Syria-US Gas Deal Aims to Ease Financial Bottleneck

Syria’s Jihar gas field, one of the country’s major gas fields, in the desert west of Palmyra in Homs province. Syrian Energy Ministry/File Photo
Syria’s Jihar gas field, one of the country’s major gas fields, in the desert west of Palmyra in Homs province. Syrian Energy Ministry/File Photo
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Syria-US Gas Deal Aims to Ease Financial Bottleneck

Syria’s Jihar gas field, one of the country’s major gas fields, in the desert west of Palmyra in Homs province. Syrian Energy Ministry/File Photo
Syria’s Jihar gas field, one of the country’s major gas fields, in the desert west of Palmyra in Homs province. Syrian Energy Ministry/File Photo

The Syrian Petroleum Company has signed a major implementation contract with US companies ConocoPhillips and Novaterra Energy to develop gas fields and raise production, marking the most significant strategic breakthrough in economic and political ties between Damascus and Washington since the fall of Bashar al-Assad’s government in late 2024.

The agreement is the first major US energy deal in Syria in years. It also offers the clearest sign yet that the country has entered a phase of “integrated implementation” after US President Donald Trump’s decision to lift sanctions in July 2025.

The contract follows earlier US moves, beginning in early 2026, through memoranda of understanding with other companies, including Chevron for offshore exploration and HKN Energy for the onshore Rmeilan fields.

But the ConocoPhillips deal stands out as the largest binding implementation contract to develop Syria’s domestic gas sector, backed by Gulf and European alliances and financing aimed at ending the country’s acute energy crisis.

Energy experts say the deal, based on understandings reached last November, will go beyond the technical oil and gas sector. They see it as an international “vote of confidence” that could help break the financial bottleneck facing Syria’s new government, whose 2026 budget deficit is estimated at about $1.8 billion.

The US return comes as major regional and international players move into Syria’s energy sector through parallel contracts and partnerships with Saudi companies, including ADES, as well as Qatari and French firms. Together, these moves place Syria’s gas sector on the edge of a promising new phase that could drive recovery and reconstruction.

The contract puts earlier understandings into effect. In November 2025, the Syrian Petroleum Company signed a memorandum of understanding with ConocoPhillips and Novaterra Energy. Technical, legal and commercial talks followed, culminating in the latest agreement.

Importance of the contract

Syrian academic and energy expert Ziad Arbash said the deal matters because it turns a memorandum of understanding into an implementation contract. It sends a strong signal to global markets, he said, that Syria has become an attractive destination for oil and gas investment.

He said the agreement would also raise the “level of oil activity” in Syria in tangible ways: more work teams, engineers and technicians in the fields, modern rigs and equipment built to the latest technical standards, and stronger infrastructure and logistics to support company operations.

Arbash told Asharq Al-Awsat that every additional company operating in Syria helps draw in others. That, he said, lowers operating costs through economies of scale and the exchange of expertise, while creating a competitive environment that benefits the national economy.

A vote of confidence

The contract could have a wider ripple effect. For Arbash, the presence of a company the size of ConocoPhillips in the Syrian market is “a vote of confidence for other companies.”

He said it reduces the perceived risks of investing in Syria and demonstrates the Syrian government’s commitment to creating an investment environment that can attract major international firms.

Recent indicators point in the same direction. The Syrian Petroleum Company signed a contract with Saudi Arabia’s ADES to develop gas fields in April, after signing a memorandum of understanding with US company Chevron and a Qatari company in February. Reports have also pointed to alliances between US and Saudi companies to invest in northeastern Syria.

Breaking the financial bottleneck

The new Syrian government inherited a shattered economy from the previous government and is struggling with a budget deficit of about $1.8 billion.

According to figures presented by Finance Minister Yisr Barnieh at an April news conference announcing the 2026 budget, revenues are estimated at about 959 billion Syrian pounds, or around $8.7 billion, against spending of 1,056.7 billion pounds, or about $10.5 billion.

Arbash described the contract as “a pivotal step in overcoming the financial bottleneck” in the state budget through two linked tracks.

The first is easing the import bill. Syria currently depends on imports and regional supplies to improve electricity provision. At its pre-war peak, gas output stood at about 28 million cubic meters per day. It has since fallen to roughly a third of that level.

The government aims to raise production to about 15 million cubic meters per day next year. The contract is expected to add between 4 million and 5 million cubic meters per day within one year of work beginning. According to Arbash, that would sharply reduce the cost of importing oil and petroleum products, while better securing local gas needs for electricity and other vital sectors.

