Syria Signs $7 Billion Energy Deals with Global Firms

After 14-years of internecine war and catastrophe, Syria on Thursday signed a $7 billion energy agreement and Memoranda of Understanding (MOU) with a consortium of four international companies, Energy Minister Mohammed al-Bashir said as the war-torn nation seeks to rebuild its dilapidated infrastructure after years of conflict.

The signing ceremony, which was attended by Syrian President Ahmad al-Sharaa, US Envoy to Syria Thomas Barrack, and representatives of two Qatari and American companies, and two Turkish companies.

Speaking on the occasion, Bashir said that the agreement and MOU was the first of its kind in Syria in terms of size, type, and value. The investment has reached $7 billion with a coalition of international energy companies.

The MOU were signed to promote energy investment with a number of international companies, including UCC Group, UrbaCon, Power International, Cengiz Energy, and Calyon Energy. The agreement will allow for investment in the energy sector to generate 5 GW.

The agreement includes the development of four combined cycle gas turbine (CCGT) power plants in the areas of Deir ez-Zor, Mahardah, and Zaizoun in the Hama countryside, and Trifawi in the Homs countryside, with a total generating capacity estimated at approximately 4 GW, using American and European technologies, in addition to 1 GW solar power plant in the Wadi al-Rabi’ area in southern Syria.

The pace of investment gained momentum following the easing of the US and European sanctions on Syria for more than a decade. The UN estimates the total losses in GDP during the war at approximately $800 billion.

UrbaCon Holding CEO Ramez Al-Khayat, said that the MOU represents a new phase of joint work to rebuild Syria by achieving self-sufficiency to ensure a sustainable renaissance. The project will provide more than 50,000 direct job opportunities and 250,000 indirect job opportunities, contributing to supporting the labour market in Syria.

Syria has begun to experience a surge in investment, especially after the easing of US and European sanctions on its economy, which had suffered a severe collapse as a result of the nearly 14-year war. The government has received applications to establish approximately 500 companies in various sectors since the beginning of this year, Minister of Economy and Industry Mohammad Nidal al-Shaar said.

Syria Returns to SWIFT

On the financial front, Razi Mohieddine, advisor to the Syrian Minister of Economy, revealed that Syria had officially returned to the global SWIFT system, enabling the country to carry out bank transfers, which were essential to the functioning of financial markets.

Syria’s Finance Minister Mohammad Yaser Barnieh said that the government plans to reopen the Damascus Stock Exchange on Monday (June 2), with trading limited to three days a week during the first phase. This move comes after the country took the necessary measures to ensure compliance with anti-money laundering measures.

On the transportation front, the General Authority for Sea and Land Ports signed an $800 million MOU with DP World. Under the agreement, the Emirati company will develop and operate a multi-purpose container terminal at the port of Tartous. French company CMA CGM, the world’s third-largest container shipping company, will develop and operate the port of Latakia in Syria for €230 million.

Gulf airlines such as Saudi carriers Flynas and Flyadeal, along with the UAE’s Flydubai resumed air links and continued to fly to Syria after years of isolation. Flynas plans to operate direct flights between Saudi Arabia and Syria while Saudi’s low-cost carrier Flyadeal is expected to begin flights to Syria in July, and Flydubai announced the resumption of flights to Damascus starting next month.