The Elaf Fund will finance a $2 billion project committed by Saudi investors to build two airports in Aleppo.

Syria and Saudi Arabia have signed a major investment plan covering aviation, energy, real estate and telecommunications, as Damascus’s new leadership seeks to rebuild after 14 devastating years. civil war.

Talal Hilali, the head of the Syrian Investment Authority, announced a series of deals on Saturday, including the development of a new international airport in Aleppo, the launch of a low-cost Syrian-Saudi airline, and a telecommunications project called SilkLink aimed at transforming the country into a regional hub.

Saudi Arabia has been a major backer of Syria’s new leader, who came to power after overthrowing a long-time ruler Bashar al-Assad The latest deal, in December 2024, marks the largest investment since the United States lifted sanctions on the country in December.

Saudi Investment Minister Khalid Al-Falih said that the newly established Elaf Fund, which aims to finance large-scale projects involving Saudi private sector investors, will invest $2 billion (7.5 billion Saudi riyals) to develop two airports in the Syrian city of Aleppo.

Rebuilding the Syrian Economy

Syrian Minister of Communications and Information Technology Abdussalam Haikal said that Syria will invest nearly $1 billion in the telecommunications field and plans to lay thousands of kilometers of cables to promote connectivity between Asia and Europe.

Saudi low-cost airline Flynas and the Syrian Civil Aviation Authority announced the signing of an agreement to establish a new airline called “Flynas Syria”. The Syrian side will own 51% of the airline’s shares and is expected to start operations in the fourth quarter of 2026.

Syria’s energy ministry also signed a water deal with Saudi Arabia’s ACWA Power, known for operating power generation and desalinated water production plant projects in the Middle East and elsewhere.

Hilali said the deals target “vital sectors that impact people’s lives and form an important pillar in rebuilding Syria’s economy.”

U.S. envoy to Syria Tom Barak praised the Saudi-Syrian agreement on X. “Strategic partnerships in aviation, infrastructure and telecommunications will make a meaningful contribution to Syria’s reconstruction efforts,” he said.

But Benjamin Feve, senior research analyst at Karam Shaar Advisory, struck a more cautious tone, saying the deals would serve “more as political signals than economic game-changers” in the short term.

The government has been criticized over the past year for making broad development commitments based on written commitments with foreign investors, many of which have yet to be translated into binding contracts.