Syria’s economy poised for improvement after US sanctions removal

What the report says

Al Jazeera reports that Syria’s formal removal from the United States’ list of “state sponsors of terrorism” has cleared a major remaining obstacle to the country’s return to the global financial system. The delisting followed a July 8 announcement by US President Donald Trump, a 45-day congressional review period, and the completion of the formal process on Monday. The move comes after years of US sanctions and a long period of isolation that intensified during Syria’s nearly 14-year war.

The article says analysts see the decision as especially important for banking and cross-border finance. They told Al Jazeera that the designation had discouraged international banks and investors because of legal and compliance risks, even after some other restrictions had already been eased. The report notes that the Central Bank of Syria reactivated an account at the Federal Reserve Bank in New York in March, and that the World Bank recently approved a $100 million grant for financial sector modernization.

Despite the policy shift, Al Jazeera says Syria’s economy remains fragile, with most of the population still living in poverty. Experts quoted by the outlet said improvements are likely to be gradual rather than immediate, and will depend on stability, governance, and anti-corruption reforms. The article adds that any recovery will also depend on whether banks and investors view Syria’s financial controls and political environment as credible enough for renewed engagement.