Tadawul Eyes Damascus Expansion through Feasibility Study

Tadawul, the Saudi stock exchange, has initiated the groundwork for a comprehensive feasibility study to explore the establishment and operation of a stock exchange in Damascus, marking a significant moment in the Kingdom's expanding economic engagement with Syria. The announcement was made by Minister of Investment Khalid Al-Falih during the Saudi–Syrian roundtable in Riyadh on 18 August 2025. Simultaneously, the Ministry voiced its support for a private-sector initiative to create a fund-of-funds aimed at structuring Saudi investments in Syria.

Al-Falih underscored that several agreements and memorandums signed with Syria are now advancing to implementation. He highlighted that real estate sector projects have already moved beyond planning and into execution. The fund-of-funds, he asserted, is intended to deliver a robust, well-governed investment framework capable of accelerating capital flows and producing substantial outcomes in line with both nations’ objectives.

This development builds on substantial agreements forged at the Syrian–Saudi Investment Forum held in Damascus in July, where more than $6 billion worth of investments were announced, spanning infrastructure, real estate, telecommunications, agriculture, and finance. Of particular note was a memorandum of understanding between the Saudi Tadawul Group and the Damascus Securities Exchange to boost cooperation in fintech, dual listings, data exchange, and the creation of investment and transfer funds.

The Damascus Securities Exchange, established in 2009, reopened in June 2025 after a six-month closure tied to political upheaval, and is now aiming to operate as a private company with a focus on digital infrastructure. The proposed feasibility study therefore has potential to build on this reopening, with implications for more integrated capital market operations that could include cross-listings or joint trading infrastructures.

The broader context of the Kingdom’s engagement includes an agreement signed at the Riyadh roundtable to protect and promote mutual investments, designed to safeguard investor interests, smooth capital inflow, and strengthen Saudi-Syrian economic ties. In tandem, 80 Saudi companies have registered to participate in the Damascus International Fair, set to take place from 27 August to 5 September, reflecting growing optimism about commercial opportunities in Syria.

Efforts to bolster Syria’s investment climate were further emphasised by the revision of its Investment Law on 24 June 2025, incorporating enhanced guarantees, incentives, streamlined procedures, and improved transparency—developments Al-Falih noted as critical to facilitating deeper collaboration.