The Syrian Sovereign Fund has signed an agreement with UAE-based developer Arada for a $7 billion mixed-use development west of Damascus, planned to include 11,000 homes alongside hospitality, education, healthcare, commercial and public spaces.
September 03, 2026 | Palak Kataria | Syria | Developer | 3 Min Read
Syria has signed a major real estate development agreement with the UAE, with the Syrian Sovereign Fund and UAE-based Arada set to work together on a new $7 billion mixed-use community west of Damascus.
The agreement covers the development of a four million sq m site in New Damascus, near the Mezzeh district. It marks Arada’s first project in Syria and introduces a large-scale development combining residential property with hospitality, education, healthcare, offices, retail and public spaces.
The agreement was signed by Ahmed Alkhoshaibi, Group CEO of Arada, and Mohammed Al Khayyat, Board Member and CEO of the Real Estate Development Sector at the Syrian Sovereign Fund. Syrian Sovereign Fund Chairman Mazen Al-Salhani was present at the signing.
At the centre of the master plan will be approximately 11,000 homes, ranging from apartments to villas and townhouses, as well as branded residences.
But New Damascus is being planned as considerably more than a residential development.
Current plans include 500 hotel rooms, 1,000 serviced apartments, education facilities for 5,000 students and a 300-bed hospital. Offices, commercial and retail spaces, government services and recreational facilities will also form part of the community.
Around 700,000 sq m of the site is earmarked for a public park, giving open space a substantial presence within the four million sq m master plan.
The location places the development approximately 10 minutes from central Damascus and 25 minutes from Damascus International Airport, according to Arada.
The Syrian Sovereign Fund has also described the project as incorporating the 15-minute city concept, where key residential, healthcare, service and recreational requirements are designed to be accessible within a relatively short journey.
From a real estate perspective, the agreement is notable for its scale and the breadth of uses being planned within a single development. Rather than introducing isolated residential or commercial buildings, New Damascus is intended to establish an integrated urban district.
The two partners are also working to identify additional development sites elsewhere in Syria, meaning the New Damascus agreement could become the first stage of a broader real estate relationship.
For Arada, the agreement expands its development footprint beyond the UAE, UK and Australia into a fourth market. The company says its overall project pipeline now stands at approximately $42 billion across more than 66,000 homes.
The New Damascus project, however, is significant beyond the developer’s international expansion. At $7 billion and four million sq m, it represents a substantial addition to Syria’s future urban development pipeline, bringing UAE development expertise into a new large-scale residential and mixed-use district.
Source(s): Syrian Arab News Agency (SANA); Arada; The National.
