During a visit to , US President on Tuesday announced plans to on , marking a major policy shift by Washington after 14 years of civil war.
The country has been isolated by and sanctions over the conflict, a 1979 designation as a state sponsor of terrorism and close ties between Damascus and .
These curbs blocked exports, froze assets and restricted access to global payment systems, which further decimated an economy wracked by war. The sanctions also exacerbated humanitarian crises that the UN estimates pushed 90% of Syrians below the poverty line.
Trump agreed to lift the sanctions despite reported opposition from on national security grounds, citing concerns over Syria’s past ties to Iran and Hezbollah.
What did Trump announce?
Trump said Syria has a new government “that will hopefully succeed in stabilizing the country and keeping peace.” Therefore, he would be “ordering the cessation of sanctions against Syria in order to give them a chance at greatness.”
Speaking during a three-day visit to Gulf Arab states, the president said it was the war-ravaged country’s “time to shine,” before calling on the new leadership in Damascus to “show us something very special.”
Trump said the decision followed talks with Saudi Crown Prince Mohammed bin Salman (MBS) and Turkish President Tayyip Erdogan.
Both leaders have been pivotal in pushing for change since the fall of dictator regime late last year, which saw Ahmad al-Sharaa, leader of rival group (HTS), step in to lead an interim government.
Trump said the sanctions had served their purpose, but it was time for the country to move forward.
On hearing the news, ordinary Syrians cheered in the streets of several cities and let off fireworks on Tuesday night to celebrate.
US lawmakers on both sides of Congress also gave their backing to the sanctions relief, along with the .
Trump’s decision was also welcomed by Sharaa, who was for years the leader of al Qaeda’s official wing in the Syrian conflict and who the US president on Wednesday.
Since he seized power in December, Sharaa has struggled to bring all of the country under his control, due to ongoing .
How will lifting the sanctions help?
Along with Iran, North Korea and Cuba, Syria is one of the most economically restricted countries. The new leadership faces the daunting task of rebuilding the country, large parts of which have been left in ruins from the war.
Devastated infrastructure, including roads, hospitals, and power grids, hampers the provision of basic services.
Economic recovery will require massive investment to revive industries, while the millions displaced by the conflict at home and abroad will need to be resettled.
The scale of the challenge is immense, with the United Nations Development Programme (UNDP) warning earlier this year that the Syrian economy had lost $800 billion (€712 billion) during the war.
In January, a report by the Middle East Council on Global Affairs cited a need for $400–$600 billion to fund reconstruction, while others have put the figure at close to $1 trillion.
Sanction lifting will allow aid agencies to speed up their deliveries of food, medicine and other vital supplies to those who need it most.
It will also smooth the way for wealthy neighbors Saudi Arabia, and the , to make large investments, fostering economic recovery that could stabilize the region.
Natasha Hall, a senior fellow for the Middle East at the Center for Strategic and International Studies (CSIS) in Washington D.C., said several countries had been nervous of US reaction to doing business with the new Syrian leadership and have been “clamoring” for removing the sanctions
“This will be beneficial all around. Countries like , and others will be able to trade with Syria. This could be a boon to their economies,” Hall told DW.
has expressed an interest in helping to rebuild Syria’s oil and gas sector and is likely to invest significantly, particularly in areas of northern Syria under its influence.
Before the war, , through its state-owned investment and development bank KfW, helped finance infrastructure projects and set up the Syria Recovery Trust Fund (SRTF) during the conflict.
already has a long-term deal to modernize and operate Latakia Port, Syria’s main maritime gateway, with other investments now likely.
It’s unclear whether the US and the EU will announce plans to invest. However, the (IMF) has indicated its readiness to assist Syria’s reconstruction.
The UN and World Bank are also expected to lead funding efforts for housing, health care, education, and utilities.
The Syrian diaspora’s role will also be critical, contributing significantly through remittances, funding community projects, and returning expertise, including doctors and engineers.
Anwar al-Qassem, an economic analyst at the Financial Times business daily, believes that even in the most optimistic scenario, the Syrian economy needs a miracle to recover.
“It would not be an exaggeration to say that the Syrian economy, which has lost 85% of its value, will likely need between 20 and 25 years to return to half of its pre-war level,” al-Qassem told DW.
How quickly will the sanctions be unwound?
Trump’s announcement was the easy part. US officials will now need to determine which sanctions can be lifted quickly and which ones may be subject to conditions placed on Syria’s new leadership.
Hall from CSIS noted that “multiple layers of sanctions” were imposed on the Assad regime as well as “terrorism designations” and predicted that not all of them would be lifted immediately.
“It will take time,” she told DW, adding that “the devil will be in the details.”
Ziad Ayoub Arabash, a Syrian academic, consultant, and professor at the Faculty of Economics at Damascus University, believes the US Treasury Department would now decide the scope of the suspension.
He told DW that it’s unclear whether sanctions relief will be limited to specific sectors and the work of aid groups, or whether it will include lifting financial curbs to enable the Syrian Central Bank to work again with international banks.
Arabash said Syria’s chances would be further helped if the EU quickly lifted its sanctions. At the same time, he warned that corruption and weak government institutions would now be the biggest challenges to the reconstruction effort.
A study by the Tripoli, Syria-based Jusoor Center for Studies and Development predicted that Syria’s economy would rebound significantly without sanctions, predicting a revitalization of the oil and gas, raw materials, communications, and technology sectors.
Edited by: Uwe Hessler
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