Saudi Arabia Unveils Significant Investment in Syria
On Saturday, Saudi Arabia announced a substantial investment initiative in Syria, focusing on sectors such as energy, aviation, real estate, and telecommunications. This move highlights the kingdom’s support for Syria’s new leadership.
The Saudi investment minister, Khalid al-Falih, revealed the creation of an investment fund that will allocate 7.5 billion Saudi riyals (around $2 billion) to upgrade two airports in Aleppo over several phases. This fund, named the Elaf Fund, aims to back large-scale projects in Syria, involving various private-sector contributors from Saudi Arabia.
In the aviation sector, Saudi budget airline flynas has entered into a partnership with the Syrian Civil Aviation Authority to launch a new airline called “flynas Syria.” The joint venture will see 51% ownership held by the Syrian side and 49% by flynas, with plans to start operations in the last quarter of 2026.
This announcement marks the largest investment since the U.S. lifted sanctions on Syria in December. Saudi Arabia has been an ally of President Ahmed al-Sharaa, who took office in late 2024 following the removal of former President Bashar al-Assad.
The previous sanctions had greatly hindered Syria’s economic recovery after a lengthy civil war that caused widespread destruction and displaced millions. Last year, Riyadh also rolled out a $6.4 billion investment plan through 47 contracts involving over 100 Saudi companies active in real estate, infrastructure, and telecommunications.
Additionally, both countries have signed a memorandum of understanding and a joint development agreement with Saudi Arabia’s ACWA Power and the Saudi Water Transmission Company, outlining a strategy for collaboration in the water sector. Syria’s Energy Minister, Mohamed al-Bashir, expressed plans to build a seawater desalination plant aimed at supplying fresh water from the coast to the southern regions of the country.
However, the interim government in Syria has faced some criticism lately regarding its ambitious development promises, particularly those based on agreements with foreign investors that have yet to be finalized into binding contracts.