The second track is “exports and revenues.” Once Syria achieves a production surplus, it could move toward exports, generating hard currency that would ease pressure on the state budget and strengthen its ability to finance reconstruction and development projects.

Current estimates suggest the first phase of the project could increase production within one year of work beginning. Arbash urged caution, however, saying: “Let us be realistic and add another year before reaching the increase of 5 million cubic meters per day.”

An important breakthrough in bilateral relations

The contract was signed as relations between Syria’s new authorities and the Trump administration continue to improve after the fall of Bashar al-Assad’s rule in late 2024.

Arbash said the agreement represents an important breakthrough in relations between the two countries. It is the first implementation contract with a major US oil and gas company since Assad’s fall, reflects a shift in US policy toward Syria, and opens a channel for direct economic cooperation that could positively impact other political files.

The signing came as Damascus continues efforts to attract US investment. Syrian Energy Minister Mohamed al-Bashir discussed investment opportunities in the oil and gas sector with US officials last week.

According to Arbash, the deal could pave the way for broader normalization between the two countries, especially as other US companies enter the scene, including Baker Hughes, Hunt Energy and Argent LNG, which are preparing a comprehensive plan to develop Syria’s energy sector.

Current state of gas fields and production

Syria’s gas sector faces a long road back from the deep supply deficit left by 14 years of conflict. A United Nations report estimates direct and indirect losses to the oil and gas sector at more than $115 billion between 2011 and 2023.

Current production data published on the US Embassy in Damascus page shows a total domestic gas supply of only 7-10 million cubic meters per day. That is a steep fall from the pre-war peak of up to 30 million cubic meters per day.

Demand, meanwhile, has risen to between 23 million and 30 million cubic meters per day, driven mainly by the severe shortage in electricity generation. The gap leaves a daily shortfall of up to 15 million cubic meters, placing heavy constraints on power plants.

That is why Damascus has set its sights on a strategic goal for 2030: using the new international partnerships to double gas production before the end of the decade.

Infrastructure

The sector suffered heavy damage during the war, including to fields, facilities and transmission lines. Sanctions also obstructed maintenance for years. Still, Arbash said that developing proven gas reserves estimated at about 285 billion cubic meters could allow current production to return to its pre-war peak of 28 million cubic meters per day within four years.

Syria needs about 23 million cubic meters of water per day to ensure continuous electricity supplies.

For now, the country relies on imports and regional supplies to improve electricity provision. These include a project to supply Azerbaijani gas through Türkiye with Qatari financing, providing about 3.4 million cubic meters per day, or to supply it directly from Qatar through Jordan.

Syria is currently focused on rehabilitating infrastructure at existing fields through contracts with companies such as Saudi Arabia’s ADES. It also aims to double production through strategic partnerships with international companies, as reflected in the contract with ConocoPhillips and Novaterra Energy.

For Arbash, the signing marks “a qualitative shift in Syria’s energy sector” at a critical moment. Syria, he said, is trying to overcome its financial bottleneck, raise the “level of oil activity,” restore international confidence, attract additional Arab and Western investment, and “open a new page in Syrian-US relations through direct economic cooperation.”

“With expectations that the fruits of this contract will begin to appear within a year, and with parallel projects involving Saudi, Qatari and French companies, Syria’s gas sector is entering a promising phase that could become a main driver of economic recovery and a way out of the suffocating financial crisis, provided there is transparency in tendering and implementation,” Arbash said.

Where are the fields?

The agreements quickly had an impact on the ground. The Syrian Petroleum Company recently took over oil and gas fields that had been controlled by the Kurdish-led autonomous administration in the northeast, extending government control over resources concentrated in three main areas.

The eastern region, including Deir Ezzor and Hasakah, includes the Conoco field northeast of Deir Ezzor. ConocoPhillips established the field in 2001 with a capacity of 4.7 billion cubic meters a year. It produced 13 million cubic meters per day before halting operations because of attacks. The region also includes the al-Jabsa field in Hasakah. Together, the two fields accounted for 53% of Syria’s production before 2011.

The central region and the Homs desert include al-Shaer, the country’s largest field, with a production capacity of 35 million cubic meters per year in 2010. The area also includes the al-Jihar field west of Palmyra, as well as the al-Mahr and al-Jazal fields.

Arbash concluded that, based on these combined indicators, Syria’s gas sector is entering a promising phase capable of leading economic recovery and easing the suffocating financial crisis, provided the highest standards of “transparency in tendering and implementation” are upheld.

