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Investment Minister Khalid Al Falih led a Saudi delegation to Damascus where agreements were reached in strategic sectors including aviation property telecommunications energy and infrastructure according to Syria’s state news agency Sana. The minister announced the launch of the Elaf Investment Fund which will finance major projects with participation from Saudi companies. Al Falih said the fund would commit 7.5 billion Saudi riyals equivalent to $2 billion to redevelop and operate airports in Aleppo over multiple phases. Sana reported that the visit built on previous economic cooperation between the two countries.
Aviation initiatives featured prominently in the new package with Saudi low-cost carrier flynas partnering the Syrian Civil Aviation Authority to establish flynas Syria. The joint venture will be 51 per cent owned by the Syrian authority and 49 per cent by flynas with operations scheduled to begin in the fourth quarter of 2026. It will serve destinations across the Middle East Africa and Europe. Bandar Almohanna chief executive of flynas said in a statement that the company was working at an accelerated pace to complete the necessary licensing procedures.
In telecommunications Saudi operator STC secured a contract to develop Syria’s fibre optics network data centres and internet connectivity through the Silk Link project. Al Falih stated that STC would invest more than 3 billion Saudi riyals in the initiative which aims to enhance regional connectivity. The Syrian energy ministry also signed an initial pact and joint development agreement with Acwa Power and the Saudi Water Transmission Company to collaborate in the water sector. These steps align with Damascus’s push to rebuild critical infrastructure after years of conflict.
Three additional agreements covered major modern residential and commercial property developments. The projects will fall under the oversight of the newly formed Saudi-Syrian business council that was officially established on the day of the announcements. Al Falih indicated that the council would help coordinate future joint efforts between private sector entities from both nations. The property deals form part of a wider effort to revive urban areas affected by the civil war.
Before the latest announcements the two sides had already signed 80 agreements worth more than 40 billion Saudi riyals in investments according to the Saudi minister. A year earlier Saudi Arabia had announced $6.4 billion across 47 deals involving more than 100 companies in sectors ranging from energy and industry to health and agriculture Reuters reported. The fresh pacts reflect deepening ties between Riyadh and Damascus following the toppling of the Assad regime in December 2024.
A World Bank assessment published in October 2025 estimated Syria’s post-conflict reconstruction costs at a best figure of $216 billion nearly ten times the country’s projected 2024 gross domestic product. The report placed physical damage to infrastructure residential and non-residential buildings at around $108 billion with infrastructure repair alone requiring $82 billion. US envoy to Syria Tom Barrack commended the latest Saudi-Syrian investment agreements on social media platform X saying strategic partnerships in aviation infrastructure and telecommunications would contribute meaningfully to Syria’s reconstruction efforts. The US lifting of stringent sanctions on Syria in December 2025 has facilitated greater foreign participation in the rebuilding process.
