Syrian and Saudi investment ministers in Damascus on Saturday.Sana / AFP - Getty Images

Saudi Arabia announced on Saturday a major investment package in Syria spanning energy, aviation, real estate and telecommunications, as the kingdom positions itself as a leading backer of Syria`s new leadership.

Saudi Arabia launched an investment fund in Syria that will commit 7.5 billion Saudi riyals ($2 billion) to develop two airports in the Syrian city of Aleppo over multiple phases, Saudi investment minister Khalid al-Falih said on Saturday.

The Elaf Fund aims to finance large-scale projects in Syria with participation from Saudi private-sector investors, Falih added.

In civil aviation, Saudi budget carrier flynas and the Syrian Civil Aviation Authority signed an agreement to establish a new airline, "flynas Syria."

The joint venture will be 51% owned by the Syrian side and 49% by flynas, with operations expected to begin in the fourth quarter of 2026, the company said.

Saudi Arabia`s largest telecoms operator STC will also invest more than three billion riyals ($799.96 million) to "strengthen telecommunications infrastructure and connect Syria regionally and internationally through a fiber-optic network extending over more than 4,500 kilometers", according to the state news agency.

The latest investments mark the largest such announcement since the U.S. lifted sanctions on Syria in December, as Saudi Arabia has supported President Ahmed al-Sharaa since he came to power in late 2024, following the ouster of President Bashar al-Assad at the head of a coalition of Islamist opposition factions.

The sanctions had been a significant obstacle to Syria`s economic revival after a 14-year civil war that inflicted deep damage on much of the country and displaced millions of people.

"We commend the Saudi-Syrian investment agreements announced this week. Strategic partnerships in aviation, infrastructure, and telecommunications will contribute meaningfully to Syria`s reconstruction efforts," Tom Barrack, the U.S. envoy to Syria, said on X.

Last year, Riyadh announced $6.4 billion of investments, split into 47 deals with more than 100 Saudi companies working in real estate, infrastructure and telecoms.

The two sides also signed a memorandum of understanding and a joint development agreement with Saudi Arabia`s ACWA Power and the Saudi Water Transmission Company, setting out a roadmap for cooperation in the water sector.

"We have drawn up plans to establish a seawater desalination plant, with the aim of delivering fresh water from the Syrian coast to the south of the country," said Syria`s Energy Minister Mohamed al-Bashir.

The interim government has faced criticism over the past year for making broad development promises based on MoUs with foreign investors, many of which have yet to be converted into binding contracts.