RIYADH: Saudi Arabia and Qatar have agreed to jointly pay approximately $15 million to settle Syria’s arrears to the World Bank, a move set to unlock renewed development funding for the war-torn country.

The announcement came during the Syria Roundtable Meeting, held on the sidelines of the International Monetary Fund and World Bank Spring Meetings in Washington from April 21 to 26, according to the Saudi Press Agency.

The settlement will allow Syria to regain access to World Bank resources to support critical sectors and rebuild key institutions, the finance ministries of Saudi Arabia and Qatar said in a joint statement.

“This payment will enable the resumption of the World Bank Group’s support and activities for Syria, after an interruption that lasted for more than fourteen years,” the SPA report stated.

The renewed engagement will also facilitate technical assistance programs focused on capacity building and policy reforms to stimulate long-term economic growth.

Syria’s economy has been devastated by over a decade of civil war, with its gross domestic product contracting by 84 percent between 2010 and 2023, according to World Bank estimates. Inflation has soared, the currency has plummeted, and over 90 percent of Syrians now live below the poverty line.

International sanctions, particularly the US Caesar Syria Civilian Protection Act of 2020, have further isolated Syria from global financial systems, compounding its economic collapse.

Syria’s ties with the World Bank had frayed since the mid-1990s, when debt repayment disputes led to a suspension of support. The prolonged lack of access to international funding severely hampered reconstruction efforts during the conflict.

However, following the ousting of Bashar Al-Assad in December and the formation of a transitional government, Syria has begun re-engaging with the global community.

During the Washington meetings, Saudi Arabia and Qatar urged international and regional financial institutions to swiftly resume and expand their development activities in Syria. They emphasized the need for a collective effort to help the Syrian people achieve a future marked by stability, dignity, and shared regional prosperity.