World Bank Approves $100 Million Grant to Modernise Syria’s Financial Sector

The World Bank approved a US$100 million grant on 7 August 2026 to help modernise Syria’s financial sector, which it describes as underdeveloped, largely cash-based and cut off from international banking channels after 14 years of conflict. The grant, funded through the International Development Association, will support the Central Bank of Syria and the wider banking system as the country works to rebuild its economy.

“A modern financial system is essential for Syria’s economic recovery and future development,” said Dahlia Khalifa, the World Bank’s Director for the Middle East Department, according to the Bank’s announcement.

What the grant covers

The funding is directed at modernising payment and financial market infrastructure, strengthening the Central Bank of Syria’s operational capacity, and rehabilitating banking supervision. It also funds cybersecurity and technology upgrades, independent Asset Quality Reviews of public and private banks, and efforts to strengthen financial integrity and anti-money-laundering capability.

Targets for financial inclusion

According to the World Bank, the programme aims to enable at least 15 million electronic retail payments a year and to bring more than 500,000 people and businesses, including some 150,000 women, into digital payment systems. Completing Asset Quality Reviews across the banking system is intended to give a clearer, independently verified picture of banks’ financial health before further reforms proceed.

Why It Matters

A functioning banking system underpins almost every other part of economic recovery, from paying salaries and suppliers to attracting investment and trade finance. For ordinary Syrians and small businesses currently reliant on cash, the shift towards digital payments and a supervised banking sector could widen access to credit and formal financial services that have been largely unavailable for over a decade. International lenders have signalled they see financial-sector reform as a precondition for larger reconstruction financing, meaning progress on this grant could help unlock further support for rebuilding Syria’s wider economy in the years ahead.