Saudi Arabia and Syria: Signing of 5 major strategic agreements (details)

In a move reflecting a tangible development in bilateral relations between the Kingdom of Saudi Arabia and the Syrian Arab Republic, Damascus witnessed the signing of a package of important strategic agreements on the sidelines of a visit by a high-level Saudi delegation headed by the Minister of Investment. This step aims to translate political understandings into genuine economic partnerships that serve the interests of both countries.

Details of the five signed agreements

The agreements covered vital sectors affecting infrastructure and basic services, indicating a strategic direction to contribute to the rehabilitation and development of affected sectors. According to official information and reports by Al Arabiya, the agreements included the following:

• Communications and Technology Sector: The "Silak Link" project agreement was signed between the Saudi giant stc group and the Syrian Ministry of Communications, a step aimed at strengthening the digital infrastructure and linking networks.
• The air transport and airport sector received significant attention through two agreements; the first between the Elaf Fund and the Syrian Civil Aviation Authority to develop and operate Aleppo International Airport, which will restore this vital airport to its economic role; and the second to establish a joint airline between Flynas and Syrian Airlines, which will facilitate travel and trade.
• Energy and Infrastructure Sector: An agreement was signed between Riyadh Cables Company and the Syrian Sovereign Fund, reflecting the urgent need to develop electrical networks and infrastructure projects.
• Water and desalination sector: The two leading Saudi companies, ACWA Power and Water Transport, have taken on the task of developing desalination and water transport projects in Syria, a vital file that affects the water and service security of citizens.

General context and return of relations

This event cannot be viewed in isolation from the recent political and diplomatic developments in the region. Following the resumption of diplomatic relations between Riyadh and Damascus, and Syria's return to its seat in the Arab League, this economic visit represents the first practical step towards "resolving outstanding issues" and moving towards regional integration. These agreements underscore the Kingdom's desire to support stability in Syria through economic and development initiatives.

Economic importance and expected impact

These agreements have profound implications at both the local and regional levels:

On the Syrian front: These contracts represent a lifeline for sectors crippled by years of war, particularly electricity, water, and airports. The involvement of major Saudi companies like ACWA Power and stc signifies the transfer of global expertise and modern technologies, not merely financial investment, thus accelerating economic recovery.

On the Saudi and regional levels: These moves align with the Kingdom's Vision 2030, which aims to expand foreign investments by Saudi funds and companies and strengthen the Kingdom's role as a leading economic power in the region. Furthermore, economic stability in Syria positively impacts the security and stability of the entire region and enhances trade opportunities in the Levant.

In conclusion, the arrival of the Saudi delegation and the signing of these contracts marks the beginning of a new phase of cooperation, which may open the door to more Arab and foreign investments in the Syrian market in the future.