In May, two airstrikes, most likely ordered by Jordan, targeted drug trafficking operations in Syria, one of them assassinating the notorious Syrian drug lord Merhi al-Ramthan and his family. In addition, Damascus has carried out a spate of arrests targeting drug traders in southern Syria. Moreover, Saudi Arabia has promised financial aid of up to $4 billion according to some sources to Syria in exchange for reducing and controlling captagon production and smuggling.
Saudi Arabia’s Shifting Foreign Policy Strategy
The rapprochement between Saudi Arabia and Syria has been developing for several years. In May 2021, Syria’s Minister of Tourism, Rami Martini, took the regime’s first official visit to the Saudi kingdom since the uprising over ten years ago. Saudi Arabia’s reasons for rehabilitating Damascus are connected to its national interests and regional dynamics.
The normalization process is a product of Saudi Arabia’s evolving political strategy in the region. MBS’s confrontational foreign policy, exemplified by the kingdom’s deadly war in Yemen and its policy of maximum pressure against Iran and its regional allies, has been a failure.
This policy became a political obstacle to Riyadh’s plans to reform the economy, attract foreign investors, and open the country to tourists. It has sought, therefore, to establish more cordial relations with its neighbors. It began to shift in this direction, ending its confrontation with Qatar and currying favor with Turkey’s Erdogan. In March of 2023, it deposited $5 billion in Turkey’s central bank to boost the country’s economy. Saudi Arabia’s strategic reorientation culminated this April in it establishing diplomatic relations with Iran through China’s mediation.
Since then, both states have affirmed their willingness to work together for “security, stability and prosperity” in the Middle East. This pact is particularly important for Saudi Arabia to stabilize Yemen and prevent security threats at its southern border. The rapprochement will allow the two countries to reopen their embassies and to implement economic and security cooperation agreements signed more than 20 years ago.
Economic Reform as the Underlying Objective
These foreign policy shifts are driven by the Kingdom’s need to focus on economic reforms and objectives laid out in its Vision 2030, which sets as a goal ending dependence on fossil fuels and securing $100 billion in annual FDI by the end of the decade.
Saudi Arabia had faced real challenges before its recent foreign policy shift. FDI flows had dropped from a 200 percent increase between 2018 and 2019 to a 20 percent increase between 2019 and 2020. The ruling regime hopes to reverse this decline by luring more investors based on normalizing its relations with the region and stabilizing its crises.
Its key aim in economic diversification is the development of its tourism sector. Riyadh intends to reach 100 million visitors per year in 2030 and open 315,000 new hotel rooms to accommodate them. In March 2023, it launched a new airline, Riyadh Air, which aims to serve 100 international destinations.
The kingdom hopes to direct investment into mega-cities such as NEOM, the Red Sea Project, and Qiddiya, which is projected to be an international entertainment hub, including a Six Flags theme park. The Saudi monarchy promises to plow a staggering $1 trillion into the tourism sector over the next decade.
It has already poured money into the archaeological site of al-Ula, which had been abandoned for decades, to attract visitors. It is creating other tourist destinations from scratch, such as the luxurious Red Sea Project, which covers 17,400 miles along the west coast, and the Trojena ski resort in the heart of the futuristic metropolis NEOM, which will host the 2029 Asian Winter Games.
By developing its economy in this fashion, the monarchy hopes to compete with other Gulf countries, which are also building enormous tourist industries. Qatar hosted the 2022 World Cup for the first time in the Arab world, while Expo 2020 was held in Dubai, which received more than 12 million international tourists last year.
Riyadh is carrying out all of this development in classic neoliberal fashion. It has announced Public Private Partnerships (PPPs) for many government services, including more traditionally state-run sectors such as education, housing, and health. The Financial Times described the plans as “Saudi Thatcherism.”
In April 2023, MBS launched four new “special economic zones” (SEZs) in order to establish non-traditional industries, particularly related to tourism, IT, renewable energy, and logistics, while offering competitive tax rates for businesses, as well as exemption from customs duties on imports, production equipment, and raw materials. The new economic strategy places private capital at the center of the future Saudi economy.
Multipolarity and Regional Authoritarian Stability
Saudi Arabia’s final reason for its shift toward normalization of relationships is the perception that Washington can no longer be trusted to provide regional security. The kingdom does not view the US as a reliable hegemon after its defeat in Iraq, failure to protect its allies against popular uprisings, and its increasingly critical posture toward Riyadh.