Syrian-Saudi Company for Touristic Investment

In its first project in the Syrian Arab Republic (Syria), MIGA provided a guarantee totaling $22.8 million to Kingdom 5 KR 71 Ltd. (Kingdom) of the Cayman Islands, to cover its $24.0 million capital contribution (quasi-equity) in Syrian-Saudi Company for Touristic Investment (SSTI). The guarantee is for a period of up to seven years, against the risks of Transfer Restriction, Expropriation, and War and Civil Disturbance.

The project involves the development of a 297-room hotel located in Damascus, Syria. With Syria's rich historical and cultural background, the government views the tourism industry as a significant source of foreign-exchange and growth. The hotel will also contribute to the diversification the Syrian economy, which is heavily concentrated in the oil and gas industry This project will provide needed foreign exchange and create additional government revenues through various taxes and fees applicable to the industry. The hotel will also have numerous upstream benefits for industries such as transportation, food processing, furniture making, hospitality services, tour operations and other related service industries.

The construction of the hotel will be carried out by Syrian construction companies using primarily locally available materials. Once operational, the hotel expects that 70 percent of all goods and services will be purchased locally. Upon completion, the hotel projects to employ over 400 host nationals and create over 500 jobs during the two-year construction-period. Being the first privately-owned hotel in the country, staff will receive significant training both on site and within the region.