Just weeks after Syria regained its seat in the Organization of Islamic Cooperation (OIC), suspended for over 13 years, the Islamic Development Bank (IsDB) has now approved the reactivation of Syria’s membership, originally granted in September 1975.
The move followed a formal request by Syria’s transitional administration, submitted by Foreign Minister Asaad Al-Shibani to the IsDB President, Mohammed Al-Jasser, on March 13.
Experts say that while Syria’s reintegration into the Islamic banking network could open doors to critical development funding, past sanctions, especially from the U.S., cast a long shadow. The bank has funnelled hundreds of millions of dollars into development projects in recent years. If sanctions weren’t in play, Syria could leverage this partnership to support its fragile recovery and reconstruction efforts.
A Sanctioned State Faces Limits
Rami Al-Qalyoubi, a professor at the Higher School of Economics in Moscow, told the +963 that rejoining the bank is largely symbolic unless the U.S. lifts its sanctions on Damascus. These sanctions target Syria’s transitional government, which Washington still does not formally recognize. One telling indicator: the U.S. has downgraded visa privileges for members of Syria’s diplomatic mission.
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Al-Qalyoubi also expressed scepticism about support from key regional players like Saudi Arabia and Qatar, both influential OIC members, due to the risk of triggering secondary sanctions. “Until U.S. sanctions are lifted,” he said, “real development or reconstruction in Syria remains off the table.”
Since 1975, the Islamic Development Bank has invested approximately $632 million in Syria, according to its official data. This includes $415.5 million in project funding, $68.5 million to support the private sector, and $111.1 million in other financial instruments. An additional $37 million supported trade financing. The Islamic Corporation for the Insurance of Investment and Export Credit also underwrote deals worth $277.5 million.
A Gradual Shift
Despite the hurdles, some observers view Syria’s return to the bank as part of a gradual thaw in international attitudes. Syrian journalist Murshid Al-Naif noted in +963 magazine seventh issue that this move could give Damascus access to vital funding in sectors like education, healthcare, and infrastructure, accelerating the country’s long road to recovery.
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He added that rejoining the bank also presents a chance for Syria to rebuild financial and diplomatic relationships with regional partners and Islamic financial institutions. “There’s a slow but clear shift in how regional powers see Syria,” he said, “from pariah to potential partner.”
During the AlUla Emerging Markets Forum in February, IsDB President Mohammed Al-Jasser emphasized the bank’s willingness to support Syria in the short and long term. “We understand there are urgent humanitarian needs that we can quickly help with,” he said, “but there are also larger infrastructure projects to consider, like electricity. We have experience linking grids in Egypt and Saudi Arabia. A similar connection with Syria could be possible.”
He added, “We’re reviewing many projects, but we’re waiting for the Syrian government to set its priorities. The bank can then step in with focused, meaningful support.”
Al-Naif emphasized that the Islamic Development Bank has the potential to play a significant role by offering targeted interventions tailored to the country’s current needs, especially in the wake of what he called “Syria’s major victory.” He pointed to the bank’s historical involvement, including a €75 million loan in 2010 to expand Damascus’s water network, as part of a longstanding record of substantial financial engagement with Syria from 1975 to 2024.
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A Strategic Opportunity
Economic researcher Tareq Al-Ali agreed, telling +963 that Syria’s reactivation in the bank is a potentially transformative step. “It can attract foreign investors, drive reconstruction projects, and introduce new banking technologies,” he said.
He believes that rejoining the IsDB could help Syria break out of international isolation and benefit from the expertise of member countries with advanced financial systems. “The potential is massive, especially if large bank deposits and support begin to flow,” he said.
But Al-Ali was quick to add a warning: “Ongoing U.S. sanctions could nullify these gains entirely. They could freeze or limit everything we’ve just talked about. We’ll start seeing that reality unfold very soon.”
