Saudi Arabia is moving to full-scale economic integration with Syria — earmarking bnsof SAR to critical infrastructure that could anchor the Levant into the Gulf’s logistics and data networks. The agreements span aviation, telecoms, energy, infrastructure, and real estate, signaling a major push to help jumpstart the war-scarred economy.

The logistics play

First stop, rebuilding Aleppo airport: The Kingdom is committing SAR 7.5 bn — through its newly launched Elaf Fund — toward the redevelopment of Aleppo International Airport. The project is set to see Saudi public and private players build a new terminal, upgrade and operate the existing facility, and finance an integrated navigation radar system covering Syrian airspace.

Uh, what is the Elaf Fund, Enterprise? The Elaf Investment Fund, launched by Saudi Arabia and announced by Investment Minister Khalid Al Falih, aims to finance large-scale strategic projects in Syria, in partnership with Saudi private-sector investors, starting with the redevelopment and operation of Aleppo’s airports as part of wider reconstruction and economic cooperation efforts.

Why Aleppo? Our take is that this is a trade play — not just a travel play. The airport sits 186 km from Latakia, Syria’s main Mediterranean seaport, and serves as the natural bridge for land trade moving between Turkey, the Gulf, and Europe. In 2011, Aleppo was Syria’s “ industrial capital ” — home to 26% of the nation’s total industrial facilities and generating roughly 35% of its non-oil exports.

Up second, Flynas plants wings in Damascus: The aviation push also includes a joint venture between the Syrian Civil Aviation Authority and flynas to launch a new carrier, Nas Syria, for passenger and cargo operations, according to a press release. Syria will hold a 51% stake, and flynas will own the remaining 49%, with flights expected to begin in 4Q 2026.

Rebuilding connectivity

AND– STC will wire Syria: STC will develop Syria’s fiber-optic backbone, data centers, subsea links, and internet connectivity under the Silk Link project — investing more than SAR 3 bn. The network is set to extend over 4.5k km and deliver speeds exceeding 150 terabits per second, according to Sana. This builds on earlier talks in June with regional operators (including Zain, Etisalat, STC, and Ooredoo) over a roughly USD 300 mn fiber-optic rollout.

Utilities and manufacturing got some love too: Riyadh Cables Group will operate and upgrade the Syrian Modern Cable Company under an agreement with Syria’s sovereign fund, modernizing factories and transferring technical expertise. The move is set to position the Saudi manufacturer as a primary supplier for Syria’s eventual grid reconstruction and internet infrastructure.

Why it matters

A familiar playbook: The Kingdom’s strategy in Syria mirrors Riyadh’s domestic playbook of using state-linked firms to de-risk large-scale infrastructure wagers. This is the starting gun for Syria’s reconstruction era. Saudi Arabia providing investment coverage for its firms to enter Syria signals a massive reduction in sovereign risk for the broader regional private sector, hopefully drawing more capital to the Levantine nation.

What it means for Saudi: Riyadh’s shift from capital-rich donor to hands-on strategic operator signals a new approach to managing regional risk. Instead of relying on political agreements alone, the Kingdom is deploying infrastructure and telecoms to anchor influence, sideline rivals, and stabilize a post-conflict economy. For senior investors, the reopening of banking channels and the rollout of investment are the clearest indications yet that Syria is being drawn into Saudi Arabia’s economic orbit.

Why now? The latest agreements follow the full removal of US sanctions in late 2024 and build on a USD 6.4 bn Saudi investment pledge made in October.

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