Saudi Arabia and Syria: 5 strategic agreements including aviation and energy
In a move reflecting a significant development in economic relations between the two countries, the Syrian capital, Damascus, witnessed the signing of five important strategic agreements between a group of major Saudi companies and Syrian government entities. This event coincided with a visit by a high-level Saudi delegation, headed by the Minister of Investment, aimed at strengthening joint cooperation and exploring promising investment opportunities that serve the interests of both sides.
Details of the five signed agreements
The agreements covered vital sectors that form the backbone of infrastructure and services, and their details, as announced, are as follows:
- Communications and Technology Sector: The “Silak Link” project agreement was signed between Saudi Telecom Company (stc) and the Syrian Ministry of Communications, a step aimed at enhancing digital connectivity and developing the communications infrastructure.
- Aviation and Airports Sector: An agreement was signed between the Elaf Fund and the Syrian Airlines Corporation to develop and operate Aleppo International Airport, which will contribute to reactivating air traffic in northern Syria. An agreement was also reached to establish a new airline in partnership between Flynas and Syrian Airlines.
- Industry and Infrastructure Sector: Riyadh Cables Company signed a strategic agreement with the Syrian Sovereign Fund to support electricity and infrastructure projects needed by Syria in the reconstruction phase.
- Water and Energy Sector: It was agreed that the Saudi companies “ACWA Power” and “Water Transport” would undertake the tasks of developing desalination and water transport projects in Syria, a vital sector that suffers from major challenges.
Context of the transformation in economic relations
These agreements represent the culmination of a recent diplomatic opening in the region, marked by the resumption of diplomatic relations between Riyadh and Damascus and Syria's return to its seat in the Arab League. This high-level economic visit is a clear indication of the transition from political normalization to active economic partnership.
Strategic and economic importance
These agreements carry significant economic implications, as Syria represents a promising market for Saudi infrastructure and construction companies, particularly given the country's need for reconstruction projects after years of war. For the Syrian side, the entry of companies the size of ACWA Power, stc, and Flynas represents a golden opportunity to attract the capital and technical expertise necessary to revitalize the local economy and improve essential services for citizens.
This move is expected to open the door to more Arab and foreign investments, as the Saudi move is often seen as a confidence indicator and a catalyst for regional markets, which may contribute to accelerating the economic recovery in Syria and enhancing stability in the region in general.
