Saudi Arabia pledges multi-billion dollar investment package for Syrian reconstruction

Saudi Arabia has committed to a multi-billion dollar investment package in Syria, which includes the establishment of a new private Syrian airline.

According to Reuters, these latest planned investments represent the most significant financial commitment announced since the US lifted its heavy sanctions on Syria in December.

Talal al-Hilali, the head of the investment authority for Syria’s new administration, told Reuters on Tuesday during the World Government Summit in Dubai that Saudi investments will span telecommunications and real estate, with a specific focus on projects within historic old cities.

Al-Hilali emphasized that the majority of the planned investments would be structured as “ready-to-implement” contracts rather than non-binding memorandums of understanding (MOUs).

The official declined to disclose the specific total valuation of the investments.

Riyadh has emerged as a primary ally of Syria’s interim leader, Ahmed Shara (Abu Mohammed al-Julani).

Last year, Riyadh announced $6.4 billion in investments distributed across 47 agreements involving more than 100 Saudi companies active in the real estate, infrastructure, and telecommunications sectors.

The interim government faced criticism last year for making broad development pledges based on MOUs signed with foreign investors, as many of these agreements have not yet transitioned into binding contracts.

Two Syrian sources familiar with the matter stated that the aviation investments will include contracts for the redevelopment of Aleppo International Airport.

The company bidding for the airport tender is BinDawood.

A senior Syrian businessman familiar with the developments told Reuters that Saudi Arabia intends to provide insurance coverage for investments conducted in Syria, a move designed to incentivize Saudi firms to enter the market.

According to Argaam, citing Al Arabiya, the company planning to launch the new airline in Syria is the Saudi low-cost carrier Flynas.

The new private airline is expected to begin operations with a fleet of more than a dozen aircraft.

Sources added that three major Saudi corporations are planning to invest in large-scale projects across Syria.

Acwa Power intends to sign an agreement to develop water treatment and transmission projects.

STC is preparing to sign a deal to modernize and expand telecommunications infrastructure.