Saudi Arabia Announces $2bn Investment Package for Syria Across Airports, Telecoms and Real Estate

Feb 7 (Reuters): Saudi Arabia on Saturday unveiled a wide-ranging investment package for Syria covering energy, aviation, real estate and telecommunications, signalling the Kingdom’s intent to emerge as a key supporter of Syria’s new leadership.

Saudi Investment Minister Khalid Al-Falih said Riyadh has launched an investment vehicle, the Elaf Fund, which will commit 7.5 billion Saudi riyals ($2 billion) to develop two airports in the northern city of Aleppo in multiple phases. The fund is designed to finance large-scale projects in Syria with participation from Saudi private-sector investors.

In the aviation sector, Saudi low-cost carrier flynas signed an agreement with the Syrian Civil Aviation Authority to establish a new airline, flynas Syria. Under the arrangement, the Syrian side will hold a 51 percent stake, while flynas will own 49 percent. The airline is expected to begin operations in the fourth quarter of 2026.

Saudi Arabia’s largest telecom operator, STC, will also invest more than three billion riyals (around $800 million) to upgrade Syria’s telecommunications infrastructure. According to the Saudi state news agency, the project will involve connecting Syria regionally and internationally through a fibre-optic network extending over more than 4,500 kilometres.

The announcements represent the largest investment push since the United States lifted sanctions on Syria in December. Saudi Arabia has backed President Ahmed Al-Sharaa since he assumed power in late 2024 following the removal of former president Bashar Al-Assad after years of conflict.

The lifting of sanctions had been a major hurdle to Syria’s economic recovery after a 14-year civil war that severely damaged infrastructure and displaced millions. Welcoming the agreements, U.S. envoy to Syria Tom Barrack said on X that strategic partnerships in aviation, infrastructure and telecommunications would play an important role in Syria’s reconstruction.

Last year, Riyadh had announced $6.4 billion in investments through 47 agreements involving more than 100 Saudi companies operating in real estate, infrastructure and telecoms. In addition, both sides signed memorandums of understanding and a joint development agreement with ACWA Power and the Saudi Water Transmission Company to outline cooperation in the water sector.

Syria’s Energy Minister Mohamed Al-Bashir said plans are also in place to establish a seawater desalination plant to supply fresh water from the Syrian coast to southern regions of the country.

Despite the new announcements, Syria’s interim government has faced criticism for relying heavily on memorandums of understanding with foreign investors, many of which have yet to be converted into binding contracts.