By U.S. Department of State from United States
Saudi Arabia and Qatar have reached an agreement to jointly contribute approximately $15 million to resolve Syria’s outstanding debts to the World Bank, a decision anticipated to facilitate renewed development financing for the war-affected nation.
This announcement was made during the Syria Roundtable Meeting, which took place alongside the International Monetary Fund and World Bank Spring Meetings in Washington from April 21 to 26, as reported by the Saudi Press Agency. The settlement will enable Syria to regain access to World Bank resources aimed at supporting essential sectors and reconstructing vital institutions, according to a joint statement from the finance ministries of Saudi Arabia and Qatar.
The report from the SPA indicated, ‘This payment will allow the World Bank Group to resume its support and activities for Syria, following a hiatus of over fourteen years.’ The renewed collaboration will also promote technical assistance initiatives focused on capacity building and policy reforms to encourage sustainable economic growth. Syria’s economy has suffered immensely due to more than a decade of civil conflict, with its gross domestic product shrinking by 84 percent from 2010 to 2023, based on World Bank estimates. Inflation has surged, the currency has significantly depreciated, and over 90 percent of the Syrian population now lives below the poverty line.
International sanctions, particularly the US Caesar Syria Civilian Protection Act of 2020, have further marginalized Syria from global financial systems, exacerbating its economic decline. Relations between Syria and the World Bank had deteriorated since the mid-1990s, when disputes over debt repayment resulted in a suspension of support. The extended absence of access to international funding has severely impeded reconstruction efforts throughout the conflict. Nevertheless, following the removal of Bashar Al-Assad in December and the establishment of a transitional government, Syria has started to re-establish connections with the international community.
At the Washington meetings, representatives from Saudi Arabia and Qatar called upon both international and regional financial institutions to promptly reinstate and broaden their development initiatives in Syria. They highlighted the importance of a united effort to assist the Syrian populace in attaining a future characterized by stability, dignity, and mutual regional prosperity.
