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RIYADH: A Saudi business delegation led by Investment Minister Khalid Al-Falih has arrived in Damascus ahead of a forum set to generate trade deals worth SR15 billion ($4 billion).

More than 120 potential investors have travelled to Syria, as the Kingdom continues to support the country’s economic recovery and financial landscape. 

Syrian news agency SANA reported that the agreements will contribute to promoting sustainable development and economic interests between Syria and ��������.

The Saudi-Syria Investment Forum is set to generate the multi-billion trade deals, Al Ekhbariya reported, while the Kingdom’s Ministry of Investment wrote on X that the event is expected to witness significant participation from public and private sector entities on both sides.

�������� and Syria have made significant strides in restoring diplomatic ties in recent months, with the Kingdom reopening its embassy in Damascus in 2024 after a 12-year hiatus.

In April, �������� and Qatar announced a joint initiative to settle Syria’s $15 million debt to the World Bank as part of broader efforts to support the financial recovery of the war-torn nation.

Last month, Al-Falih conducted a virtual meeting with Syrian Economy Minister Mohammad Al-Shaar, and discussed opportunities for collaboration in both public and private sectors.

The forum is also expected to set out joint projects and the signing of memorandums of understanding between the two sides in various fields, SANA reported.

That includes the launch of the Fayhaa White Cement Factory project in the Adra Industrial City in Damascus, which will expand cement production and support the country’s reconstruction, the news agency said.

The Syrian government this month also amended the country’s investment law, in a move that is expected to support more domestic and foreign investment.

During a visit by a Saudi delegation last week, Al-Shaar said that the new law provides an attractive legal environment that promotes the entry of capital, SANA reported.

The law will support the investment process and enhance the role of the private sector in reconstruction and economic development, the minister added. 

Surge in Saudi-Syrian trade figures signals renewed ties

According to official data from ��������’s General Authority for Statistics, Syria was the Kingdom’s 53rd largest export destination in April, with non-oil exports rising by 153.3  percent year on year to reach SR81.9 million.

These exports are composed primarily of plastics and rubber products, making up 33 percent, 26 percent plant products, and 14 percent prepared foodstuffs, beverages, and tobacco.

The remaining exports comprise a variety of chemical products, articles made from stone, cement, ceramics, and glass, reflecting the expanding diversity of trade flows.

On the import side, Syria ranked 60th among countries supplying goods to ��������, with imports totaling SR78.5 million in April, representing a sharp 149.7 percent year-over-year increase.

The bulk of these shipments consists of animal and plant products, edible oils and fats, and processed food and beverages, indicating Syria’s agricultural and agri-food sector’s growing relevance to the Saudi market.

This recent growth in trade volumes follows the rapid evolution of political dynamics between Riyadh and Damascus. In May 2024, the Kingdom formally reopened its embassy in Syria after a 12-year rupture following the outbreak of the Syrian conflict in 2011.

�������� does not export oil to the country primarily because of the comprehensive sanctions regime imposed on the Syrian government following the outbreak of the civil war in 2011.

While Syria once produced and exported substantial quantities of oil, the war and sanctions effectively eliminated its export capacity after late 2011.

Today, production remains constrained, and Syria relies heavily on imports, particularly from Iran, to meet its domestic demand.

The trade figures reported by GASTAT, while still modest in comparison to the Kingdom’s broader trade profile, are significant in light of where bilateral relations stood just two years ago.

The tripling of trade volumes year on year, both in exports to and imports from Syria, illustrates how quickly economic engagement can rebound when backed by political will.

Before the Syrian conflict erupted in 2011, the country enjoyed strong business ties with ��������, with bilateral trade peaking at approximately $1.3 billion in 2010, marking the Kingdom as one of Syria’s most significant trading partners before the war began, according to a 2023 article by the Christian Science Monitor.

World Bank data from the World Integrated Trade Solution confirms that Syria exported goods worth $543 million to �������� in 2010, underscoring the depth of their commercial ties at that time.

Saudi exports to Syria primarily included oil derivatives, petrochemicals, plant oils, and dates, while Syria exported fruits, vegetables, livestock, textiles, and furniture to the Kingdom.

The two countries were founding members of the Greater Arab Free Trade Area, facilitating reduced tariffs and cross-border trade.

Saudi investors also held over $700 million in joint projects within Syria by the late 1990s. These ties collapsed following the war, sanctions, and diplomatic breaks. With recent normalization and high-level visits, both nations are now reviving their economic relationship on the foundation of this previously robust partnership.