Syria, Saudi Arabia Sign Four Transport, Postal MoUs

Saudi Minister of Transport and Logistics Services Saleh bin Nasser al-Jasser signed a package of memorandums of understanding with Syrian officials on August 25, covering air, land, rail transport and postal services. The agreements form part of broader economic cooperation between the two countries, supporting Syria's infrastructure rebuilding plans and efforts to attract investment.

Details of the Signed Memorandums

The Saudi minister signed two MoUs with Syrian Transport Minister Yarob Badr to strengthen cooperation in the land and rail transport sectors. He also signed an air transport cooperation agreement with Omar al-Husri, head of Syria's General Authority of Civil Aviation and Air Transport, and a postal services development agreement with Communications Minister Abdulsalam Haykal.

Hama Iron and Steel Project

Syria's Ministry of Economy and Industry signed a separate memorandum with Saudi Arabia's Ithraa Company to rehabilitate, renovate and operate the General Company for Iron and Steel Products in Hama. The agreement aims to raise the plant's production capacity within four years to a minimum of 350,000 tons annually. The memorandum spans 30 years, with the first five years dedicated to equipping and rehabilitation works, and the remaining 25 years allocated to plant operation.

Context of the Investment Partnership

The new agreements complement an earlier package signed during the first Syrian Saudi Investment Forum, held in Damascus in July 2025. That forum saw the signing of 47 investment memorandums worth 24 billion Saudi riyals (6.4 billion US dollars), spanning industry, energy, infrastructure, real estate development and financial technology.

Economic Perspectives on Impact

Ali Kanaan, dean of the Faculty of Economics at Damascus University, said the transport agreements expand economic relations between Syria and Gulf Arab states, noting that the transport sector is key to the movement of people, goods and commodities. He added that extending a rail line from Turkey through Syria, Jordan, Saudi Arabia and Gulf states would benefit passengers, boost tourism, and positively affect freight movement between Turkey and the Gulf.

Economic analyst Mustafa al-Sayed said the signed transport contracts help repair vital arteries of the Syrian economy, adding that the focus on rail, land route and open skies agreements reconnects Syrian cities with each other and with neighboring countries.

Parallel Investment Talks

Syrian President Ahmad al-Sharaa discussed strengthening economic and investment cooperation between Syria and Saudi Arabia with Mohammed Abunayyan, head of the Saudi Syrian Business Council. The Syrian Investment Authority said the meeting addressed the council's role in supporting economic and investment cooperation between the two countries, and expanding partnership areas across several sectors.