What's next for Syria's economy as US removes nation from state terror list? - analysis

Removing Syria from the United States’ State Sponsors of Terrorism list opens a new chapter for the country’s economy, but it does not mean money will arrive overnight. The designation had shaped Syria’s dealings with the international financial and commercial system since 1979.

Washington announced the change on Aug. 24 as part of a broader effort to ease restrictions after the fall of Syria’s former government. In the same announcement, the United States removed Hay’at Tahrir al-Sham, the group led by President Ahmed al-Sharaa before he took office, from its list of Specially Designated Global Terrorist organizations.

The change follows other moves. The United States ended its comprehensive Syria sanctions program in 2025 and repealed the Caesar Act in December that year. The latest decision therefore does not lift every remaining restriction. Its importance lies in removing a legal and political designation that affected foreign assistance, certain export controls, financial transactions and Washington’s position on financing through international financial institutions.

For Syrians and prospective investors, the practical questions now concern banks and transfers. The designation’s removal will need to translate into financial institutions willing to deal with Syria, easier movement of money, foreign investment and financing for reconstruction. Syria’s removal from the list ends a status that began on Dec. 29, 1979, but the economic consequences depend on whether commercial and financial relationships actually reopen.