Arada established a joint venture with Syria’s sovereign wealth fund to develop a new city outside Damascus, marking one of the first investments by a UAE developer in the country following the fall of the Assad government.
The AED 25.7B (approximately $7B) initiative aims to address Syria’s severe housing shortage and support reconstruction efforts, as international capital begins to re-enter a nation where rebuilding costs are projected at $216B by the World Bank.
This venture positions Syria as a new market for Arada, which has previously concentrated its efforts in established locations such as Sharjah, London and Sydney.
The firm joins a growing roster of investors, including Dubai billionaire Mohamed Alabbar, logistics giant DP World and US energy company Chevron, who have made commitments in Syria over the past year.
The “New Damascus” site spans 4M square metres, approximately double the size of Monaco, and is located near the Mezzeh district, approximately 10 minutes from central Damascus. The planned development will take a decade to complete and will include 11,000 residential units, along with various amenities such as a hospital, school, office and retail space, and a large park.
While the potential for lucrative returns exists, concerns regarding the inherent risks of investing in a post-war environment, including exposure to unsanctioned individuals and litigation from land disputes, remain prevalent. Despite these challenges, Arada intends to utilise local labour and materials as a priority, limiting imports to what is not available domestically.
Pricing for the new developments is still under discussion, but expectations lean towards a mid to high range, reflecting both accessibility and luxury options. Funding will derive from a combination of equity, debt, and sales proceeds, with an increased equity contribution upfront in line with Arada’s typical project financing approach.
Interest from the Syrian diaspora, eager to invest in their homeland, signals a potentially robust off-plan sales market.
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