 



Saudi Money Market Funds Face Investment Reshuffle

The Saudi Capital Market Authority’s headquarters in Riyadh (Asharq Al-Awsat)
The Saudi Capital Market Authority’s headquarters in Riyadh (Asharq Al-Awsat)
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Saudi Money Market Funds Face Investment Reshuffle

The Saudi Capital Market Authority’s headquarters in Riyadh (Asharq Al-Awsat)
The Saudi Capital Market Authority’s headquarters in Riyadh (Asharq Al-Awsat)

Saudi money market funds are entering a new phase of liquidity management and portfolio restructuring as new rules cap foreign investments at 5% of net asset value.

Fund managers will have to balance returns, liquidity and risk more carefully.

The rules do not require funds to exit existing foreign investments immediately. The Capital Market Authority has given managers transition periods to bring portfolios into compliance. This allows deposits and murabaha transactions to mature before funds are reallocated, avoiding early exits that could hurt returns or disrupt liquidity management.

The measures also require foreign counterparties to hold investment-grade credit ratings, strengthening protection against overseas exposure risks.

Financial analysts say the main impact may not be an immediate shift in capital flows. Instead, the rules are likely to reshape money market fund portfolios and how managers allocate liquidity between domestic and foreign instruments, based on returns, liquidity and credit quality.

As investment options in the Saudi market expand, the restructuring could direct greater attention toward domestic liquidity instruments. The transition periods will allow managers to adjust gradually, retain flexibility over existing investments and reduce the risks of rapid reinvestment.

Investor protection

Financial analyst Abdullah Al-Jabali told Asharq Al-Awsat that the move was part of the Capital Market Authority’s efforts to regulate higher-risk investments and strengthen investor protection, particularly amid global market shifts and continued uncertainty over interest rates.

The decision seeks to reduce Saudi money market funds’ exposure to foreign investments and limit the impact of related volatility, he said. The timing and scale of interest-rate cuts in the coming years remain unclear.

Al-Jabali said the measures go beyond imposing a cap on foreign investments. They also tighten requirements governing the entities through which funds may invest, taking into account credit ratings, solvency and reliability. This would help reduce risk and safeguard investors’ money.

The rules also seek to prevent money market funds from concentrating investments in instruments or entities that could be difficult to exit when needed. This would strengthen liquidity and improve funds’ ability to respond to market changes, he said.

Al-Jabali expected further regulations to follow, potentially covering other foreign investments such as real estate funds, financing funds and foreign sukuk. The measures could also extend to funds’ private-equity investments outside the kingdom.

He said the changes reflected the authority’s efforts to reduce risks linked to some investment practices, strengthen the investment environment and protect investors in the Saudi market.

Financial analyst Tariq Al-Atiq told Asharq Al-Awsat that the decision was primarily intended to reduce risk, strengthen investor protection and impose greater discipline on the placement of liquidity outside the kingdom.

Money market funds typically invest in deposits, murabaha transactions and short-term sukuk. Financial companies affiliated with banks manage a large proportion of these funds, he said.

A fund valued in Saudi riyals does not necessarily hold all its investments inside the kingdom, Al-Atiq said. Some liquidity may be placed with Gulf or foreign banks in search of higher returns. The decision would reduce that exposure and return some liquidity to the domestic market.

Giving funds up to two years to comply takes into account the fixed maturities of deposits and murabaha transactions, he said. Early exits could hurt fund performance, while allowing foreign deposits to expire without renewal would support a gradual, orderly transition.

Gradual compliance

The Saudi Capital Market Authority has capped foreign investments by public money market funds at 5% of net asset value and given managers transition periods to bring existing holdings into compliance.

Under a circular sent to capital market institutions, managers of public money market funds whose foreign investments exceed 5% must comply with the cap within two years of the circular’s date.

The requirement also affects transactions made during the transition. Until compliance is achieved, managers must not make an investment or enter into or renew any transaction that would breach the limit.

Funds with foreign investments exceeding 20% of net asset value face a shorter deadline. Their managers must reduce that exposure to below 20% within six months of the circular’s date.

They must then continue reducing foreign investments until they reach the final 5% cap within the timeframe set by the circular.

The rules therefore set different paths based on the level of foreign exposure. Funds above the 5% cap have up to two years to comply, while those above 20% must first bring their exposure below 20% within six months.

The authority also required all foreign investments by public money market funds to be made with counterparties holding investment-grade credit ratings issued by licensed credit-rating agencies.

Managers whose funds hold foreign investments that do not meet this requirement must bring them into compliance within two years of the circular’s date.

The Capital Market Authority stressed that capital market institutions must comply with the circular, the Capital Market Law and its implementing regulations. It designated the Collective Investment Schemes Compliance Department to answer questions about the new requirements.


