DAMASCUS: Syria and Saudi Arabia signed deals Saturday that include a joint airline and a $1-billion project to develop telecommunications, officials said, as Syria seeks to rebuild after years of war.
Saudi Arabia has been a major backer of Syria's Islamist authorities, who took power after toppling longtime ruler Bashar al-Assad in December 2024.
The new authorities in Damascus have worked to attract investment and have signed major agreements with several companies and governments, including Saudi Arabia and other Gulf states.
Syrian Investment Authority chief Talal al-Hilali announced a series of deals, including "a low-cost Syrian-Saudi airline aimed at strengthening regional and international air links."
The agreement also includes the development of a new international airport in the northern city of Aleppo with a capacity of 12 million passengers and the redevelopment of the existing facility, according to Governor Azzam al-Gharib.
Hilali also announced an agreement for a project called SilkLink to develop Syria's "telecommunications infrastructure and digital connectivity."
Syrian Telecommunications Minister Abdulsalam Haykal told the signing ceremony that the project would be implemented "with an investment of around $1 billion."
For decades, Syria was unable to secure significant investments because of Assad-era sanctions.
But the United States fully removed its remaining sanctions on Damascus late last year, paving the way for the full return of investments.
'Strategic partnership'
Syria and Saudi Arabia also inked an agreement on water desalination and development cooperation on Saturday.
At the ceremony, Saudi Investment Minister Khalid Al-Falih announced the launch of an investment fund for "major projects in Syria with the participation of the (Saudi) private sector."
The deals are part of "building a strategic partnership" between the two countries, he said.
An official at the Saudi Ministry of Investment told AFP that the investments announced on Saturday were "a practical translation of the great interest and support that the Kingdom's leadership gives to Syria."
Syria's Hilali said the agreements targeted "vital sectors that impact people's lives and form essential pillars for rebuilding the Syrian economy".
Syria has begun the mammoth task of trying to rebuild its shattered infrastructure and economy after over a decade of civil war.
US envoy to Syria Tom Barrack applauded the deals, saying, "Strategic partnerships in aviation, infrastructure, and telecommunications will contribute meaningfully to Syria's reconstruction efforts."
But Benjamin Feve, senior research analyst at Karam Shaar Advisory, was more cautious.
"In the short term, I'd say that these deals matter far more as a political signal than as an economic game changer," he said.
"From a reconstruction perspective, these projects are not priorities, nor are they sufficient to rebuild the country."
In July last year, Riyadh signed investment and partnership deals with Damascus valued at $6.4 billion to help rebuild the country's infrastructure, telecommunications, and other major sectors.
A month later, Syria signed agreements worth more than $14 billion, including investments in Damascus airport and other transport and real estate projects.
This week, Syria signed a preliminary deal with US energy giant Chevron and Qatari firm Power International to explore for oil and gas offshore.
