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Rehabilitation and Development of the Syrian Modern Cables Company
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Project Overview
Saudi Arabia's Riyadh Cables Group, through its subsidiary Riyadh Cables Company, signed an agreement with the Syrian Sovereign Fund on 14 January 2026 to rehabilitate, manage, operate and develop the plant of Syrian Modern Cables Company. The group announced the signing on the Saudi Exchange (Tadawul) on 15 January 2026 and disclosed the terms of the agreement on 18 January 2026.
The agreement followed a non-binding memorandum of understanding between Riyadh Cables Company and the Syrian Sovereign Fund, announced on 3 November 2025, which provided for a strategic partnership to run and upgrade the company's plants, bring technical know-how into Syria and build local skills in the energy and electrical cables sector.
In its report on the agreement, Asharq Bloomberg noted that Saudi Arabia and Syria agreed in October 2025 to turn their joint investment cooperation from announced understandings into projects under way.
The Plant
According to its official website, Syrian Modern Cables Company was established in 1996 in Tel Kurdi, Adra, in Rural Damascus. It manufactures electrical and telephone cables, enamelled copper wire and PVC compounds to international standards (IEC and BS), with a production capacity of around 10,000 tonnes a year.
Agreement Terms
- Investment: about SAR 60 million in capital, injected over the life of the contract (roughly USD 16 million, according to Asharq Bloomberg).
- Term: 18 years starting on the day of signing, with renewal possible if both parties agree.
- Profit sharing: Riyadh Cables Company and the Syrian Sovereign Fund split each year's profit or loss from the project, and the Fund's share can reach up to 40 percent.
- Implementation: the agreement is rolled out gradually in four main phases, each with defined goals and milestones. Before work moves to a new phase, the parties review operational, technical and financial performance and both must formally approve the move.
Under the agreement, Riyadh Cables Company will use the plant's buildings, assets and equipment to produce cables for sale in the Syrian market. Riyadh Cables Group expects the financial effect to show in its annual results for the 2026 fiscal year.
Development Programme
The disclosure describes an integrated programme that funds the plant's working capital, renews its production lines, raises its production and design capacity and brings Saudi technical expertise to the site, while helping to localise technology and develop Syrian skills.
Revenue Estimate
Riyadh Cables Group expects revenue to rise step by step as the operating phases advance and production becomes more efficient. It puts potential annual revenue at around SAR 750 million once the plant runs at its optimal capacity, depending on the mix of products. This is the company's projection, not a realised result.
Announcement in Syria
On 27 January 2026, the Syrian Ministry of Economy and Industry announced the strategic partnership between Syrian Modern Cables Company and Riyadh Cables Group. According to the Ministry, the Syrian Arab Standards and Metrology Organization attended the first conference the group organised in Damascus, where Riyadh Cables Group announced the launch of its activity in the Syrian market. The Ministry said the move reflects the group's long-term investment approach and its contribution to reconstruction efforts, and that the partnership supports national industry and the transfer of technical expertise and brings the Syrian cable industry closer to approved standards.
Frequently Asked Questions
What is the value of the investment?
About SAR 60 million in capital over the 18-year term, according to Riyadh Cables Group's disclosure (around USD 16 million, according to Asharq Bloomberg).
How are profits shared?
Riyadh Cables Company and the Syrian Sovereign Fund split each year's profit or loss from the project, with the Fund's share reaching up to 40 percent.
Where is the plant?
In Tel Kurdi, Adra, in Rural Damascus, according to the official website of Syrian Modern Cables Company.
What revenues are expected?
Riyadh Cables Group puts potential annual revenue at around SAR 750 million once the plant runs at optimal capacity, depending on the product mix. This is a projection, not a realised result.
Correction — 2026-01-18
According to Riyadh Cables Group's disclosure to the Saudi Exchange (Tadawul) on 18 January 2026, 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
Update — 2026-02-07
On 7 February 2026, the agreement to operate and develop Syrian Modern Cables Company between the Syrian Sovereign Fund and Riyadh Cables Group was among the Saudi–Syrian investment agreements signed in Damascus during a visit by the Saudi Minister of Investment, according to Asharq Al-Awsat. The newspaper said the agreement aims to run and upgrade the company's plants in Syria, bring technical know-how into the country and build local skills in the energy and electrical cables sector.
Sources
