Saudi Arabia's Foreign Minister Prince Faisal bin Farhan said during a visit to Damascus on Saturday that the kingdom will, with Qatar, offer financial support to state employees in Syria.
He made the remarks during a press conference with his Syrian counterpart Asaad Al Shibani as part of a trip with a high-level delegation aiming at strengthening ties, as Syria prepares for an economic opening with the lifting of sanctions.
He did not provide details on the size of the financial support to be provided by Riyadh and Doha. However, it echoes a similar move by Qatar to bankroll Syria's public sector.
A statement by Saudi Arabia and Qatar later said on Saturday that the joint financial support would be delivered in a three-month period.
Several more visits to Syria would follow in the coming days by Saudi businessmen to discuss investments in energy, agriculture, infrastructure and other sectors, Prince Faisal said.
The prince also met Syrian President Ahmad Al Shara, Saudi state media reported. The talks were “focused on relations, with both sides discussing regional security and stability, as well as efforts to support Syria’s economy and strengthen its national institutions to realise the aspirations of the Syrian people”, the Saudi Press Agency said.
In February, Saudi Crown Prince Mohammed bin Salman met Mr Al Shara in Riyadh during the latter's first trip in the region as president.
Mr Al Shara said the meeting with Prince Mohammed showed Saudi Arabia had “a genuine desire to support Syria in building its future”. The Syrian President added that his meetings in Riyadh had included plans for co-operation in energy, technology, education and health.
The Syrian economy has been devastated by a civil war which began in 2011. The UN's Development Programme estimates cumulative losses – including physical damage and economic deprivation – of $923 billion at the end of last year.
The estimated cost of reconstruction has varied from $250 billion to $500 billion.
The national economy, which had been maintaining brisk growth before the protests against the regime of Bashar Al Assad, has struggled since. Gross domestic product plunged 6.4 per cent in 2016 before gradually recovering, government data shows.
But the situation has been improving. In March, Mr Al Shara announced new government members, appointing 23 ministers in a broadened cabinet. The move was seen as important in the transition from decades of Al Assad family rule and the improvement of ties with the West.
In a further improvement, US President Donald Trump, during his recent Gulf tour, announced the lifting of sanctions on Syria, drawing cheers from citizens and optimism from analysts. He also met Mr Al Shara in Riyadh.
On May 16, the World Bank cleared Syria of its $15.5 million outstanding debt after payments from Saudi Arabia and Qatar, in another positive sign for the nation's damaged economy.
The clearing of the arrears, made effective on May 12, reinstated Syria's eligibility to receive World Bank support after a 14-year hiatus, the Washington institution said.
Saudi Arabia and Qatar announced plans to settle Syria's outstanding debts on April 27, in “support of and to accelerate the recovery” of Syria, following discussions at the World Bank and International Monetary Fund's spring meetings in Washington.
Support from Syria's Gulf neighbours will be crucial to its recovery: financial deposits from Gulf allies will support Syria's monetary stability and rebuild confidence in its commercial banking system as the country grapples with depleted foreign exchange reserves, analysts have said.
Also in May, Damascus and DP World, the Dubai global ports operator, signed an initial agreement worth $800 million to develop Syria's port of Tartus, in a deal aimed at strengthening port infrastructure and logistics services in the country.
