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. 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.
The exact terms and timeline for lifting U.S. sanctions are still unclear. But there are already signs of growing confidence by international investors in Syria. The Syrian government has signed a $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 marked 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.
Saudi Arabia and Qatar — two resource-rich Gulf nations — said in a joint-statement last month that they would cover Syria’s arrears with the World Bank.
The World Bank said 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.”
Euan Ward is a reporter contributing to The Times from Beirut.
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