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Saudi Fund to Speed Syria Recovery with Up to $1.5 Bln Financing

Delegation from the Saudi Fund for Development meets Syrian Finance Minister Mohammed Yisr Barnieh (Syrian Finance Ministry)
Delegation from the Saudi Fund for Development meets Syrian Finance Minister Mohammed Yisr Barnieh (Syrian Finance Ministry)
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Saudi Fund to Speed Syria Recovery with Up to $1.5 Bln Financing

Delegation from the Saudi Fund for Development meets Syrian Finance Minister Mohammed Yisr Barnieh (Syrian Finance Ministry)
Delegation from the Saudi Fund for Development meets Syrian Finance Minister Mohammed Yisr Barnieh (Syrian Finance Ministry)

A delegation from the Saudi Fund for Development, headed by its chief executive Sultan bin Abdulrahman Al-Marshad, discussed proposed priority projects in Syria’s electricity and water sectors with Syrian Energy Minister Mohammed al-Bashir and other ministry officials.

Four projects worth $250 million were presented, part of a broader list of projects across various sectors to be financed by the fund in phases, with total funding potentially reaching $1.5 billion.

Al-Marshad told Asharq Al-Awsat that development agreements to finance priority projects in vital sectors would be signed with the Syrian government “soon.”

The talks are part of a three-day visit to Syria that began on Tuesday, during which the delegation is holding meetings with several ministers and heads of public bodies to discuss priority development projects and the fund’s contribution to economic and social development in Syria, as well as support for stability.

The delegation began its meetings on Wednesday with a visit to the headquarters of the Energy Ministry in Damascus. According to a ministry statement, discussions focused on priority projects proposed in the electricity and water sectors, as part of coordination to identify areas that could be supported in the next phase.

The delegation later held an expanded meeting with Energy Ministry aides, including Ibrahim al-Adhan, for planning and institutional excellence, and with Osama Abu Zeid for water resources, attended by officials from the electricity, water, and sanitation sectors.

During the meeting, a package of service and development projects was reviewed to determine the ministry’s priorities ahead of moving to subsequent coordination and implementation stages.

The proposed projects include maintenance of the Aleppo thermal power plant to restore it to full production capacity, the supply and installation of prepaid smart water meters for institutions across all provinces, a project to convey Euphrates water from Deir el-Zor in eastern Syria to the Tadmor and Hasiya areas in Homs province, and an irrigation project for the plains of al-Bab and Tadef in northern Aleppo countryside, aimed at improving water resources and supporting the agricultural sector.

The ministry stated that the visit is part of efforts to define its requirements, noting that a subsequent meeting will be held with the Ministry of Finance to finalize coordination and select the priority projects to be supported.

In a separate statement to Asharq Al-Awsat, Al-Marshad said the visit aims to explore opportunities for development cooperation between the Saudi Fund for Development and Syria across various sectors. He said discussions are focused on financing priority projects and supporting economic and social development in Syria.

Al-Marshad said development agreements with the Syrian government to finance priority projects in vital sectors would be signed in the near future.

For his part, Energy Ministry aide for water resources Osama Abu Zeid told Asharq Al-Awsat that the proposed projects are “important and urgent to achieve early recovery and improve services for the Syrian people.”

He stated that the rehabilitation of the al-Bab and Tadef irrigation project would irrigate more than 6,600 hectares, while rehabilitating the Aleppo thermal power plant would increase electricity generation capacity by up to 600 kilowatts.

He said the rehabilitation of water stations in villages and towns destroyed during the war includes restoring 157 stations, while the supply of prepaid smart water meters would help rationalize consumption and improve water services.

Abu Zeid stated that the total value of the projects amounts to $250 million, noting that there has been positive engagement from the Saudi Fund for Development, and that funding is expected to be approved soon after the administrative procedures are completed.

The Saudi Fund for Development delegation, led by Al-Marshad, also met Syrian Finance Minister Mohammed Yisr Barnieh on Tuesday to discuss the provision of concessional financing with a high grant component to support government projects in vital sectors.

In a post on LinkedIn, Barnieh expressed hope that an agreement would be reached by the end of the visit on a list of projects to be financed in phases, with a total value potentially reaching $1.5 billion.

According to Barnieh, the projects primarily focus on the health and education sectors through the rehabilitation and equipping of hospitals and schools, as well as projects in the energy and water sectors, including electricity substations and water treatment facilities, alongside housing, disaster management, and telecommunications projects.

The projects also include financing support for a large number of micro, small, and medium-sized enterprises, helping to create productive job opportunities in several development areas.

Barnieh said he presented an initial overview outlining needs and proposed projects, prepared in cooperation with several ministries, governorates, authorities, and institutions, within the framework of a workshop organized by the Finance Ministry earlier this week in support of the “Syria Without Camps” initiative.

