Saudi Arabia and Qatar, in co-ordination with the United Nations Development Programme, are providing $89 million in financial support to Syria to help the war-ravaged country rebuild its economy.
The support is provided by the Saudi Fund for Development and Qatar Fund for Development, the Saudi Press Agency reported on Wednesday.
The funding will support public sector employees in Syria for three months, the report said. “The initiative aims to ensure the uninterrupted delivery of essential public services to the Syrian people and to strengthen the country’s budgetary allocations,” it added.
Saudi Arabia and Qatar jointly paid off Syria’s $15.5 million debt to the World Bank in May to help the country receive critical reconstruction grants from the Washington-based lender.
The Syrian economy was devastated by a 14-year civil war, with severe damage to its infrastructure and thousands fleeing the country to escape the conflict.
Syria’s gross domestic product has cumulatively contracted by more than 50 per cent since 2010 and gross national income per capita fell to just $830 in 2024. This is well below the international threshold for low-income countries, the World Bank said in July.
The country's economy is forecast to grow by only 1 per cent in 2025 after shrinking by 1.5 per cent in 2024 amid continued security challenges and liquidity constraints, the lender said at the time.
The latest funding represents “a significant step towards achieving ambitious development objectives and underscores the vital importance of supporting opportunities for growth and prosperity for Syria and its people”, the SPA report said.
“The initiative exemplifies international co-operation and solidarity in pursuit of the sustainable development goals, contributing to enhanced social development and economic well-being in Syria.”
Saudi Arabia, the Arab world's largest economy, and Qatar are playing a key part in supporting Syria to rebuild its economy, with new investments.
In July, Saudi Arabia signed agreements worth 24 billion Saudi riyals ($6.4 billion) to help Syria recover from the war.
The agreements covered key sectors including energy, industry, infrastructure, property, financial services, health, agriculture, communications and information technology.
This month, the Saudi Fund for Development provided a grant to supply Syria with 1.65 million barrels of crude oil.
Qatar is also investing in Syria and is part of a consortium that is building power plants in the country.
The consortium, including Qatar's UCC Holding, US company Power international and Cengiz Enerji of Turkey, signed a $7 billion deal in May to build solar and natural gas power plants.
