On August 24, the US completed the process of removing Syria from its list of state sponsors of terrorism, following President Donald Trump's announcement on July 8 of his intention to revoke the designation and the conclusion of a 45-day period for congressional review. This is seen as the last major barrier to Syria's reintegration into the global financial system.
Syria was placed on the list by the US in 1979 under President Hafez al-Assad, amid allegations of supporting Palestinian armed groups. Bilateral relations deteriorated further after the US withdrew its embassy from Damascus in 2012, a year after the uprising against Assad's government erupted, leading to a nearly 14-year civil war.
When the Assad government collapsed in December 2024, the new administration composed of former rebel factions prioritized the lifting of sanctions to reintegrate regionally and internationally. President Ahmed al-Sharaa and the group he leads, Hayat Tahrir al-Sham, which had been on US sanctions lists, were also removed earlier.
Analysts say the move reduces legal risks for banks dealing with Syria and allows the US to provide direct aid and open funding channels for reconstruction. Vittorio Maresca di Serracapriola, a sanctions analyst at consultancy Karam Shaar Advisory, emphasized: “The momentum is huge for this announcement, and it was the last major barrier for banks to reconnect with the global community.”
The Central Bank of Syria in March reactivated its accounts at the US Federal Reserve in New York, and the World Bank recently approved $100 million in aid to modernize Syria’s financial sector. However, experts warn that lifting sanctions is not an “instant cure,” as nearly 90% of Syria's population lives below the poverty line.
Obai Kurd Ali, a Syria expert at the Tahrir Institute for Middle East Policy, said the transitional government should seize the opportunity to improve governance, transparency, combat corruption, and reform the judiciary to regain investor trust. Meanwhile, the impact on people's daily lives will be gradual, potentially reducing production and transportation costs if the government manages the transition well.
