Saudi Arabia announces major new Syria investments

Saudi Arabia announced on Saturday a major investment package in Syria spanning energy, aviation, real estate ⁠and telecommunications, as the kingdom positions itself as a leading backer of Syria's new leadership.

Saudi Arabia launched an investment fund in ‍Syria that will commit 7.5 billion Saudi riyals ($2 billion) to develop two airports in the Syrian city of Aleppo over ‌multiple phases, Saudi investment minister Khalid al-Falih said ‍on Saturday.

The Elaf Fund aims to finance large-scale projects in Syria with participation from Saudi private-sector investors, Falih added.

In civil aviation, Saudi budget carrier flynas and the Syrian Civil Aviation Authority signed an agreement to establish a new airline, "flynas Syria".

The joint venture will be 51% owned by the Syrian side and 49% by flynas, with operations expected to begin in the fourth quarter of 2026, the company said.

SAUDI ARABIA BACKS SYRIA'S NEW LEADERSHIP

The latest investments mark the largest such ⁠announcement since the U.S. lifted sanctions on Syria in December, as Saudi Arabia has supported President Ahmed al-Sharaa since he came to power in late 2024, following the ouster of President Bashar al-Assad at the head of a coalition of Islamist opposition factions.

The sanctions had been a significant obstacle to Syria's economic revival after a 14-year civil war that inflicted deep damage on much of the ‌country and displaced millions of people.

Last year, Riyadh announced $6.4 billion of investments, split into 47 deals with more than 100 Saudi companies working in real estate, infrastructure and telecoms.

The two sides also signed a memorandum of understanding and a ‍joint development agreement with Saudi Arabia's ACWA Power and the Saudi Water Transmission Company, setting out a roadmap for cooperation ‍in the water ‍sector.

"We have drawn up plans to establish a ⁠seawater desalination plant, with the aim of ‍delivering fresh water from the Syrian coast to the south of the country," said Syria's Energy Minister Mohamed al-Bashir.

The interim government has faced criticism over the past year for making broad development promises based on MoUs with foreign ⁠investors, many of ‌which have yet to be converted into binding contracts.