Saudi Tourism Minister Announces Launch of Second Edition of TOURISE Forum in March

Tourists are seen at Saudi Arabia's AlUla. (SPA)
Tourists are seen at Saudi Arabia's AlUla. (SPA)
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Saudi Tourism Minister Announces Launch of Second Edition of TOURISE Forum in March

Tourists are seen at Saudi Arabia's AlUla. (SPA)
Tourists are seen at Saudi Arabia's AlUla. (SPA)

Saudi Minister of Tourism and Chairman of the TOURISE Forum Board Ahmed Al-Khateeb announced on Wednesday the launch of the second edition of the “TOURISE 2027” Forum, under the theme “Alliances That Move the World,” to be held in Riyadh from March 23 to 25, 2027.

The forum, held under the patronage of Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, brings together leading figures from the tourism, technology, investment, sustainability, culture and transport sectors from around the world to discuss the key opportunities and challenges facing these sectors and help shape the next phase of global tourism.

The forum comes as Saudi Arabia presents a prominent example of what can be achieved in the tourism sector as an integrated economic ecosystem. The Kingdom surpassed its initial target of welcoming 100 million visitors annually in 2023, seven years ahead of schedule, and raised its ambition to 150 million visitors annually by 2030.

The TOURISE Forum serves as an attractive platform for investment. Its inaugural edition last year succeeded in catalyzing investments worth $113 billion, spanning destinations, hotels, retail, talent development and AI-powered platforms, demonstrating how cross-sector collaboration can turn ambition into investment and practical action.

The theme of the forum’s second edition, “Alliances That Move the World,” underscores the importance of forging alliances that transcend sectors, borders and business fields, connecting tourism with capital, technology and infrastructure to unlock investment opportunities, accelerate innovation and facilitate the traveler experience, supporting a more growing, sustainable and inclusive global tourism economy.

Minister Al-Khateeb said: “No single destination, company or organization will shape the future of tourism. Rather, it will be determined by the strength of the alliances we build together. Saudi Arabia has witnessed first-hand what can be achieved when ambitions, investments and strategic partnerships come together.”

“Through the second edition of the TOURISE Forum, we are inviting the world to Riyadh to build the alliances that will shape the next 50 years of the tourism sector,” he added.

The Ministry of Tourism announced the first group of speakers for the 2027 edition, comprising leading figures from the tourism, hospitality, technology and destination development sectors. They will showcase their organizations’ contributions to facilitating travel, tourism and mobility, as well as the most promising areas for investment in the global tourism sector.


Riyadh Opens the Way for Driverless Parcel Delivery

One of the autonomous trucks (Asharq Al-Awsat)
One of the autonomous trucks (Asharq Al-Awsat)
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Riyadh Opens the Way for Driverless Parcel Delivery

One of the autonomous trucks (Asharq Al-Awsat)
One of the autonomous trucks (Asharq Al-Awsat)

As the mobility landscape within Saudi cities continues to evolve, Riyadh is preparing to embark on a new experience in which no driver sits behind the wheel and the success of a journey does not depend on a driver's ability to navigate the road. By mid-November, 24 autonomous trucks are expected to begin trial operations on the capital's roads, opening the door for the technology to move from passenger transport into parcel and freight delivery.

The move follows the General Transport Authority's sponsorship in May of a memorandum of understanding between Abdul Latif Jameel Motors and China's Zeelos Technology, a company specializing in autonomous driving technologies, with the aim of adopting and enabling autonomous mobility solutions in the Kingdom.

The trucks expected to operate in Riyadh represent one of the practical applications of this cooperation. The first phase will focus on testing the ability of autonomous vehicles to transport parcels within the capital, paving the way for an assessment of their performance and efficiency before moving to broader stages of operation.

Ammar Baterdok, General Manager of Mobility Solutions Projects at Abdul Latif Jameel Motors, told Asharq Al-Awsat that the pilot operation will begin after the completion of geospatial mapping and the training of autonomous driving systems on local roads.

He explained that the fleet allocated to the first phase comprises 24 trucks of different sizes and models. Four have already arrived in the Kingdom, while another 20 are currently in transit, amid logistical challenges affecting shipments from China due to developments in the region.

The trucks have payload capacities of 0.5 tons, 1.5 tons, and 2.5 tons. The fleet includes refrigerated and non-refrigerated models, with the remaining batches expected to arrive successively during October and November.

Free Trials with SPL

Abdul Latif Jameel Motors is carrying out the pilot phase in cooperation with Saudi Post | SPL to transport parcels from the main center to neighborhood centers in Riyadh. The service will be provided free of charge throughout the trial period.

