In a move to bring much-needed investment to Syria, the General Civil Aviation Authority has signed a $4 billion contract with a Qatar-led consortium to rebuild and renovate Damascus International Airport, including a new five-star hotel.
Qatar’s UCC Holding leads the consortium that includes New York City-based Urbacon Concessions Investment subsidiary Assets Investments USA LLC and Turkish construction companies Cengiz Insaat Sanayi ve Ticaret AS and Kalyon Insaat Sanayi ve Ticaret AS. The contract is a long-term build-own agreement to rebuild and expand the airport and facilities through multiple phases that will eventually serve 31 million passengers a year, according to a statement released by UCC Holding. The airport’s masterplan, which includes terminals, runways, hangars and a hotel, was drawn up by London-based Zaha Hadid Architects.
The airport contract follows a recent agreement between the Syrian government and UCC Holding that allows Urbacon Holding to build and operate eight power generation plants across Syria with a total capacity of 5,000 MW.
Work on Terminal 2 and the airport’s five-star hotel is already underway, according to UCC. The renovated modern airport will have a significant impact on Syria’s efforts to rebuild its economy and position the war-torn country in the international community. say its developers.
It’s only been a year since Bashir al-Assad was ousted as Syria’s dictator and the Islamist militant group Hayat Tahrir al-Sham, once allied with al-Qaida, seized the capital Damascus and declared a transitional government. The new regime’s efforts have resulted in the easing of sanctions by the US, the EU and the UK, and the expansion, albeit cautious, of international support for economic development.
During this time, the new interim president, Ahmad al-Sharaa, has pledged to implement political and economic reforms. Although some rebel groups continue to fight each other, the new government and the Israel Defense Forces, some political and economic progress has been made towards rebuilding a country destroyed by 13 years of civil war. Syria faces enormous challenges, but is receiving international aid.
Assad’s ouster led to Syria’s re-entry into the Arab fold and pledges from other nations to support the new government and provide money for investment and infrastructure. In recent months, Syria has signed formalities related to at least 12 investment agreements worth $14 billion for infrastructure projects.
The signing of contracts for a new airport “constitutes a strategic step towards rebuilding Syria’s air gateway, strengthening the national economy and opening up new opportunities for investment and employment,” said Omar al-Hosari, the new head of the civil aviation authority. He is the founder and CEO of UAS Trip Support, based in Dubai. Hosari told X that he would work to make aviation a strategic sector that would serve as Syria’s gateway to the world.
A long awaited expansion
The $40 billion price tag for the airport is the biggest investment Syria has ever seen. The facility will have a world-class architectural design that reflects the distinctive identity and spirit of Damascus, officials said. Spain-based HESCO Hammada Engineering Services will provide detailed design and rehabilitation of Terminals 1 and 2, as well as the design of Terminal 3 and its facilities.
The master plan calls for a renovated passenger terminal at Terminal 2 to be operational by mid-2026. Terminal 1 is scheduled to be redesigned with updated service and interior facilities and be operational by the end of 2026. This will increase the airport’s initial capacity to 6 million people per year. Completion of the first phase of Terminal 3 will increase the airport’s annual capacity to 16 million people, although this phase is expected to take several years to complete.
Terminal 3 will incorporate advanced operational facilities, including 32 gates with modern boarding bridges and a duty-free zone. Once completed, 31 million people will be able to use the airport over the course of a year. The airport project is expected to create more than 90,000 direct and indirect job opportunities at various stages of construction and development.
The project also includes a $250 million financing program for new aircraft.
Several other companies will also participate in the project, including Lebanon’s Dar al-Handasah, which provides project management, design review, site supervision and schedule verification services. DG Jones and Partners, also based in Lebanon, provides contract management, cost control and quantity surveying.
A statement issued by legal adviser White & Case on December 4 described the project as an “impact investment in Syria”. Charbel Abou Charaf, leader of the negotiating team, said the contract “highlights the focus of foreign investors on Syria, this time in a sector that is vital for regional and international connectivity.” White & Case said the structure of the deal required the development of a multi-phase concession framework,
