Arada Signs $7 Billion Deal for Damascus Development
Arada's first Syria venture will include 11,000 homes, a central park, schools, and a 300-bed hospital in New Damascus.
UAE developer Arada has signed a $7 billion agreement with the Syrian Sovereign Fund to build a new district in Damascus. The deal, announced on Monday, is worth AED 25.7 billion. It is Arada's first venture in Syria.
The site is in the New Damascus area near Mezzeh, roughly 10 minutes from central Damascus and 25 minutes from Damascus International Airport. The development covers 4 million square meters. Its master plan includes 11,000 homes, a 700,000-square-meter central public park, and a 300-bed hospital. Educational facilities are planned for 5,000 students. The scheme also includes healthcare, government, and community facilities, plus a social housing component.
The agreement was signed in Damascus by Arada Group CEO Ahmed Alkhoshaibi and Mohammed Al-Khayyat, who signed for the Syrian Sovereign Fund in his role as director of real estate development. Al-Khayyat said the project would follow an integrated-community model based on the 15-minute city concept. That planning model seeks to put daily services such as schools, clinics, shops, and parks within a short walk or cycle from residents' homes. He described the fund's mandate as attracting global investment. Prince Khaled bin Alwaleed bin Talal Al Saud, Arada's executive vice chairman, said the company aims to support Syria's recovery by creating jobs.
Arada also plans to extend its 'Home for a Home' initiative in Syria through a 'City for a City' concept. That program is designed to create sustainable communities for displaced people.
The Syrian project brings Arada's portfolio to four markets. The company now operates in the UAE, the UK, Australia, and Syria. Across those markets, it has more than 66,000 homes and a total portfolio valued at $42 billion.
Syria is seeking foreign capital to rebuild its economy after more than a decade of war. Most Western sanctions on the country have now been lifted, and Damascus has signed billions of dollars of investment agreements with Saudi Arabia, Qatar, the UAE, and US firms. The US Embassy in Damascus said in May that more than 18,000 companies had registered in the city. It said $1.5 billion in investment had been pledged since Washington lifted sanctions. The opportunities span electricity, oil, gas, technology, telecommunications, real estate, and banking.
French companies are expanding their presence in Syria as well. New economic agreements were announced during French President Emmanuel Macron's push to support Syria's reconstruction, with deals across energy, infrastructure, and transport.
The Arada deal marks a significant step in UAE-Syria economic relations, though those ties have developed more cautiously than relations between Damascus and other Gulf states since President Ahmed al-Sharaa's government came to power. The project is an early test of whether large-scale foreign real estate investment can take hold in postwar Syria.
