OPEC Fund Considers Financing Syria with Half a Billion Dollars Before the End of the Year

The OPEC Fund for International Development (OFID) is set to launch a new financing program in Syria starting with about $500 million, targeting the energy, infrastructure and social services sectors, especially health and education.

Massive funding program for reconstruction in Syria

  In an interview with Al-Sharq on the sidelines of the IMF and World Bank spring meetings held in Washington, IMF Director General Abdul Hamid Khalifa said that the IMF is currently in talks with the Syrian government, hoping to reach understandings that will allow financing to start before the end of the year. He pointed out that the loan terms extend between 15 and 25 years and on concessional terms to support reconstruction efforts.  

Syria is prioritizing energy and infrastructure projects as part of reconstruction efforts, with extensive damage to the electricity, transport and basic services sectors since 2011. The Syrian government is working to rehabilitate generating stations and power grids, as well as develop projects in roads, water, and municipal services.

To provide the necessary funding, Damascus is intensifying its discussions with financial institutions such as the International Monetary Fund, the World Bank, and regional development funds, with the aim of attracting concessional financing and technical support that will promote reconstruction and ease economic pressures, hoping that these institutions will play a pivotal role in financing major projects in the coming years.

Iran's War Raises Demand for Funding

At the regional level, Khalifa predicted an increase in demand from Arab countries for development financing during the next phase, in light of the repercussions of Iran's war on energy and food markets and the cost of borrowing, which puts additional pressure on the economies of the region, especially importing countries.

He pointed out that the IMF takes these variables into account in its financing plans, in accordance with the directions of member countries, led by Saudi Arabia, with the possibility of increasing recourse to debt markets to meet the needs of Arab countries.

The fund is implementing pre-prepared financing plans worth $5 billion during 2026, of which it has already issued $1.2 billion at the beginning of the year, which has received a significant turnout of more than 14 times, according to Khalifa.

OPEC Fund Projects in the Arab Region

Regarding projects in the rest of the Arab countries, Khalifa said that the OPEC Fund will sign a new loan with Jordan today worth $150 million to support economic reforms, pointing out that it is the third loan granted to the Kingdom during the last 3 years, as part of cooperation in government projects and others with the private sector.

In Lebanon, Khalifa pointed to continued coordination with the International Monetary Fund, the World Bank and other funders to assess the security situation in the country and the possibility of supporting development programmes in addition to previous existing projects, in addition to aid provided in the form of donations.

In Oman, Khalifa said, it is currently one of the largest beneficiaries of the Fund's programs, as it has collaborated on government projects in infrastructure and energy, and with the private sector in the manufacture of solar panels. He revealed that discussions are currently underway for further cooperation.

In Morocco, Khalifa said he and the finance minister signed a three-year bilateral partnership framework that focuses on water, agriculture and electricity projects.

In Egypt, Khalifa said the fund continues to operate through the private sector, especially in renewable and clean energy projects, but does not have new government programs that have been agreed upon so far.