Saudi Arabia seals multibillion-dollar deal in Syria, signalling closer ties

Syria and Saudi Arabia on Saturday signed a sweeping package of multibillion-dollar investment agreements, as Damascus’s new leadership seeks to rebuild after a devastating 14-year civil war that killed nearly half a million people and left the country’s economy and infrastructure in ruins.

Saudi Arabia has emerged as a major backer of Syria’s new leaders, who took power after toppling longtime ruler Bashar al-Assad in December 2024. The latest agreements mark the biggest foreign investment since the United States lifted sanctions on Syria in December, clearing the path for large-scale international capital to return.

At the centre of the package is a nearly USD 1 billion telecommunications development , which will be implemented in two phases over 18 months to two years. Syria’s Minister of Communications and Information Technology, Abdulsalam Haykal, said the project will involve laying about 4,500 kilometres of fibre-optic cables, building data centres and upgrading digital infrastructure to significantly boost internet connectivity between Asia and Europe. “The project contributes to making Syria an international telecommunications hub,” he said.

Saudi Investment Minister Khalid al-Falih said the project will be led by Saudi Telecom Company (STC Group) . He also announced the launch of the Elaf investment fund, which aims to finance large-scale projects with participation from Saudi private-sector investors. Under the agreements, the fund will commit USD 2 billion to develop two airports in the northern city of Aleppo, including a new international terminal and the redevelopment of the existing facility, with the combined capacity expected to reach 12 million passengers annually.

In the aviation sector, Saudi budget carrier Flynas and the Syrian Civil Aviation Authority signed an agreement to establish a new low-cost airline, Flynas Syria , which will be 51 percent owned by the Syrian side and is scheduled to begin operations in the fourth quarter of 2026, serving destinations across the Middle East, Africa and Europe.

Syria’s Ministry of Energy also signed a water agreement with ACWA Power , which is known for running major power generation and desalinated water production projects across the Middle East and beyond, addressing chronic electricity and water shortages in post-war Syria.

The agreements also include large-scale residential and commercial real estate developments and the creation of a Saudi-Syrian business council to oversee implementation. Saudi officials said that, including earlier announcements, Riyadh has now committed more than USD 6 billion across 47 investment agreements, underlining rapidly expanding economic ties between the two countries.

The deal drew international attention, with US envoy to Syria Tom Barrack praising the agreements, saying strategic partnerships in aviation, infrastructure and telecommunications would meaningfully contribute to Syria’s reconstruction.

However, analysts urged caution. Benjamin Feve , senior research analyst at Karam Shaar advisory, said the deals mattered “far more as a political signal than as an economic game changer” in the short term, noting that the Syrian government has previously faced criticism for announcing ambitious projects based on pledges that have yet to be converted into binding contracts.

Despite these concerns, Syrian and Saudi officials described the agreements as a decisive step towards rebuilding the country’s shattered economy and reintegrating Syria into regional and global markets after more than a decade of war.