Syria and Saudi Arabia on Feb. 7, 2026, formally opened a new chapter in their economic relations by signing a series of agreements described as laying the foundation for a long-term strategic partnership between the two countries.
The agreements include establishing a joint airline, developing telecommunications infrastructure, building a new airport in northern Syria, and upgrading Aleppo’s existing airport to raise its capacity to 12 million passengers annually.
During the signing ceremony, former Saudi Investment Minister Khalid al-Falih — who was relieved of his post the same day — said the agreements reflected guidance and support from the leadership of both countries aimed at building a long-term strategic partnership.
An agreement was also signed to establish the “Silk Link” project to develop telecommunications infrastructure and enhance digital connectivity between continents through Syria. The project is expected to be implemented with an investment of nearly $1 billion in two phases spanning 18 to 48 months, with gradual rollout of operations.
Officials also announced the launch of the Saudi Elaf Investment Fund for major projects in Syria, with participation from the Saudi private sector.
Reuters reported that U.S.-based natural gas companies Baker Hughes, Hunt Energy and Argent LNG plan to form a consortium with Saudi firms ACWA Power and TAQA to explore and produce oil and gas in northeastern Syria. The project could include four to five exploratory sites in the region, according to two sources cited by the news agency.
Saudi Arabia’s expanding economic presence follows Riyadh’s opening toward Damascus after the fall of Bashar Assad’s government and signals engagement that goes beyond traditional diplomatic normalization toward involvement in key sectors of Syria’s economy.
Political Considerations
Questions remain about the safety of Syria’s investment environment, as the country continues to face internal tensions and Israeli incursions.
Still, political considerations extend beyond those risks. Saudi academic Khaled Batterfee said Syria “represents an arena for restoring Arab balance,” noting that during the war years the country remained open to competition among non-Arab regional powers.
“Today, the kingdom seeks to reintegrate Syria into the Arab system so that Arab presence becomes the primary guarantor of its unity and sovereignty, rather than leaving a vacuum exploited by competing regional powers,” he told Alhurra.
Neighboring countries have long complained about the spillover of security crises and crime from Syria, including militant activity, arms and drug smuggling, and organized crime.
For that reason, Batterfee said Saudi investment in Syria is “an investment in Saudi Arabia’s regional security,” adding that from a Saudi national security perspective Syria “is not a distant arena.”
Syria historically played a major role in regional affairs because of its political, military, economic and geographic weight before becoming a theater of international conflict after the 2011 uprising.
Osama al-Qadi, senior adviser to Syria’s Ministry of Industry and Economy, told Alhurra that “Syria is the state that broke the back of the Persian project,” which he described as a direct threat to Saudi Arabia and other regional countries that caused significant damage.
Investment Environment and Outlook
Many observers say Syria’s economy has yet to attract broad investor interest. Batterfee, however, said the country has shifted over the past two years “from a logic of war and sanctions to one of reconstruction and openness,” citing economic and legislative reforms and growing openness to Gulf and Saudi investment following the government’s collapse.
The lifting of sanctions opened the way for foreign investment, while new authorities worked to improve security conditions and establish an appropriate legal framework, he said.
Al-Qadi noted that several important laws were issued over the past year, most notably Investment Law No. 114, which he said fully guarantees investors’ rights and criminalizes the seizure of foreign investment entering the country.
He added that government institutions have clear instructions to facilitate licensing procedures and support investors, alongside tax exemptions for investments in health, education and agriculture.
Investors in Syria had long complained of widespread corruption, harassment by security services and the absence of an independent judiciary.
Batterfee said the current government has pledged to modernize investment legislation and unify economic authority as part of a broader effort tied to Syria’s return to the Arab fold and the opening of reconstruction efforts.
He added that Riyadh’s interest in Syria goes beyond short-term financial considerations, reflecting what he described as a strategic bet on reintegrating a pivotal Arab state into a more stable regional order and shifting a country emerging from prolonged war from reliance on aid toward investment and shared development.
The article is a translation of the original Arabic.
Sakina Abdallah
A Saudi writer, researcher, and TV presenter
