Syria Secures $403 Million in Loans and New Defence Pact With Riyadh
The funding targets critical infrastructure repairs in Aleppo and Damascus, while the two nations explore a wider mutual defence arrangement.
By Aiko Nakamura ·
Syria and Saudi Arabia formalized a new strategic partnership on Wednesday.
During President Ahmed al-Sharaa's visit to Riyadh, the two leaders signed a defence cooperation agreement. They also secured $403 million in development loans from Saudi Arabia.
The Saudi Crown Prince Mohammed bin Salman joined al-Sharaa for the signing ceremony. The financial package is designed to aid Syria's energy, housing, healthcare, and infrastructure sectors.
This visit marks al-Sharaa's second trip to the Saudi capital in under a month. The Syrian Foreign Ministry declared the defence pact the most important outcome of the talks, though it did not publish the specific terms. The agreement follows recent statements by Syrian Foreign Minister Asaad al-Shaibani. At the Manama Dialogue conference in Bahrain, al-Shaibani noted that Damascus is evaluating a potential role in a mutual defence pact with Saudi Arabia, Turkiye, and Pakistan.
Saudi Arabia is currently seeking military support from allies in the United States, Europe, and the Middle East. The kingdom is engaged in a renewed conflict with Yemen's Houthis, who have targeted Saudi airports and oil facilities while fighting for control of Yemen.
The loan agreements break down the funding into specific sectors. The Saudi Fund for Development will provide $100 million for healthcare facility repairs. An additional $60 million is allocated for housing repairs, and $105 million will strengthen civil defence capabilities. The remaining funds include $90 million for the rehabilitation of the Aleppo thermal power plant and $30 million for drinking water systems in Damascus and Idlib.
Both leaders also discussed regional security concerns. A Syrian Foreign Ministry statement said the talks covered the impact of military escalation on shipping and energy supplies. They called for a halt to actions threatening navigation in the Red Sea, the Bab al-Mandeb strait, and the Strait of Hormuz. The governments also signed memorandums on industrial cooperation, agriculture, and environmental protection. Saudi Arabia has supported Syria's government since al-Sharaa took power in December 2024, following the overthrow of Bashar al-Assad. The two leaders previously met in Riyadh on October 6 to discuss reconstruction plans.
