Saudi Arabia Commits $403 Million in Loans to Syria Amid New Defence Pact

Saudi Arabia has agreed to provide $403 million in loans to Syria, according to official reports from the Saudi Press Agency. The funding covers six specific agreements between the two countries' finance ministries. These loans are offered on concessional terms to address critical infrastructure gaps in the Syrian economy.

The financial package includes $100 million for the reconstruction and equipment of damaged healthcare facilities. Another $60 million is allocated for repairing damaged housing, while $105 million will strengthen civil defence capabilities. An additional $90 million is designated for the rehabilitation of the Aleppo thermal power plant, and $30 million will support drinking water systems in Damascus and Idlib.

President Ahmed al-Sharaa and Crown Prince Mohammed bin Salman signed the agreements on Wednesday in Riyadh. This marks al-Sharaa's second visit to the Saudi capital in less than a month. The two leaders had last met in Riyadh on October 6, where they discussed plans for Syria's reconstruction and the rebuilding of essential facilities following the overthrow of Bashar al-Assad in December 2024.

Alongside the financial commitments, the two nations signed a defence cooperation deal. Syria's Foreign Ministry described this agreement as the most notable of the deals but did not disclose specific terms. The pact comes shortly after Foreign Minister Asaad al-Shaibani stated that his government is evaluating Syria's entry into a mutual defence pact among Saudi Arabia, Turkiye, and Pakistan. Al-Shaibani made these comments on Saturday at the Manama Dialogue security conference in Bahrain.

Saudi Arabia has recently sought assistance from the United States and various European and Middle Eastern countries for defensive and offensive support. This outreach accompanies a renewed war against the Houthis in Yemen, a group that has attacked airports and oil facilities in Saudi Arabia. The Houthi forces are fighting for control of the country against forces aligned with Yemen's internationally recognised government.

The two leaders also signed memorandums of understanding on industrial cooperation, agriculture, and environmental protection. In a joint statement, al-Sharaa and Prince Mohammed called for de-escalation and the peaceful resolution of disputes. They specifically urged for an immediate cessation of actions threatening maritime navigation in the Red Sea, the Bab al-Mandeb strait, and the Strait of Hormuz.