Saudi Arabia Pledges to Invest More Than $6 Billion in Syria

New York Times

a day ago

Saudi Arabia announced on Thursday $6.4 billion worth of investments in Syria, the latest sign of the two countries' deepening relationship under the new Syrian government led by President Ahmed al-Shara.
The investment deals were unveiled by the Saudi investment minister, Khalid Al-Falih, at a forum involving more than 100 Saudi investors in Damascus, the Syrian capital.
Mr. al-Falih said that Prince Mohammed bin Salman, the de facto Saudi ruler, had ordered up the visit to signal 'confirmation of the kingdom's firm and supportive stance towards sisterly Syria.'
The investments, involving 47 agreements and more than 100 companies, would be an economic boon for Mr. al-Shara's nascent government. It faces the daunting task of rebuilding a country that was devastated by a nearly 14-year civil war and whose economy has been stifled by corruption and sanctions.
The deals include nearly $3 billion for infrastructure projects as well as around $1 billion for the telecommunications sector, according to Mr. Al-Falih.
They also underscore the shifting geopolitical landscape across the Middle East. Under the dictator Bashar al-Assad, who was ousted in December, Syria was closely allied with Iran, a Shiite theocracy often at odds with Saudi Arabia's Sunni monarchy. But under Mr. al-Shara, a former rebel leader with roots in a Sunni jihadist movement, Syria has pivoted away from Tehran and aligned closely with Gulf States.
As part of those shifts, the Saudi government has emerged as a key backer of Syria's new leadership. President al-Shara, who was born in Saudi Arabia and spent part of his childhood in Riyadh, the Saudi capital, made the city the site of his first official foreign visit in February.
'We have been waiting for this moment with the Kingdom of Saudi Arabia for decades — a moment we were unfortunately deprived of for 60 years due to personal reasons tied to the former regime,' said Syria's minister of economy and industry, Dr. Mohammad Nidal al-Shaar, at the Syrian-Saudi Investment Forum.
'Today, we move forward in building the new Syria,' he added.
The announcement comes during a broader wave of regional investment in Syria and follows President Trump's order last month lifting most U.S. sanctions against the country.
The new Syrian government signed a $7 billion electricity-sector deal with Qatar in May. In July, Syrian authorities signed an $800 million agreement with DP World, a global port operator owned by the Gulf emirate of Dubai, to develop the strategically located Mediterranean port of Tartus, formerly home to a major Russian naval base.
Saudi Arabia and Qatar have also jointly repaid Syria's $15.5 million debt to the World Bank, enabling it to qualify for new loans for badly needed reconstruction.
Reham Mourshed contributed reporting.