Saudi Arabia pledges $403 million to Syria in new loan package
The funding supports energy and housing projects following a defense pact signed during President al-Sharaa's second trip to Riyadh in a month.
By Paula Delgado ·
Saudi Arabia has committed $403 million in loans to Syria to fund projects in the energy, housing, health, and infrastructure sectors. The financial package was agreed upon on Wednesday during President Ahmed al-Sharaa's visit to Riyadh. It marks his second trip to the Saudi capital in under 30 days.
The loan agreements were signed between the Saudi Fund for Development and Syria's Finance Ministry. The terms are concessional, meaning they carry lower interest rates than standard commercial loans. Specific allocations include $100 million for rebuilding and equipping healthcare facilities that sustained damage. Another $60 million is designated for repairing damaged housing.
Further funds cover infrastructure and public safety needs. Syria will receive $105 million to strengthen civil defense capabilities. An additional $90 million is earmarked for the rehabilitation of the Aleppo thermal power plant. A final $30 million will go toward developing drinking water systems in Damascus and Idlib.
The financial deals accompanied a broader defense cooperation agreement between the two nations' defense ministries. Syria's Foreign Ministry described this pact as the most notable of the arrangements but did not release the specific terms. The signing occurred shortly after Foreign Minister Asaad al-Shaibani stated that his government is evaluating entry into a mutual defense pact involving Saudi Arabia, Turkiye, and Pakistan.
Al-Shaibani confirmed at the Manama Dialogue in Bahrain that discussions are currently underway to assess Syria's potential entry into what he called the Mecca alliance. Saudi Arabia has been seeking support from the United States and European and Middle Eastern nations for defensive and offensive aid. This comes as the country faces renewed attacks from the Houthis in Yemen, who have targeted Saudi airports and oil facilities.
During their talks, al-Sharaa and Crown Prince Mohammed bin Salman addressed the regional security environment. They discussed the impact of military escalation on international shipping, energy supply reliability, and the global economy. The leaders urged an immediate stop to actions threatening maritime navigation in the Red Sea, the Bab al-Mandeb strait, and the Strait of Hormuz.
The two governments also signed memorandums of understanding on industrial cooperation, agriculture, and environmental protection. Saudi Arabia has supported Syria's current government since President al-Sharaa took power following the overthrow of Bashar al-Assad in December 2024. The leaders last met in Riyadh on October 6, where they focused on plans for rebuilding Syria's damaged infrastructure and essential facilities.
