Saudi Arabia, Qatar to Settle Syria’s $15 Million World Bank Debt, Paving Way for Reconstruction

Saudi Arabia and Qatar have announced they will jointly repay Syria’s outstanding debt of approximately $15 million to the World Bank, marking a significant step in the country’s recovery and reconstruction process following more than a decade of civil war.

The decision, announced on April 27, 2025, is expected to pave the way for Syria’s re-engagement with global financial institutions, which have long suspended their operations in the war-torn country.

The announcement came during the World Bank and International Monetary Fund (IMF) spring meetings in Washington, D.C., where the finance ministries of both Gulf nations issued a joint statement confirming the debt settlement.

This financial gesture is part of broader efforts by Saudi Arabia and Qatar to support Syria’s interim government, which has emerged following the ousting of long-time President Bashar al-Assad in December 2024.

The repayment of Syria’s arrears is seen as a crucial step in resuming cooperation between Syria and the World Bank. For over 14 years, Syria’s access to financial support and technical assistance from the World Bank had been suspended due to the civil conflict that caused widespread destruction and loss of life. With the debt now settled, Syria can expect to access the necessary funding and expertise to help rebuild the nation.

In response to the announcement, the Syrian government, now led by interim President Ahmad al-Sharaa, expressed deep gratitude for the support. Syria’s Foreign Ministry issued a statement acknowledging the significance of this financial assistance and noting that the repayment will facilitate further collaboration in Syria’s recovery efforts. The country’s leaders emphasized that this move will allow for the rebuilding of critical infrastructure and the stabilization of public sector functions.

The joint initiative by Saudi Arabia and Qatar signals a shift in regional dynamics. The Gulf nations have been playing an increasingly active role in re-engaging with Syria’s new leadership, reflecting their commitment to helping the country recover. This development also aligns with broader international efforts to reintegrate Syria into the regional and global economic framework, a process which includes the gradual easing of sanctions imposed by the United States, the European Union, and the United Kingdom.

The settlement of Syria’s arrears to the World Bank is a significant step forward, but it is just the beginning of a long and costly journey. Experts estimate that the total cost of rebuilding Syria could reach up to $400 billion, underscoring the enormity of the task ahead. In addition to physical infrastructure, the country will need substantial investments to revitalize its economy, healthcare, education, and public services.

The agreement between Saudi Arabia and Qatar to settle Syria’s debt also holds broader geopolitical implications. It demonstrates a growing willingness among Gulf states to play a direct role in supporting the reconstruction of Syria, signaling a potential shift in regional alliances. The move is likely to encourage other international and regional financial institutions to resume their support for Syria, as the country takes its first steps toward rebuilding.

The settlement also sets the stage for Syria’s return to the international financial community, signaling the possibility of further diplomatic and economic normalization for the country in the near future.