The World Bank said on Friday that it had cleared Syria’s $15.5 million debt after payments by Saudi Arabia and Qatar, making the country eligible again for grants to fund reconstruction and economic recovery.
“We are pleased that the clearance of Syria’s arrears will allow the World Bank Group to re-engage with the country and address the development needs of the Syrian people,” the bank said in a statement. “After years of conflict, Syria is on a path to recovery and development.”
It marked the latest victory for Syria’s new government as it attempts to forge a stable path forward for the country after nearly 14 years of civil war and decades of dictatorship under the Assad family. The debt relief came days after President Trump made the surprise announcement on Tuesday that the United States would lift sanctions on Syria.
A day later, Mr. Trump met Syria’s new president, Ahmed al-Shara, in the Saudi capital, Riyadh, where he was on a state visit. The extraordinary meeting was the first between leaders of the two countries in 25 years, and signaled both a dramatic shift in U.S. policy and another step in Syria’s rapidly easing diplomatic isolation.
Since a rebel coalition led by Mr. al-Shara overthrew President Bashar al-Assad in December, Saudi Arabia and Qatar have expressed a desire to provide financial support to Syria’s new authorities but have also voiced concerns about potentially violating U.S. sanctions.
While the exact terms and timeline of lifting these sanctions remain unclear, the move by the two resource-rich Gulf states underscored how Mr. Trump’s announcement is enabling countries to extend assistance without fear.
There are other signs of growing confidence, including by international investors, in Syria. The government has signed an $800-million memorandum of understanding with DP World, a Dubai-based global port operator, to develop the Mediterranean port of Tartus on Syria’s west coast, the country’s state news agency reported on Friday.
It was the first major deal since Mr. Trump’s announcement and added to a growing optimism in Syria that the U.S. move will signal to other nations that the country is open for much-needed foreign investment.
However, there are still significant challenges ahead for the fractured nation, which has been rocked by repeated waves of sectarian violence in recent months. Much of the country’s infrastructure remains in ruins, millions are still displaced and deep divisions between rival armed groups continue to threaten efforts to achieve long-term stability.
Last month, Saudi Arabia and Qatar pledged in a joint statement to cover Syria’s arrears with the World Bank. The bank said on Friday that this was the first step in a planned increase in support for Syria that will lay the groundwork for the nation’s long-term recovery. The bank’s initial effort will target expanding access to electricity in hopes of spurring economic activity and supporting basic services.
“This will help to stabilize the country and the region,” the World Bank statement said. “Ultimately, there needs to be an environment for the private sector to invest, create jobs and enable growth to deliver on the promise of a better future for the Syrian people.”
