LONDON: Iran has struck a deal with Damascus to build a 400 million euro ($460 million) power plant in Syria’s coastal city of Latakia, a potentially lucrative deal for Tehran to deepen its economic role after years of fighting in the Syrian conflict.
Shunned by Western powers, the Syrian government is looking to states such as Iran, Russia and China to play a major role in rebuilding the country, as the war heads toward its seventh year.
Iran has provided critical military support to Syrian President Bashar Assad’s government, helping it regain control of swathes of the country. Iran experts say Tehran is now looking to reap a financial dividend.
Iran’s Minister of Energy Reza Ardakanian was quoted as saying by the semi-official ISNA news agency that a memorandum of understanding was signed on Tuesday.
Iran’s state news agency IRNA reported that the MoU was signed by the head of the Iranian power and infrastructure group MAPNA and the head of the Syrian public authority for electricity generation.
The project is to be launched next year, IRNA reported.
“Iranian private firms are keen to participate in energy projects in Syria and reconstruct its electricity grid,” Ardakanian was quoted as saying by IRIB news.
In 2017, Iran and Syria signed an agreement to repair Syria’s power grid. The agreement involved restoring the main control center for Syria’s electricity grid in the capital Damascus.
Ardakanian said he was hopeful that a second credit line would be launched between the two countries.
Tehran opened a $3.5 billion credit line in 2013, and extended it by $1 billion in 2015, which economists say has helped keep the Syrian economy afloat. ($1 = 0.8674 euros)
Iran reaches 400 mln euro deal with Syria to build a power plant — ISNA
Iran reaches 400 mln euro deal with Syria to build a power plant — ISNA
- The Syrian government is looking to states such as Iran, Russia and China to play a major role in rebuilding the country
Arab food and beverage sector draws $22bn in foreign investment over 2 decades: Dhaman
JEDDAH: Foreign investors committed about $22 billion to the Arab region’s food and beverage sector over the past two decades, backing 516 projects that generated roughly 93,000 jobs, according to a new sectoral report.
In its third food and beverage industry study for 2025, the Arab Investment and Export Credit Guarantee Corp., known as Dhaman, said the bulk of investment flowed to a handful of markets. Egypt, Saudi Arabia, the UAE, Morocco and Qatar attracted 421 projects — about 82 percent of the total — with capital expenditure exceeding $17 billion, or nearly four-fifths of overall investment.
Projects in those five countries accounted for around 71,000 jobs, representing 76 percent of total employment created by foreign direct investment in the sector over the 2003–2024 period, the report said, according to figures carried by the Kuwait News Agency.
“The US has been the region's top food and beverage investor over the past 22 years with 74 projects or 14 projects of the total, and Capex of approximately $4 billion or 18 percent of the total, creating more than 14,000 jobs,” KUNA reported.
Investment was also concentrated among a small group of multinational players. The sector’s top 10 foreign investors accounted for roughly 15 percent of projects, 32 percent of capital expenditure and 29 percent of newly created jobs.
Swiss food group Nestlé led in project count with 14 initiatives, while Ukrainian agribusiness firm NIBULON topped capital spending and job creation, investing $2 billion and generating around 6,000 jobs.
At the inter-Arab investment level, the report noted that 12 Arab countries invested in 108 projects, accounting for about 21 percent of total FDI projects in the sector over the past 22 years. These initiatives, carried out by 65 companies, involved $6.5 billion in capital expenditure, representing 30 percent of total FDI, and generated nearly 28,000 jobs.
The UAE led inter-Arab investments, accounting for 45 percent of total projects and 58 percent of total capital expenditure, the report added, according to KUNA.
The report also noted that the UAE, Saudi Arabia, Egypt, and Qatar topped the Arab ranking as the most attractive countries for investment in the sector in 2024, followed by Oman, Bahrain, Algeria, Morocco, and Kuwait.
Looking ahead, Dhaman expects consumer demand to continue rising. Food and non-alcoholic beverage sales across 16 Arab countries are projected to increase 8.6 percent to more than $430 billion by the end of 2025, equivalent to 4.2 percent of global sales, before exceeding $560 billion by 2029.
Sales are expected to remain highly concentrated geographically, with Egypt, Saudi Arabia, Algeria, the UAE and Iraq accounting for about 77 percent of the regional total. By product category, meat and poultry are forecast to lead with sales of about $106 billion, followed by cereals, pasta and baked goods at roughly $63 billion.
Average annual per capita spending on food and non-alcoholic beverages in the region is projected to rise 7.2 percent to more than $1,845 by the end of 2025, approaching the global average, and to reach about $2,255 by 2029. Household spending on these products is expected to represent 25.8 percent of total expenditure in 13 Arab countries, above the global average of 24.2 percent.
Arab external trade in food and beverages grew more than 15 percent in 2024 to $195 billion, with exports rising 18 percent to $56 billion and imports increasing 14 percent to $139 billion. Brazil was the largest foreign supplier to the region, exporting $16.5 billion worth of products, while Saudi Arabia ranked as the top Arab exporter at $6.6 billion.
