Saudi Arabia, Qatar to Settle Syria’s Debt
In a major breakthrough to restore Syria’s access to international financial institutions, Qatar and Saudi Arabia have collectively agreed to settle Syria’s $15 million outstanding debt to the World Bank. The news was made public during the recent World Bank and International Monetary Fund (IMF) spring meetings in Washington, D.C., in which Syrian officials attended for the first time in over 20 years.
Syria’s arrears had resulted in a freeze of World Bank activities in the country since more than 14 years ago, mainly because of the long civil war and ensuing political instability. In paying these arrears, Saudi Arabia and Qatar hope to facilitate the reactivation of World Bank funding and finance projects that are key to Syria’s reconstruction and public sector recovery.
The step forms part of an overall regional bid to reengage with Syria after major political transitions. In December 2024, President Ahmed al-Sharaa took the reins following the removal of veteran leader Bashar al-Assad. His rule is considered a chance to restore Syria’s ruined economy and institutions, but only if there are serious reforms and a desire for inclusive politics.
This payment also marks an improvement in Gulf-Syria ties, a change from the previous era of diplomatic isolation amid the civil war. Saudi Arabia and Qatar chose to provide financial aid, an indication of increasing regional agreement that it is crucial for more general Middle East security and economic rehabilitation that Syria stabilize.
Major obstacles still exist, however. Syria is still subjected to Western sanctions, and the economy requires a pressing need for reform to return investor confidence and guarantee sustainable growth. International experts have emphasized that reconstruction must include giving priority to transparent governance, minority rights protection, and activities aimed at bringing about national cohesion.
The move by Saudi Arabia and Qatar to pay off Syria’s World Bank debt is considered the key measure towards rebuilding Syria into the international economic system and paving the way for the recovery of post-conflict Syria. The world will be keenly interested in Syria’s subsequent moves as the nation attempts to recover from over a decade of war.
