Rehabilitation and Development of the Syrian Cables Company

Project Overview

Saudi Arabia's Riyadh Cables Group announced a project to enter the Syrian market through the industrial sector. The group intends to invest 60 million Saudi Riyals (approximately 16 million US dollars) in a project to rehabilitate and develop the General Company for Cables in Damascus.

The step is positioned within economic and industrial cooperation between the Kingdom of Saudi Arabia and the Syrian Arab Republic, contributing to rebuilding projects and modernizing the energy infrastructure in Syria after the lifting of sanctions and the facilitation of foreign investment returns.

Partnership Structure

The project includes a strategic partnership agreement extending for 18 years between the Syrian Ministry of Economy and Industry (represented by the Syrian Sovereign Fund) and Riyadh Cables Group.

The agreement stipulates a profit-sharing of 60 percent for Riyadh Cables Group and 40 percent for the Syrian Sovereign Fund.

Scope of Works

• Supplying advanced production lines.
• Upgrading existing machinery.
• Providing the raw materials required to restart the factory at maximum capacity.

Knowledge Transfer

The project is not limited to financial support. Technical expertise will be transferred to train Syrian cadres on manufacturing technologies for low and medium voltage cables, with compliance to international standards (ISO and IEC).

Economic Projections

Economic estimates indicate that the factory will generate annual revenues of approximately 750 million Saudi Riyals once it reaches operational capacity. This is intended to meet demand in the local market, cover the needs of future electricity projects, and open possibilities for export to neighboring markets later.

Frequently Asked Questions

What is the total investment value of the project?

Riyadh Cables Group intends to invest 60 million Saudi Riyals, approximately 16 million US dollars.

How are profits divided between the partners?

The agreement stipulates 60 percent for Riyadh Cables Group and 40 percent for the Syrian Sovereign Fund, over a partnership term of 18 years.

What products will the factory manufacture?

The factory will produce low and medium voltage cables in compliance with international standards (ISO and IEC).

What are the projected annual revenues?

Economic estimates indicate annual revenues of approximately 750 million Saudi Riyals once the factory reaches operational capacity.

Correction — 2026-01-18

According to Riyadh Cables Group's disclosure to the Saudi Exchange (Tadawul) on 18 January 2026, as reported by Sahm Capital, the agreement was signed on 14 January 2026 with the Syrian Sovereign Fund. Under it, subsidiary Riyadh Cables Company manages, operates and develops Syrian Modern Cables Company for a renewable term of eighteen years, with an investment of approximately SAR 60 million, and up to 40 percent of profits going to the Syrian Sovereign Fund.

The disclosure added that implementation runs in four phases within a development programme covering working-capital financing, production-line upgrades, capacity expansion and the transfer of technical know-how, and put potential annual revenues at approximately SAR 750 million at optimal operating capacity — a stated projection, not a realised result. Per its own official website, Syrian Modern Cables Company began production in 1996 and its plant is located at Tel Kurdi, Adra, near Damascus, with a capacity of around ten thousand tonnes per year.

Sources

• https://www.sahmcapital.com/news/content/riyadh-cables-invests-sar-60m-in-syrian-cable-plant-2026-01-18
• https://smc-cables.com/en/factories/cables-factory/
• https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=92704&anCat=1&cs=4142&locale=en