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Saudi Arabia Commits $5 Billion to Syria’s Reconstruction with Strategic Investment Drive

Prime Highlights

  • Saudi Arabia allocates SR 19 billion ($5 billion) of investment pledges towards rebuilding Syria after the war.
  • They span from tourism and energy, to infrastructure and real estate.

Key Facts

  • They include Syria’s inaugural white cement factory and a $100 million Damascus skyscraper.
  • Syria’s new investment law is foreign capital friendly.

Key Background

Saudi Arabia took a historic step with the announcement of near $5 billion in Syrian investments, a giant step towards the revival of political and economic relations. A Saudi delegation led by Saudi Investment Minister Khalid Al-Falih went to Damascus and participated in the Saudi-Syria Investment Forum along with more than 150 public and private sector delegations.

The forum witnessed a series of domino-like strategic transactions in strategic sectors like infrastructure, real estate, tourism, IT, logistics, energy, and industrial development. Fayhaa White Cement Factory in Adra Industrial City is among the most highlighted projects, with Syria being the initial owner and Saudi Northern Region Cement Co. subsidizing it to the value of $20 million. The factory will create more than 1,000 direct and indirect jobs in Syria’s rebuilding process.

One of the other flagships is the Al-Jawhara Plaza Tower, a 32-storey residential and office skyscraper constructed in the heart of the city of Damascus. The $100 million skyscraper will introduce modernity to the city’s face and is an indicator of Saudi investors’ faith in Syria’s economic resurgence.

Syria recently overhauled its investment law when it desired to attract foreign capital. The new law is clearer, more efficient in procedures, and has greater private sector involvement. All of these are intended to attract both local and foreign investors to actively engage in rebuilding the nation.

The Saudi Arabian move to increase its economic engagement with Syria follows the reopening of its embassy in Damascus in 2024. It marks the stage for a new emphasis on cooperation and stability within the region through strategic investment. The investment benefits Syria during its recovery phase as well as puts the Kingdom in the center as the focal Middle East economic diplomacy actor.