Syria to expand main airport and build subway in $14 billion deal with foreign partners

UAE and Qatar among key supporters for major infrastructure projects

The new Syrian government has announced the country's largest foreign investment deal in years, with $14 billion to modernise infrastructure.

The funding will go towards upgrading Damascus airport and the revival of a long-abandoned plan to construct a metro system in the capital, among other projects.

"We are announcing a group of 12 major strategic projects for a total of $14 billion," Talal Al Hilali, head of the Syrian Investment Authority, said at the ceremony at the presidential palace on Wednesday.

The plans include a $4 billion agreement for Damascus airport with Qatar's UCC Holding; a deal worth more than $2 billion for a mall and two towers, signed with Italy-based construction company Ubako; and $2 billion for a Damascus metro system.

The metro deal follows talks between a delegation from the UAE's National Investment Corporation, Syrian Minister of Transport Yarub Badr and Damascus Governor Maher Marwan.

The projects "will extend across Syria and represent a qualitative shift in infrastructure and economic life", Mr Al Hilali said.

President Ahmad Al Shara and US special envoy for Syria Tom Barrack were at the signing ceremony.

Mr Barrack congratulated Syrian authorities on "another great accomplishment", saying they will witness the rise of a "new hub" in "trade and prosperity".

Foreign investment in Syria was enabled by US President Donald Trump's decision to lift sanctions imposed during Mr Al Assad's rule. The EU followed soon afterwards.

US special envoy for Syria Tom Barrack attends the signing ceremony for investment projects in Syria, in Damascus on Wednesday. Reuters

"The future of a prosperous and peaceful Syria is in the hands of Syria and its regional partners, like Qatar’s UCC and Turkey’s Cengiz and Kalyon groups who were awarded the Build-Operate-Transfer for the new Damascus International Airport," Mr Barrack said in a post on social media.

"The path to recovery must begin with the fits and starts of building a foundation of security and stability, then followed by government systems and ultimately enterprise and prosperity."

The UN has estimated that Syria's postwar reconstruction will cost more than $400 billion.

Several agreements have already been announced.

Last month, Saudi Arabia signed major investment and partnership deals with Syria, valued at $6.4 billion.

Also in July, Syria signed an $800 million deal with UAE-based company DP World to develop the port of Tartus, state media reported.

In May, Syria signed a $7 billion energy deal with a consortium of Qatari, Turkish and US companies as it seeks to revive its crippled power sector.

Mr Al Hilali said the signing ceremony on Wednesday was "a clear declaration that Syria is open to investment, determined to build a prosperous future, and ready to work side by side with our trusted partners to write a new chapter of progress and development”, Syrian state news agency Sana reported.

The announcement of the new deals came as a Syrian business delegation was visiting Turkey to promote trade ties.