Saudi Arabia's foreign minister arrives in Syria to discuss boosting economic ties

The National

2 days ago

Saudi Arabia's Foreign Minister Prince Faisal bin Farhan arrived in Syria on Saturday, leading a high-level delegation that aims to strengthen ties as the war-torn nation prepares for an economic opening on the expected lifting of years-long sanctions.
Prince Faisal is due to meet Syrian President Ahmed Al Sharaa, and is expected to hold economic talks between the two sides as an economic delegation is accompanying the Saudi official, the Saudi foreign ministry said in a statement.
The talks will focus on ways the two sides can work together "to support Syria's economy, strengthen the development of government institutions, and achieve the aspirations of the Syrian people", the ministry said.
In February, Saudi Crown Prince Mohammed bin Salman met Mr Al Sharaa in Riyadh during the latter's first trip in the region as president.
Mr Al Sharaa said the meeting with Prince Mohammed has shown that Saudi Arabia had 'a genuine desire to support Syria in building its future'. The Syrian president added that his meetings in Riyadh had included plans for co-operation in the fields of energy, technology, education and health.
The Syrian economy has been devastated by the civil war, which began in 2011. The UN's Development Programme estimates cumulative losses – including physical damage and economic deprivation – of $923 billion at the end of last year.
The estimated cost of reconstruction has varied from $250 billion and $500 billion.
The national economy, which had been maintaining a brisk pace of growth before the protests against the regime of deposed president Bashar Al Assad, has struggled since: gross domestic product plunged 6.4 per cent in 2016 before gradually recovering, government data shows.
But the situation has been improving: in March, Syrian President Ahmad Al Shara announced new members in his government, appointing 23 ministers in a broadened cabinet, a move seen as an important milestone in the transition from decades of Al Assad family rule and the improvement of ties with the West.
It further accelerated after US President Donald Trump, during his Gulf tour this week, announced the lifting of sanctions on Syria, drawing cheers from its citizens and optimism from analysts. He also met Mr Al Shara in Riyadh.
On May 16, the World Bank cleared Syria of its $15.5 million outstanding debt after Saudi Arabia and Qatar paid for it, in another positive sign for the nation's damaged economy.
The clearing of the arrears, made effective on May 12, reinstates Syria's eligibility to receive World Bank support and operations after a 14-year hiatus, the Washington-based institution said.
Saudi Arabia and Qatar announced their plans to settle Syria's outstanding debts on April 27, in "support of and to accelerate the recovery" of Syria, following discussions at the World Bank and International Monetary Fund 's spring meetings in Washington.
Support from Syria's Gulf neighbours will be key to its recovery: financial deposits from Gulf allies will support Syria's monetary stability and rebuild confidence in its commercial banking system as the country grapples with near-depleted foreign exchange reserves, analysts have said.
Also in May, Damascus and DP World, the Dubai-based global ports operator, signed an initial agreement worth $800 million to develop Syria's port of Tartus, aimed at strengthening port infrastructure and logistics services in the country.