Saudi Arabia is preparing to pay off Syria’s outstanding debt to the World Bank, in what could be a major breakthrough for the war-torn country’s stalled reconstruction and a pivotal moment in the reengagement of Gulf states with post-Assad Syria, according to multiple sources familiar with the matter.
If confirmed, this would be the first instance of direct Saudi financial support to Syria since former President Bashar al-Assad was ousted in 2024. It would also mark a key step in restoring Syria’s access to international funding and global financial institutions, particularly the World Bank—which has been unable to disburse grants due to Syria’s arrears.
Saudi Arabia’s Strategic Move: Paying Syria’s World Bank Debt
Syria currently owes approximately $15 million to the World Bank—a relatively modest figure, but one that must be cleared before the institution can resume aid. With Syria’s foreign reserves nearly depleted and attempts to tap frozen assets abroad unsuccessful, Saudi Arabia’s financial intervention may unlock new streams of reconstruction funding and enable the stabilization of Syria’s public sector.
The Saudi Ministry of Finance declined to confirm the reports, saying only: “We do not comment on speculation.” However, three regional sources confirmed the plan is under serious discussion.
This development follows earlier, stalled initiatives from other Gulf countries—including Qatar’s plan to fund Syrian public salaries, which was halted due to concerns about violating U.S. sanctions.
A Shift in Gulf Policy Toward Syria
Saudi Arabia’s willingness to financially support Syria signals a strategic recalibration in Gulf foreign policy, particularly in light of the growing consensus that rebuilding Syria is a regional imperative. Last month, Qatar also pledged to supply gas to Syria via Jordan—a project that reportedly received a quiet green light from Washington.
While the U.S. continues to enforce strict sanctions under the Caesar Act, the shifting dynamics in the region are pressuring Gulf states to explore practical engagement with the Syrian leadership that succeeded Assad.
A technical delegation from the World Bank met with Syria’s Finance Minister, Mohammed Yosr Bernieh, earlier this week—the first publicly acknowledged meeting between the two sides in over a decade. Discussions reportedly included plans to rebuild Syria’s collapsed power grid and support salary payments for public employees.
Syria’s Return to the Global Financial System?
The Syrian government, long isolated from international financial institutions, is signaling renewed interest in economic normalization. A high-level Syrian delegation is expected to attend the World Bank and IMF spring meetings in Washington, marking the first official visit to the U.S. by Syrian officials since Assad’s fall.
While it is unclear whether U.S. officials will meet with the delegation, the visit reflects Damascus’ desire to regain international legitimacy and access critical funding for reconstruction, amid widespread poverty, infrastructure collapse, and power shortages.
Finance Minister Bernieh acknowledged the negative impact of Western sanctions and the Assad-era financial policies during his meeting with the World Bank. He emphasized the urgent need to rebuild trust and cooperation with global institutions.
Implications for U.S. Policy and Regional Power Shifts
Saudi Arabia’s proposed payment of Syria’s World Bank debt is not only a financial gesture—it is a geopolitical signal. It suggests Riyadh is ready to take the lead in shaping Syria’s post-conflict recovery, even if U.S. sanctions remain in place.
For Washington, which has largely disengaged from Syria following Assad’s ouster, this presents a dilemma: Will the U.S. allow Gulf partners to normalize ties with Syria, or continue to enforce a policy of financial isolation?
The outcome could redefine Middle Eastern diplomacy and determine the pace of Syria’s re-entry into the international community.
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