Saudi Arabia extends $403 million in loans for Syria's hospitals and power grid

Syrian families will see direct effects of new Saudi financing as $403 million in concessional loans targets critical gaps in healthcare, housing, and utilities. The funds are allocated to repair damaged infrastructure and equip hospitals, addressing needs that have persisted since the fall of the previous government.

The Saudi Fund for Development agreed to six specific loan packages with Syria's Finance Ministry. The allocation breaks down as follows: $100 million for rebuilding and equipping damaged healthcare facilities, $60 million for repairing damaged housing, $105 million for strengthening civil defense capabilities, $90 million for rehabilitating the Aleppo thermal power plant, and $30 million for developing drinking water systems in Damascus and Idlib.

Syrian President Ahmed al-Sharaa and Saudi Crown Prince Mohammed bin Salman oversaw the signings on Wednesday. This marks al-Sharaa's second trip to Riyadh in less than a month, following their previous meeting on October 6. During their talks, the two leaders reviewed the regional security situation and economic stability.

A central part of the agreement is a defense cooperation deal between the two nations' ministries. Syria's Foreign Ministry labeled this the most notable of the signed deals, though it did not release the specific terms. The pact follows recent comments by Foreign Minister Asaad al-Shaibani, who stated on Saturday that his government is evaluating Syria's entry into a mutual defense pact involving Saudi Arabia, Turkiye, and Pakistan.

The timing coincides with a renewed Saudi military campaign against the Houthis in Yemen. Saudi Arabia has sought support from the United States and European and Middle Eastern partners for defensive and offensive operations. The Houthi group has targeted airports and oil facilities in Saudi Arabia while fighting for control of Yemen.

In a statement on X, the Syrian Foreign Ministry said the leaders called for de-escalation and the peaceful resolution of disputes. They urged an immediate cessation of actions threatening maritime navigation in the Red Sea, the Bab al-Mandeb strait, and the Strait of Hormuz.

Beyond the loans and defense pact, the governments signed a memorandum of understanding on industrial cooperation, along with two additional agreements on agriculture and environmental protection. Saudi Arabia has been a key backer of Syria's administration since al-Sharaa took power following the overthrow of Bashar al-Assad in December 2024.