The Saudi Fund for Development delegation also met with Health Minister Musaab al-Ali to discuss financing and support for vital health projects within the ministry’s 2026-2028 plan, as well as with Education Minister Mohammed Abdulrahman Turko to discuss enhancing cooperation in education and improving the educational process in Syria.

The fund stated on Tuesday that the visit highlights the importance of development cooperation between the two sides in supporting the sustainable development goals and development initiatives in Syria.

Since its establishment in 1974, the fund has contributed to development projects in over 100 developing countries, financing more than 800 projects and programs worth over $22 billion.

Saudi Arabia has continued to provide extensive support to Syria across multiple sectors following the ouster of former president Bashar al-Assad on Dec. 8, 2024.

Mohammed Hamza, head of the Syrian General Authority for Exhibitions and International Markets, said during his participation as guest of honor at the “Made in Saudi Arabia” exhibition held from Dec. 15 to 17 that Saudi investments in Syria exceeded $6.6 billion in 2025 across various sectors.

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Business

South Korea to Send First Container Ship Through Arctic Route

The container ship "Panstar Acro" is anchored to load containers at Busan New Port in Busan on August 22, 2026, as the vessel is scheduled to sail to Europe via the Arctic to test the commercial viability of the shipping route opened by melting ice. (AFP)
The container ship "Panstar Acro" is anchored to load containers at Busan New Port in Busan on August 22, 2026, as the vessel is scheduled to sail to Europe via the Arctic to test the commercial viability of the shipping route opened by melting ice. (AFP)
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South Korea to Send First Container Ship Through Arctic Route

The container ship "Panstar Acro" is anchored to load containers at Busan New Port in Busan on August 22, 2026, as the vessel is scheduled to sail to Europe via the Arctic to test the commercial viability of the shipping route opened by melting ice. (AFP)
The container ship "Panstar Acro" is anchored to load containers at Busan New Port in Busan on August 22, 2026, as the vessel is scheduled to sail to Europe via the Arctic to test the commercial viability of the shipping route opened by melting ice. (AFP)

South Korea was set Saturday to send its first trial container through the Arctic, as the Middle East war rattles global shipping, while environmental groups warned the route could accelerate polar ice melt.

The Middle East conflict, sparked by US-Israeli strikes on Iran in February, has roiled global shipping, sending governments and shipping firms scrambling to seek alternative routes.

Sailing from Busan New Port, the container ship -- the "PanStar Acro" -- will sail to Europe via the Arctic, testing whether a route opened by melting sea ice can be commercially viable.

"The ship will depart at 8 pm (1100 GMT) today unless there are unforeseen circumstances, such as bad weather," an oceans ministry official told AFP on Saturday.

The ship will leave for Felixstowe in Britain, Rotterdam in the Netherlands and Gdansk in Poland before returning, with the voyage expected to take about 45 days, according to the ministry.

The voyage follows that of the Chinese container ship "Dubai Tower", which left the eastern port city of Ningbo for Europe this month, heading north through the Bering Strait before turning west along Russia's Arctic coast.

The usual maritime route between Asia and Europe runs through the Suez Canal, but travelling through the Arctic can cut the journey by around 7,000 kilometers (4,300 miles) and about 10 days, according to the Korea Institute for International Economic Policy.

South Korea's Vice Oceans Minister Nam Jae-hon said the Arctic route was "bound to become an alternative" to Middle Eastern shipping lanes -- as geopolitical risks and technological advances make it increasingly competitive.

Marc Lanteigne, a political science professor at the Arctic University of Norway, said the voyage -- coming soon after China's "Dubai Tower" began its own Arctic journey -- showed the Northern Sea Route (NSR) was becoming normalized as a "secondary maritime transit corridor".

A successful voyage would demonstrate South Korea's interest in "developing alternative shipping sea lanes", he told AFP, with concerns that it could fall behind as Chinese firms expand regular services through the increasingly viable Arctic route.

- Russia issue -

Some experts warn South Korean ships using the Arctic route could risk breaching Western sanctions on Russia -- currently a key security ally of North Korea -- as they would receive Russian navigation and weather services involving payments, albeit small ones.

South Korea's foreign ministry declined to comment when asked by AFP about the concerns involving Russia.

The oceans ministry said this week that "consultations with key relevant countries and agencies" have been completed to "implement administrative procedures necessary" for the voyage.

Vladimir Tikhonov, Korean Studies professor at the University of Oslo, said "strictly speaking, US and EU sanctions are not international law, unlike UN sanctions".

"And with continued uncertainty in the Middle East - itself driven in part by US actions - South Korea may have few alternatives if the Arctic route proves economically viable," he told AFP.

Lanteigne said China's Northern Sea Route ambitions were more politically driven than South Korea's, with Beijing viewing the polar regions as "strategic new frontiers", raising Western security concerns.

Meanwhile, environmental groups warned growing traffic along the shorter NSR could accelerate Arctic sea ice loss already driven by global warming.

