Syria’s delisting from SST clears path to recovery

The United States (U.S.) has officially removed Syria from its list of State Sponsors of Terrorism (SST), ending a designation that had remained in place since 1979 and marking one of the most consequential shifts in U.S.-Syrian relations in years. The decision follows a 45-day congressional review after President Donald Trump notified Congress of his intention to rescind the designation in July.

It represents the culmination of a broader policy of engagement with Syria’s post-Assad leadership, which has sought to rebuild diplomatic ties, restore economic activity, and reintegrate the country into the international community following the collapse of the Assad regime on 8 December 2024.

Recognition of Syria’s policy shift

In an interview with The Beiruter, Lebanese-Syrian journalist and activist Alia Mansour believed that the decision carries significance that extends well beyond U.S. foreign policy. She said the move represents both a decisive break with nearly 50 years of Assad-era isolation and one of the most important milestones for Syrians since the fall of Bashar al-Assad.

“We were born in Syria while it was on this list, and for decades we, and the world around us, knew only an Assad-led Syria that was associated with terrorism, drug trafficking, and efforts to destabilize the security of countries in the region and beyond,” she said.

According to Mansour, the delisting symbolizes Syria’s transition away from the policies of the Assad governments and toward a new national agenda centered on reconstruction, stability, and economic development. She argued that the country’s leadership has distanced itself from the Iranian axis and is seeking greater regional and international engagement, making the U.S. decision both politically symbolic and strategically important.

Since assuming power after leading the coalition that overthrew Bashar al-Assad, al-Sharaa has sought to reposition Syria diplomatically. His administration has strengthened counterterrorism cooperation with the U.S., particularly against the Islamic State (IS), while pursuing reforms intended to normalize relations with Western governments.

In this context, U.S. Secretary of State Marco Rubio explained that the decision reflects what Washington considers meaningful steps taken by President Ahmad al-Sharaa’s government to distance Syria from international terrorism.

The announcement also removed the former al-Nusra Front (ANF), later known as Hayat Tahrir al-Sham (HTS), from the list of Specially Designated Global Terrorist organizations. The group, once affiliated with al-Qaeda, formally severed ties with the global jihadist network in 2016 before evolving into the dominant force behind Syria’s transitional government following Assad’s fall.

Opening the door to investment and reconstruction

The removal from the terrorism list is expected to have economic implications.

Although the Trump administration had already lifted broad U.S. sanctions on Syria in 2025 while maintaining targeted sanctions against Assad-era officials, human rights violators, drug traffickers, terrorist organizations, and Iranian-backed groups, the terrorism designation continued to discourage international financial engagement.

Its removal allows American financial institutions greater flexibility to establish correspondent banking relationships with Syrian banks, process payments, and provide financial services, provided sanctioned entities are not involved.

Syrian officials have repeatedly described the designation as the final major obstacle preventing the country’s reintegration into the global economy.

Central Bank Governor Safwat Raslan welcomed the decision, calling it a historic moment that restores Syria to its rightful place within the international financial system. He highlighted ongoing efforts to build a modern, transparent, and reliable banking sector capable of attracting international partners.

The Syrian government hopes the policy shift will accelerate foreign direct investment (FDI) needed to rebuild infrastructure destroyed during the civil war. The World Bank has estimated Syria’s reconstruction needs at approximately $216 billion, underscoring the scale of investment required.

Likewise, Mansour asserted that this “removes one of the last major obstacles to international support and investment in Syria and opens the way for the launch of the country’s reconstruction process.”

Signs of renewed international business interest had already begun emerging before the announcement. Syria’s Finance Ministry recently held discussions with executives from Bank of America regarding potential financial cooperation and Syria’s reintegration into international banking networks. Meanwhile, Mastercard has partnered with Qatar’s QNB Group and the Syrian Central Bank to prepare the country’s infrastructure for international electronic payment systems, aiming to reconnect Syrian businesses and consumers to global financial networks.

Building on these efforts, Visa and Mastercard have now officially enabled international card payments in Syria. In a symbolic milestone, President Ahmad al-Sharaa recently used a Visa card to make a coffee purchase in Damascus. Visa processed the transaction in cooperation with the Syrian Central Bank, Lebanon’s Fransabank, and Syrian fintech company Paymera, while Mastercard and QNB Group completed the country’s first end-to-end international Mastercard payment. This highlighted the country’s gradual reintegration into global financial and payment networks after years of isolation

Ending nearly 50 years of isolation

Syria was added to the U.S. list of SST in 1979 under President Hafez al-Assad, after Washington accused Damascus of repeatedly supporting militant organizations engaged in international terrorism. The designation remained throughout the rule of Bashar al-Assad and survived years of civil war, international sanctions, and diplomatic isolation.

Being listed as a state sponsor of terrorism carried sweeping consequences. It restricted U.S. foreign assistance, prohibited defense exports and military sales, imposed strict controls on dual-use technologies, and severely limited financial transactions involving Syrian institutions. More importantly, the designation discouraged international banks, investors, and multinational corporations from conducting business in Syria due to significant legal and compliance risks.

With Syria’s removal from the list, only Iran, Cuba, and North Korea remain designated by Washington as state sponsors of terrorism.

The U.S. Treasury described the decision as part of President Trump’s broader commitment to supporting Syria’s reconstruction. Treasury Secretary Scott Bessent stated that the move would encourage greater investment in Syria and contribute to both political and economic stability.

Syrian leadership welcomes a historic turning point

President Ahmad al-Sharaa described the U.S. decision as a historic milestone marking the end of a painful chapter in Syria’s modern history.

In a televised address, he declared that Syria was “tearing away a page from its painful past” and embarking on a new era focused on development, reconstruction, and national renewal. He thanked President Donald Trump as well as countries that had supported Syria’s diplomatic rehabilitation, describing the lifting of restrictions as an opportunity to serve the Syrian people and rebuild the nation.

Foreign Minister (FM) Asaad al-Shibani likewise welcomed the announcement, pledging continued efforts to eliminate the legacy of Syria’s international isolation while promoting transparency, mutual respect, and economic cooperation.

The Syrian Foreign Ministry characterized the U.S. decision as the beginning of a new chapter in Syria’s international relations and expressed hope that it would strengthen regional stability while facilitating reconstruction efforts.

Nevertheless, the decision does not eliminate all challenges facing Syria. The country continues to confront enormous reconstruction costs, lingering security concerns, political uncertainty, and targeted sanctions against specific individuals and organizations. Whether this diplomatic breakthrough ultimately translates into sustained economic recovery and long-term stability will depend on the Syrian government’s ability to maintain reforms, strengthen institutions, attract investor confidence, and continue cooperating with the international community.