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Saudi Arabia Plans to Settle Syria’s Debts to World Bank, Enabling Reconstruction Efforts
Saudi Arabia to pay off Syria’s $15M World Bank debt, unlocking grants for reconstruction and public sector support. The move signals a shift in Gulf Arab support for Syria.
ND
by News Desk
2025-04-14
Saudi Arabia Plans to Settle Syria’s Debts to World Bank, Enabling Reconstruction Efforts

Saudi Arabia is set to pay off Syria’s debts to the World Bank, a move that would unlock millions of dollars in grants to support the country’s reconstruction and its crippled public sector, according to sources familiar with the matter.

This would mark the first known instance of Saudi Arabia providing direct financial assistance to Syria since the fall of former leader Bashar al-Assad last year after a rebel-led ousting. The decision is seen as a sign of evolving Gulf Arab support for Syria, as the country grapples with the aftermath of years of civil war and political turmoil.

Sources have revealed that Syria’s debt to the World Bank totals around $15 million, an amount that must be settled before the international financial institution can approve crucial grants for the country’s reconstruction, including efforts to rebuild its damaged power grid and support public sector salaries. However, Syria’s shortage of foreign currency has hindered efforts to clear these debts. A previous attempt to use frozen foreign assets to settle the arrears was unsuccessful, according to the sources.

While the Saudi Ministry of Finance has declined to comment on these reports, the potential move signals a broader shift in the geopolitical landscape, where Gulf Arab nations such as Qatar and Saudi Arabia have begun to explore ways to assist Syria despite the ongoing effects of tough U.S. sanctions.

Last month, Qatar also announced plans to provide natural gas to Syria through Jordan, aimed at improving the country's deteriorating electricity supply. Sources indicated that Washington had given approval for this initiative, signaling a possible loosening of some sanctions for projects related to humanitarian aid.

The decision by Saudi Arabia to settle Syria’s World Bank debt could pave the way for a broader international effort to support Syria’s reconstruction, which has been hindered by the country's political isolation and the ongoing international sanctions placed by the U.S. during Assad’s regime.

The U.S., under the administration of President Donald Trump, has been cautious in its engagement with Syria’s new leadership, maintaining sanctions that limit foreign investment and financial support. However, some recent reports suggest that Syria will send a high-level delegation to Washington for the World Bank and IMF Spring Meetings later this month – the first such visit by Syrian officials since Assad's ousting. It remains unclear whether Syrian representatives will engage directly with any U.S. officials during the trip.

As the situation continues to evolve, Saudi Arabia’s involvement in helping Syria clear its World Bank debts marks a notable shift in regional dynamics, with Gulf nations increasingly willing to support Syria’s economic recovery despite significant challenges posed by international sanctions.
Tagged:

SaudiArabia

WorldBank

MiddleEastPolitics

SyriaReconstruction

GulfSupport
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