Major carriers including CMA CGM, MSC and Hapag-Lloyd have pledged to avoid Arctic shipping routes.

The NSR is believed to be accessible only during the time of year when the ice is melted enough to allow transits without icebreakers.

"The Northern Sea Route has become increasingly viable as the Arctic warms about four times faster than the global average, leading to a sharp decline in sea ice," South Korean environmental group Paran Ocean Citizen Science Center said in a statement last year.

"But making the route commercially viable would require further warming, putting the policy at odds with efforts to combat climate change."

Business

World Bank Projects Lebanon Economy to Contract by 6.4% Due to War

People inspect a damaged building after an Israeli airstrike on the village of Ansar, southern Lebanon, 15 August 2026. (EPA)
People inspect a damaged building after an Israeli airstrike on the village of Ansar, southern Lebanon, 15 August 2026. (EPA)
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World Bank Projects Lebanon Economy to Contract by 6.4% Due to War

People inspect a damaged building after an Israeli airstrike on the village of Ansar, southern Lebanon, 15 August 2026. (EPA)
People inspect a damaged building after an Israeli airstrike on the village of Ansar, southern Lebanon, 15 August 2026. (EPA)

The World Bank on Friday projected that Lebanon's economy would contract by 6.4 percent this year, as the latest Israel-Hezbollah war derailed the country's efforts at recovery.

Lebanon has been dealing with an unprecedented financial crisis since 2019 and was still reeling from the 2024 Israel-Hezbollah war when the Iran-backed group drew it into the Middle East conflict by attacking Israel in March.

Israel responded with a heavy air campaign and ground invasion that Lebanese authorities say have killed more than 4,300 people.

Due to the war, "real GDP is projected to contract by 6.4 percent in 2026, reflecting the collapse in tourism, weaker consumption, disrupted supply chains, heightened insecurity, and prolonged displacement," the World Bank said in a report.

Inflation is also expected to rise to 17.5 percent this year, according to the report.

The World Bank said Lebanon's economy had strengthened before the latest conflict, with an estimated real GDP growth of 4.2 percent in 2025, "the fastest since the onset of the 2019 financial crisis".

"Advancing reforms -- particularly on banking sector restructuring and fiscal management -- will be critical to restoring confidence, protecting stability, and mobilizing the financing needed for reconstruction and recovery," Dahlia Khalifa, the World Bank's Middle East director, said.

The international community has been demanding that Lebanese authorities enact financial reforms in order to secure much-needed economic aid.

Last week, parliament passed amendments to a bank resolution law aimed at restructuring troubled banks and addressing the country's banking crisis.

The International Monetary Fund welcomed the law, describing it as "a very good step that reflects Lebanon's commitment to aligning its legislation with the best international practices".

Lebanon has been in discussions with the IMF, which said it would resume its meetings in Beirut next month.

Business

Tunisia Olive Oil Exports Surge 55%, Bringing in $1.6 billion

Tunisian olive oil producer, Mustapha Mtiraoui, displays olives to be pressed at his oil mill in Kairouan, Tunisia February 24, 2024. REUTERS/Jihed Abidellaoui
Tunisian olive oil producer, Mustapha Mtiraoui, displays olives to be pressed at his oil mill in Kairouan, Tunisia February 24, 2024. REUTERS/Jihed Abidellaoui
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Tunisia Olive Oil Exports Surge 55%, Bringing in $1.6 billion

Tunisian olive oil producer, Mustapha Mtiraoui, displays olives to be pressed at his oil mill in Kairouan, Tunisia February 24, 2024. REUTERS/Jihed Abidellaoui
Tunisian olive oil producer, Mustapha Mtiraoui, displays olives to be pressed at his oil mill in Kairouan, Tunisia February 24, 2024. REUTERS/Jihed Abidellaoui

Tunisia's olive oil exports surged 55.3% to a record 368,000 metric tons in the first nine months of the 2025/26 season, bringing in $1.6 billion in export revenue, up 44.4% from a year earlier, official data showed on Friday.

The surge in olive oil shipments, a vital source of foreign currency and Tunisia's top agricultural export, will provide a much-needed boost to the country's finances as the government grapples with persistent economic and fiscal pressure.

The jump in exports was driven by strong global demand during the first nine months of the season, which began in November.

Extra virgin olive oil accounted for 83.6% of total shipments, the National Observatory of Agriculture said, Reuters reported.

The European Union remained the biggest destination, taking 57.1% of Tunisian olive oil exports, while North America accounted for 24%. More than 70 countries imported Tunisian oil during the period.

Exports to other markets included Saudi Arabia, which took 4.6%, Jordan with 3.1% and African markets at 3.8%, with Egypt accounting for 3.3%.

Bottled olive oil exports rose 50.8% to 51,500 tons, but bulk oil still accounted for the vast majority of shipments, underscoring Tunisia's challenge in capturing more value from one of its most important export products.