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Saudi Arabia has signed a package of strategic agreements with Syria valued at $5.3bn (SR20bn) to progress Damascus’s reconstruction efforts.

The agreements span aviation, telecommunications, energy, water, industry, real estate and development finance, and involve both public and private Saudi entities.

The most significant deal will see Saudi Arabia and Syria jointly support the creation of a new low-cost carrier based in Syria – Flynas Syria – in a 51-49 joint venture between the Syrian General Authority of Civil Aviation and Saudi low-cost carrier Flynas.

The carrier is scheduled to begin operations in the fourth quarter of 2026, with routes planned across the Middle East, Africa and Europe.

Other aviation infrastructure also features prominently, with Saudi Arabia also announcing the launch of the ‘Elaf Fund’ and committing $2bn (SR7.5bn) to the phased development and modernisation of two international airports in Aleppo.

The programme will include runway upgrades, terminal expansion and logistics facilities, transforming the northern city into a regional transport and cargo hub.

Some of the deals confirmed previously announced commitments, including a $1bn telecommunications infrastructure investment agreement signed by Saudi Telecom Company (STC) under the ‘SilkLink’ project.

This initiative will see STC construct a 4,500-kilometre fibre-optic network across Syria, develop data centres and establish international submarine cable landing stations.

Saudi Arabia previously committed to investing $1bn into Syria’s telecommunications infrastructure in July 2025, as part of $6.4bn in commitments across 47 agreements announced at the Syrian-Saudi Investment Forum in Damascus.

The kingdom’s Water Transmission Company and Acwa also signed an agreement to develop a large-scale seawater desalination project with a capacity of 1.2 million cubic metres a day.

Riyadh Cables Group will meanwhile help modernise the production capabilities of the Syrian Modern Cables Company, and three separate agreements were signed for large residential and commercial real estate developments.

With the lifting of US sanctions in late 2025, the pathway for Gulf countries to proceed with such commitments and for Syria to re-enter regional markets has opened.

READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

Spending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.

Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes: