Saudi Arabia's Syria investment a strategic bet on stability

Arab News

2 days ago

https://arab.news/4vqcx
When Saudi Investment Minister Khalid Al-Falih led a delegation of more than 130 businessmen and investors into Damascus on July 23, the timing could hardly have been more precarious. The visit, authorized by Crown Prince Mohammed bin Salman, came as sectarian violence raged in Sweida province, claiming innocent civilian lives, and Israeli strikes targeted Syria's Defense Ministry and security forces stationed in Sweida. Yet this $6 billion investment push represents something far more than a fleeting diplomatic or economic gesture. It embodies the Kingdom's enduring political doctrine, grounded in understanding and cooperation rather than confrontation and estrangement.
Despite daunting security and economic obstacles, Saudi Arabia's unwavering political commitment signals a potential turning point for Syrian stability and reconstruction. The Kingdom views Damascus not as a distant investment opportunity but as a critical buffer against regional chaos. Riyadh's strategic imperative is clear: prevent Syria's fragmentation into warring fiefdoms or its evolution into a sanctuary for extremist groups that could destabilize the entire neighborhood.
Through active diplomacy, Saudi Arabia has convinced the American administration to lift economic sanctions on Syria and pushed for the new Damascus regime's integration within its Arab sphere. This positions Riyadh ideally to lead this gradual transformation in Damascus — not only for Syria's benefit but also to reshape the entire regional order on solid foundations: security, development and sovereignty.
Saudi Arabia's foreign policy strategy seeks to shield Syria from becoming a battleground for broader regional rivalries while working to reestablish stability. This approach aligns with the Kingdom's broader vision of promoting security and development across the region.
One of the primary avenues for reducing conflict in Syria involves improving citizens' living conditions and establishing infrastructure that provides access to essential daily services: healthcare, education, transport, communication and others. Additionally, the government must be capable of curbing inflation, high prices and unemployment, while maintaining the ability to pay state employees' salaries.
The investment package, encompassing 47 agreements and memorandums of understanding with a total value of between $6 billion and $6.4 billion, dwarfs the $2.8 billion in Saudi investments Syria attracted before 2011. Infrastructure and real estate projects account for $2.93 billion of this amount, while the telecommunications and information technology sectors represent approximately $1.07 billion in commitments.
The signed agreements encompass housing, tourism, healthcare, recreation and basic facility projects, including the construction of three new cement factories and the launch of the country's first white cement factory with an investment of about $20 million. The agreements also include a massive real estate project in Damascus, known as Al-Jawhara Tower and valued at $100 million.
The implementation of these projects will follow a designated timeline and is expected to generate about 50,000 direct employment opportunities and 150,000 indirect jobs within Syria's economy. The initiatives are also anticipated to attract investment from other nations into the Syrian market, as Saudi Arabia's involvement is expected to catalyze additional future investment efforts rather than remain an isolated action.
Saudi Arabia's Syria strategy exemplifies what analysts call 'positive containment' — ensuring Syria is not left exposed to security and political instability, while preventing regional imbalances that might drive regional powers into destructive roles, similar to Israel's current military interference in Syria's internal affairs.
This approach requires a delicate balancing act. Riyadh must work with Syria's new leadership without alienating Iran and Russia, Bashar Assad's former backers, while avoiding confrontation with Turkiye and Israel, both of which maintain significant interests in Syrian territory. This approach also aligns with Saudi Arabia's new foreign policy, which is based on stability, partnership and de-escalation.
Syria's reconstruction stands as the primary objective for the upcoming period. Establishing a politically and security-stable environment under equitable legal governance, where the state maintains exclusive control over weapons and the government operates without sectarian or ethnic quota systems, will build investor confidence in the Syrian market and motivate their participation. This represents the direction Saudi Arabia is currently pursuing in its approach toward Syria.
Nevertheless, the Syrian government holds primary responsibility for dismantling armed militias, resolving sectarian and ethnic tensions, establishing modern state institutions and pursuing transparent, constructive dialogue that fosters a unified national identity in which all Syrians feel included and represented.
The Kingdom views Damascus not as a distant investment opportunity but as a critical buffer against regional chaos.
Hassan Al-Mustafa
Despite the optimistic projections, significant obstacles remain. Syria's security situation remains fragile, particularly in the south and areas populated by Druze, Kurds and Alawites. Furthermore, the new political landscape poses challenges, as the current government is perceived as catering to transitional interests and may encounter claims that it reinforces particular sectarian influence or religious-based economic policies, stemming from distrust among Syria's diverse population and recent transgressions by various armed groups.
Institutional weakness poses another challenge. Years of conflict have decimated Syria's legal and regulatory framework. Building a strong judicial and legal system will encourage companies and investors to enter Syria with greater momentum.
Saudi Arabia has maintained and continues to fulfill important constructive roles supporting Syria, its security, stability and the success of its new transitional period. The ultimate success of Saudi investment in Syria depends on factors beyond Riyadh's control. The Syrian government must demonstrate genuine commitment to establishing internal stability, ensuring a transparent operational environment and incorporating Syrian civil society into oversight and implementation processes, so that local investors and citizens can participate in the reform initiative and civil state development.