In a significant step towards revitalizing its economy, Syria has entered into an investment collaboration with Saudi Arabia that aims to resuscitate infrastructure and spur economic growth in the post-civil war era. This ambitious plan not only reflects Syria’s aspirations for development but also underscores the strengthening ties between the two nations, especially as regional dynamics shift towards greater collaboration. With substantial financial commitments, including the launch of new airlines and telecommunications projects, Syria is poised to emerge as a developing hub in the Middle East.
Syria and Saudi Arabia recently forged a transformative investment agreement encompassing aviation, energy, real estate, and telecommunications, as the new leadership in Damascus aims to rebuild the nation after a prolonged 14-year civil war. Talal al-Hilali, chief of the Syrian Investment Authority, unveiled a series of strategic deals on Saturday, highlighting plans for a new international airport in Aleppo and the formation of a low-cost Syrian-Saudi airline, alongside the ambitious SilkLink telecommunications initiative designed to establish Syria as a regional connectivity hub.
This new partnership signals Saudi Arabia’s ongoing support for Syria’s leadership, which assumed power following the ousting of longtime ruler Bashar al-Assad in December 2024. According to Saudi Investment Minister Khalid al-Falih, the newly inaugurated Elaf fund will channel billion (7.5 billion Saudi riyals) towards developing two airports in Aleppo, marking a historic investment surge since the lifting of U.S. sanctions in December.
Moreover, Abdulsalam Haykal, Syria’s minister of communications and information technology, forecasted nearly billion in upcoming telecommunications investments. These plans include laying thousands of kilometers of fiber optic cables to enhance connectivity between Asia and Europe, further positioning Syria as a critical regional player.
A noteworthy collaboration between Saudi budget carrier Flynas and the Syrian Civil Aviation Authority will see the establishment of “Flynas Syria,” a new airline with majority local ownership. Operations are set to commence in the fourth quarter of 2026, contributing to the revitalization of the aviation sector.
In the energy sector, the Syrian Ministry of Energy concluded a water supply agreement with ACWA Power, a prominent Saudi firm recognized for its projects in power generation and desalination throughout the Middle East.
Al-Hilali emphasized the importance of these agreements, claiming they focus on sectors crucial to improving citizens’ lives and serve as foundational elements for the revival of the Syrian economy. U.S. envoy to Syria, Tom Barrack, praised the Saudi-Syrian partnership on social media, asserting that investments in aviation, infrastructure, and telecommunications would effectively aid Syria’s reconstruction efforts.
However, skepticism remains, as highlighted by Benjamin Feve, a senior research analyst at Karam Shaar advisory. He cautioned that while these deals symbolize a significant political shift, they may not drastically alter the economic landscape in the short term. Additionally, the Syrian government has faced scrutiny over its tendency to offer broad development commitments to foreign investors, with many of these pledges still waiting to be solidified into enforceable contracts.
#MiddleEastNews #PoliticsNews