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Official Syrian says Saudi Arabia is set to announce major new Syria investment

Saudi Arabia is investing in a private Syrian airline, as part of a multi-billion dollar investment package that will be announced this Saturday. This reflects Riyadh’s?deepening? ties with Damascus.

The announcement of the latest investments is the biggest since the United States lifted tough sanctions against Syria in December.

The sanctions were a major obstacle to the economic recovery of Syria after a 14 year civil war which caused extensive damage in many parts of the country, and forced millions of people from their homes.

Talal Al Hilali, the head of the Investment Authority, said that Saudi Arabia would invest in "telecommunications, real estate and especially in the old towns", speaking on Tuesday at the World Government Summit.

Hilali stated that most of the planned investments will be in the form of contracts ready to implement, and not non-binding Memoranda of Understanding. He declined to provide a valuation for the investment.

The Saudi government's media office has not responded to our request for comment. The Syrian Ministry of Information declined to comment.

Since the overthrow of President Bashar al-Assad 14 months ago, Riyadh is a close ally to President Ahmed al-Sharaa. Riyadh announced last year $6.4 billion in investments. This was split into 47 deals, with over 100 Saudi companies involved in real estate, telecoms, and infrastructure.

Over the last year, the interim government has been criticized for making broad?promises of development based on memorandums of understanding with foreign investors. Many have not yet been finalized as binding contracts.

Two Syrian sources familiar with the issue said that aviation investments will include contracts to develop Aleppo International Airport. Sources said that the new private airline will launch with a fleet of more than a dozen aircraft.

According to a senior Syrian businessman who is familiar with the issue, Saudi Arabia intends to offer insurance coverage to Saudi companies for their investments in Syria. This move will encourage Saudi firms to enter the market. (Editing by Tom Perry & Aidan Lewis).

(source: Reuters)