Baterdok said the company is prepared to extend the pilot period for several months if necessary in order to collect sufficient operational and investment data to assess the fleet's performance and economic viability before making a decision on commercial expansion.

The phase will allow the company to test the vehicles under actual driving conditions within the capital, including their ability to navigate local roads and traffic, while also measuring their performance during different operating hours.

Millions Invested to Test Viability

The cost of the pilot phase amounts to millions of riyals, according to Baterdok, covering the purchase of vehicles, customs clearance, fees, and taxes. He explained that the investment is not intended to generate a direct financial return, but rather to test the technology's economic and technical viability and collect the data needed before decisions are made regarding commercial expansion and the size of the future fleet.

Illustrative photo of the inside of the truck (Asharq Al-Awsat)

Operating Savings Could Exceed Truck Costs

The company is banking on autonomous trucks being able to reduce operating costs compared with conventional vehicles. Baterdok explained that the price of an autonomous truck is approximately half that of a conventional fuel-powered truck, whether gasoline or diesel.

The cost gap becomes wider during operation due to lower labor and maintenance expenses, in addition to the possibility of operating the trucks around the clock, except for the periods required for recharging.

In an analysis, logistics expert Hassan Al Halil told Asharq Al-Awsat that the most significant economic impact would come from reducing operating costs and improving supply-chain efficiency. He noted that autonomous trucks could increase fleet utilization, improve route planning, and allow for longer operating periods, particularly on repetitive and defined routes.

Al Halil added that it is too early to establish a fixed percentage for reductions in logistics costs in Saudi Arabia, given that savings vary depending on the type of shipment, distance, and operating model. He said that "the greatest opportunities for savings lie in operating labor costs, increasing truck utilization, reducing waiting times, improving fuel consumption, and maintenance," adding that "the economic value will come from increasing fleet productivity and completing more trips efficiently."

Baterdok, meanwhile, said the absence of a driver allows supply and delivery operations to be shifted to nighttime hours, increasing the efficiency of fleet utilization in major cities such as Riyadh by taking advantage of periods when road traffic is less dense.

According to company estimates, electricity costs account for only about 20 percent of the cost of conventional fuel, while maintenance expenses decline due to the absence of conventional engines and transmissions. Routine servicing therefore focuses to a greater extent on components such as brakes and tires.

The trucks rely on sensors and radar systems for autonomous driving, enabling them to operate in nighttime driving conditions without relying on human vision.

Road Readiness Determines the Path to Expansion

Despite these advantages, Al Halil believes that large-scale operation of autonomous trucks in Riyadh requires more than well-maintained roads. It requires highly accurate maps that are continuously updated, reliable communications systems, smart infrastructure, and coordination among the relevant authorities.

He pointed out that the main challenges within cities include congestion, sudden changes in routes, roadworks, unexpected behavior by some vehicles, dusty conditions, and the handling of loading and unloading points. He said that "the most realistic starting point will be defined, repetitive roads and logistics routes before moving to more complex urban operations."

From Passenger Transport to Parcel Delivery

The truck trial comes as Saudi Arabia expands its testing of autonomous mobility applications, as the technology moves from passenger transport into freight and delivery.

Last year, Saudi Arabia launched autonomous passenger vehicles and is currently operating more than five routes, including the Roshn area, Princess Nourah bint Abdulrahman University, and the route connecting Riyadh Gallery and Hayat Mall.

The service has transported more than 3,100 passengers across 1,600 trips under the supervision of the General Transport Authority, as part of efforts to test autonomous driving technologies in the Saudi urban environment.

The expansion of these applications into the freight sector opens a new field for testing the impact of autonomous driving on the efficiency of delivery operations within cities, at a time when e-commerce is expanding and supply chains are seeing growing demand for more efficient and flexible solutions.

From Roads to the Sky

Abdul Latif Jameel Motors' plans do not stop at ground transportation. The company has begun studying the market for drone-based goods delivery in preparation for entering the field once the necessary regulatory frameworks are in place.

Baterdok expects the process of developing regulations governing goods delivery by drones to take between one and a half and three years. He noted that the company is in discussions with global suppliers of trucks and drones designed to transport goods and individuals.

In evaluating these solutions, the company is focusing on technical readiness, range, speed, the ability of vehicles and aircraft to operate under different weather conditions, and resistance to wind, with the aim of achieving operational readiness as soon as official licenses are issued.

Accordingly, Abdul Latif Jameel Motors' plan is not limited to testing autonomous trucks in Riyadh. It extends to developing a broader system of autonomous mobility solutions, beginning with ground transportation and eventually reaching air-based goods delivery, while testing the technical and economic viability of each solution before moving from trials to commercial expansion.