Saudi Arabia plans to settle Syria's World Bank debts, paving way for reconstruction aid

Saudi Arabia is reportedly planning to pay off Syria’s $15 million debt to the World Bank, according to multiple sources familiar with the matter.

This move could open the door for significant grants aimed at Syria’s reconstruction and public sector revitalization, marking the first known instance of Saudi financial support to Syria since the ousting of Bashar al-Assad last year.

The plan, which has not been previously disclosed, could signal a shift in Gulf Arab countries' stance toward Syria, with support possibly beginning to materialize after prior initiatives—such as Qatar’s plan to fund salaries—were stalled due to uncertainties over U.S. sanctions. Last month, Qatar also announced plans to supply gas to Syria via Jordan to improve its power grid, a move that reportedly received U.S. approval.

While the Saudi Ministry of Finance declined to comment on the matter, a spokesperson stated, "We do not comment on speculation, but make announcements if and when they become official." Neither the Saudi government’s media office, the World Bank, nor Syrian officials responded immediately to requests for further comment.

The World Bank had previously withheld aid to Syria due to its outstanding debts. However, the payment of these arrears is a crucial step toward securing international financing for rebuilding critical infrastructure, including Syria’s war-torn power grid, and supporting the country’s public sector, sources noted.

Syria’s financial difficulties are compounded by a severe shortage of foreign currency, and a prior plan to pay off the debts using frozen assets abroad failed to come to fruition. This development could mark a turning point for Syria, which has struggled to access international aid following years of conflict and sanctions.

In a related move, Syria is set to send a high-level delegation to the U.S. for the World Bank and IMF’s annual spring meetings later this month, marking the first visit by Syrian officials to the U.S. since Assad’s removal from power. However, it remains unclear whether the delegation will meet with any U.S. officials, given the continuation of tough sanctions against Syria.

The U.S. has issued some limited sanctions relief in the past, such as a six-month exemption for humanitarian aid, but overall engagement with Syria’s new leadership has been minimal. There remains a split within the White House regarding Syria, with some officials advocating a hardline approach, citing the new government’s previous ties to Al-Qaeda as a reason for limited engagement.

Despite the ongoing sanctions, Saudi Arabia’s potential intervention could be a critical factor in helping Syria recover from years of devastation, with the World Bank’s involvement contingent upon the resolution of the debt issue.

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