The World Bank confirmed Friday that Saudi Arabia and Qatar have jointly paid off Syria’s outstanding $15.5 million debt to the International Development Association (IDA), the World Bank’s fund for low-interest loans to developing countries.
In an official statement, the World Bank said that clearing Syria’s debt will now allow the organization to resume its engagement with the country. The first project under consideration is aimed at expanding access to electricity for the Syrian population—an urgent need, given that consistent electricity had long been considered a luxury prior to the collapse of the previous government.
Before the fall of the Baathist government in December, many Syrians had only intermittent electricity, often limited to just a few hours per day. Since then, Qatar has begun supplying natural gas to assist in stabilizing the country’s fragile power supply.
The debt repayment follows closely on the heels of U.S. President Donald Trump’s announcement earlier this week that he would lift all U.S. sanctions on Syria, signaling a broader international shift toward re-engagement with Damascus.
These developments come amid a scramble by regional powers to gain influence in post-war Syria. On Thursday, reports emerged of secret normalization talks between Syria and Israel, reportedly facilitated by Turkey and held in Azerbaijan. President Trump confirmed he discussed the Abraham Accords with Syrian President Ahmed al-Sharaa during their meeting in Riyadh on Wednesday, claiming al-Sharaa expressed openness to joining the framework, which allows Arab nations to normalize relations with Israel without the condition of establishing a Palestinian state.
Despite these diplomatic moves, al-Sharaa’s hold on power remains fragile. Since the formal dissolution of the Syrian military and other state institutions in January, Syria has lacked organized security forces, leaving the country vulnerable—particularly to Israeli airstrikes, which have severely damaged what remained of Syria’s military infrastructure following the Baathist government’s fall.
Al-Sharaa, a former leader of the now-dissolved militant group Hayat Tahrir al-Sham, is also facing internal dissent. Critics from within his former ranks have voiced frustration over his transition to formal politics, his public appearances in Western-style suits, and his conciliatory tone toward Israel. Reports earlier this week indicate that a fresh purge of dissenting former fighters and commanders took place, highlighting persistent instability within the country’s new power structure.
As the region recalibrates its approach to Syria, the World Bank’s renewed engagement and the lifting of sanctions could represent crucial lifelines for a country struggling to rebuild. However, with its institutions in disarray and leadership under scrutiny, long-term recovery remains uncertain.