Mastercard grants QNB licence to resume activities in Syria

After 14-year hiatus, move would allow domestic and international card payments

An initial pact was signed in September between Mastercard and the Central Bank of Syria aimed at supporting the modernisation of the country’s digital payment infrastructure. Reuters

Mastercard has granted an official licence to QNB group to resume its operations in Syria for the first time in 14 years, signalling a decisive step for the country’s reintegration into global payment networks.

It comes after years of international isolation and sweeping sanctions imposed during the rule of Bashar Al Assad.

QNB Group is a Qatari financial institution and the largest bank in the Middle East and Africa, with branches in Syria.

It is the first bank in Syria to secure such agreements, following a preliminary agreement signed in September between Mastercard and the Central Bank of Syria aimed at supporting the modernisation of the country’s digital payment infrastructure.

Mastercard said the banking group’s payment solutions, accepted in Syria and internationally, will now be open to individual customers and businesses.

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This would allow Syrians for the first time in years to pay by card, domestically and internationally, once outdated IT infrastructure is revived. Point-of-sale terminals, for instance, are largely unavailable in a country where most international transactions were banned for years.

“The alliance marks an important milestone for Mastercard and QNB in their joint efforts to enhance digital banking experience, drive financial inclusion and create new opportunities through technology,” Mastercard said.

The revival of Syria’s banking sector is seen widely as a crucial milestone for handling the billions of dollars in foreign investment expected to pour in and finance the country’s reconstruction after 14 years of civil war.

But many challenges remain for Syria’s fragile banking sector. Last September, the central bank urged financial institutions to recognise and cover for losses tied to Lebanon’s financial crisis, and to submit credible restructuring plans within six months.

Syrian Central Bank governor Abdulkader Husrieh said Syrian lenders have more than $1.6 billion in exposure to Lebanon, where they placed funds during the civil war. Some banks are more exposed than others and will need to find sustainable ways to absorb these losses if they are to remain solvent.

Experts also point out that compliance issues and reputational risks remain, despite the permanent repeal of the most draconian set of sanctions, the so-called Caesar Act, by the US in December 2025.

Benjamin Feve, senior analyst at Karam Shaar Advisory, told The National there was “residual impact of sanctions” for Syrian banks.

“Because Syrian banks were cut off for more than a decade, they were never required to upgrade their systems or bring their compliance, anti-money laundering and counterterrorism-financing frameworks in line with international standards, leaving them significantly behind,” he said. “Their IT systems and staff training are also outdated."