On September 11, 2025, Saudi Arabia made a headline-grabbing move by granting Syria 1.65 million barrels of crude oil—a lifeline for a nation battered by nearly 14 years of civil war and economic isolation. The deal, formalized through a memorandum of understanding signed in Damascus by Sultan Al-Marshad, CEO of the Saudi Fund for Development, and Syria’s Minister of Energy Mohammad Al Bashir, marks a turning point in both countries’ relations and Syria’s struggle to rebuild its shattered economy.
According to the Saudi Press Agency, the grant is designed to "enhance the operations of Syrian refineries" and reflects Saudi Arabia’s "continued efforts to improve the living conditions of the brotherly Syrian people." The agreement was made under the directives of King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman, signaling high-level commitment from Riyadh to support Syria’s post-war recovery. The signing ceremony in Damascus drew top officials from both countries, including the Saudi ambassador to Syria, Faisal Al-Majfel.
For Syria, once a net oil exporter producing around 380,000 barrels a day before the war, the grant comes as a much-needed boost. Years of conflict, which erupted in 2011, devastated the country’s infrastructure, crippled refinery operations, and led to severe international sanctions. The war claimed the lives of nearly half a million people and displaced half of Syria’s prewar population of 23 million, as reported by the Associated Press. The fall of former President Bashar Assad in December 2024, following a lightning rebel offensive, ended the conflict but left the country in ruins.
Saudi Arabia’s oil grant isn’t just about fuel—it’s a strategic gesture aimed at revitalizing Syria’s critical energy sector and, by extension, its entire economy. The grant’s stated goals include supporting economic development, addressing persistent economic challenges, fostering the growth of vital sectors, and contributing to the United Nations Sustainable Development Goals for the region. As Economy Middle East notes, the grant is part of a broader Saudi strategy to help Syria achieve both operational and financial sustainability in its energy sector, a vital step for any meaningful recovery.
The timing of the grant is significant. Earlier in September 2025, Syrian officials confirmed the nation’s first official crude oil export in 14 years: 600,000 barrels of heavy crude shipped from the coastal city of Tartous under a deal with B Serve Energy, affiliated with global trader BB Energy. This milestone signaled Syria’s tentative return to the global energy market, even as electricity shortages remain a daily reality for millions—many still receive only a few hours of power each day.
Saudi Arabia’s engagement with Syria goes far beyond crude oil. Riyadh has taken a leading role in reintegrating Syria into the Arab political and economic fold after years of near-total isolation. In 2024, Saudi Arabia reopened its embassy in Damascus, paving the way for renewed diplomatic and economic ties. Alongside Qatar, Saudi Arabia helped settle Syria’s $15.5 million debt to the World Bank in May 2025, unlocking access to critical reconstruction grants. These moves have made it possible for investors to return to Syria, particularly in the energy and infrastructure sectors.
Investment is flowing in from all directions. In 2025, Saudi Arabia pledged approximately $2.9 billion toward Syrian infrastructure and real estate projects, part of a broader $6.4 billion investment package aimed at stimulating sustainable economic development. At the Syrian-Saudi Investment Forum, over 100 Saudi and international companies signed 47 deals covering key sectors such as energy, industry, infrastructure, financial services, health, agriculture, communications, and information technology. Dubai port operator DP World, for instance, inked an $800 million agreement to develop the port of Tartous—potentially transforming it into a regional trade hub.
Saudi Arabia and Syria have also signed agreements to boost cooperation across the energy spectrum, including oil, gas, petrochemicals, electricity, regional grid integration, and renewable energy. In July 2025, a landmark energy cooperation agreement was signed, outlining collaboration on modernizing Syria’s energy infrastructure and policies. These efforts are designed not only to rebuild what was lost but to lay the groundwork for long-term energy security and economic stability.
Humanitarian aid is another pillar of Saudi Arabia’s involvement. The Saudi charity KSRelief is currently overseeing 422 projects in Syria, focusing on health and food security with investments exceeding $500 million. These projects are critical in a country where the GDP shrank by nearly 70 percent during the war years and where economic hardship remains widespread despite the influx of foreign support.
Despite these positive developments, the road to recovery is steep. Syria’s energy infrastructure remains fragile, and the country’s oil fields in the northeast are under the control of Kurdish-led authorities, complicating efforts to restore production to pre-war levels. Western sanctions, though eased after Assad’s fall, still pose significant obstacles to trade and investment. According to Reuters, the damage wrought by war and sanctions led to a dramatic drop in oil production and exports, forcing Syria to rely on costly imports of refined products. The new Saudi grant aims to alleviate some of these immediate pressures by ensuring refineries can operate more efficiently and sustainably.
Diplomatically, Saudi Arabia’s pivot toward engagement with Syria is part of a broader regional recalibration. By supporting Syria’s reconstruction and reintegration, Riyadh is positioning itself as a key player in shaping the future of the Levant. This approach also aims to foster regional stability, economic revival, and closer ties among Arab states. The hope is that by investing in Syria’s recovery, Saudi Arabia can help transform a former conflict zone into a partner for economic growth and cooperation.
Still, for ordinary Syrians, the impact of these high-level deals is yet to be fully felt. Many continue to face daily hardships, with unreliable electricity, high unemployment, and limited access to basic services. As the Saudi Press Agency put it, the grant is intended to "improve the living conditions of the brotherly Syrian people," but the true test will be whether these initiatives translate into tangible benefits on the ground.
With the ink now dry on the oil grant and billions in new investments pledged, all eyes are on Damascus to see whether this new chapter of Saudi-Syrian cooperation can deliver on its ambitious promises. The stakes are high, and the challenges immense, but for the first time in years, there is cautious optimism that Syria’s long road to recovery may finally be underway.