Saudi Arabia & Qatar Clear Syria's $15M World Bank Debt

In a significant move towards Syria’s recovery, Saudi Arabia and Qatar have agreed to pay the country's outstanding debt to the World Bank. This decision, announced Sunday, is expected to pave the way for the international institution to resume its support for the war-torn country, which has faced severe economic challenges over the past 14 years.

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Why is This Important for Syria’s Future?

The agreement to pay Syria’s nearly $15 million debt was made during recent meetings in Washington between the World Bank and the IMF. According to a joint statement from the finance ministries of Saudi Arabia and Qatar, this step is crucial for Syria’s recovery and reconstruction efforts. Syria’s Foreign Ministry expressed its gratitude for the payment, emphasizing that it opens the door to future cooperation with the international community, especially in vital sectors.

This debt payment is seen as a key move to revive Syria's international support, which has been stalled for years due to the ongoing conflict. It also signals hope for the country’s recovery after a devastating civil war that has claimed over half a million lives and caused widespread destruction.

Saudi and Qatar’s Role in Syria’s New Leadership

Since the fall of Bashar Assad’s government in early December, when insurgent groups, led by the Islamist Hayat Tahrir al-Sham, took control of Damascus, Saudi Arabia and Qatar have been major backers of Syria’s new leadership. These nations are playing a pivotal role in the country’s efforts to rebuild, both financially and politically.

The Cost of Rebuilding Syria

Rebuilding Syria will not be an easy task. In 2017, the United Nations estimated that it would cost at least $250 billion to restore the country’s infrastructure and economy. However, some experts now believe that figure could rise to around $400 billion, reflecting the extent of the damage caused by years of conflict.

The payment of Syria’s World Bank debt by Saudi Arabia and Qatar is expected to help facilitate the resumption of World Bank support in the country. This includes funding for crucial sectors like healthcare, education, and infrastructure, although specifics have yet to be revealed.

Ongoing Challenges in Syria’s Reconstruction

Syria’s infrastructure, including its energy grid, has suffered severe damage during the conflict that began in March 2011. To address some of these issues, Qatar has already started supplying Syria with natural gas through Jordan, helping to alleviate the long electricity cuts that affect much of the country.

However, Syria’s recovery faces a major hurdle in the form of Western sanctions, which have been imposed for over a decade. These sanctions primarily target the Assad government and its officials, restricting development projects and international investment in Syria. Despite these challenges, there are signs of easing. The U.S. has allowed certain transactions with the Syrian government, including energy sales, while the European Union has relaxed sanctions related to oil, gas, and transport. The UK has also lifted sanctions against several Syrian entities, further contributing to the country’s rebuilding efforts.

Looking Ahead: A Long Road to Recovery

While the repayment of Syria’s debt is a crucial first step, the road to recovery will be long and complex. The cooperation between Saudi Arabia, Qatar, and the World Bank offers a glimmer of hope, but Syria will need continued international support and a commitment to overcoming internal and external challenges.

As Syria begins to access World Bank funds for reconstruction, the focus will likely be on vital sectors like infrastructure, healthcare, and energy, essential for the country’s economic recovery and stability in the years to come.

This article was previously published on saudimoments. To see the original article, click here