Saudi Arabia is preparing to invest in a new private airline in Syria. The multi-billion-dollar package covering telecommunications, real estate and aviation will be the largest investment since sanctions were lifted.
Largest investment package after sanctions
Talal al-Hilali, Chairman of the Syrian Investment Authority, told Reuters on the sidelines of the World Government Summit in Dubai that Saudi investments would include telecommunications and real estate projects, with a particular focus on old city areas.
Hilali emphasised that most of the planned investments would take the form of directly executable contracts rather than non-binding memoranda of understanding. The total size of the investments was not disclosed. This package will be the most comprehensive investment move announced since the United States lifted its tough sanctions on Syria in December.
Aviation expansion centred on Aleppo
According to two Syrian sources close to the matter, the aviation investments also include contracts aimed at developing Aleppo International Airport. The newly established private airline is planned to begin operations in its initial phase with more than a dozen aircraft.
A senior Syrian businessman told Reuters that Saudi Arabia plans to provide insurance coverage for investments to be made in Syria, aiming to encourage Saudi companies to enter the country.
Strategic rapprochement on the Riyadh–Damascus line
Riyadh has become one of the close allies of Ahmed al-Sharaa, who overthrew Syrian President Bashar al-Assad around 14 months ago. Last year, Saudi Arabia made investment commitments worth USD 6.4 billion by signing 47 agreements with more than 100 Saudi companies operating in real estate, infrastructure and telecommunications.
The transitional Syrian government, meanwhile, faced criticism throughout last year over development promises made to foreign investors that were largely based on memoranda of understanding.
