Saudi Arabia leads $6.4bn worth of economic deals for Syria

More than 100 Saudi and international companies set to sign 47 agreements at Saudi-Syria Investment Forum

Saudi Investment Minister Khalid Al Falih, fourth from left, and his delegation are received at Damascus International Airport. AFP

Saudi Arabia has led agreements with Syria worth 24 billion Saudi riyals ($6.4 billion) as the kingdom invests in Damascus's economy to support the rebuilding of the country after more than a decade of civil war.

A total of 47 deals from more than 100 Saudi and international companies are to be signed at the Syrian-Saudi Investment Forum in Damascus on Thursday, Saudi Investment Minister Khalid Al Falih said at the event.

They cover key sectors including energy, industry, infrastructure, real estate, financial services, health, agriculture, communications and information technology, he said. Several projects were launched on Wednesday, Mr Al Falih added.

Investments in the real estate and infrastructure sectors will exceed 11 billion riyals, including the development of three new cement factories to "secure the basic materials needed for construction and strengthening supply chains", Mr Al Falih said.

Separately on Thursday, Al Badia Cement announced more than $200 million worth of investments to expand its operations and develop a second production line, which would boost its annual production to more than five million tonnes, the state-owned Syrian Arab News Agency said.

"In achieving the common goals between the two countries, and our encouragement of Saudi investors, we will ... specifically encourage international investors to explore investment opportunities in this country, and to contribute to its strategic projects," he added.

The agreements are a major victory for Syrian President Ahmad Al Shara, who has been leading the country's rebuilding strategy after the downfall of former president Bashar Al Assad in December last year.

The Syrian economy has been devastated by a civil war that began in 2011. The UN Development Programme estimates cumulative losses, including physical damage and economic deprivation, at $923 billion as of the end of last year. The estimated cost of reconstruction has varied from $250 billion to $500 billion.

After the Assad regime was toppled in a rebel offensive, the situation in Syria has been improving, with western sanctions lifted earlier this year. Gulf states are moving quickly to invest in Syria’s post-Assad future, launching diplomatic, financial and infrastructure support.

In May, Saudi Arabia and Qatar jointly paid off Syria’s $15.5 million debt to the World Bank, unlocking access to critical reconstruction grants. Also that month, Damascus signed a $7 billion deal with a consortium of companies led by Qatar's UCC Holding to add 5,000 megawatts to the national grid. The deal is aimed at doubling Syria's power supply to boost its postwar economy.

Dubai port operator DP World signed an $800 million agreement to develop the port of Tartus, while Emirati businessman Khalaf Al Habtoor said he would be considering investments in Syria.

Saudi Arabia announces $6.4 billion in Syria investments

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Mr Al Shara also held talks with Saudi Crown Prince Mohammed bin Salman in Riyadh in February, with the leaders discussing collaboration in the fields of energy, technology, education and health, Syria's state news agency Sana reported at the time.

The Syrian government this month amended the country's investment law, in a move that is expected to support more domestic and foreign investment in the country.