Syria, Saudi Arabia Sign Defence Deal And $403 Million Loan Agreements

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Outlook News Desk
Curated by: Abhishek S Yadav
Published at:

Syria and Saudi Arabia have signed a defence cooperation deal and over $403 million in loans for reconstruction, healthcare, housing and infrastructure projects

Syrian President Ahmed al-Sharaa and Saudi Crown Prince Mohammed bin Salman
Syrian President Ahmed al-Sharaa and Saudi Crown Prince Mohammed bin Salman Photo: X/ariel_oseran
Summary of this article
  • Syria and Saudi Arabia sign a new defence cooperation deal.

  • Riyadh provides over $403 million in development loans.

  • The agreements also expand economic and regional cooperation.

Syria and Saudi Arabia have signed several agreements, including a defence cooperation deal and more than $403 million in Saudi loans for projects in energy, housing, healthcare and infrastructure. The agreements were overseen by Syrian President Ahmed al-Sharaa and Saudi Crown Prince Mohammed bin Salman.

The agreements were signed on Wednesday during al-Sharaa's second visit to Riyadh in less than a month. Syria's Foreign Ministry described the defence deal as the most significant of the agreements but did not reveal its terms, according to Al Jazeera.

The signing came days after Syrian Foreign Minister Asaad al-Shaibani said his government was considering joining a proposed defence arrangement involving Saudi Arabia, Turkiye and Pakistan.

Speaking at a security conference in Bahrain on Saturday, al-Shaibani said: “Discussions are currently under way to evaluate Syria’s entry into the Mecca alliance.”

The Details Of The Deal

Syria is set to receive $403 million in financial assistance from Saudi Arabia to repair damaged infrastructure and support public services. The money will be released through six loan agreements signed with Syria's Finance Ministry during al-Sharaa's visit.

Healthcare facilities will receive $100 million, while $60 million has been set aside for repairing damaged homes. Another $105 million will support civil defence services.

The remaining funds include $90 million for work on the Aleppo thermal power station and $30 million to improve access to drinking water in Damascus and Idlib. More than $18 million has also been allocated to modernise the Syrian Finance Ministry's digital systems and improve its institutional capacity. These are concessional development loans, not grants. Syria will have to repay them under agreed terms

Beyond financial assistance, Riyadh and Damascus have agreed to expand cooperation in several other areas. They have signed a memorandum covering industrial development, with two additional agreements focusing on agriculture and environmental protection.

Saudi Arabia Is Seeking Help Against Houthis

Saudi Arabia has approached the United States, European nations and other Middle Eastern countries for support in a possible renewed conflict with Yemen's Houthis.

The group has carried out attacks on Saudi airports and oil facilities while fighting forces backing Yemen's internationally recognised government in its bid to control the country.

The talks in Riyadh also covered regional and global developments, with al-Sharaa and Prince Mohammed discussing ways to ease tensions and resolve disputes through dialogue.

In a statement posted on X, Syria's Foreign Ministry said the two leaders had called for an end to actions threatening safe passage for ships in the Red Sea, the Bab al-Mandeb strait, and the Strait of Hormuz. They demanded an “immediate cessation of all actions that threaten the security of maritime navigation” in these waterways.

Relations Have Changed Between Two Countries Recently

Relations between Saudi Arabia and Syria have grown closer since the fall of Bashar al-Assad in December 2024. Riyadh quickly established ties with the new leadership and extended political and economic support to Ahmed al-Sharaa's government.

Saudi Arabia was al-Sharaa's first foreign destination after he became president in February 2025, when he met Crown Prince Mohammed bin Salman. The two countries have since stepped up cooperation, with Saudi Arabia supporting efforts to rebuild Syria's damaged economy and infrastructure.

In July 2025, they signed 47 investment agreements worth nearly $6.4 billion, covering energy, housing, transport and telecommunications. Saudi Arabia has also helped Syria regain access to international financial support by clearing its World Bank arrears alongside Qatar.

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