Syria's new government and Saudi Arabia on Saturday announced a major investment package dealing with energy, telecommunications, aviation and real estate.

The multi-billion-dollar investment agreements signed in Damascus include a major telecommunications project, a low-cost joint airline and an international airport in northern Syria.

"Our presence in Damascus reflects a shared vision to build a common future between our two countries," Saudi Investment Minister Khalid al-Falih was quoted by the Syrian Arab News Agency (SANA) as saying.

What are some of the key areas of investment?

Al-Falih said the kingdom launched an investment fund in Syria that will commit 7.5 billion Saudi riyals (€1.7 billion, $2 billion) to develop two airports in the northern ⁠Syrian city of Aleppo over multiple phases.

The investment fund would be aimed at financing large-scale projects in Syria involving Saudi private-sector investors, Falih added.

Syria's minister of communications and information technology, Abdulsalam Haykal, said the nearly $1 billion in telecommunications development will take place in two stages lasting between 18 months and two years.

Regarding aviation, the Saudi budget carrier flynas and ⁠the Syrian Civil Aviation Authority signed an agreement to establish a new airline to be called "flynas Syria."

The joint venture will be 51% owned the Syrian side and 49% by flynas, with operations expected to begin in late 2026, the company said.

Syrian-Saudi relations

Saudi Arabia has been a supporter of interim President Ahmed al-Sharaa since he took power in 2024, following the ouster of President Bashar Assad.

The new government in Damascus is trying to rebuild the economy following a 14-year civil war that killed nearly half a million people and caused widespread destruction.

There has been flareups of sectarian violence since al-Sharaa came to power, despite assurances to the domestic population and international community that all ethnic and religious minorities will be allowed to coexist in peace under his government's rule. 

Minority groups like Alawites, Druze and Kurds have voiced skepticism in such assurances. 

News of the signing of the investment agreements has been warmly received by the US envoy to Syria, who said it would help the country's reconstruction efforts.

"We commend the Saudi-Syrian agreements announced this week. Strategic partnerships in aviation, infrastructure, and telecommunications will contribute meaningfully to Syria's reconstruction efforts," Tom Barrack, the US envoy to Syria, said on X. 

Edited by: Sean Sinico