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RIYADH: �������� is moving toward launching a number of investment funds in multiple sectors within Syria, most notably the Elaf Fund, with an initial capital amounting to billions of riyals to finance strategic projects, according to Minister of Investment Khalid Al-Falih during a roundtable meeting held in Riyadh.   

Through the Saudi-Syrian investment roundtable, the two sides aim to achieve sustainability in their joint cooperation, strengthen investment and economic relations between the two countries, and work on implementing strategic and high-impact investment projects. 

In a related development, additional Saudi banks are expected to begin operations in Syria after two Saudi banks have already started their activities, according to Syrian Minister of Finance Mohammed Barnieh, speaking to Al-Eqtisadiah newspaper. 

Speaking on the sidelines of the Saudi-Syrian roundtable meeting in Riyadh, Barnieh said that the move comes within the framework of deepening financial and banking cooperation between the two countries. He expected the coming phase to witness an expansion in the activities of Saudi institutions within the Syrian market. 

The finance minister said that launching direct financial channels for money transfers between �������� and Syria comes after some banks have already begun implementing direct transfer operations, a step expected to ease investors’ concerns regarding financial transactions. 

The roundtable, attended by senior officials and investors from both countries, comes as part of ��������’s continued efforts to support the recovery of the Syrian economy and to move cooperation from the stage of “memorandums of understanding” to that of “empowerment and actual implementation.” 

Barnieh said this step serves as a message of reassurance to investors seeking entry into the Syrian market, noting that it supports efforts to develop the financial infrastructure and facilitate banking and commercial transactions. 

The minister said that the Central Bank of Syria is working to develop the financial infrastructure and to enhance integrity and transparency in order to create a safe and encouraging environment for the banking sector. 

He explained that these reforms will soon allow foreign financial institutions, particularly Saudi banks, to open branches in Syria, supporting financing and investment activities in the country. 

The roundtable discussed new investment opportunities in priority sectors according to Syria’s current economic needs, in alignment with the economic interests of both countries. 

Regarding international cooperation, Barnieh stated that Syria is currently receiving technical support from the International Monetary Fund and the World Bank, noting the presence of missions operating in Damascus to discuss mechanisms for economic revitalization and administrative reform. 

He added that this international and regional openness came as a result of Saudi and Arab efforts supporting Syria in global financial forums, which helped reactivate channels of cooperation with international institutions. 

�������� has presented numerous initiatives to support Syria’s economic recovery, including assistance for public salaries, contributions toward settling Syria’s arrears with the World Bank Group—amounting to about $15 million—and support for the Syrian energy sector, totaling 1.65 million barrels of crude oil. 

The minister denied any current borrowing, saying it is not planned for Damascus to borrow from international institutions at present. However, he noted that the government remains open to concessional development loans that finance specific strategic projects. 

He added that Syria welcomes initiatives from the Kingdom, such as the proposal by the Saudi Fund for Development to provide soft loans to support development projects in Syria, as such efforts directly contribute to stimulating economic growth and creating job opportunities. 

Barnieh confirmed that Syrian-Saudi relations are entering a new phase of cooperation and strategic partnership across various sectors, noting that the Kingdom is providing tangible support for Syria’s reconstruction and development efforts. 

He said that Saudi interest in Syria is clear and growing, adding that several Saudi investments are currently in their final stages of preparation. 

The Syrian minister added that Syria is now in a stage of comprehensive reconstruction characterized by vast investment opportunities, particularly in the financial and banking sectors. 

He affirmed that his country welcomes the presence of Saudi companies operating in finance and services and encourages Syrian investors to expand their presence in the Saudi market, noting that cooperation between the two countries has moved beyond the political framework into a growing economic and investment partnership. 

Returning to Minister Al-Falih, he said that preparations are underway to launch the Saudi Elaf Investment Fund, which is completing the regulatory requirements for its establishment in partnership with Saudi private-sector companies and regional and international investors who have expressed willingness to participate. 

He stated that the fund will focus on projects in infrastructure, energy, real estate development, manufacturing, and logistics services, noting that this initiative is part of ��������’s efforts to activate development financing tools and support sustainable growth in Syria. 

Al-Falih said the fund will contribute to transferring Saudi expertise to the Syrian market and strengthening partnerships between Saudi and Syrian companies, creating new job opportunities and boosting local production. 

The minister added that economic cooperation between the two countries also extends to land and railway connectivity projects, noting that the transport ministries of both sides are currently discussing reactivating the land route through Jordan to link Syria with the Arabian Gulf through an integrated logistics network. 

In the industrial sector, Al-Falih revealed discussions on establishing a Saudi industrial zone in Syria to attract small and medium-sized industries and localize supply chains.  

He also mentioned cooperation in exploring and investing in phosphate ore in eastern Syria, leveraging ��������’s experience in the phosphate fertilizer industry to create significant opportunities for export and industrial growth. 

