The Ministry of Finance has formed an expert committee to study development financing needs and identify financing pathways for priority projects in Syria over the next five years.
The Ministry clarified via its Telegram channel on Monday that Finance Minister Yasser Barnea held a meeting with the committee, discussing financing opportunities from the state’s general budget within the recently adopted medium-term budget framework, as well as financing through the issuance of sukuk, sovereign bonds, and project bonds as one of the financing sources.
External financing and investment partnerships
The meeting also discussed opportunities to obtain grants and concessional development loans. Minister Barnea emphasized the necessity of studying various entities that can provide concessional financing, including development funds and regional and international financial institutions, and stressed the need for coordination and integration with the International Cooperation Administration at the Ministry of Foreign Affairs and Expatriates in this regard.
The meeting addressed the role of public-private partnerships (PPP) and private equity funds as other financing sources, and discussed ways to enable the private sector to contribute to project financing and facilitate its access to financing from global banks and investment institutions, along with mechanisms for obtaining appropriate financing.
A financing strategy with sustainability controls
The meeting touched upon the Syrian Trust for Development and Reconstruction (START) as one of the potential financing sources, alongside discussing available financing needs and the possibility of benefiting from various other sources. Minister Barnea emphasized the necessity of adhering to international standards and sustainability in financing mechanisms, and working on finalizing a clear medium-term financing strategy based on a list of priority projects, in coordination with other ministries and authorities, with the appropriate financing source identified for each project.
Minister Barnea stressed the importance of precisely determining financing needs and proposing financing sources for various projects, ensuring that resources are directed toward recovery priorities. He emphasized adherence to specified indicators, most importantly controlling the fiscal deficit and public debt, thereby balancing the provision of development financing needs with maintaining low levels of fiscal deficit and public debt. He confirmed that available financing is directly linked to an improved investment climate and the availability of a favorable and attractive environment.
Work methodology and development agreements
For their part, committee members presented their views and proposals regarding the work methodology, contributing to reaching a clear and integrated framework to secure financing for priority projects. The Ministry of Finance signed six concessional development loan agreements with the Saudi Fund for Development on November 4, with a total value exceeding $403 million, to support various service and development sectors in Syria. This took place on the sidelines of President Ahmed al-Sharaa’s visit to the Kingdom of Saudi Arabia, attended by Saudi Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud.
Source: Syrian Arab News Agency (SANA)
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