Saudi development funding for damaged homes, health facilities and civil defence could reach Syrians returning after years of displacement, with more than $403 million in concessional loans agreed during President Ahmed al-Sharaa’s visit to Riyadh. More than 2 million internally displaced Syrians and 1.8 million refugees have voluntarily returned home since December 2024.
The agreements came as Yemen’s Iran-aligned Houthi group continues missile and drone attacks on Saudi Arabia. Saudi Arabia has been seeking defensive and offensive assistance from the US, Europe and the Middle East in a renewed war against the Houthis.
Al-Sharaa, Syria’s president, returned to Riyadh on Wednesday for his second visit to Saudi Arabia in less than a month. He came to power after Bashar al-Assad was overthrown in December 2024, and has been in office since January 29, 2025; he was formerly known as Abu Mohammed al-Jolani and led Hayat Tahrir al-Sham, a successor to Syria’s al-Qaida affiliate, before renouncing ties to al-Qaida.
He met Saudi Crown Prince Mohammed bin Salman, following their previous Riyadh meeting on October 6.
During the visit, Saudi Arabia and Syria signed a cooperation agreement between their defence ministries. Syria’s Foreign Ministry described it as the most notable agreement reached during the trip.
Its operational scope remains unclear. No details were released on what the defence agreement entails. A Syrian diplomat said that any request for military cooperation or an exchange of expertise would be handled solely through official channels and under bilateral agreements.
Foreign Minister Asaad al-Shaibani said talks were under way on whether Syria should join the Mecca alliance with Saudi Arabia, Turkey and Pakistan.
The Saudi Fund for Development reached six agreements with Syria’s Finance Ministry to provide the loans, which are intended to support development and service sectors including energy, housing, health and infrastructure. The funding includes $100 million to rebuild and equip damaged healthcare facilities, $60 million to repair damaged housing and $105 million to strengthen civil defence.
The governments also signed a memorandum of understanding on industrial cooperation, alongside two further memoranda covering agriculture and environmental protection. Al-Sharaa and Prince Mohammed discussed regional and international developments, and called for de-escalation and peaceful settlement of disputes.
Saudi Arabia has played a key role in restoring Damascus’ ties with world powers since Assad’s overthrow. Al-Sharaa assumed the presidency in January 2025 after fighters led by Hayat Tahrir al-Sham overran Damascus, ending more than five decades of Assad family rule.
On 13 March, al-Sharaa signed Syria’s constitutional declaration, setting a five-year transition and a presidential system that places executive power with the president and enshrines Islamic law. He has also recognised Syrian Kurds as an essential part of the nation, declared Kurdish a national language and made Newroz a national holiday.
Syria is expected to have an 11% increase in GDP by 2026, while tourism has risen by 111%. Inflation has fallen to an estimated 11.5%, from more than 72% previously.
Recovery has also brought pressure on households. Protests have erupted over a 40% rise in fuel prices, even as Syria increased its share of national oil production from roughly 20% to 88%.
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