Saudi Arabia is set to announce a new multi-billion-dollar investment package in Syria, signaling a significant strengthening of economic and political ties between Riyadh and Damascus. According to the head of the Syrian Investment Agency, Talal al-Hilali, the comprehensive package will include funding for a new private Syrian airline, alongside major projects in telecommunications and real estate.
This move represents the largest planned investment since the United States lifted a stringent set of sanctions on Syria in December, a development that has opened the door for the nation’s economic revival after a 14-year civil war. The new wave of funding follows a $6.4 billion investment announced last year, which involved over 100 Saudi companies.
From MoUs to Concrete Contracts
Addressing previous criticism regarding non-binding agreements, al-Hilali emphasized that the majority of the new Saudi investments will be structured as ready-to-implement contracts rather than memoranda of understanding (MoUs). This approach aims to accelerate tangible development and build confidence in Syria’s recovery.
Speaking at the World Government Summit in Dubai, al-Hilali highlighted that Saudi investments would target key growth sectors. “Saudi investments would include projects in telecommunications and real estate, especially in the old towns,” he stated.
Strategic Focus on Aviation and Infrastructure
A central component of the investment package is the establishment of a new private airline, which sources suggest will launch with a fleet of over a dozen aircraft. Further bolstering the aviation sector, the investments are also expected to fund the development of Aleppo International Airport.
This strategic focus on infrastructure is critical for reconnecting Syria to the regional and global economy, facilitating trade, tourism, and business travel. The push into telecommunications and real estate further underscores a long-term vision for rebuilding the country’s core economic pillars.
De-Risking Investments to Boost Confidence
To encourage and secure private sector participation, a senior Syrian businessman revealed that Saudi Arabia intends to provide insurance coverage for the investments. This crucial de-risking mechanism is designed to mitigate potential challenges and incentivize Saudi companies to enter the Syrian market with greater confidence.
The deepening alliance between Riyadh and the government of President Ahmed al-Sharaa, who came to power 14 months ago, is paving the way for the Kingdom to play a central role in Syria’s post-war reconstruction and economic normalization.
About Syrian Investment Agency
The Syrian Investment Agency (SIA) is the governmental body responsible for promoting and facilitating investment in Syria. It works to attract foreign and domestic capital by providing information, support, and services to investors looking to engage with the Syrian market across various economic sectors.
Source: AGBI
