Alabbar: Damascus is the city to watch for the next decade

• Entrepreneur sees opportunities
• Emaar to commit about $12bn
• Investors remain cautious

Emirati real estate tycoon Mohamed Alabbar has said Damascus will emerge as a city of major interest during the next 10 years.

Speaking at a conference in Rome, Alabbar, who has been linked to billions of dollars in investment in Syria, said he is hopeful about the capital’s development in the coming years.

“We have forgotten about Syria for the past 60 years,” he told attendees at the Future Investment Initiative Priority Rome. “What Syria has is oil, gas, agriculture, tourism, beaches and great talent.”

His comments come two days after he met Talal al-Hilali, director of the Syrian Investment Authority, according to Syria’s state news service, reportedly to “discuss investment opportunities and priority development projects”.

In March, Alabbar confirmed that his real estate company Emaar was planning to invest between $11 billion and $12 billion in Damascus, in addition to $5 billion to $7 billion on the coast.

“There has been a lot of interest, in real estate specifically,” said Yusuf Tayara, founder and director of the Oxford Levant Advisory, which works with foreign businesses looking to invest in Syria.

Increasing numbers of international investors are exploring opportunities in Syria, he said, although many remain cautious of the still new regulatory regime after decades of dictatorial rule under the Assad family.

“They don’t want to get stung,” said Tayara.

Compounding investor concerns are ongoing litigation efforts by homeowners who had property expropriated by the Assad regime.

“People don’t want to build up developments only to have people protest because that’s land that was taken from them by Assad,” said Tayara. “Investors should be wary of this.”

• Alabbar and IHC show interest in debt-hit IFFCO
• Emaar’s Alabbar and Armani reboot hotel partnership
• Saudi company to invest up to $300m in Syria tourism project

Earlier this year, Dubai-based real estate billionaire Khalaf Al Habtoor suggested that he was exploring options for a large-scale real estate project in Syria.

Last week, however, he distanced himself from these plans, writing on X that no partnerships are currently under discussion, although he remains “a firm believer in the great potential of the Syrian economy” and will “await opportunities that align with [Habtoor] Group’s vision”.

A number of Saudi companies have also promised to invest in real estate, tourism and industrial ventures in the country, including a $300 million tourism project.

“I don’t see as much in the way of government-backed developers,” said Tayara. “But it will come. I think they’re waiting for the other investors to get in a bit more first.”