Syria and Saudi Arabia Solidify Multi-Billion Dollar Investment Pacts Across Strategic Sectors

On Saturday, February 7, 2026, the People's Palace in Damascus served as the venue for the formalization of extensive investment treaties between the Syrian Arab Republic and the Kingdom of Saudi Arabia. This landmark event signifies a robust financial commitment from Riyadh toward the nascent Syrian leadership under Interim President Ahmad al-Sharaa, who assumed his role in January 2025. This economic pivot follows the removal of most Western sanctions after the collapse of Bashar al-Assad's regime in December 2024, facilitating the capital flow necessary for the nation's post-conflict reconstruction.

The high-profile signing ceremony was attended by President al-Sharaa and the Saudi Minister of Investment, Khalid al-Falih, highlighting the elevated level of diplomatic and economic cooperation between the two nations. The comprehensive agreements target several critical sectors, including telecommunications, aviation, infrastructure, and water management. A standout initiative is the "SilkLink" project, led by the Saudi Telecom Company (STC Group), which aims to install over 4,500 kilometers of fiber-optic cabling to transform Syria into a pivotal international telecommunications hub.

Valued at more than 3 billion Saudi riyals (approximately 1 billion US dollars), the "SilkLink" project is slated for completion within a timeframe of 18 months to two years. Syrian Communications Minister Abdulsalam Haykal noted that this venture positions the country as a vital global data transit corridor connecting Asian and European markets. This development aligns with reports from late 2025 regarding Saudi Arabia's interest in such connectivity to bolster its regional ambitions in the field of artificial intelligence.

In the transportation sector, the two nations agreed on ambitious plans to modernize Aleppo International Airport, with a target capacity of 12 million passengers annually. Furthermore, the partnership includes the establishment of a new joint low-cost carrier to be known as "Flynas Syria." These efforts are designed to revitalize the country's connectivity and stimulate economic activity through improved logistics and tourism potential.

The energy and utility sectors also saw significant progress as the Saudi giant ACWA Power entered into a major agreement with the Syrian Ministry of Energy and the National Water Transfer Group. This collaboration focuses on the construction of power generation facilities and advanced water desalination plants. Minister al-Falih described the water-related agreement as potentially the largest of its kind globally, addressing critical resource needs in the region.

To ensure the long-term success of these ventures, Saudi Arabia has committed to establishing a dedicated investment fund to support major Syrian projects, alongside a framework agreement covering 45 distinct development initiatives. These new deals build upon the momentum established in July 2025, when 47 investment agreements totaling over 6 billion dollars were signed. Additionally, in September 2025, ACWA Power had already reached an agreement with the Syrian government to develop approximately 2.5 GW of solar and wind power capacity, which includes the creation of a national training center.

This deepening economic integration orchestrated by Riyadh is viewed as a strategic maneuver to stabilize the new administration in Damascus. Despite the lifting of international sanctions, the country continues to grapple with a severe economic crisis and hyperinflation inherited from the previous era. The success of these multi-sector investments, involving major industrial players like STC Group and ACWA Power, will serve as a primary indicator of the durability of Syria's political and economic transition. The financial package finalized on February 7, 2026, stands as the most substantial support package provided to the country to date.