In the technology and digital transformation sector, he announced cooperation on projects related to smart cities and digital government, as well as developing regional internet infrastructure linking Syria, Jordan, and �������� through networks extending to Europe and Asia. 

JEDDAH: ��������’s herbal sector is expanding despite regulatory and safety challenges, with commercial registrations rising by 15 percent in 2024, driven by increased digital marketing and strong investor interest. 

Speaking to Al-Eqtisadiah, experts said the sector is shifting from traditional retail to digital sales, both domestically and internationally, noting that young entrepreneurs are also launching branded, packaged products to capture market share. 

Herbalism is one of the oldest professions in the Arab and Islamic world, with a rich cultural and medical heritage. In Saudi herbal shops, medicinal herbs such as sage, chamomile, and thyme are displayed alongside spices such as cinnamon, cardamom, turmeric, and black pepper. 

The global spice market is estimated at around $20 billion in 2024 and is projected to reach $30 billion by 2032, growing at an annual rate of 5 percent, according to Fortune Business Insights. Meanwhile, the herbal medicine market, valued at $71 billion in 2023, is expected to surge to $330 billion by 2030, with a compound annual growth rate of 21 percent between 2024 and 2030, according to Grand View Research. 

While spices and herbal medicines are sold together in Saudi and Gulf outlets, they are separated in the US and Europe, resulting in distinct market sizes. US-based McCormick leads the global spice industry with $7 billion in fiscal 2024 sales, followed by Singapore’s Olam Group, an agribusiness and trading firm with a significant share of spice sales. 

The Saudi Food and Drug Authority told Al-Eqtisadiah that it monitors herbal retail outlets through regular inspection campaigns conducted jointly with multiple government agencies. However, experts and consumers have called for clearer regulations and staff training to ensure quality and build consumer trust. 

The SFDA clarified that it does not license herbal shops or register raw herbs, adding that only processed herbal products — manufactured in pharmaceutical-style preparations — are registered after evaluation of manufacturing quality, safety, and efficacy. 

The authority emphasized that its inspections have revealed recurring violations, including the sale of pharmaceutical products not permitted in herbal outlets and cosmetic products lacking required warnings or not listed in the authority’s registry. 

The Ministry of Commerce told Al-Eqtisadiah that commercial registrations for the sale of nuts, spices, and herbs rose from around 28,000 at the end of 2023 to 33,000 by the end of 2024, a 15 percent increase. 

The ministry added that Riyadh led with 10,000 registrations, followed by Makkah with 9,800, the Eastern Province with 4,000, and Madinah with 2,500. 

Jeddah Municipality confirmed that it enforces health regulations for herbal shops issued by the Ministry of Municipal and Rural Affairs and Housing, which prohibit the sale of unlicensed traditional blends. 

Abdullah Al-Eisa, CEO of Bayt Al-Hikmah, said the sector remains “marginalized,” dominated by untrained labor lacking detailed knowledge of herbs and their benefits. 

He noted that herbal shops typically carry over 500 herbs, 200 spices, and 100 types of nuts, all requiring specialized expertise to differentiate quality and varieties. 

Al-Eisa highlighted that many shops display products openly without proper packaging, increasing the risk of fraud. “Some even mix spices with other powders to increase volume, damaging the sector’s reputation,” he said. 

He emphasized the need for staff training and work permits similar to those in the restaurant sector, noting that poor hygiene and lack of expertise limit market competitiveness, particularly in unregulated shops. 

Regarding the practice of grinding spices in front of customers, Al-Eisa said separate mills would be required for each spice to prevent cross-contamination, posing significant logistical and cost challenges. 

Munir Meyajan, general manager of Meyajan Herbal, said demand has increased with the growth of e-commerce locally and internationally. 

He added that Saudi companies now receive online orders from countries including France, Germany, Egypt, and Iraq, which are shipped promptly through specialized logistics providers. 

“Demand is particularly high for rare Saudi herbs used in treating bone and internal medicine–related conditions,” he said, noting that herbal knowledge is a vast field, divided into marine and wild herbs, and forms an essential part of modern medicine and pharmacy, with many plants and herbs used in contemporary drug formulations. 

Spice production is heavily concentrated in Asia, home to most aromatic plants and natural flavorings, with India accounting for more than 70 percent of global output — producing black pepper, turmeric, cardamom, cumin, coriander, and red chili — largely from regions such as Kerala and Tamil Nadu. 

China ranks second, with large volumes of ginger, ginseng, dried garlic, red chili, and unique spices like Sichuan pepper. Indonesia, the third-largest producer, is known for its historic Spice Islands, such as Maluku and Sulawesi, producing nutmeg, cloves, and Indonesian cinnamon. Meanwhile, Vietnam is the world’s largest producer and exporter of black pepper.