Kuwaiti telecommunications operator Zain has secured a 20-year licence to operate a mobile telecommunications network in Syria, marking one of the most significant Gulf investments in the country's telecommunications sector since the change in government and signaling growing regional interest in Syria's reconstruction.

According to sources familiar with the matter cited by Reuters, Zain will own a 75% stake in the new operating company, while Syria's sovereign wealth fund will hold the remaining 25%.

The agreement comes as Syria seeks to attract strategic Gulf investment into critical infrastructure after years of conflict and economic isolation.

Zain to Acquire MTN Syria's Infrastructure

As part of the transaction, Zain will acquire the infrastructure, facilities and telecommunications equipment previously operated by MTN Syria, according to people familiar with the deal.

MTN had operated in Syria for more than two decades before announcing in March 2026 that it had finalized an agreement with the Syrian government to formalize its exit from the market after suspending operations in 2021.

The South African operator had previously cited regulatory pressures and government requirements that made its business in Syria unsustainable.

According to one source with direct knowledge of the project, engineering teams from Zain recently completed technical inspections across Syria, evaluating:

• Mobile transmission towers

• Telecommunications equipment

• Backup power generators

• Solar energy systems

• Network infrastructure

The assessments indicate preparations for the operational transition are already underway.

Ownership Reflects Syria's New Investment Structure

The ownership structure of Syria's mobile sector has undergone significant changes in recent years.

MTN originally entered Syria in 2002 under a licence granted to businessman Rami Makhlouf, cousin of former President Bashar al-Assad.

Following a public dispute between Assad and Makhlouf in 2019, ownership shifted to The Group, a conglomerate controlled by the presidential palace.

After the political transition and the fall of Assad's government last year, ownership was transferred to Syria's newly established sovereign wealth fund, which will now retain a 25% stake alongside Zain.

Transaction Overview

Gulf Telecom Investment in Syria Gains Momentum

Zain's expansion follows another major regional telecommunications initiative announced only months earlier.

Saudi Arabia's STC Group signed a memorandum of understanding with the Syrian government to invest approximately $800 million in the SilkLink fiber-optic network project.

Together, the projects point to growing Gulf participation in rebuilding Syria's telecommunications infrastructure as authorities seek foreign investment to modernize critical sectors.

The telecom sector is widely viewed as one of the country's priority industries due to its importance for digital transformation, economic recovery and private-sector development.

Recent Gulf Telecom Investments in Syria

Awaiting Official Confirmation

Neither Syria's Ministry of Telecommunications and Information Technology nor Zain immediately responded to Reuters' requests for comment.

The transaction remains one of the largest telecommunications developments announced in Syria since the country's political transition and reflects the government's efforts to attract long-term strategic investment into key infrastructure sectors.

EcoPulse24 Analysis

Zain's entry into Syria represents far more than the acquisition of an existing mobile operator. It signals the beginning of what could become a broader wave of Gulf investment targeting Syria's essential infrastructure following years of conflict.

The structure of the agreement is particularly noteworthy. By retaining a 25% stake through the sovereign wealth fund while granting operational control to Zain, Syrian authorities appear to be adopting a partnership model designed to attract foreign capital while maintaining state participation in strategic assets.

The deal also illustrates the increasing role Gulf telecommunications companies may play in Syria's reconstruction. Combined with STC's proposed $800 million investment in the SilkLink fiber network, the agreements suggest that digital infrastructure is emerging as one of the first sectors attracting substantial regional investment.

For Zain, Syria offers an opportunity to expand its regional footprint by leveraging an established network rather than building one from scratch. Acquiring MTN Syria's infrastructure significantly shortens deployment timelines while providing immediate access to an existing nationwide telecommunications footprint.

More broadly, these investments indicate that Gulf companies are positioning themselves early in Syria's rebuilding process, seeking long-term opportunities in sectors expected to underpin future economic recovery. If additional regulatory reforms follow, telecommunications could become one of the leading industries driving renewed foreign direct investment into the country.