Saudi Arabia is planning a multi-bn-USD reconstruction drive for Syria: Major Saudi companies, including Acwa Power and telecom operator STC, plan to “drive bns of USD of actual capital to Syria within the next five years,” to rebuild Syria’s energy, financial, and telecom sectors, Saudi-Syrian Business Council CEO Abdullah Mando told Reuters on the sidelines of the Future Investment Initiative (FII9) in Riyadh last week.

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Investment-led recovery: Syria’s focus is on “reconstruction through investment” rather than aid, Syrian President Ahmed Al Sharaa addressed attendees during the Forum. The country is a trade corridor and has already attracted around USD 28 bn in investments in the first half of the year, nearly USD 7 bn of which was from Saudi companies, SPA reports him saying. The country has reformed its investment laws to favor investors and enable capital repatriation, with the framework ranked among the world’s top ten, he said.

IN CONTEXT- The World Bank estimates Syria’s reconstruction needs at USD 216 bn after 14 years of civil war.

Sharaa spotlighted investment prospects in real estate, tourism, agriculture, and energy, noting that Syria’s reconstruction needs have opened many windows for foreign investors. The country also holds significant gas reserves and strong logistics infrastructure.

Getting over the sanctions hump: Mando noted that despite strong investor interest, US Caesar sanctions currently block capital flows, leaving actual spending at “zero.” This comes after Saudi Arabia announced more than USD 6 bn in investment pledges for Syria in July. Both Saudi and Syrian officials expressed confidence that the sanctions will be lifted, with a US congressional decision expected by year-end following President Trump’s pledge to repeal them at the US-Saudi Investment Summit in May.

REMEMBER- Some USD 6.4 bn in agreements were activated during a joint investment roundtable in Damascus last week, focused on exploring new potential investments in priority sectors, including energy, communications, banking, real estate development, mining, and digital transformation. This built on a July Saudi-Syrian Investment Forum in Damascus produced 47 agreements worth over SAR 24 bn (USD 6.4 bn), with the real estate sector securing over SAR 7.2 bn.

Beyond infrastructure, Diriyah Gate Company is eyeing restoring Syria’s historic and cultural sites, while new talks cover potential cooperation in civil aviation, education, healthcare, and even a proposed rail link via Jordan.

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