RIYADH: Saudi Arabia is moving toward launching a number of investment funds in multiple sectors within Syria, most notably the Elaf Fund, with an initial capital amounting to billions of riyals to finance strategic projects, according to Minister of Investment Khalid Al-Falih during a roundtable meeting held in Riyadh.
Through the Saudi-Syrian investment roundtable, the two sides aim to achieve sustainability in their joint cooperation, strengthen investment and economic relations between the two countries, and work on implementing strategic and high-impact investment projects.
In a related development, additional Saudi banks are expected to begin operations in Syria after two Saudi banks have already started their activities, according to Syrian Minister of Finance Mohammed Barnieh, speaking to Al-Eqtisadiah newspaper.
Speaking on the sidelines of the Saudi-Syrian roundtable meeting in Riyadh, Barnieh said that the move comes within the framework of deepening financial and banking cooperation between the two countries. He expected the coming phase to witness an expansion in the activities of Saudi institutions within the Syrian market.
The finance minister said that launching direct financial channels for money transfers between Saudi Arabia and Syria comes after some banks have already begun implementing direct transfer operations, a step expected to ease investors’ concerns regarding financial transactions.
The roundtable, attended by senior officials and investors from both countries, comes as part of Saudi Arabia’s continued efforts to support the recovery of the Syrian economy and to move cooperation from the stage of “memorandums of understanding” to that of “empowerment and actual implementation.”
Barnieh said this step serves as a message of reassurance to investors seeking entry into the Syrian market, noting that it supports efforts to develop the financial infrastructure and facilitate banking and commercial transactions.
The minister said that the Central Bank of Syria is working to develop the financial infrastructure and to enhance integrity and transparency in order to create a safe and encouraging environment for the banking sector.
He explained that these reforms will soon allow foreign financial institutions, particularly Saudi banks, to open branches in Syria, supporting financing and investment activities in the country.
The roundtable discussed new investment opportunities in priority sectors according to Syria’s current economic needs, in alignment with the economic interests of both countries.
Regarding international cooperation, Barnieh stated that Syria is currently receiving technical support from the International Monetary Fund and the World Bank, noting the presence of missions operating in Damascus to discuss mechanisms for economic revitalization and administrative reform.
He added that this international and regional openness came as a result of Saudi and Arab efforts supporting Syria in global financial forums, which helped reactivate channels of cooperation with international institutions.
Saudi Arabia has presented numerous initiatives to support Syria’s economic recovery, including assistance for public salaries, contributions toward settling Syria’s arrears with the World Bank Group—amounting to about $15 million—and support for the Syrian energy sector, totaling 1.65 million barrels of crude oil.
The minister denied any current borrowing, saying it is not planned for Damascus to borrow from international institutions at present. However, he noted that the government remains open to concessional development loans that finance specific strategic projects.
He added that Syria welcomes initiatives from the Kingdom, such as the proposal by the Saudi Fund for Development to provide soft loans to support development projects in Syria, as such efforts directly contribute to stimulating economic growth and creating job opportunities.
Barnieh confirmed that Syrian-Saudi relations are entering a new phase of cooperation and strategic partnership across various sectors, noting that the Kingdom is providing tangible support for Syria’s reconstruction and development efforts.
He said that Saudi interest in Syria is clear and growing, adding that several Saudi investments are currently in their final stages of preparation.
The Syrian minister added that Syria is now in a stage of comprehensive reconstruction characterized by vast investment opportunities, particularly in the financial and banking sectors.
He affirmed that his country welcomes the presence of Saudi companies operating in finance and services and encourages Syrian investors to expand their presence in the Saudi market, noting that cooperation between the two countries has moved beyond the political framework into a growing economic and investment partnership.
Returning to Minister Al-Falih, he said that preparations are underway to launch the Saudi Elaf Investment Fund, which is completing the regulatory requirements for its establishment in partnership with Saudi private-sector companies and regional and international investors who have expressed willingness to participate.
He stated that the fund will focus on projects in infrastructure, energy, real estate development, manufacturing, and logistics services, noting that this initiative is part of Saudi Arabia’s efforts to activate development financing tools and support sustainable growth in Syria.
Al-Falih said the fund will contribute to transferring Saudi expertise to the Syrian market and strengthening partnerships between Saudi and Syrian companies, creating new job opportunities and boosting local production.
The minister added that economic cooperation between the two countries also extends to land and railway connectivity projects, noting that the transport ministries of both sides are currently discussing reactivating the land route through Jordan to link Syria with the Arabian Gulf through an integrated logistics network.
In the industrial sector, Al-Falih revealed discussions on establishing a Saudi industrial zone in Syria to attract small and medium-sized industries and localize supply chains.
He also mentioned cooperation in exploring and investing in phosphate ore in eastern Syria, leveraging Saudi Arabia’s experience in the phosphate fertilizer industry to create significant opportunities for export and industrial growth.
In the technology and digital transformation sector, he announced cooperation on projects related to smart cities and digital government, as well as developing regional internet infrastructure linking Syria, Jordan, and Saudi Arabia through networks extending to Europe and Asia.
