Syria Seeks $1 Billion in Grants from World Bank

Syria is negotiating with the World Bank to secure approximately $1 billion in grants aimed at financing development projects over the next three years, according to Syrian Finance Minister Mohammad Yasir Bernieh.

In a social media statement on Saturday, Bernieh confirmed ongoing talks with the World Bank focusing on grant components available to Syria and related conditions. The discussions come amid a broader effort by Damascus to rebuild the war-torn country and deepen cooperation with international financial institutions after years of isolation.

Bernieh told the Asharq newspaper in an interview last week that Syria’s reconstruction efforts require tens of billions of dollars. He highlighted the establishment of the Syrian Development Fund dedicated to infrastructure and rebuilding projects, as well as plans with the World Bank to launch an additional trust fund to attract institutional support.

He emphasized that no projects will be financed without active private sector participation, underscoring a cautious yet forward-looking approach to reconstruction finance.

During the recent Spring Meetings of the International Monetary Fund (IMF) and World Bank Group in Washington, Bernieh met with Akihiko Nishio, World Bank Vice President for Development Finance, to discuss grant frameworks and financing mechanisms. 

He also spoke with Jihad Azour, IMF Director for the Middle East and Central Asia, about a “new chapter” of cooperation that includes preparations for Syria’s first Article IV consultation in years, a key step towards reintegrating Syria into the international financial system.

Syria’s government has attracted $28 billion in foreign investments over the past seven months and aims to mobilize up to $100 billion to support reconstruction. Despite ongoing sanctions imposed after the fall of Bashar al-Assad’s regime, Damascus is increasingly engaging with multilateral institutions and global partners to unlock financial support.

IMF Managing Director Kristalina Georgieva recently affirmed the Fund’s full engagement with Syria, noting that IMF teams have visited Damascus to strengthen the Central Bank’s capacity as a pillar of economic stability. She added that the IMF and World Bank are coordinating efforts to expedite development assistance.

In June, the World Bank approved a $146 million grant for rehabilitating power transmission lines and substations in Syria, marking a significant step after Saudi Arabia and Qatar settled outstanding dues of $15.5 million in May, clearing Syria’s eligibility for new financing.

The renewed financial dialogue signals a gradual shift toward rebuilding Syria’s devastated economy, albeit amid lingering geopolitical complexities.