Following the revolution in Dec. 8, 2024, Syria’s economic recovery and integration into regional economic processes remains one of the most critical tests for the new administration. With the aim of both seizing economic opportunities and strengthening the political backing behind these efforts, the Ahmed al-Sharaa government has moved to bolster ties with Gulf countries. Among the prominent Gulf actors is Riyadh, the birthplace of al-Sharaa.
After the revolution, Riyadh quickly and pragmatically engaged with Syria’s new administration. The kingdom aimed to support Syria’s political and military stability in the new era through economic means. In line with this goal, it sought to minimize the presence and influence of Iran and Iran-backed actors in the country, prevent transnational threats such as Captagon from becoming a security issue for the Gulf region, particularly Saudi Arabia, via Lebanon and Jordan, and develop a common ground with regional powers like Türkiye on the Syrian issue.
Institutionalizing cooperation
Beginning in May, Riyadh intensified its diplomatic engagement with Damascus. On May 31, Saudi Foreign Minister Faisal bin Farhan visited the Syrian capital as part of talks focused on enhancing economic and institutional capacity. Around this time, Saudi Arabia, in coordination with Qatar, announced financial support for the salaries of public sector employees in Syria — an effort aimed at boosting the efficiency of the new administration and strengthening state capacity. During the same period, Riyadh and Doha jointly paid Syria’s $15.5 million debt to the World Bank, which had accumulated over 14 years. This move was seen as a key step in enabling the institution to resume operations in Syria. In early June, direct flights between Riyadh and Damascus resumed, followed by the launch of direct routes between Jeddah and Damascus. The restoration of direct transportation links underscored Riyadh’s commitment to supporting Syria’s social stability and economic recovery through both economic and social instruments.
Riyadh’s pragmatic approach toward Damascus was reinforced during the Syria-Saudi Arabia Investment Forum, held in Damascus from July 23 to 25. Led by Saudi Investment Minister Khalid Al-Falih, the forum brought together representatives from more than 130 Saudi companies. A total of 47 agreements and memorandums of understanding (MoUs) were signed across sectors including real estate, infrastructure, telecommunications, finance, tourism, healthcare, and industry. With the total value of these deals estimated at $6.4 billion, the forum marked a significant step in deepening economic cooperation between Riyadh and Damascus, and in institutionalizing the Gulf’s emerging economic engagement with Syria. To follow up on the forum’s outcomes, a Syrian delegation headed by Economy and Industry Minister Mohammad Nidal Shaar visited Riyadh on Aug. 18. During the visit, Minister Al-Falih announced that a bilateral agreement on the promotion and protection of mutual investments would be signed soon, aiming to provide institutional guarantees for managing economic challenges and launching joint development initiatives. Additionally, Saudi Arabia’s Tadawul stock exchange has begun conducting a comprehensive feasibility study on the establishment and operation of a securities exchange in Damascus — a move signaling a deeper financial partnership aimed at long-term investment cooperation and joint ventures. Al-Falih’s emphasis on direct engagement with Syrian society also underscored the intention to enhance the legitimacy and sustainability of these projects, thereby expanding growth opportunities for both countries.
Geopolitical levers
Saudi Arabia’s multi-level engagement with Damascus reflects a geopolitical lever and a broader effort to reintegrate Syria into the regional political fold. Although a normalization agreement was reached between Saudi Arabia and Iran in March 2023 — mediated by China, Oman, and Iraq — Saudi Arabia’s growing economic and political footprint in Syria appears to be taking shape primarily in contrast to Iran’s influence. This development coincides with a gradual shift away from Syria’s heavy dependence on Tehran in determining its future.
Saudi Arabia also views its relationship with Syria as important to aligning with the region’s broader economic-political dynamics, particularly in the reconstruction of Gulf–Levant supply and financial networks. Reviving key sectors in Syria, especially construction, supports Saudi Arabia’s Vision 2030 goals by creating a compatible external market and enabling supply chain diversification. From a financial perspective, the cooperation between Tadawul and a future Damascus stock exchange, along with investment and protection agreements, is enhancing regulatory convergence and capital mobility.
At the same time, investments in employment and service infrastructure are expected to shrink the profit channels of Syria’s war economy and contribute to regional stability. As formal trade grows, the appeal of smuggling and illicit flows is likely to decline, thereby broadening the tax base and strengthening state capacity at both local and national levels. Collectively, these developments are also likely to reduce the risk of radicalization across the country, indirectly enhancing regional security and positively impacting Saudi Arabia’s own security.
Regional integration
Saudi Arabia’s growing investments in Syria should be seen not merely as steps toward economic normalization, but also as a catalyst for emerging regional partnerships. One of the most visible reflections of this process is the accelerating cooperation between Türkiye and the Gulf states. Ankara and Gulf capitals possess complementary capacities in areas such as supply chains, construction, airport operations, and financial services. This complementarity could enhance efficiency and quality assurance in Syria’s post-war reconstruction. Such cooperation balances the security-economy equation and provides a technical foundation for the broader political normalization process.
Coordination between Türkiye and the Gulf is creating a multiplier effect that supports the social and economic pillars of stability in Syria. The willingness of Türkiye and Gulf countries to engage in joint projects involving Syria’s logistics corridors, public services, and infrastructure is expected to reduce Syria’s fragility — and, in turn, contribute to greater resilience in the region’s economy and political landscape.
Finally, the expansion of Saudi Arabia’s investments and engagement in Syria should be seen not only as a flow of Saudi capital into the country but also as part of a broader policy framework aimed at realigning Damascus within the regional axis, establishing Gulf-Levant corridors, and institutionalizing the security-economy balance. The inclusion of Türkiye-Gulf coordination in this process elevates the Syrian issue beyond mere reconstruction, transforming it into a sustainable component of regional integration and stability architecture.
