Syria’s Sovereign Fund has finalized a major development agreement with UAE-based Arada Group to build the “New Damascus” project, a multibillion-dollar urban venture that marks one of the largest foreign direct investments in Syria since the conflict began. The deal, valued at approximately $7 billion (AED 25.7 billion), will establish a master-planned city spanning four million square meters on the outskirts of the capital.
Envisioned as a fully integrated urban hub, the project will combine residential neighborhoods, hospitality assets, educational institutions, healthcare facilities, commercial districts, and leisure destinations, all anchored by extensive green infrastructure and public services aligned with national reconstruction priorities.
The agreement was signed by Ahmed Al Khoshaibi, Chief Executive Officer of Arada Group, and Mohammad Al-Khayat, Board Member and CEO of the Real Estate Development Sector at the Syrian Sovereign Fund.
A Modern, Self-Sustaining City
According to details published by the Syrian daily Al-Thawra, the development will feature roughly 11,000 residential units, including apartments, villas, townhouses, and luxury branded residences. To support business travel and tourism, the plan includes 500 hotel rooms and 1,000 serviced hotel apartments.
Educational facilities designed for 5,000 students, a modern 300-bed hospital, office complexes, retail districts, and hospitality venues form additional pillars of the project. At its core will be a 700,000-square-meter central public park—conceived as the city’s primary green lung—supplemented by neighborhood gardens, leisure zones, and municipal service centers.
Strategic Expansion into Syria
Arada’s entry into the Syrian market represents a significant milestone in the company’s regional and international growth strategy. The developer currently manages a global portfolio valued at approximately $42 billion, encompassing more than 66,000 residential units across the UAE, the United Kingdom, Australia, and now Syria.
Company executives noted that the partnership aligns with Arada’s long-term vision of investing in high-growth emerging markets and delivering transformative urban regeneration projects.
Reconstruction Momentum and Economic Outlook
Prince Khaled bin Alwaleed bin Talal Al Saud, Executive Vice Chairman of Arada Group, described Syria as entering “a crucial era” that offers substantial opportunities for reconstruction and long-term investment. He emphasized that Arada’s experience in large-scale urban development positions the company to support the Syrian Sovereign Fund through knowledge transfer, job creation, and capacity building.
Mohammad Al-Khayat of the Syrian Sovereign Fund said the agreement reflects Syria’s increasing openness to global partnerships and international capital. He underscored that the Fund’s mandate centers on attracting high-quality foreign investment that delivers sustained value for the national economy and its citizens, framing the New Damascus project as a concrete step toward that goal.
Both parties confirmed they are coordinating with relevant government agencies to assess additional development sites across Syria. The agreement places a significant new marker on the country’s real estate landscape as it seeks to draw foreign capital and technical expertise to rebuild its cities and essential infrastructure.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
