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Saudi Arabian companies are gearing up to channel billions of dollars into Syria's reconstruction, targeting energy, telecommunications and financial infrastructure. The move is led by the Saudi-Syrian Business Council and includes firms such as ACWA Power and STC. The kingdom has already pledged more than USD 6 billion for Syria, covering real estate, infrastructure and telecoms. However, U.S. sanctions-most notably the Caesar Act still hamper the flow of capital. Saudi Arabia's strategy aligns with its Vision 2030 economic diversification while also seeking to reintegrate Syria into the regional fold.
Saudi Arabia's major firms are preparing significant investments in Syria, with plans extending to energy, telecommunications and financial infrastructure in an effort to support the country's recovery. The Saudi-Syrian Business Council, under CEO Abdullah Mando, outlined that companies like ACWA Power and STC are among those looking to enter Syria's market. Mando said their objective is to drive 'billions of dollars of actual capital' into Syria within the next five years. Advertisement
The Saudi push comes as Syria seeks to rebuild after nearly 14 years of conflict. The World Bank estimates reconstruction costs at about USD 216 billion. In July, Saudi Arabia announced investments exceeding USD 6 billion including around USD 2.93 billion for real estate and infrastructure, and about USD 1.07 billion for telecommunications and IT.
Despite this momentum, U.S. sanctions remain a formidable barrier. The toughest restrictions are imposed through the Caesar Act, which only the U.S. Congress can repeal. Mando described those measures as the 'final chokehold on the Syrian economy'. A U.S. State Department spokesperson said the administration supports repealing the sanctions via the National Defense Authorization Act and welcomes investments that promote stability in Syria.
Saudi Arabia has also extended its interest beyond basic infrastructure. Talks are underway for Saudi involvement in Syria's civil aviation, education and healthcare sectors, and discussions include establishing a rail link via Jordan. Memorandums of understanding have been signed with Qatari and Emirati firms for energy and infrastructure projects, though actual capital flows remain limited. Syrian officials say this is mainly due to sanctions and a weak financial system.
Riyadh's engagement in Syria is not only business-driven but also geopolitical and aligns with the kingdom's Vision 2030 to reduce reliance on oil and become a regional connectivity hub. Analysts say the strategy recognises that Saudi Arabia's long-term prosperity is tied to the stability and reintegration of its neighbourhood.
At the recent Future Investment Initiative in Riyadh, Syrian President Ahmed al?Sharaa, who recently oversaw the ouster of the previous regime, said that Syria has chosen to reconstruct through investment rather than aid. This marks a shift in how Syrian authorities are presenting the reconstruction challenge to the world.
Source Reuters
5th Jun, 2025
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