UAE developer Arada to build $7 billion mixed-use project in Syria

UAE-based real estate firm Arada is set to invest $7 billion in constructing a mixed-use development in Syria's capital, Damascus. The ambitious project, to be located in the western part of the city, will encompass 11,000 residential units, including apartments, villas, and townhouses, as well as branded residences, 500 hotel rooms, and 1,000 serviced apartments.

In addition to housing, the development will feature educational institutions, a 300-bed hospital, office spaces, commercial areas, retail outlets, and government buildings. A sprawling public park measuring 700,000 square meters will also be integrated into the design. The $7 billion project will be built on 4 million square meters of land and will be jointly developed with Syria's state-owned Syrian Sovereign Fund.

Arada's executive vice chairman, Prince Khaled bin Alwaleed, emphasized that the timing for such an investment in Syria is crucial, given the nation's current pivotal moment in its history. The announcement of the project follows Syria's recent removal from the US State Department's list of state sponsors of terrorism, as well as the repeal of the Caesar Act in December and the EU's removal of economic sanctions in May.

These positive developments have cleared significant obstacles for attracting new investment to the war-torn nation. Syria's economy has suffered greatly due to the 14-year civil war, with infrastructure damage, mass exodus of its population, and a sharp decline in GDP and per capita income. The World Bank estimates that reconstruction costs will amount to $216 billion.

Arada, a joint venture between KBW Investments and Basma Group, is set to continue expanding its presence in various markets, including Australia and the UK. The company currently has a pipeline of projects valued at $42 billion across four markets and owns a portfolio of over 66,000 homes in the UAE, UK, Australia, and Syria. Other UAE developers, such as Emaar's Mohamed Alabbar, are also exploring opportunities for investment in Syria, aiming to capitalize on the nation's potential for growth and reconstruction.