UPDATE - Saudi Arabia, Syria sign $5.3 billion in agreements across key sectors

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By Laith Al-Janidi

ISTANBUL (AA) - Saudi Arabia and Syria signed five agreements worth $5.3 billion on Saturday to support key sectors including aviation, telecommunications and water, SANA news agency reported.

The agreements were signed in Damascus as part of broader efforts to boost investment and economic cooperation between Saudi Arabia and Syria.

The ceremony was held at the People’s Palace and attended by Syrian President Ahmad al-Sharaa and Saudi Investment Minister Khalid Al-Falih.

Talal al-Hilali, head of the Syrian Investment Authority, said the parties gathered to sign several “strategic agreements” in vital sectors that directly affect citizens’ lives.

The deals aim to strengthen telecommunications infrastructure, develop digital connectivity systems and shape a new phase of partnership based on mutual trust and respect, he added.

Al-Falih said Saudi Arabia stands alongside Syria and supports its path toward recovery, growth and stability. He announced the launch of work to establish the Elaf Fund for investment in major projects and the activation of banking transfer channels between the two countries.

He said an agreement would also be signed for the Silk Link project, describing it as one of Syria’s largest digital infrastructure projects and potentially among the biggest globally

The parties would sign what he described as the world’s largest water agreement under the sponsorship of Saudi firm ACWA Power, Al-Falih added, without providing further details.

Syrian Communications Minister Abdulsalam Haykal said the country has adopted a strategy that leverages its geographic location to become an international data transit corridor. He said the Silk Link project would help “cement Syria’s position as a global connectivity hub.”

Syrian Civil Aviation Authority head Omar al-Husri also announced two major agreements: one to develop and operate Aleppo International Airport and another to establish a new low-cost national carrier named Nas Syria. He said the steps would return Syria “strongly” to the international aviation network.

The agreements include projects to develop water desalination and transfer systems through the preparation of economic, technical and financial feasibility studies. They cover a major overhaul of Syria’s telecommunications infrastructure, including the extension of fiber-optic cables and the establishment of data centers to improve internet services and position Syria as a regional hub for data transit and international connectivity.

The contracts also include operating and developing the Modern Syrian Cables Company, upgrading the national platform for vocational, technical and professional training, and signing a framework agreement for development cooperation, the agency said.

Besides, the two sides launched 45 joint initiatives between the Syrian Development Fund and the Saudi Development Committee.

Al-Falih said the investment agreements signed are expected to be valued at about 20 billion Saudi riyals, or roughly $5.3 billion, in comments to the Saudi newspaper Asharq following the signing ceremony.

The new agreements add to previously signed memorandums and deals between the two countries worth about 40 billion riyals, bringing total Saudi investments in Syria to around 60 billion riyals, or about $16 billion, he added.

“These investments lay the foundation for a broader launch of Saudi investments in Syria,” Al-Falih said.

Earlier on Saturday, a Saudi economic delegation led by Al-Falih arrived in the Syrian capital to announce the strategic contracts as part of efforts to boost investment and economic cooperation.

The delegation includes Saudi Communications Minister Abdullah Al-Swaha and Civil Aviation Authority President Abdulaziz Al-Duailej, along with other officials.

Saudi Arabia has been among the region’s most supportive states of Syria’s new administration since the ouster of the Assad regime, and the two countries have intensified high-level exchanges and signed multiple agreements, particularly in the economic sphere, to support Syria’s reconstruction

*Writing by Mohammad Sio