Can Gulf Investment In Syria Reshape Middle East’s Startup Ecosystem?

Saudi Arabia has just announced investment deals worth more than $6 billion with Syria. A delegation of around 150 Saudi officials and business people travelled to Damascus last week and led by the Minister of Investment, Khalid Al-Falih.

The group attended the Syrian-Saudi Investment Forum, which was hosted held by president Ahmad al-Sharaa. This visit comes after the removal of Bashar Al Assad after 14 years of conflict. It was the first time in years that such a large Saudi delegation visited Syria.

The Saudi Ministry of Investment confirmed that 47 agreements were signed. These cover real estate, transport, healthcare, trade, tourism, energy, and other sectors. The total value of the deals is 24 billion riyals, which is just over £4.6 billion.

This level of commitment signals a reset in ties. It is a sign that Saudi Arabia wants to participate in rebuilding Syria after the war.

 

Where Is The Money Going?

 

The largest real estate project is the Al-Jawhara Commercial Tower in Damascus. It will cost over £74.4 billion and cover 25,000 square metres. It will include shops, offices, and hotel units.

In the cement sector, Al-Badia Cement Company plans to invest about £150 billion to grow its output to five million tonnes a year. The company also plans to support Syria’s state-owned cement plants to help with long-term supply.

The Al-Fayhaa Cement Factory is also one of the big projects. It will produce 150,000 tonnes of cement every year. The factory will cost around £20 million and is expected to improve local production and skills.

The Port of Tartus is also being upgraded. DP World signed an £600 billion agreement to improve port infrastructure. This could help Syria re-enter global trade routes and support transport across the region.

 

 

Saudi and Syrian officials also discussed projects in digital infrastructure, logistics, and tourism. These areas were seen as useful for restarting Syria’s economy.

Well, it depends on how much Syria’s new leadership can support the work. Fuel shortages, permits, damaged roads, and supply delays could slow things down.

That said, many of the projects are already active. Al-Falih helped lay the first stone at the Al-Fayhaa Cement Factory. DP World has already agreed to start planning at the port. These are not just announcements. Work is happening.

The companies involved have experience in countries that are still recovering from conflict or crisis. Al-Badia Cement, ACWA Power, and DP World have built and managed sites across the region. They have also worked with different governments and unstable markets.

Syria may not be easy to rebuild. But the money is committed, the tech is tested, and construction has already begun in some places. The work will take time, but the plans are already underway.

 

Could This Reshape Syria’s Startups?

 

When asked whether this could reshape Syria’s startup economy, Joshua Charles, CEO and Founder at Frontier Dominion answered,”Yes, Gulf investment in Syria can reshape the Middle East’s startup ecosystem. For such a startup ecosystem to thrive, it needs structured pathways that support early-stage founders through successive fundraising stages, enabling them to demonstrate scalability, sustained growth in Annual Recurring Revenue, rapid product-market fit to avoid a high burn rate, and the potential for regional market penetration.

“To realise this vision, Syria will need a coordinated effort between the government and the private sector to empower select startups in AI, fintech, and climate tech, while inviting mature VC firms and ecosystem builders from Saudi Arabia and the United Arab Emirates to help accelerate the ecosystem’s development.