Gulf capital returns to Syria but caution persists

• Reconstruction to cost at least $600bn
• Two-thirds of population lives in poverty
• Economy minister: We rely on Gulf nations

Companies from the US and Saudi Arabia are the latest to come together and pledge support to rebuild war-torn Syria, adding to the steady stream of earlier seven-figure commitments from across the Gulf.

Yet companies are re-entering cautiously, weighing first-mover advantage against lingering political and security risks, experts say.

“It is a high-risk, high-reward environment. Companies are visiting the country, they’re taking things slowly, but I think they are still reluctant to deploy large amounts of capital,” Rahaf Hyps, CEO at risk management and intelligence company Sicuro Group, told AGBI.

The country is in dire need of funds. Entire neighbourhoods of Damascus, Aleppo and Homs remain in ruins, littered with rubble and unexploded ordnance. More than two-thirds of the country lives in poverty and the cost of reconstruction has been estimated at $600 billion to $900 billion, according to an interview that interim president Ahmed Al-Sharaa gave to US broadcaster CBS.

Saudi and US companies have formed a consortium for oil and gas exploration and energy production in northeastern Syria, according to Reuters.

Baker Hughes, Hunt Energy and Argent LNG plan to link with Taqa Saudi Arabia for the project, which would cover four or five exploration blocks in the region, sources said.

After 14 years of war, Syria’s entire infrastructure is severely damaged and requires huge investment, which the government is seeking to secure from abroad.

“There is a lot of interest, especially from regional players, but it takes time and many are in preparatory phases,” said Rachel Ziemba, founder of Ziemba Insights.

Riyadh announced $6.4 billion in investments in Syria last July, spread across 47 deals involving more than 100 Saudi companies working in real estate, infrastructure and telecoms.

The kingdom has also committed $2 billion to developing two airports in Aleppo and signed contracts worth $1.5 billion in September to revive tourism. Meanwhile, budget airline Flynas has partnered to create a joint Syrian-Saudi carrier, part of efforts to restore air connectivity.

Rehabilitation

Saudi companies including Taqa, Ades Holding and Arabian Drilling Company have signed agreements to rehabilitate oil and gas assets, and Saudi Telecom Company is involved in rebuilding digital infrastructure. In May 2025 a Qatari-led consortium agreed to invest almost $7 billion in the country’s energy infrastructure.

From the UAE, DP World has agreed to redevelop Tartous port in an $800 million deal, signalling confidence in Syria’s logistics revival. And Dubai’s Al Habtoor conglomerate has announced plans to pump billions of dollars into new projects in the country.

Syria’s economy minister Mohammed Alchaar previously said “many” investors have shown interest in what the country has to offer and that Gulf investors have been among the keenest. “We rely on them, actually,” he told AGBI.

AGBI has asked Alchaar for fresh comment as well as investment authorities in the UAE, Qatar and Saudi Arabia.

James Swanston, senior economist at London-based Capital Economics, said Gulf investment will not only build a regional economy, but also “provide an ally in the region as the Gulf seeks to use its soft-power influence”.

Syrian finance minister Mohamed Yisr Barnieh said in an interview last week and reported by Bloomberg that he expects economic growth close to 10 percent this year, buoyed by the lifting of US sanctions. He estimated growth in 2025 at roughly 5 percent.

According to Sicuro’s Hyps, much of the attention in Syria has come from companies operating in the fast-moving consumer goods sector, financial services and management consultancy.

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For Dubai-listed United Foods Company, the return to Syria is as much emotional as strategic. Chief executive Mohamed Itani said the company is preparing aggressively to rebuild its Aseel brand in what was once its strongest market. 

Before the war, Aseel was Syria’s leading ghee (clarified butter) brand. “For Syrians, Aseel is very close to their heart. It’s nostalgia,” he told AGBI.

The company is exporting to test demand, with volumes running at around 2,500 metric tonnes in 2025, but Itani’s target is to triple sales if conditions allow.

The approach is measured. United Foods is exploring options ranging from straight exports to joint ventures or acquisitions. 

“We’re moving as if things are going the right way,” Itani said, but stopped short of committing major capital before clarity improves.