The Syrian Ministry of Energy, acting through the General Establishment for Geology and Mineral Resources, has formalized two major agreements to enhance phosphate investment and strengthen the nation’s export capabilities. These partnerships are designed to transform the phosphate sector into a more robust strategic asset for the domestic economy.
According to an official announcement from the establishment on Monday, 19 January 2026, the contracts were signed with Al-Hasan Holding and the Eastern Trading and Contracting Establishment (ETE). These steps are part of a broader ministerial strategy to broaden marketing channels and boost national revenue.
Details of the Saudi and Bahraini Partnerships
The first contract was secured with the Saudi-based Eastern Trading and Contracting Establishment (ETE). This agreement involves the investment of 1 million tons of phosphate directly from the “mine site,” covering the full spectrum of operations including exploration, extraction, and export. Founded in 1971 in Saudi Arabia’s Eastern Province, ETE is recognized as a veteran in general contracting and industrial construction, possessing over 50 years of experience in logistics and industry.
The second deal was reached with Al-Hasan Holding, a private investment group from Bahrain. Established in 1967 by Abbas Mohamed Al-Hasan, the firm operates as a parent company for various subsidiaries. Under this agreement, 1 million tons of phosphate will be sold via land transport, while an additional 1.5 million tons will be exported by sea. Al-Hasan’s diverse portfolio includes energy, manufacturing, tourism, and logistics, a strategy aimed at risk reduction through sector diversification.
Strategic Implementation and Logistics
Siraj Al-Hariri, the director general of the General Establishment for Geology and Mineral Resources, characterized the signing of these export contracts as a “qualitative addition” to the mineral sector and a continuation of what he described as “completing the path of victories” in Syria. He noted that ETE would manage the entire value chain, from initial exploration to global marketing.
Regarding the Al-Hasan contract, Al-Hariri specified that the 1 million tons designated for land export would transit through Turkish territory. He emphasized that these moves are intended to increase Syria’s global market presence, allowing the country to become a “real number” in regional and international competition.
Phased Development and Job Creation
The director general explained that the current efforts represent the primary stage of a long-term plan focused on raw phosphate exports and production growth. Future stages will pivot toward downstream processing and forming partnerships to increase the added value of the resources.
A significant feature of these deals is the reliance on local representation. Al-Hariri pointed out that Al-Hasan will work through several partners on the ground, fostering job creation. Similarly, ETE will utilize local firms for development and exploration while integrating international experts to enhance the technical and economic value of the projects.
The Economic Significance of Syrian Phosphate
Phosphate is a vital pillar of the Syrian economy, serving as a strategic commodity that sustains both private and public construction and transport firms. Its extraction and processing drive various industrial and service sectors. The General Establishment for Geology and Mineral Resources noted that developing production facilities to deliver high-quality products provides better financial returns than exporting raw materials alone. This development supports the domestic fertilizer industry, which in turn benefits the agricultural sector.
The country’s primary phosphate reserves are located in the al-Sharqiya and Khneifis regions, situated east of Homs Governorate in central Syria. These mines have a collective annual production capacity exceeding 3.25 million tons.
Operational and External Challenges
Despite the sector’s potential, it faces several significant hurdles divided into two categories:
- Technical and Operational issues: These involve the degradation of land transport infrastructure, fluctuating shipping fees, a lack of specialized technical personnel, and the use of aging machinery. Due to declining efficiency at mine sites, product is often sold at the plant rather than delivered directly to ships.
- Economic Sanctions and Competition: Western economic sanctions targeting fertilizer purchasers have allowed intermediaries to weaken the price of Syrian phosphate globally. Banking restrictions within Syria and intense competition from other producing nations—specifically those with advanced ports and no sanctions—further strain the sector.
In response to these challenges, the Energy Ministry is prioritizing the operation and development of phosphate concentration plants. As stated by the establishment on 9 January, these efforts are focused on improving product specifications, increasing total output, and evolving the production chain.
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