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Syria's removal from US terror list opens door to investment

Syria's removal from US terror list opens door to investment
Politics · 2026
Photo · Anna Schroeder for European Pulse
By Anna Schroeder Brussels Bureau Chief Aug 25, 2026 3 min read

Interim President Ahmed al-Sharaa welcomed Washington's decision to strike Syria from its list of state sponsors of terrorism, a step that eases sanctions and opens the door to much-needed investment as the country struggles to rebuild after more than a decade of civil war.

"Today, Syria shakes off a dark stain and tears away a painful chapter of its past to embark on a path of development, reconstruction and rebuilding," al-Sharaa said in a speech early Tuesday.

The US State Department announced the delisting on Monday, rescinding a designation that had been in place since December 1979, during the Carter administration, over the Assad regime's support for Palestinian armed groups and its alliance with Tehran. The Treasury Department simultaneously announced corresponding sanctions relief.

Al-Sharaa expressed his "many thanks to the president of the United States of America, Donald Trump, and to all the friendly and supportive nations that stood by us."

The move also saw the US revoke the terrorist designation of Hay'at Tahrir al-Sham (HTS), the group al-Sharaa once led and which spearheaded the offensive that toppled Bashar al-Assad in 2024. HTS, formerly the al-Nusra Front, was the Syrian branch of al-Qaeda before breaking ties in 2016.

A path to prosperity

US Secretary of State Marco Rubio said the action "eliminates the final major barriers for private sector investment in Syria and promotes Syria's economic recovery and reintegration into the global economy." He described it as giving Syria "a path to prosperity."

Syrian Foreign Minister Assad al-Shaibani called the delisting a "historic milestone" and said it reflected "the new Syrian state's commitment to international peace and security." Finance Minister Mohammed Barnieh, quoted by the official SANA news agency, described it as "a success for Syrian diplomacy" that "opens a major and long-awaited door to strengthening Syria's integration into the global economic and financial system, attracting investment and modern technologies, and supporting development opportunities."

The designation had carried a range of restrictions, including bans on US foreign assistance and arms exports, controls on dual-use exports, and limits on financial and commercial dealings. Its removal is expected to encourage private investors, including European firms, to consider projects in Syria.

The World Bank estimates direct physical damage to Syrian infrastructure at around $108 billion (€92.5 billion), with total reconstruction needs of about $216 billion (€185 billion) — roughly ten times Syria's entire GDP in 2024. More than a decade of war killed an estimated 500,000 people and displaced about half of the country's pre-war population of 22 million, most of whom have not returned.

Al-Sharaa met President Trump at the White House in November 2025, a visit that accelerated the thaw between the two countries. The US had already announced in July its intent to delist Syria, a signal of confidence in the new leadership.

For many Syrians returning home, the challenges remain daunting, as reports from the ground have shown. Meanwhile, European governments are watching closely, with some, like Germany, focusing on security issues linked to Syrian communities.

With Syria removed, only Cuba, Iran, and North Korea remain on the US state sponsors of terrorism list.

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