In a landmark move towards Syria's recovery, Saudi Arabia and Qatar have paid off the nation's debt to the World Bank, signalling a new era of investment and support after years of conflict.
Gulf States Clear $15.5 Million Syrian Debt, Paving Path for Reconstruction
Gulf States Clear $15.5 Million Syrian Debt, Paving Path for Reconstruction
Syria's international relations take a turn as Gulf nations settle debt, allowing access to reconstruction funds.
By Euan Ward
Reporting from Beirut, Lebanon
May 16, 2025, 1:55 p.m. ET
The World Bank announced a major development on Friday regarding Syria’s financial landscape, as the nation’s $15.5 million debt was promptly settled by Saudi Arabia and Qatar. This pivotal financial maneuver makes Syria eligible for vital grants aimed at reconstructing the war-torn country. “We are pleased that the clearance of Syria’s arrears will allow the World Bank Group to re-engage with the country and address the development needs of the Syrian people,” the bank declared in an official statement.
This announcement underscores the Syrian government’s ongoing efforts to establish stability following almost 14 years of civil war and dictatorship. Notably, the debt relief came swiftly after President Trump’s unexpected decision to lift sanctions on Syria, a dramatic shift in U.S. foreign policy welcomed by international investors. Furthermore, Trump met with Syria's newly appointed president, Ahmed al-Shara, during a state visit to Saudi Arabia, marking the first contact between U.S. and Syrian leaders in a quarter-century.
Although the detailed guidelines for the lifting of these sanctions remain ambiguous, there are already emerging signs of renewed investor confidence in Syria. The Syrian administration has signed an $800-million agreement with DP World, a Dubai-based port operator, to enhance the Mediterranean port of Tartus, marking a significant milestone following Trump’s policy shift. This sentiment of optimism is anticipated to attract additional foreign investment, critical for Syria’s revival.
Despite this progress, the country's path to recovery is not without hurdles. The past months have seen a resurgence of sectarian conflict, indicating the need for ongoing diplomatic and economic efforts. As support from Saudi Arabia and Qatar continues, they released a joint statement committing to address Syria’s financial obligations with the World Bank. The World Bank aims to expand access to electricity as a foundational step for revitalizing Syria's economy, catering to essential services. “This will help stabilize the country and the region,” noted the World Bank. “Ultimately, a conducive environment for private sectors will enable growth and jobs, fulfilling the hopes of the Syrian populace.”
Euan Ward is a reporter contributing to The Times from Beirut.
