Saudi Arabia and Syria Sign Defence Pact and $403 Million Loan Agreement

Syrian President Ahmed al-Sharaa and Saudi Crown Prince Mohammed bin Salman oversaw the signing of a bilateral defence cooperation pact and $403 million in concessional loan agreements in Riyadh on Wednesday. The accord was concluded during al-Sharaa's second visit to the Saudi capital in less than a month, following an earlier bilateral summit on October 6.

The financial package, administered by the Saudi Fund for Development in coordination with Syria's Finance Ministry, targets infrastructure rehabilitation and essential municipal services. The loan program allocates $100 million to reconstruct damaged healthcare facilities, $90 million for the thermal power station in Aleppo, and $60 million for housing repairs. Additional funding includes $105 million intended for civil defence capabilities and $30 million to upgrade drinking water systems serving Damascus and Idlib.

While Syria's Foreign Ministry described the security pact as the primary outcome of the talks, official sources did not publicise the specific terms of the defence agreement. Syrian Foreign Minister Asaad al-Shaibani stated at the Manama Dialogue in Bahrain that government officials are evaluating potential accession to the Mecca alliance, a mutual defence arrangement comprising Saudi Arabia, Turkiye, and Pakistan. According to Syrian political researcher Ahmed Qassem, entry into the alliance could provide Syria with a deterrence force against external security threats and territorial encroachments.

The discussions in Riyadh also covered regional maritime security and energy supply stability, with specific focus on the Red Sea, the Bab al-Mandeb strait, and the Strait of Hormuz. Both leaders called for an immediate halt to actions targeting international shipping lines in these corridors. Saudi Arabia has separately sought support from international partners, including the United States, amidst ongoing hostilities involving Houthi forces in Yemen.

Saudi Arabia has served as a key financial backer of the Syrian government since al-Sharaa took office following the overthrow of Bashar al-Assad in December 2024. Beside the military and loan agreements, representatives from both states signed memorandums of understanding covering industrial cooperation, environmental protection, and agricultural sector development. The newly signed loan agreements establish the operational framework for planned municipal restoration projects across Syria.

Written by Freya Stensrud freya.stensrud@alpineweekly.com