Saudi Arabia and Qatar to Settle Syria's World Bank Debt, Paving Way for Reconstruction
Saudi Arabia and Qatar will pay back Syria's $15 million debt to the World Bank, facilitating the resumption of support for the war-torn nation.
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Overview
Saudi Arabia and Qatar announced their commitment to pay Syria's $15 million debt to the World Bank, enabling the resumption of financial support for recovery efforts after a prolonged civil conflict. This payment aims to activate the World Bank's operational presence in Syria for the first time in 14 years, following the change in leadership after the ousting of Bashar Assad. The Syrian Foreign Ministry has acknowledged the significant role of these Gulf states in the reconstruction process, which could cost upwards of $400 billion, as Western sanctions remain a notable hurdle for development projects.
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Analysis
- Saudi Arabia and Qatar's decision to pay Syria's debt to the World Bank aims to facilitate the resumption of international financial support to the war-torn country, potentially assisting in its recovery and reconstruction efforts.
- This financial commitment is seen as a critical step towards revitalizing Syria's devastated infrastructure and economy, which has suffered significantly over the past 14 years of civil conflict.
- The involvement of Gulf states in Syria's recovery signals a shift in regional diplomacy and may pave the way for improved international relations, despite ongoing Western sanctions targeting the previous government.
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FAQ
Saudi Arabia and Qatar have agreed to pay Syria's outstanding debt to the World Bank totaling roughly $15 million.
Settling Syria's World Bank debt will enable the World Bank to resume its support and operations in Syria for the first time in 14 years, unlocking access to financial support and technical advice for recovery and reconstruction efforts.
Saudi Arabia and Qatar have been key backers of Syria's new leadership since the ouster of Bashar al-Assad and are playing a pivotal role in financing the reconstruction and revival of Syria’s economy.
The estimated cost of reconstructing Syria after 14 years of conflict is upwards of $400 billion, significantly higher than earlier estimates around $250 billion.
The ouster of longtime Syrian leader Bashar al-Assad in December by Islamist-led rebels led to the formation of a new government, which sought to rebuild diplomatic ties including with international financial institutions, prompting Saudi Arabia and Qatar to agree to pay off Syria’s World Bank debt.
History
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