Energy Syria signs $7bn power deal with Qatari-led consortium By Reuters May 30, 2025, 10:30 AM Alamy/Gijsbert Hanekroot via Reuters A diesel electricity generator in Damascus. State-supplied electricity is available in Syria for only two or three hours a day in most areas Syria has signed a memorandum of understanding with a consortium of international companies led by Qatar’s UCC Holding to develop major power generation projects. The foreign investment is valued at about $7 billion, UCC said in a statement on Thursday. The agreement involves building four combined-cycle gas turbine power plants with a total capacity of 4,000 megawatts (MW), plus a 1,000MW solar power plant in southern Syria. “This agreement marks a crucial step in Syria’s infrastructure recovery plan,” said Syrian energy minister Mohammed al-Bashir, who signed the deal in Damascus in the presence of Syrian president Ahmed al-Sharaa and US envoy for Syria, Thomas Barrack. Construction is expected to begin after final agreements and financial close, and is targeted to finish within three years for the gas plants and less than two years for the solar plant. Once completed, the projects are expected to provide over 50 percent of Syria’s electricity needs. After 14 years of war, Syria’s electricity sector has been suffering from severe damage to its grid and power stations, aging infrastructure, and persistent fuel shortages, generating only 1.6 gigawatts (GW) of electricity, down from 9.5 GW before 2011. Reconstructing the power sector is expected to cost around $11 billion and the new administration is betting on the private sector shouldering the burden, underlining a shift from the state-led economic policies of the Assad era. Turkey to export gas to ease Syria’s power shortage With sanctions lifted, Syria’s supply chain is cranking back into life Syria says foreign partners vital to modernise telecoms The projects will be financed through regional and international banks, in addition to capital injection from the partners, UCC Holding CEO Ramez Al Khayyat said. They are expected to create 50,000 direct and 250,000 indirect jobs during execution, the UCC Holding CEO said. Doha, one of the region’s sternest opponents of Bashar al-Assad and backers of the rebels-turned-rulers who replaced him, is now positioning itself to play a major role in Syria’s reconstruction, along with Turkey. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
