Saudi Arabia, Qatar to settle Syria's outstanding arrears of around $15 million to World Bank

Cairo: Saudi Arabia and Qatar are to settle Syria's outstanding arrears of around $15 million to the World Bank, both countries said in a joint statement, paving the way for the approval of millions of dollars in grants for reconstruction and to support the country's paralysed public sector.

Reuters was first to report the news earlier this month. The plans would be the first known instance of Saudi Arabia providing financing for Syria since Islamist-led rebels toppled former leader Bashar al-Assad last year.

It may also be a sign that crucial Gulf Arab support for Syria is beginning to materialize after previous plans, including an initiative by Doha to fund salaries, were held up by uncertainty over US sanctions.

"This commitment will pave the way for the World Bank Group to resume support and operations in Syria after a suspension of more than fourteen years," Saudi Arabia and Qatar said in the statement.

"It will also unlock Syria's access to financial support in the near term for the development of critical sectors."

Both countries also called on "international and regional financial institutions to promptly resume and expand their development engagement in Syria."

Syria has around $15 million in arrears to the World Bank which must be paid off before the international financial institution can approve grants and provide other forms of assistance.