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Saudi Arabia has announced a major investment package in Syria, signaling strong support for the country's new leadership under President Ahmed al-Sharaa. The package includes $2 billion for airport development in Aleppo, a joint venture airline with flynas, and nearly $800 million for telecommunications infrastructure. Additional cooperation covers energy and water projects. This comes after U.S. sanctions on Syria were lifted, allowing Riyadh to increase engagement. Analysts note the investments are part of a broader effort to rebuild Syria's economy after years of conflict.
Saudi Arabia has deepened its economic engagement with Syria through a substantial investment package spanning energy, aviation, real estate, and telecommunications, reinforcing its backing of the country's new leadership. Advertisement
The kingdom has launched an investment fund committing 7.5 billion Saudi riyals (USD 2 billion) to develop two airports in Aleppo across multiple phases, according to Saudi Investment Minister Khalid al-Falih. The Elaf Fund is designed to finance large-scale projects in Syria with participation from Saudi private-sector investors.
In civil aviation, Saudi budget carrier flynas signed an agreement with the Syrian Civil Aviation Authority to establish a new airline named flynas Syria. The venture will be 51% owned by Syria and 49% by flynas, with operations expected to start in the fourth quarter of 2026.
Saudi Arabia's largest telecom operator, STC, will invest over 3 billion riyals (USD 799.96 million) to strengthen telecommunications infrastructure. The project includes building a fiber-optic network extending more than 4,500 kilometers, connecting Syria regionally and internationally, according to the state news agency.
The investments come as the largest announced since the United States lifted sanctions on Syria in December. Riyadh has consistently supported President Ahmed al-Sharaa, who assumed office in late 2024 following the removal of Bashar al-Assad by a coalition of Islamist opposition groups. Sanctions had previously limited Syria's economic recovery after a 14-year civil war that caused widespread destruction and displaced millions.
Tom Barrack, the U.S. envoy to Syria, highlighted that the Saudi-Syrian investment agreements, announced this week, will contribute meaningfully to reconstruction through partnerships in aviation, infrastructure, and telecommunications.
Last year, Saudi Arabia had already committed USD 6.4 billion in 47 investment deals involving over 100 companies operating in real estate, infrastructure, and telecoms.
Further cooperation agreements include a memorandum of understanding and a joint development plan with ACWA Power and the Saudi Water Transmission Company. Syria's Energy Minister Mohamed al-Bashir noted plans to build a seawater desalination plant to supply fresh water from the Syrian coast to southern regions of the country.
However, Syria's interim government has faced criticism over the past year for making broad development promises based on MoUs with foreign investors, many of which have not yet been converted into binding contracts. Analysts caution that while these investments mark a positive step, execution and follow-through will be crucial for tangible economic recovery.
Source Reuters
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