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🇶🇦 Qatar /Economy & Trade

Syria’s economy poised for improvement after US sanctions removal

From Al Jazeera · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • The US has removed Syria from its list of state sponsors of terrorism, a move analysts say will boost the country's economy.
  • This designation, in place since 1979, had imposed significant financial and trade restrictions.
  • Syria's economy remains weak after a prolonged conflict, with most of the population living in poverty.

Syria's removal from the US list of state sponsors of terrorism marks a significant step toward its reintegration into the global financial system, according to analysts. The US formally delisted Syria on Monday after a congressional review period passed without objection. This action lifts one of the final major hurdles to international financial and trade engagement, despite many restrictions already having been eased.

The "terrorism" designation, first imposed in 1979, had contributed to severe hesitations among banks and investors, leading to overcompliance with sanctions. Its removal is expected to provide a much-needed economic boost to a country still recovering from a nearly 14-year war. "The momentum is great for this announcement, and it was the last main barrier to banks reconnecting [with the global community]," said Vittorio Maresca di Serracapriola, sanctions lead analyst for Karam Shaar Advisory.

Syria was initially placed on the list for supporting Palestinian armed groups. Relations soured further after the 2003 US invasion of Iraq and escalated with the Syrian uprising in 2011, which led to a brutal crackdown and a devastating war. The country faced increasing isolation as international sanctions mounted on the regime. Following the collapse of the al-Assad regime in December 2024 and the establishment of a new government, reintegration into the international community became a priority.

Despite these developments, Syria's economy remains fragile, with nearly 90 percent of its population living below the poverty line. The delisting is a crucial development, but the path to economic recovery is expected to be long and challenging given the lingering effects of conflict and sanctions. The delisting of Syrian President Ahmed al-Sharaa and Hayat Tahrir al-Sham also signifies a shift in US policy towards the region.

The momentum is great for this announcement, and it was the last main barrier to banks reconnecting [with the global community].

— Vittorio Maresca di SerracapriolaVittorio Maresca di Serracapriola, sanctions lead analyst for Karam Shaar Advisory, commented on the significance of Syria's removal from the US terrorism list.
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Originally published by Al Jazeera. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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