Deal Signed in Damascus
An agreement to launch the first syndicated bank loan structured under Islamic finance was signed at the Ministry of Finance in Damascus on 16 September 2026. The facility is meant to help fund a group of urban projects in the capital.
The arrangement is described as the first of its kind since the political transition, pooling money from more than one lender under a single, Sharia-compliant structure rather than a conventional interest-bearing loan.
Projects to Be Funded
The financing is earmarked for the Al-Mujtahid tunnel project and the Bab Musalla area, and for completing the Qasioun Journey project in Damascus. All three are urban works inside the capital rather than nationwide programs.
No loan amount, list of participating banks, or repayment terms was disclosed at the signing, leaving the size of the commitment unclear for now.
Officials at the Signing
The event was attended by the Minister of Finance, Muhammad Yasir Birnia, the Governor of Damascus, Maher Marwan, and the Governor of the Central Bank of Syria, Muhammad Safwat Raslan.
The central bank governor's presence points to institutional backing for the arrangement, alongside the finance ministry and the Damascus governorate.
Why It Matters
Syndicated lending splits one large loan among several banks, letting them share the risk of financing projects too big for any single lender to carry alone. Casting the deal in an Islamic-finance format keeps it aligned with rules that bar conventional interest.
The move signals an effort to mobilize domestic bank capital for public infrastructure, at a time when the Syrian pound (SYP) has held broadly steady against the US dollar (USD) in recent trading. Domestic syndicated deals can also reduce reliance on outside borrowing for construction work.