Saudi Arabia on Saturday announced a major investment package in Syria spanning energy, aviation, real estate and communications, as the kingdom positions itself as a leading supporter of Syria’s new leadership.
Saudi Arabia will launch an investment fund in Syria and spend 7.5 billion Saudi riyals ($2 billion) to develop two airports in the Syrian city of Aleppo in multiple stages, Saudi Investment Minister Khalid al-Falih announced on Saturday.
Falih added that the Elaf Fund aims to finance large-scale projects in Syria with the participation of Saudi private investors.
In civil aviation, Saudi Arabia’s low-cost airline Flynas and the Syrian Civil Aviation Authority have signed an agreement to establish a new airline, Flynas Syria.
The joint venture will be 51% owned by Syria and 49% by Flynas, and is expected to begin operations in the fourth quarter of 2026, the company said.
Saudi Arabia’s largest telecommunications operator STC will also invest more than 3 billion riyals ($799.96 million) to “strengthen communications infrastructure and connect Syria regionally and internationally through more than 4,500 kilometers of fiber-optic networks,” the state news agency said.
Saudi Arabia supports new leadership in Syria
The investment is the largest announcement since the US lifted sanctions on Syria in December. Saudi Arabia has supported President Ahmed al-Sharat since he came to power in late 2024 following the ouster of President Bashar al-Assad, leader of the Islamist opposition coalition.
The sanctions were a major obstacle to Syria’s economic recovery after a 14-year civil war that deeply damaged large parts of the country and displaced millions of people.
“We applaud the Saudi-Syrian investment agreement announced this week. Our strategic partnership in aviation, infrastructure and telecommunications will meaningfully contribute to Syria’s recovery efforts,” Tom Barrack, the US special envoy to Syria, told X.
Last year, Riyadh announced a $6.4 billion investment divided into 47 deals with more than 100 Saudi companies working in the real estate, infrastructure and communications sectors.
The two countries also signed a memorandum of understanding and joint development agreement with Saudi Arabia’s ACWA Power and Saudi Water Company, setting out a roadmap for cooperation in the water sector.
“We have developed a plan to establish a desalination plant with the aim of supplying fresh water from the Syrian coast to the south of the country,” said Syrian Energy Minister Mohamed Al Bashir.
The interim government has faced criticism over the past year for making extensive development commitments under memorandums of understanding with foreign investors, many of which have yet to be translated into binding contracts.
($1 = 3.7502 riyals) (Reporting by Enas Alashray and Jaidaa Taha; Editing by Aidan Lewis and Louise Heavens)
