stc Group and Syrian Sovereign Fund form JV for SilkLink project
By Global Infrastructure Sherpa · Feb 25, 2026
stc Group will establish a joint venture with the Syrian Sovereign Fund for the SilkLink project, with stc Group holding a 75% ownership stake and the Syrian Sovereign Fund retaining 25%. The total investment of the SilkLink project is valued at approximately $800 million.
Deal Analysis
stc Group's partnership with the Syrian Sovereign Fund to establish the SilkLink project, a data center initiative in Syria, represents a significant investment of approximately $800 million. stc Group will hold a 75% stake in the joint venture, with the Syrian Sovereign Fund retaining the remaining 25%. This deal signifies stc Group's expansion into the Syrian market and its commitment to developing data infrastructure in the region. The involvement of Zain Group as a partner further underscores the strategic importance of this project within the telecommunications landscape.
The SilkLink project is notable for its size, representing a substantial investment in Syrian infrastructure. The partnership between a major regional player like stc Group and the Syrian Sovereign Fund highlights the potential for foreign investment in Syria, despite ongoing challenges. The project's focus on data centers suggests a forward-looking approach to meeting the growing demand for digital services and data storage in the region. The deal's announcement date of 2026-02-25 indicates a long-term commitment to the project's development and implementation.
- stc Group invests $800 million in Syrian data center project (SilkLink).
- stc Group holds 75% stake in JV with Syrian Sovereign Fund (25%).
- Zain Group involved as a partner, highlighting strategic importance.
- Deal announced for 2026, indicating a long-term commitment.
Market Context: The data center sector is experiencing rapid growth globally, driven by increasing demand for cloud computing, data storage, and digital services. In the Middle East, there is a growing need for modern data infrastructure to support economic diversification and digital transformation initiatives. Syria, while facing unique challenges, represents a potentially underserved market with significant long-term growth potential in the digital sector.
Source Intelligence
KEY DETAILS
stc Group holds a 75% ownership stake in the joint venture, while the Syrian Sovereign Fund retains 25%. "Under the agreement, stc Group holds a 75% ownership stake in the joint venture, while the Syrian Sovereign Fund retains 25%."
The agreement on the SilkLink project is part of five agreements between Saudi Arabia and Syria, with a total investment of more than US$5.3 billion. "The agreement on the SilkLink project is part of five agreements between Saudi Arabia and Syria, with a total investment of more than US$5.3 billion to support key sectors including aviation, telecommunications, infrastructure and water desalination as Riyadh backs Syria’s recovery."
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Deal Size
Saudi Arabia‘s stc Group announced the signing of an agreement over SAR3 billion (US$ 800 million) to implement the SilkLink project
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Location
to establish an extensive telecommunications infrastructure in Syria...The SilkLink project will span approximately 4,500 kilometers of optical fiber, connecting major cities such as Damascus and Aleppo, as well as regional switching centers in Palmyra and other southern and eastern regions. It will also include a submarine cable landing station in Tartus
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Announcement
25 February 2026 Saudi Arabia‘s stc Group announced the signing of an agreement
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Signing
25 February 2026 Saudi Arabia‘s stc Group announced the signing of an agreement
PARTIES MENTIONED IN SOURCE
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stc Group
developer
"stc Group Signs Agreement to Implement SilkLink Project in Syria"
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Syrian Sovereign Fund
investor
"stc Group will establish a joint venture with the Syrian Sovereign Fund for the SilkLink project"
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Etisalat
competitor
"The Syrian government reportedly engaged in discussions with major regional operators, including Etisalat, Ooredoo, stc Group and Zain."
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Ooredoo
competitor
"The Syrian government reportedly engaged in discussions with major regional operators, including Etisalat, Ooredoo, stc Group and Zain."
Z
Zain
competitor
"The Syrian government reportedly engaged in discussions with major regional operators, including Etisalat, Ooredoo, stc Group and Zain."
high quality
Enriched Feb 25, 2026
Market Context
This deal is part of the Data Center sector in Syria.
1 of 127 Data Center deals tracked this month · Updated daily
Global Infrastructure Sherpa