Saudi Arabia and Qatar to settle Syria's World Bank debt for reconstruction aid

Saudi Arabia and Qatar’s financial support marks a major step toward Syria’s economic recovery and re-engagement with global institutions.

An employee stacks Syrian banknotes at a currency exchange shop in Damascus on April 16, 2025. Photo by Louai Beshara/AFP

By Anna Fadiah and Hayu Andini

In a significant move to support Syria’s postwar recovery, Saudi Arabia and Qatar have announced their agreement to settle Syria’s outstanding debt to the World Bank. The deal, valued at around $15 million, will enable the conflict-torn nation to regain access to much-needed financial resources for reconstruction efforts and public-sector salary payments. The development marks the first instance of financial assistance to Syria from Saudi Arabia following the collapse of Bashar al-Assad’s regime last year.

The joint announcement was made on Sunday during the World Bank and International Monetary Fund (IMF) spring meetings held in Washington. Saudi Arabia and Qatar emphasized that their commitment would pave the way for the World Bank Group to resume its support and operations in Syria after a suspension that has lasted more than 14 years.

A turning point for Syria’s shattered economy

The decision by Saudi Arabia and Qatar to settle Syria’s World Bank debt signals a major shift in the region’s approach toward Syria’s economic rehabilitation. After more than a decade of devastating civil conflict, combined with widespread sanctions and diplomatic isolation, Syria’s economy remains in ruins. The financial commitment comes at a crucial time for Syria’s new government, led by former members of the Islamist group Hayat Tahrir al-Sham, as they attempt to rebuild the nation’s battered institutions.

Economic recovery is a formidable challenge for Syria. Years of warfare have decimated infrastructure, collapsed industries, and displaced millions. Access to external funding from institutions like the World Bank is essential for supporting basic services, rebuilding public trust, and stabilizing the currency.

Saudi Arabia’s cautious engagement with Syria

While Saudi Arabia had long been one of the most vocal opponents of Bashar al-Assad’s regime, the kingdom is now recalibrating its strategy to expand its influence in Syria and the broader region. Saudi Arabia’s recent increase in humanitarian aid to Syria reflects this shifting stance. However, the plan to settle Syria’s World Bank debt represents a clear deepening of that engagement.

Speaking on Friday, Saudi Finance Minister Mohammed al-Jadaan underscored the kingdom’s careful approach toward Syria, citing ongoing sanctions and complex political factors. Nevertheless, he stressed the importance of supporting countries devastated by conflict across the Middle East, including Syria, Yemen, Sudan, Lebanon, and the Palestinian territories.

“They need to know that the international community will stand by them,” al-Jadaan said during the World Bank and IMF meetings.

The move to help Syria settle its World Bank obligations comes as Riyadh seeks to bolster its regional leadership role and create new diplomatic opportunities across fractured landscapes. In February, Syria’s new leadership visited Saudi Arabia for the first time, signaling a possible thaw in long-frozen relations.

Syria’s return to global financial institutions

The presence of Syria’s central bank governor and finance minister at the World Bank and IMF meetings in Washington marked a historic moment. It was the first time in more than two decades that Syrian officials attended these critical gatherings. Their attendance symbolized Syria’s intent to reintegrate into international financial systems after years of isolation under Assad’s rule.

For Syria’s new government, re-establishing ties with major financial institutions is a strategic necessity. Officials from the World Bank and IMF stressed the need for credible economic data and emphasized rebuilding the Syrian central bank as a vital step for future funding and support.

Syria’s leadership has made restoring diplomatic and financial relationships a top priority. Following the downfall of the Assad regime in December after a swift offensive by opposition forces, the new authorities have pursued re-engagement with regional powers and international lenders to secure aid, investment, and legitimacy.

Implications for Syria’s future development

Saudi Arabia and Qatar’s decision to settle Syria’s World Bank debt could have wide-ranging implications for the country’s future. First, it restores a channel of international funding that could enable basic governance and reconstruction. Second, it represents a broader political shift toward re-integrating Syria into the regional and international community, a process that could lead to further economic opportunities.

Yet significant challenges remain. Sanctions imposed by the United States and the European Union still restrict much of Syria’s access to global finance. Moreover, the security situation remains fragile, with sporadic violence continuing in some regions. The success of Syria’s reconstruction efforts will depend not only on access to funds but also on the establishment of political stability, transparency, and credible economic governance.

International institutions, including the World Bank and IMF, will likely maintain strict conditions on future support, focusing heavily on economic reforms and anti-corruption measures. Syrian authorities must meet these demands to unlock additional funding critical for rebuilding infrastructure, healthcare, education, and other public services.

Regional dynamics and future prospects

Saudi Arabia and Qatar’s move comes amid a broader reconfiguration of Middle Eastern politics. Gulf nations are increasingly adopting pragmatic foreign policies aimed at stabilizing their neighborhoods after years of upheaval. By supporting Syria’s return to financial normalcy, Riyadh and Doha hope to prevent further instability that could spill over into neighboring countries.

Furthermore, the debt settlement aligns with Saudi Arabia’s Vision 2030 strategy, which seeks to position the kingdom as a leading diplomatic and economic power in the region. Assisting Syria could give Saudi Arabia greater leverage in shaping the future of the Levant and influence broader political outcomes.

Qatar, too, has strategic interests in Syria, particularly given its historical ties to various factions within the country. By partnering with Saudi Arabia in this debt settlement, Qatar strengthens its regional diplomatic portfolio and underscores its willingness to collaborate with Riyadh on sensitive regional matters.

A cautious but significant step forward

The agreement by Saudi Arabia and Qatar to settle Syria’s World Bank debt marks a milestone in the country’s long road toward economic recovery. It reflects not only humanitarian concern but also strategic calculation by regional powers eager to shape postwar Syria’s trajectory.

Although $15 million is a modest sum relative to Syria’s enormous reconstruction needs, it represents an important first step. It signals that Syria’s new government is beginning to rebuild bridges with the world, starting with the reestablishment of ties to critical global financial institutions.

As Syria seeks to emerge from the shadows of war and sanctions, the support of regional powers like Saudi Arabia and Qatar will be essential. The coming years will reveal whether Syria can leverage this initial financial opening into broader international backing that leads to lasting peace, economic revival, and renewed prosperity for its people.