What's next for Syria's economy as US removes nation from state terror list

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Syrian President Ahmed al-Sharaa speaks during the opening ceremony of the Damascus International Fair in Damascus, Syria, August 26, 2026.
Syrian President Ahmed al-Sharaa speaks during the opening ceremony of the Damascus International Fair in Damascus, Syria, August 26, 2026.
(photo credit: KHALIL ASHAWI / REUTERS)

The United States announced on Aug. 24 that it was rescinding Syria’s designation as a State Sponsor of Terrorism, ending a status that had been in place since 1979 and removing an additional layer of legal restrictions that had shaped the country’s relationship with the international financial and commercial system for decades.  

This move opened a new chapter for the Syrian economy, but it does not mean money and investment will flow into the country overnight. 

The decision is part of a broader US effort to ease restrictions on Syria following the fall of the former government. The United States also delisted Hay’at Tahrir al-Sham, the group led by President Ahmed al-Sharaa before he took office, as a Specially Designated Global Terrorist organization in the same announcement. Washington ended its comprehensive Syria sanctions program in 2025, and the Caesar Act was repealed in December of the same year. 

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