"After years of conflict, Syria is on the path to recovery and development," the bank said in a statement, adding that its first project with the new Syrian government will focus on improving electricity services.
"We are pleased that the clearance of Syria's arrears allows the World Bank to return to work there and meet the development needs of the Syrian people," a World Bank spokesperson said in a statement.
He added that the Washington-based foundation's programs will contribute "to the stability of the country and the region. There is a need to create an environment that allows the private sector to invest, create jobs, and grow, to secure a better future for the Syrian people."
The World Bank's announcement comes at the conclusion of US President Donald Trump's Gulf tour, during which he announced the lifting of US sanctions on Syria.
Trump also met with Syrian President Ahmad al-Sharaa on Wednesday, a meeting he described as going "very well."
Donald Trump surprised everyone on Tuesday by announcing that he would "order the lifting of sanctions" to give Syria "a chance."
The country has been subject to international sanctions since 1979, which were tightened after Bashar al-Assad's suppression of pro-democracy demonstrations in 2011.
Al-Sharaa described the decision as "historic and courageous, alleviating the suffering of the people, contributing to their renaissance, and laying the foundations for stability in the region."
The Syrian Foreign Ministry welcomed the "critical turning point" on Tuesday, particularly as the European Union, the United Kingdom, and Canada eased their sanctions on Syria.
The war in Syria, which began in 2011, has left more than 500,000 dead and millions displaced, and has contributed to the country's division into zones of influence.
