Elaf fund will finance projects with buy-in from Saudi investors committing $2bn for two airports in Aleppo city.

Syria and Saudi Arabia have signed a major investment package spanning aviation, energy, real estate and telecommunications as Damascus’s new leadership seeks to rebuild after a devastating 14-year civil war.

Syrian Investment Authority chief Talal al-Hilali announced a swath of deals on Saturday, including the development of a new international airport in Aleppo, the launch of a low-cost Syrian-Saudi airline, and a telecommunications project called SilkLink aimed at turning the country into a regional hub.

Saudi Arabia has been a major backer of Syria’s new leaders, who took power after toppling longtime ruler Bashar al-Assad in December 2024, with this latest deal marking the biggest investment since the United States lifted sanctions on the country in December.

Saudi Investment Minister Khalid al-Falih said the newly launched Elaf fund, which aims to finance large-scale projects with participation from Saudi private-sector investors, would commit $2bn (7.5 billion Saudi riyals) to develop two airports in the Syrian city of Aleppo.

Rebuilding Syria’s economy

Abdulsalam Haykal, Syria’s minister of communications and information technology, said his country will see nearly $1bn in investment in the telecommunications sector, with plans to lay thousands of kilometres of cable to boost connectivity between Asia and Europe.

Saudi budget carrier Flynas and the Syrian Civil Aviation Authority announced they signed an agreement to establish a new airline called “Flynas Syria”, which would be 51 percent owned by the Syrian side and is slated to start operations in the fourth quarter of 2026.

Syria’s Ministry of Energy also signed a water agreement with Saudi Arabia’s ACWA Power, which is known for running projects in power generation and desalinated water production plants in the Middle East and beyond.

Al-Hilali said the agreements targeted “vital sectors that impact people’s lives and form essential pillars for rebuilding the Syrian economy”.

Tom Barrack, the US envoy to Syria, commended the Saudi-Syrian deal on X. “Strategic partnerships in aviation, infrastructure, and telecommunications will contribute meaningfully to Syria’s reconstruction efforts,” he said.

But Benjamin Feve, senior research analyst at Karam Shaar advisory, sounded a more cautious note, saying the deals mattered “far more as a political signal than as an economic game changer” in the short term.

The government has faced criticism over the past year for making broad development promises based on written pledges with foreign investors, many of which have yet to be converted into binding contracts.