Saudi Arabia and Qatar have pledged to jointly pay Syria’s outstanding debt to the World Bank, which totals approximately $15 million, according to a statement released by the Saudi Press Agency.
Support for Syria’s New Interim Government
This move is the latest in a series of diplomatic initiatives aimed at supporting Syria’s new interim government, following the ouster of former President Bashar al-Assad in December. Both Gulf states have been instrumental in re-establishing ties with Syria’s new leadership.
Syria’s Return to International Financial Institutions
The announcement came shortly after Syria’s finance minister and central bank governor attended the International Monetary Fund (IMF) and World Bank spring meetings for the first time in over 20 years.
The settlement of Syria’s arrears will allow the country to once again access World Bank financial support and technical assistance.
Impact of the Debt Settlement
“This commitment will pave the way for the World Bank Group to resume support and operations in Syria after a suspension of more than 14 years,” the joint statement said.
It is expected to unlock financial aid for the development of Syria’s critical sectors, aiding the country’s path to economic recovery.
Background: War, Sanctions, and Reconstruction
Operations by the World Bank in Syria had been suspended since 2011, when a violent crackdown on pro-democracy protests escalated into a prolonged and devastating civil war.
Following Assad’s removal, Syria’s interim government, led by President Ahmed al-Sharaa, has sought to rebuild ties with international bodies and transition away from a corrupt system that once favored Assad loyalists.
Gulf States’ Role in Syria’s Reconstruction
The new government is looking to wealthy Gulf Arab countries, including Saudi Arabia and Qatar, to play a major role in financing the reconstruction of Syria’s devastated infrastructure and revitalizing its economy.
Call for Economic Recovery Amid Sanctions
Earlier in April, a United Nations official emphasized that Syria’s authorities should begin economic recovery efforts without waiting for Western sanctions, many of which were imposed during Assad’s regime, to be lifted.
