Arada signs USD 7 bn Damascus development, and a Spanish marble firm eyes Homs

UAE-based developer Arada is entering Syria with a USD 7 bn real estate play. The developer signed an agreement with the Syrian Sovereign Fund for a 4 mn sqm development in the New Damascus area, according to the Syrian state news agency Sana. The project will include residential complexes, healthcare, education, and entertainment facilities.

Arada is the latest Gulf investor lining up capital for Syria’s reconstruction as Damascus looks abroad to rebuild an economy battered by more than a decade of war and sanctions. Syria has already signed USD bns worth of agreements and MoUs with Gulf and US investors. Arada is a JV co-owned by Sharjah’s Deputy Ruler Sheikh Sultan bin Ahmed Al Qasimi and Saudi Prince Khaled bin Alwaleed bin Talal Alsaud.

Spain is getting an early foothold in Syria’s reconstruction economy too: Syria’s Economy and Industry Ministry signed an MoU with Spanish marble firm Palmyra Mar to build a marble and natural-stone industrial zone inside Hassiya Industrial City in Homs, Sana reports. The first phase of the zone covers 200 hectares and an estimated USD 30 mn, with the full build-out potentially stretching to 1.4k hectares and USD 200 mn, Hassiya’s zone director tells Sana. Output is aimed at the domestic market first, exports to neighboring countries second.

The catch: Palmyra Mar’s chairman gave the agreement a three-month clock to start work, and said the company is counting on foreign investors to bankroll half the planned factories.

Back online

Ruwais is back online: Abu Dhabi’s Adnoc has fully resumed production at Ruwais, the UAE’s largest refinery, months after a drone strike forced operations to halt, Bloomberg reports, citing sources familiar with the matter. The 922k bbl / d facility has been running at full capacity for about a month, while exports of diesel, jet fuel, and naphtha have recovered to around 70% of pre-war levels.

BACKGROUND- The refinery was shut after an Iranian drone strike caused a fire back in March, after already running at reduced rates as Strait of Hormuz traffic constraints disrupted supplies. Ruwais is a major exporter of refined products, including diesel to Europe, making its return more significant as global product markets remain tight.

Trade and transition

Tunisia and Germany signed five agreements and financing contracts worth over EUR 100 mn targeting small and medium-sized businesses, the energy transition, digitalisation, and employment, with another EUR 40-mn-worth projects currently under study, the Arab Weekly reports.

ALSO- Tunisia is asking for changes to its Association Agreement with the EU that governs trade between the two nations. Germany is an important trade partner to Tunisia, coming third after France and Italy, particularly in the automotive, textiles and IT sectors. Tunisia holds a positive trade balance with Germany, exporting some EUR 3.3 bn worth of goods and services, almost 50% more than what Germany sends to the Tunisian markets.