Several Gulf states have recently shown growing interest in investment opportunities in Syria, as they seek to expand their presence and influence in the region, benefiting from changes in Syria’s geopolitical position.

This interest is driven by a set of economic and strategic factors, most notably Syria’s geographic location, which strengthens its role as a link between Gulf markets and Europe, as well as the promising investment opportunities it offers across several sectors that still need rehabilitation.

At the same time, Gulf investment, according to experts, remains tied to a set of challenges, most notably political instability and weak legislative and institutional structures, making the future of this investment trend dependent on stabilization in the country.

A Set of Interlinked Reasons

The growing interest of Gulf investors in the Syrian market is due to a connected set of economic, geographic, and political factors, according to economist Majdi al-Jamous.

Speaking to Enab Baladi, al-Jamous said the Gulf investor is primarily looking to achieve profits and economic returns, and Syria today represents a promising investment opportunity in several sectors, as the Syrian market suffers from a major shortage of industrial, real estate, tourism, educational, and cultural investment.

Al-Jamous highlighted the importance of Syria’s geographic location, especially amid regional tensions linked to the US-Iranian conflict and the resulting concerns over the Strait of Hormuz. He said Syria represents a strategic alternative through its access to the Mediterranean Sea, giving it an important role in linking Gulf states with European markets.

The country’s broad shared border with Turkey also forms an important gateway to European markets, strengthening Syria’s appeal as a regional hub.

Al-Jamous said Syria has several competitive advantages, most notably a climate attractive to investment, especially in the tourism sector.

The scale of destruction that has affected various sectors over the past years creates major investment opportunities for capital seeking entry into the Syrian market.

The economist added that the Syrian government’s move toward a market economy and freedom of ownership of production tools are additional factors attracting Gulf investors, as they allow the private sector to own and manage industrial and tourism machinery and equipment.

On the political factor, al-Jamous believes that Arab and Gulf rapprochement with Syria played an important role in strengthening investment interest. He noted that Syria’s political and economic stability directly reflects on the stability of the Gulf region, amid existing tensions between Gulf states and Iran.

Regarding the main challenges facing Gulf investors, al-Jamous pointed to continued political instability, the absence of an integrated legal and legislative environment, and the lack of independent judicial and economic institutions that guarantee investors’ rights in the event of disputes. He also pointed to other challenges, including weak infrastructure, especially in electricity, transport, and roads.

Al-Jamous considers the real estate sector the most attractive for Gulf investors because of low prices compared with the expected level of demand, especially with the return of Syrian expatriates and displaced people and the growing need for housing. The tourism sector is also receiving increasing interest because of Syria’s natural and climatic assets.

Saudi Arabia Most Enthusiastic

In his assessment of the Gulf role, al-Jamous said Saudi Arabia is the most enthusiastic about supporting investment in Syria and the most willing to contribute to achieving economic and political stability.

As for the UAE, al-Jamous described its position as positive, while noting some reservations linked to the political and ideological orientations of the Syrian authority.

By contrast, the economist said Qatar, despite its rapprochement with Turkey, has a more limited investment capacity in the Syrian market compared with Saudi Arabia, making Riyadh the leading candidate to serve as the main driver of economic development and improved living standards in Syria during the next stage.

In a related context, economist Ayman al-Desouki told Enab Baladi that Gulf states’ decision to re-engage in the Syrian market cannot be separated from their vision of their regional role and Syria’s place within that role, in addition to the nature of the sectors that align with their strategic orientations, as well as each country’s financing capacity.

Assuming the financial resources of some Gulf states are affected by regional shifts as a result of the war on Iran, the decisive factor, according to al-Desouki, remains linked to the strategic considerations guiding the Gulf decision-maker’s vision.

Based on these factors, al-Desouki expected Saudi Arabia to be the most inclined to increase its investments in Syria, given that this aligns with its economic Vision 2030 and its effort to strengthen its regional presence, especially with Iran’s influence declining, through projects that position Syria as an economic gateway.

At the same time, al-Desouki believes this decision must be accompanied by the Syrian government providing the requirements for an investment environment, including governance, security, and stability.