Saudi Arabia’s Investment Minister Khalid bin Abdulaziz Al-Falih led a delegation of approximately 130 Saudi business leaders to Damascus on Wednesday, signaling a major step in Riyadh’s support for Syria’s reconstruction following a 14-year civil war.

The visit marks the strongest indication yet of Riyadh’s support for Syria’s reconstruction efforts following a brutal 14-year civil war that formally ended with the ousting of former President Bashar al-Assad in December 2024.

The delegation's arrival coincided with a two-day investment conference hosted in Damascus, expected to yield agreements valued between $4 billion and $6 billion. The deals will focus on rebuilding the country's war-shattered economy under the leadership of President Ahmed al-Sharaa, who assumed office earlier this year as head of the interim government.

Speaking at the conference, Syrian Information Minister Hamza al-Moustafa announced that 44 agreements were ready to be signed with Saudi Arabia, covering vital sectors such as energy, telecommunications, finance, banking, and investment funds. The partnerships, which will be formed between Saudi private companies and the Syrian government, reflect the growing interest of Gulf states in Syria's vast reconstruction potential.

Saudi state broadcaster Al Ekhbariya reported that the total value of agreements exceeds $4 billion, while Syrian officials placed the figure closer to $6 billion.

As part of the visit, Al-Falih and his Syrian counterpart inaugurated Syria’s first white cement factory in Adra Industrial City, just outside the capital. The $20 million facility is viewed as a key asset for the country’s construction sector. Al-Falih also laid the foundation stone for a $99.96 million integrated retail and commercial development spearheaded by Saudi firm Ethraa Holding.

In addition, both countries are expected to formalize the creation of a Syrian-Saudi Joint Business Council aimed at boosting long-term economic cooperation. A senior Syrian businessman told Reuters that the council would serve as a platform to coordinate future investments and streamline private sector engagement.

According to regional sources familiar with the discussions, Saudi Arabia has expressed strategic interest in Syria’s energy sector, as well as the hospitality and airport infrastructure industries. The kingdom’s growing economic role comes on the heels of broader financial and diplomatic support, including its cooperation with Qatar to help Syria clear overdue World Bank payments—an essential step for unlocking international credit lines and new loans.

The conference, initially scheduled for June but delayed due to the flare-up of conflict between Iran and Israel, comes despite renewed sectarian violence in southern Syria. Clashes in Sweida over the past month have left hundreds dead, highlighting the lingering instability facing the country as it moves toward recovery.

Nonetheless, momentum for reconstruction continues to build. Syria recently finalized a $7 billion power infrastructure deal with Qatar and secured an $800 million port development agreement with UAE-based DP World. In parallel, U.S. energy firms have begun work on a national master plan for Syria’s energy sector, signaling increasing global interest in the country’s rehabilitation.

President al-Sharaa’s February visit to Riyadh also marked a turning point in Syria-Saudi ties. During the visit, Saudi Crown Prince Mohammed bin Salman reportedly lobbied U.S. President Donald Trump to lift sanctions that had blocked private investment in Syria — a move that helped pave the way for this week’s agreements.

As Saudi Arabia emerges as a major partner in Syria’s reconstruction, the agreements inked this week mark a significant milestone in the country’s post-conflict reintegration into regional economic networks. However, sustained foreign investment will depend on continued progress toward political stability and security across the country. (ILKHA)