During a speech in Riyadh, U.S. President Donald Trump announced the lifting of sanctions imposed on Syria, stating: “I will issue orders to lift sanctions on Syria in order to provide them with an opportunity.”
The Syrian Foreign Ministry swiftly issued a statement welcoming the move: “The Syrian Arab Republic welcomes President Donald Trump’s recent statements regarding the lifting of sanctions that were imposed on Syria in response to war crimes committed by the Assad regime.”
For years under the rule of the Assad family, Syrians endured the impact of U.S. sanctions, which deprived them of access to various services, particularly in the digital sphere, including the internet, resulting in a state of near-total isolation, especially following the imposition of the Caesar Act.
Shortly after what many described as a “historic” announcement, Syrian Economy Minister Nidal al-Shaar expressed Damascus’s deep gratitude to Saudi Arabia for its support in the efforts to lift U.S. sanctions. He described Trump’s decision as a new beginning for Syria’s economy, emphasising that the move opens the door to a promising phase of reconstruction and investment opportunities.
The initial effects of the U.S. decision were immediately felt in Syria’s financial markets, as the Syrian pound saw a sharp rise against the U.S. dollar on the parallel market, appreciating by around 10%. Currency-tracking platforms reported the lira’s exchange rate climbing to 9,000 SYP to the dollar, with a purchase price of 8,800 SYP.
For the first time in decades, the Syrian economy is poised to enter a phase of integration into the global economy, especially if the European Union follows Washington’s lead by lifting sanctions on additional sectors. The current U.S. sanctions relief extends for only one year, but could lay the groundwork for broader change. The easing of restrictions is expected to facilitate import and export operations, enable Syrians abroad to support the national economy more effectively, and potentially foster domestic political openness and a degree of stability conducive to attracting foreign investment.
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“Catastrophic” Economy
Tarek Ajeeb, a researcher in political affairs and international relations, stated in the eleventh issue of the print edition of +963 that a full and genuine lifting of sanctions, as many Syrians hope, would mark an exit from the “catastrophic” economic and living conditions the country and its people have endured.
He explained that both the Syrian government and the general population have suffered for decades under sustained economic pressure, which over the past fifteen years escalated into what he described as a “disastrous” situation, largely due to the sanctions imposed on the Assad regime. Syrians, he noted, bore the brunt of these measures, especially following the enforcement of the Caesar Act.
According to Ajeeb, the implementation of the Caesar Act by the United States significantly worsened living conditions for ordinary Syrians, while having little impact on the ousted regime itself. He argued that the regime had monopolised the national economy through the trade of Captagon, flooding Syria, neighbouring countries, and even Europe with the drug, which was reportedly produced by military units and managed by members of the ruling family.
Ajeeb noted that the Syrian economy continued to suffer even after the fall of the regime and the rise of al-Sharaa to power, as international and even some Arab countries remained hesitant to lift sanctions, opting instead to monitor the early actions of the new transitional government.
He described the American decision to lift sanctions as a “high-level achievement” and a historic economic turning point, emphasising that it would positively affect the lives of Syrian citizens at every level and greatly accelerate the revival of the country’s economy.
He added that Syrian citizens would soon begin to notice tangible improvements through increased cash flow, commodity availability, financial transfers, and the initiation of large-scale investments, particularly in reconstruction, infrastructure, energy, and strategic development sectors.
Ajeeb concluded by describing the Syrian people as economically stricken and besieged, desperately lacking the necessities of life. He argued that their living conditions could not have improved while sanctions remained in place. Now, however, with the sanctions lifted, the country has an opportunity for recovery, but it will require practical steps to move forward.
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Recovery of All Sectors
Hazem al-Ghabra, a former advisor to the U.S. State Department, highlighted the severe impact of foreign exchange shortages on the Syrian people, noting that Syria’s isolation from the SWIFT system, the global standard for secure financial transactions, has severely restricted the country’s access to international trade and payments.
In remarks to +963, al-Ghabra explained: “There are many major companies that avoid engaging with Syria due to the complexities of sanctions, even when licenses technically exempt certain restrictions. This has deterred them from entering Syrian markets.”
He noted that sanctions have particularly burdened key sectors, especially energy, an essential foundation for production and daily life. “Electricity and energy are the backbone of modern civilisation,” he said, “yet they remain insufficiently available to Syrians.”
Al-Ghabra stressed that the initiation of sanctions relief has sparked a sense of internal and international relief, adding: “The situation in Syria is moving in a positive direction. The fact that the decision came from the United States, the global leader, may encourage European and other countries to follow suit and support the Syrian government.”
U.S. sanctions on Syria date back to the late 1970s, significantly intensifying after 2003 and reaching their peak following the outbreak of the Syrian conflict in 2011. During that period, Washington issued successive waves of sanctions targeting prominent figures in the former regime, including ousted president Bashar al-Assad, his family members, and key government entities such as the Central Bank of Syria, the Ministries of Defence and Interior, and major military and security institutions.
In addition to targeting individuals and state entities, the sanctions also struck the oil sector, banning the export and import of Syrian oil and obstructing foreign investment in energy, banking, and financial transfer services. These measures effectively isolated Syria from the international financial system, compounding the country’s economic crisis.
