Saudi Arabia to pay off Syria’s World Bank debts: Reuters
4 Min Read
Saudi Arabia is reportedly preparing to pay off Syria’s $15 million debt to the World Bank.
-
In this photo provided by the Saudi Ministry of Media, Saudi Crown Prince Mohammed bin Salman greets Syria's interim President, Ahmad al-Sharaa, left, during his arrival at the royal palace in Riyadh, Saudi Arabia, Sunday, Feb. 2, 2025. (Saudi Ministry of Media via AP)
Saudi Arabia is planning to settle Syria’s outstanding debts to the World Bank, Reuters reported, citing three sources familiar with the matter — a move that could unlock millions in international grants aimed at rebuilding the war-ravaged country and supporting its crippled public sector.
The initiative, which has not been publicly disclosed before, marks the first time Riyadh would directly finance Syria since the new regime forces ousted former President Bashar al-Assad last year. It also signals the potential beginning of long-awaited Gulf Arab financial support, after previous plans — including a Qatari proposal to fund government salaries — were delayed over concerns related to US sanctions.
Last month, Qatar announced it would supply Syria with gas via Jordan to ease the country’s severe electricity shortages — a plan that Reuters sources said had the green light from Washington.
A spokesperson for the Saudi Ministry of Finance told Reuters, “We do not comment on speculation, but make announcements, if and when they become official.” Meanwhile, the Saudi government’s media office, the World Bank, and Syrian officials did not respond to requests for comment.
Wider context
Syria currently owes around $15 million in arrears to the World Bank — a sum that must be cleared before the institution can authorize new aid or grants. Previous attempts to settle the debt using frozen overseas assets failed, according to two sources cited by Reuters.
World Bank officials have been exploring financial support to help rehabilitate Syria’s damaged electricity grid and bolster public sector wages, the sources added.
On Monday, a World Bank technical team met with Syrian Finance Minister Mohammed Yosr Bernieh — a meeting confirmed by Syria’s state-run SANA news agency and reportedly the first public engagement between the Syrian government and the World Bank.
The talks focused on “strengthening financial and economic ties,” while Bernieh reportedly emphasized the toll of international sanctions and former regime policies on Syria’s financial and banking systems.
Reuters also reported that a senior Syrian delegation will travel to Washington later this month to attend the World Bank and IMF spring meetings — the first official Syrian visit to the US since Assad’s fall. It remains unclear whether they will hold any meetings with US officials.
Although US sanctions from the Assad era are still in effect, Washington issued a six-month sanctions waiver in January to facilitate humanitarian aid — though its impact has been limited.
Last month, the US presented the new Syrian leadership with a list of conditions for partial sanctions relief. However, President Donald Trump's administration has shown little interest in broader engagement, partly due to internal divisions on how to handle relations with Syria.
Syrian authorities not making all steps needed to ease sanctions further: Kallas
While Saudi Arabia talks about plans to pay off Syria's debts, the European Union does not see Syrian authorities taking all the steps necessary to further ease the sanctions against the country, EU Foreign Policy Chief Kaja Kallas said on Monday.
"We had a very intense discussion on Syria. Whether to go on with the easing of the sanctions, and there it is clear that in order to reconstruct Syria, they need access to services, but it is also clear that we have not seen many steps from the new leadership [needed to ease sanctions further] and this future of Syria is still fragile but still hopeful," Kallas said.
The EU will continue assessing the situation in Syria, she added.
