Damascus, Syria – The prolonged rule of the al-Assad family and a decade-long civil war have left deep scars on Syria, compounded by decades of international sanctions that isolated its economy. These sanctions, led by the United States, effectively froze Syria’s integration into the global economic system.
Following the defeat of Bashar al-Assad by rebel groups in December 2024, many sanctions, including the “state sponsor of terrorism” designation, remain in place. This designation has hindered Syria’s reintegration, complicating financial transfers and limiting access to digital services like Netflix and Slack, which often require virtual private networks to access.
However, U.S. President Donald Trump’s recent announcement removing Syria from the terrorism list has sparked cautious optimism. While the lifting of certain sanctions, such as those under the Caesar Act, has not yet transformed the economy, the potential removal of terrorism-related restrictions is seen as a critical step toward reopening avenues for foreign investment.
“God willing, it will improve things,” said Ihab, a pastry shop owner in central Damascus, highlighting the cautious hope among citizens.
Reintegration
U.S. sanctions have long been a barrier to foreign investment during and after Bashar al-Assad’s rule. The World Bank notes that sanctions since 2011 led to a collapse in exports and a soaring trade deficit. Interim President Ahmed al-Sharaa, formerly linked to the al-Qaeda-aligned Nusra Front, views the removal of international sanctions as essential to revitalizing the economy.
Al-Sharaa, who renounced al-Qaeda ties in 2016 and pledged cooperation against ISIL, has successfully gained support from the U.S. and EU to remove many sanctions. The remaining terrorism-related designation is widely seen as a key obstacle to economic recovery.
The first U.S. sanctions on Syria date back to 1979 under Hafez al-Assad, expanding under Bashar due to alleged support for Palestinian groups, torture, and chemical weapons use. Rebel groups, too, faced sanctions for extremist ties.
“This is the last major impediment to Syria’s reintegration into the international order,” said Rob Geist Pinfold, a security studies lecturer at King’s College London, emphasizing the symbolic and practical significance of the designation’s removal.
Persistent Challenges
Yet experts caution that removing the designation alone won’t trigger immediate investment. Concerns remain over government stability, remnants of the Assad regime, and bureaucratic corruption. Some Syrians are skeptical. A minimarket owner in Damascus noted, “This needs a long breath. You can’t expect change overnight,” citing ongoing issues like fuel shortages.
Others, like Zaher, a juice stall owner, acknowledge gradual improvements. “Electricity is getting better, but nothing changes after one day,” he said, likening progress to Earth’s creation. “These things take time.”