Two Gulf counties announce Syrian foreign debt promise

(MENAFN) Saudi Arabia and Qatar have pledged to pay Syria’s outstanding $15 million debt to the World Bank, signaling growing Gulf support for Syria’s economic revival under its newly installed government.

The announcement came during discussions on Syria’s reconstruction held on the sidelines of last week's World Bank and IMF meetings in Washington. The two Gulf nations stated that their financial commitment would enable the World Bank to resume assistance and operations in Syria, which were suspended in 2011 at the onset of the country’s civil war.

Syria underwent a major political shift late last year when the militant group Hayat Tahrir al-Sham (HTS) seized control of Damascus in a surprise offensive, removing long-time President Bashar Assad. HTS leader Ahmed al-Sharaa assumed the presidency and formed a transitional government in March.

In a joint statement, Saudi Arabia and Qatar emphasized that clearing Syria’s arrears will allow the war-torn country to access crucial financial resources and technical aid. Syria’s economy, which has seen its GDP cut nearly in half since 2010, faces an estimated $400 billion reconstruction bill.

While Gulf countries have increased humanitarian aid to Syria in recent months, this debt repayment marks Saudi Arabia’s first direct financial support to the new Syrian administration. The move also reflects broader diplomatic engagement by the Gulf with Damascus’ interim leadership.

Syria’s finance minister and central bank governor participated in the World Bank and IMF meetings for the first time in over 20 years, highlighting the significance of the shift in international relations.

However, U.S. sanctions targeting Assad-era supporters remain a barrier to Syria’s full economic reintegration. Washington recently issued conditions for partial sanctions relief, including the destruction of remaining chemical weapons and enhanced counter-terrorism cooperation.

Despite the regime change, Russia has continued relations with Syria, offering humanitarian aid and reaffirming its support for the country’s recovery. Former President Assad was granted asylum by Russia after his removal, while the new Syrian leadership has pledged to maintain close ties with Moscow.

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