Syria and World Bank to set up recovery and rebuilding fund

Damascus and the World Bank have collaborated to establish a multi-donor trust fund aimed at aiding Syria's recovery and reconstruction efforts following a decade-long civil war, according to a joint statement released on Sunday. This initiative, named the Syria Recovery and Reconstruction Trust Fund (START), seeks to provide concessional financing, investment guarantees, technical assistance, and foster trust among global partners.

The announcement followed Syria's participation in recent international and World Bank meetings in Bangkok, Thailand, where Syrian officials have been attending since the fall of the Assad regime in December 2024. Syrian Finance Minister Yisr Barnieh highlighted that this agreement establishes a new phase of cooperation with international partners.

The World Bank estimated that Syria's reconstruction costs could reach up to $216 billion, representing one of the most expensive rebuilding endeavors in history. The fund would focus on restoring infrastructure, which accounted for 48% of the total damage, followed by residential buildings and non-residential buildings. The World Bank's Middle East, North Africa, Afghanistan, and Pakistan vice president, Ousmane Dione, expressed optimism about working with all partners to support a sustainable recovery path.

Syria has been actively seeking investment commitments to rebuild its infrastructure, with several pledges already moving into the implementation phase, including a $800 million contribution from DP World to the Tartus Port. Other Gulf partners, such as Saudi Arabia, have also made significant investments, including a $2 billion package to develop two airports in Aleppo and other projects in energy, real estate, and telecommunications.

Ongoing discussions with Qatari Finance Minister Ali Al Kuwari have further bolstered support for the recovery and development work. Norway has also shown interest in contributing to the trust fund. Qatar has offered financing for projects to rehabilitate Syria's electricity grids, water networks, public services, and the Damascus International Airport.

A delegation of about 50 US companies, including Baker Hughes, Caterpillar, and Visa, visited Syria last month to explore and strengthen economic ties, following the US' delisting of Syria as a state sponsor of terrorism. Syria is set to return to the Arab group at the International Monetary Fund, effective November 1, after leaving the Russian-led group it joined in 2012.

The IMF restarted communications with Syria in 2025, having not had an Article IV consultation since 2009.