UAE’s National Investment Corporation to develop USD 2 bn Damascus Metro

UAE backs Syria’s new Damascus Metro project: Abu Dhabi developer and investor the National Investment Corporation inked a USD 2 bn agreement with Syria’s Transportation Ministry to develop a new metro system in Damascus, the Washington Post and Reuters report, citing Syrian news agency Sana. The new metro network is slated to have a carrying capacity of 750k passengers per day. No timeline was disclosed for the project.

IN CONTEXT- Syria inked nearly USD 14 bn worth in agreements with international companies for 12 infrastructure projects, Syrian investment authority head Talal Al Halili said this week. Among those are a USD 4 bn expansion of Damascus International Airport, for which it tapped Qatar-based UCC Holdings, as well as another USD 2 bn project for the construction of 60 residential tower blocks — with some 20k housing units — in the works with an Italian firm.

Not the UAE’s first venture into Syria: State-owned logistics giant DP World inked a 30-year concession agreement with Syria's General Authority for Land and Sea Ports (GALSP) to develop and operate Tartous Port in Syria last month. Under the agreement, DP World will invest USD 800 mn over the concession’s duration to boost the port’s infrastructure in a bid to facilitate trade across Europe, the Middle East, and North Africa.

Why the sudden interest? The agreement came shortly after US President Donald Trump lifted long-standing sanctions in place against Syria during the first leg of his regional tour in Riyadh in May. The move brings in much-needed investments to the country, helping restore its infrastructure and revive its economy. Saudi Arabia has also been pitching in, with USD 6.4 bn in agreements inked last month for the reconstruction of infrastructure in the country.