The United States removed Syria from its list of state sponsors of terrorism on Monday, clearing what Damascus called the last major barrier to foreign investment. The move follows a 45-day congressional review after President Trump notified lawmakers in July of his intent to rescind the designation.
The United States removed Syria from its list of state sponsors of terrorism on Monday, lifting what Damascus says was the last major impediment to investing in the country. The removal took effect after a 45-day congressional review period triggered when Trump formally notified Congress on July 8 of his intention to rescind the designation.
Syrian Foreign Minister Asaad al-Shibani told Reuters that the government hoped removing what he called the "last obstacle" would help reconnect Syria to the global financial and economic system and boost investment. According to Reuters: "There is no longer any obstacle to investment, doing business and rebuilding economic life", he said.
A four-decade-old designation lifted
Syria had been on the terrorism sponsor list since 1979, when Washington accused the government of former President Hafez al-Assad of supporting militant groups. The designation remained throughout the rule of his son Bashar al-Assad, who was toppled by rebels led by current President Ahmed al-Sharaa in December 2024.
Monday's announcement also removed the designation of the Nusrah Front as a Specially Designated Global Terrorist organization, leaving Cuba, Iran and North Korea as the three countries designated by Washington as state sponsors of terrorism. U.S. Secretary of State Marco Rubio said the actions were taken in recognition of the positive actions and further commitments by the Syrian government under al-Sharaa to fully distance Syria from acts of international terrorism.
A lingering deterrent even after sanctions eased
Trump's administration terminated comprehensive U.S. sanctions on Syria in July 2025, while maintaining targeted sanctions against Assad and his associates, rights abusers, drug traffickers, Islamic State and al Qaeda affiliates and Iranian proxies. The Treasury has since said American financial institutions can provide services to Syria, process payments involving Syrian banks and establish correspondent banking relationships with them, provided sanctioned parties are not involved.
Yet the terrorism designation remained a source of legal and compliance risk for firms considering entering Syria, whose government is seeking billions of dollars in investment to rebuild after nearly 14 years of war. Signs of interest had grown ahead of the removal: Syria's finance ministry said this month that Finance Minister Mohammad Yisr Barnieh held talks with Bank of America executives over potential cooperation and Syria's reintegration into the international financial system, and bank officials expressed willingness to visit Syria and continue discussions.
Deepening ties with Washington
Trump notified Congress of his decision after meeting Sharaa in Ankara in July, telling the Syrian president in a letter seen by Reuters that he had promised to remove all barriers preventing Syria from rebuilding. The delisting followed months of negotiations between Damascus and Washington over Syria's economic and foreign policy.
Reuters reported this month that Damascus agreed to drastically reduce imports of Russian oil during discussions with Washington over lifting the terrorism designation, according to three sources familiar with the talks. Trump has increasingly embraced Sharaa, the former commander of al Qaeda's Nusra Front who broke ties with the global jihadist network in 2016 and led the rebel coalition that overthrew Assad. Washington has praised cooperation by Sharaa's government against Islamic State and said easing restrictions is intended to give Syria an opportunity to stabilise, attract investment and rebuild.
Source: Reuters via Investing.com
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