Syria is taking new steps toward economic recovery with international support. On the sidelines of the 2026 annual meetings of the IMF and World Bank in Bangkok, Syria’s finance minister and the head of the country’s central bank met with World Bank Group President Ajay Banga. They discussed current financing, the progress of projects, and opportunities to expand cooperation aimed at rebuilding the Syrian economy.
On Tuesday, the Central Bank said on Telegram that the parties reviewed the implementation of projects already launched and support for key sectors. The opening of a World Bank Group office in Damascus in January was a separate topic; it is expected to improve the coordination and monitoring of programs. In August, the bank approved a $100 million grant to modernize Syria’s financial sector, an important signal after a 14-year suspension of support.
The grant is intended to develop payment systems and banking supervision, as well as upgrade financial-market and retail-payment infrastructure. Plans include modernizing the credit-information system and the core banking system of the Central Bank of Syria, while strengthening the technological foundation and cybersecurity. Syria regained eligibility for financing through the International Development Association in May 2025 after Saudi Arabia and Qatar repaid its debt to the World Bank—approximately $15.5 million—bringing the 14-year suspension to an end.
Against the backdrop of the political transition in late 2024 and the easing of restrictions by the United States, the EU, and the United Kingdom, international institutions have begun working more actively with Damascus. In March, the World Bank approved another grant—$20 million to improve public financial management, including budget preparation, expenditure controls, transparency, accountability, and digitalization. Recovery nevertheless remains difficult: war-related damage is immense, Syria’s debt was estimated at $27 billion at the end of 2024—128% of GDP—and about 67% of the population lives below the poverty line.
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What is the International Development Association (IDA), and why was it so important for Syria to restore eligibility for financing specifically through it rather than through other World Bank institutions? — The IDA is the World Bank Group’s concessional financing arm for the poorest countries. It provides grants and long-term loans at very low or zero interest, and eligibility depends on low income and a lack of creditworthiness for ordinary loans from the International Bank for Reconstruction and Development (IBRD). This is crucial for postwar Syria: GDP per capita has fallen sharply, the economy has been devastated, and debt sustainability is weak. Standard World Bank loans would therefore either be unavailable or too expensive. Other institutions—the IBRD, IFC, and MIGA—work with creditworthy states, private investment, and risk insurance rather than providing concessional budget support. The IDA, by contrast, makes it possible to finance infrastructure, healthcare, education, and social programs without sharply increasing debt, while also sending a signal to other donors. Clearing the debt therefore opened this specific “window” for Syria, rather than merely restoring symbolic membership.
Why did Saudi Arabia and Qatar take responsibility for repaying Syria’s debt to the World Bank, and what political or economic interests connect them to postwar Damascus? — The debt was relatively small compared with the scale of reconstruction—around $15 million—but repaying it unlocked Syria’s access to concessional IDA financing. For Riyadh and Doha, this was an inexpensive way to gain influence in postwar Syria and present themselves as responsible regional sponsors. Politically, both states, which had previously supported the anti-Assad opposition, are now seeking to prevent renewed chaos, weaken the remaining Iranian and Russian influence, limit Turkey’s excessive rise, and contain extremism and drug trafficking, including Captagon. Economically, they are interested in reconstruction contracts, energy and transport corridors—including possible gas routes through Syria—access to the Syrian market, and channeling aid through the World Bank more transparently and in ways that benefit their companies. Repaying the debt collectively also strengthens their standing in the Arab and Western worlds as partners in stabilizing Syria.
Full version: سوريا تبحث مع البنك الدولي دعم التعافي الاقتصادي