are to turn our current leadership into a lasting position.

What steps should be taken for Türkiye to maintain its advantage over Chinese and European manufacturers?

The revival of trade corridors through the efforts of the Turkish and Syrian governments, together with the medium-term target of reaching $10 billion in bilateral trade, provides an extremely favourable environment for our sector.

At the same time, to maintain the strong position we secured in the midst of the crisis, we need to remain resilient against the aggressive, state-backed financing measures offered by our competitors. This requires the introduction of financing instruments that will support our operational strength in the market.

What changes do you expect regarding Türk Eximbank’s policies toward Syria?

Syria’s classification by Türk Eximbank in Category 7, the highest risk category, creates a significant financial and bureaucratic obstacle for our exporters through high premium rates. The fact that the Buyer’s Credit mechanism is also unavailable provides our European competitors with a considerable financing advantage.

At a time when the devastating effects of the war are beginning to recede and reconstruction budgets are being mobilised, the continuation of such restrictive practices limits the room for manoeuvre available to our companies. We believe the time has come for Syria to be removed from Türk Eximbank’s high-risk country classification.

We also believe that greater flexibility should be introduced into export credit insurance procedures and that Syria-specific Eximbank support mechanisms should be developed without delay. Measures that ease exporters’ risk premium burden and strengthen their competitiveness will both safeguard the Turkish machinery sector’s leading position in the region and enable us to contribute much more effectively to Syria’s reconstruction.

What other major challenges do exporters face in trade with Syria?

Our consultations with member companies have identified significant problems, particularly regarding customs procedures and payment systems. The tenfold increase in customs duties charged per tonne in Syria, as well as Turkish products being subject to the same customs tariffs as products from Far East Asia, have had a substantial impact on some of our subsectors.

Machinery that is inherently large and heavy is particularly affected, as it faces customs duties calculated on both weight and value, creating a twofold cost burden. This situation directly affects the competitiveness of our manufacturers of heavy and large-scale machinery.

Are there also problems with banking and payment channels?

One of the major operational challenges is the lack of diversity in payment channels. Since direct banking channels are not functioning, transfers to Türkiye are made through foreign exchange offices, preventing our exporters from benefiting from foreign exchange conversion support schemes.

We are aware that these are not insurmountable problems and that our ministries are gradually working towards solutions. What matters at this stage is to maintain our presence on the ground while these issues are being addressed and to ensure that Syrian buyers are not drawn away by the intensive efforts of our competitors.

What roadmap will the Turkish machinery sector follow to strengthen its leadership in Syria?

We will continue to maintain our presence on the ground. In this context, we are preparing meticulously for the 63rd Damascus International Fair, which will be held at the end of August with Türkiye participating through a national pavilion.

During our meetings in Damascus, we will hold one-on-one discussions with Syrian companies and explain directly how commercial partnerships with Türkiye can create a win-win model. Our geographical proximity, strong manufacturing infrastructure, technical capabilities and long-standing commercial relationships provide us with significant advantages.

Our focus will be on further strengthening the presence of our companies in the market and developing the financial and commercial mechanisms needed to enhance their competitiveness, so that the Turkish machinery sector can preserve and further strengthen the leadership it has achieved in the Syrian market, which it did not abandon even during the most difficult conditions of the civil war.