Syria secures $403 million in Saudi loans for infrastructure repair
Riyadh is funding energy, housing, and health projects under new agreements signed during President Ahmed al-Sharaa’s visit.
By Ibrahim Howard ·
Syrian President Ahmed al-Sharaa and Saudi Crown Prince Mohammed bin Salman signed a package of deals on Wednesday that includes $403 million in loans for Syria's reconstruction. The funds will go toward repairing damaged infrastructure in the energy, housing, health, and civil defense sectors. The Saudi Fund for Development will provide the money under six separate agreements with Syria's Finance Ministry.
The loans are structured on concessional terms. A specific allocation of $100 million is designated for rebuilding and equipping healthcare facilities. Another $60 million will cover the repair of damaged housing. The agreement also includes $105 million to strengthen civil defense capabilities and $90 million to rehabilitate the Aleppo thermal power plant. Additionally, $30 million is earmarked for developing drinking water systems in Damascus and Idlib.
Al-Sharaa arrived in Riyadh for his second visit in less than a month. The two leaders last met in Riyadh on October 6, where they discussed plans for Syria's reconstruction, including rebuilding damaged infrastructure and essential facilities. Saudi Arabia has been a key backer of the Syrian government since al-Sharaa took power following the overthrow of Bashar al-Assad in December 2024.
Beyond the financial aid, the two countries signed a defense cooperation agreement. The Syrian Foreign Ministry described this pact as the most notable of the deals, though it did not disclose the specific terms. The agreement came shortly after Foreign Minister Asaad al-Shaibani stated that his government was evaluating Syria's entry into a mutual defense pact involving Saudi Arabia, Turkiye, and Pakistan. Al-Shaibani said at the Manama Dialogue in Bahrain on Saturday that discussions are currently under way to evaluate Syria's entry into the Mecca alliance.
The signing also produced a memorandum of understanding on industrial cooperation, along with two additional memoranda on agriculture and environmental protection. The official Saudi Press Agency reported these details alongside the loan information.
During their talks, al-Sharaa and Prince Mohammed discussed the current regional and international situation. The Syrian Foreign Ministry stated that the conversation covered the effects of military escalation on regional security, the safety of international shipping, and the reliability of energy supplies. The two leaders called for de-escalation and the peaceful resolution of disputes. They also urged an immediate cessation of actions that threaten maritime navigation in the Red Sea, the Bab al-Mandeb strait, and the Strait of Hormuz.
Saudi Arabia has sought support from the United States and other nations for defensive and offensive operations in a renewed war against the Houthis in Yemen. The Houthi group has attacked airports and oil facilities in Saudi Arabia while fighting forces aligned with Yemen's internationally recognized government for control of the country.
